State of Arkansas – Candy and Soda No Longer a Food for Tax Purposes
Happy New Year from the State of Arkansas!
Effective January 1, 2018, The Arkansas Department of Finance and Administration is implementing Act 141 which removes candy and soft drinks from the definitions “Food” and “Food Ingredients” and applies the full 6.5% State sales and use tax rate to these items sold at retail. Before January 1st, candy and soda enjoyed the reduced “food” tax rate of 1.5%. City and County sales and use tax rates continue to apply on these items sold at retail.
Candy is defined as a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, or other ingredients or flavorings in the form of bars, drops, or pieces.
Soft drink means a nonalcoholic beverage that contains natural or artificial sweeteners. A soft
drink does not include a beverage that contains milk or milk products, soy, rice, or similar milk
substitutes, or that is greater than fifty percent (50%) of vegetable or fruit juice by volume.
For more information on the Arkansas state tax rate check our this article.
Teresa Farnsworth is the Account Manager at Zip2Tax. She works closely with her clients to make sure they have just what they need to collect the right amount of sales or use tax in the U.S. and Canada.