State of Arkansas – Candy and Soda No Longer a Food for Tax Purposes

by Teresa Farnsworth December 29, 2017

State Arkansas

State Arkansas

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 Food taxdefinitions “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 Countysales and use tax rates continue to apply on these items sold at retail.  


Candy is defined as apreparation 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
Teresa Farnsworth

Teresa Farnsworth is the VP / 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. Questions? Chat with Teresa on the Web site, the Subscriber User Portal, or call her direct line; 866-492-8494.

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