Arkansas Sales Tax on Leases and Rentals Arkansas: Sales Tax Handbook


Are Leases and Rentals subject to sales tax?

While Arkansas' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of leases and rentals in Arkansas, including motor vehicles and tangible media property. To learn more, see a full list of taxable and tax-exempt items in Arkansas.

Motor Vehicles
In the state of Arkansas, any tax which is due on lease payments made to the lessor during the lease term. Any rentals will be subject to a motor vehicle rental vehicle excise tax in addition to the sales and use tax.

Tangible Media Property
In the state of Arkansas, any rentals lasting less than 30 days, requires a tax paid on the basis of rental payments to the lessor, whether or not the lessor has paid sales or use tax at the time of the acquisition of property.

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