Department of Finance & Administration
|To:||Fort Smith Auditors & Supervisor||Date:||April 9, 1986|
|From:||Lisa C. Triplett, Auditor||Copies:|
|Subject:||Fort Smith City Sales Tax - Single Transaction|
According to Dennis Hunt of the City of Fort Smith, sales of major equipment or machinery that qualify as a single transaction will be defined as follows:
Any individual piece of machinery or equipment which costs $2500 or more will be considered a single transaction.
|3 Computer Terminals||@ $3000. each||$9000.|
|Local Sales Tax Due||$ 75.|
The $2500 cap will apply to each terminal.
Example where each item does not quality as a single transaction:
|3 Typewriters||@ $2000. each||$6000.|
|Local Sales Tax Due||$ 25.|
The $2500 cap will apply to the total invoice amount.
LOCAL CITY AND COUNTY SALES AND USE TAX INSTRUCTIONS
Local taxes are collected and remitted similar to the state sales and use tax except for the fact that the computation of local tax has a ceiling on the gross receipts of $2,500 per single transaction. Because cities and counties have different rates and different maximums, below is a chart that list the maximum tax for different rates on a single transaction:
SINGLE TRANSACTION MAXIMUM TAX RATES