An Arkansas sales tax bond is a gross receipts tax security bond required of a person who wants to sell in Arkansas but does not keep a permanent business location in the state. Under Arkansas Gross Receipts Tax Rule GR-88, “every person desiring to engage in business within this State and who does not maintain a permanent business within this State” must obtain a retailer’s permit and post a bond “sufficient to cover the anticipated tax liability during the period the business is to operate in this State, not to exceed one year.” This is not a bond that every Arkansas retailer posts. It targets transient, itinerant, and out-of-state sellers so the state can collect the gross receipts (sales) tax they are expected to owe. A surety bond, a cash bond, or the assignment of a certificate of deposit in an Arkansas financial institution are all acceptable ways to satisfy it.
| Item | Detail |
|---|---|
| Who requires it | The Arkansas Department of Finance and Administration (DFA), through the Secretary of DFA, under Gross Receipts Tax Rule GR-88 |
| Who must post it | A person engaging in business in Arkansas who does not maintain a permanent business location in the state (transient, itinerant, and out-of-state vendors). Businesses with a permanent Arkansas location generally get a permit without a bond. |
| Governing law | Arkansas Gross Receipts Tax Rule GR-88 (Ark. Admin. Code Agency 006.05), authorized by Ark. Code Ann. §§ 17-49-109, 26-52-105, 26-52-201, and 26-52-203 |
| Official form | [VERIFY against DFA Sales and Use Tax Section: DFA registers permits online through ATAP and does not publish a numbered standalone sales tax bond form; confirm the exact bond form or format DFA accepts and where it is filed] |
| Bond amount | An amount sufficient to cover the anticipated gross receipts tax during the period the business operates in Arkansas. GR-88 states no fixed minimum or maximum and no set multiple; DFA estimates the amount from expected activity. |
| Premium basis | [CLIENT FLAG: insert All n One premium structure, e.g. percentage of bond amount by credit tier] |
| Coverage term | The period the business will operate in Arkansas, not to exceed one year |
| Obligee | The State of Arkansas, through the Department of Finance and Administration |
How much is the bond, and how is the amount set?
GR-88 ties the bond amount to the tax the state expects to collect, not to a flat schedule. The bond must be “sufficient to cover the anticipated tax liability during the period the business is to operate in this State.” In practice that means DFA looks at your expected Arkansas gross receipts (sales) for the time you plan to operate and sets the bond high enough to cover the gross receipts tax on those sales.
| Situation | How the bond amount is set |
|---|---|
| Transient or out-of-state seller (the standard GR-88 case) | An amount sufficient to cover the anticipated gross receipts tax during the operating period. GR-88 sets no fixed minimum or maximum and no multiple of monthly tax; DFA estimates it from your expected Arkansas sales. |
| Longer or open-ended operation | The bond still covers only the anticipated tax for a period “not to exceed one year.” A new bond or renewal is needed to keep selling beyond that term. |
| Business with a permanent Arkansas location | Generally no bond. The business registers for a gross receipts tax permit without posting security under GR-88. |
| At-risk or delinquent taxpayer | [VERIFY against Ark. Code Ann. Title 26, Chapter 18 (State Tax Procedure) and DFA guidance: DFA has separate authority to protect collection from taxpayers who are delinquent, are leaving the state, or whose liability exceeds any bond on file. Confirm whether DFA imposes a distinct security or bond requirement in these cases and on what terms before stating it here.] |
Because the amount is estimated per applicant rather than fixed by statute, the exact dollar figure comes from DFA when you register. [VERIFY against DFA Sales and Use Tax Section: confirm how DFA communicates the required bond amount to a transient or out-of-state applicant (for example, at registration through ATAP or by written notice).]
What does the bond cover?
The bond guarantees that the state gets paid the gross receipts (sales) tax the bonded seller collects or owes while operating in Arkansas. If the seller collects sales tax from Arkansas customers and fails to remit it, or otherwise leaves an unpaid gross receipts tax liability for the covered period, the state can make a claim against the bond up to its full amount.
Key points about coverage:
- It protects the State of Arkansas and its tax collection, not your customers.
- It covers the anticipated gross receipts tax for the specific period the business operates, up to the bond amount.
- GR-88 lets you satisfy the requirement with a surety company bond, a cash bond, or the assignment of a certificate of deposit in an Arkansas financial institution. A surety bond lets you avoid tying up cash or a CD.
- A bond is not a substitute for filing and paying your tax. You still file returns and remit tax; the bond is the state’s backstop if you do not.
How much does the bond cost?
You do not pay the full bond amount. You pay a premium, which is a small percentage of the bond amount and is set mainly by the bond size and your credit.
[CLIENT FLAG: insert All n One Insurance pricing for the Arkansas sales tax bond, e.g. premium rate range by credit tier and one worked example such as “a $X bond for $Y.” Do not publish a premium number until All n One provides it.]
Because GR-88 sizes the bond to your anticipated Arkansas tax rather than a fixed amount, your premium scales with the bond amount DFA requires. [CLIENT FLAG: confirm whether All n One quotes this bond on a flat fee or as a percentage of the bond amount.]
Is this the same as a sales tax permit?
No. The permit and the bond are two different things.
- The Arkansas gross receipts tax permit (sales tax permit) is what authorizes you to sell taxable goods and services in Arkansas. Every seller needs one, and it carries a one-time registration fee of $50, paid when you register through the Arkansas Taxpayer Access Point (ATAP). [VERIFY against DFA “Starting a New Business in Arkansas” and the DFA Register for a Tax Account page: confirm the $50 nonrefundable permit fee amount is current.]
- The Arkansas sales tax bond is the extra security a transient or out-of-state seller must post under GR-88 in order to get that permit. A business with a permanent Arkansas location generally gets the permit without a bond.
It is also different from the assessment or appeal bond in the Arkansas tax procedure rules. That separate bond (in double the amount of a tax deficiency, interest, and penalty) is used to stay a final assessment while a taxpayer sues in circuit court. It is a litigation bond, not the permit bond described on this page.
How do I get bonded and file for my Arkansas sales tax permit?
- Register for your Arkansas gross receipts (sales) tax account through the Arkansas Taxpayer Access Point (ATAP) at atap.arkansas.gov, or contact the DFA Sales and Use Tax Section. Indicate that you do not maintain a permanent Arkansas location if that is the case.
- Find out the bond amount DFA requires based on your anticipated Arkansas sales for the period you plan to operate (up to one year). [VERIFY against DFA Sales and Use Tax Section: confirm exactly how and when DFA states the required amount to the applicant.]
- Get a surety bond quote. Apply with All n One Insurance for the required amount. Approval and premium depend mainly on the bond size and your credit.
- Receive and sign your bond. All n One issues the bond naming the State of Arkansas (through DFA) as obligee.
- File the bond with DFA and complete your permit. [VERIFY against DFA Sales and Use Tax Section: confirm the filing method and the exact bond form or format DFA accepts.]
- Renew before the term ends if you will keep operating. The bond covers a period not to exceed one year, so a new or renewed bond is needed to keep selling beyond that term.
Frequently asked questions
Who has to post an Arkansas sales tax bond?
A person who wants to sell in Arkansas but does not maintain a permanent business location in the state. GR-88 applies to transient, itinerant, and out-of-state sellers. A business with a permanent Arkansas location generally registers for a permit without posting this bond.
How does Arkansas decide how big my bond must be?
The bond must be sufficient to cover your anticipated gross receipts (sales) tax during the period you operate in Arkansas. GR-88 sets no fixed minimum, maximum, or multiple, so DFA estimates the amount from your expected Arkansas sales.
How long does the bond last?
It covers the period the business will operate in Arkansas, up to a maximum of one year. If you keep operating beyond that period, you need a new or renewed bond.
Can I post cash or a CD instead of a surety bond?
Yes. GR-88 allows a surety company bond, a cash bond, or the assignment of a certificate of deposit in an Arkansas financial institution. A surety bond is usually preferred because it does not tie up your cash or a CD.
Do permanent Arkansas businesses need this bond?
Generally no. The GR-88 bond targets sellers without a permanent Arkansas location. A business with a permanent location in the state typically gets its gross receipts tax permit without posting this bond.
Does the bond replace my sales tax or my permit?
No. You still register for a permit and file and pay your gross receipts tax. The bond is the state’s backstop if you collect tax and fail to remit it or leave an unpaid liability for the covered period.
What happens if there is a claim on my bond?
If you fail to remit the gross receipts tax you owe for the covered period, the state can claim against the bond up to its full amount. You would then owe the surety back for what it pays out, which is why credit matters when you apply.
How much will the bond cost me?
[CLIENT FLAG: insert All n One premium guidance, e.g. a percentage-of-bond-amount range by credit tier and a worked example. Do not publish a premium figure until All n One provides it.]
