Taxes & Incentives

Paragould has a competitive ad valorem and excise tax structure, falling near the median in Arkansas in both local excise taxes and in local ad valorem property taxes. About 75 percent of the property taxes assessed go to fund public schools. Paragould has the ability to negotiate ad valorem property tax abatements at a level to be determined on a case-by-case basis, up to 65 percent of the taxes on real property and equipment.


Tax Structure

 

Paragould Sales Tax

State of Arkansas 6.50%
County 1.75%
City .75%
Total Sales Tax 9.0%

Paragould Sales Tax on Food

State of Arkansas 1.50%
County 1.75%
City .75%
Total Sales Tax 4.0%

Manufacturing Utility Rate

State of Arkansas .625%
County 1.75%
City .75%
Total Sales Tax 3.125%

Information on Exemptions from Sales Tax: click here


Real Estate - Personal Tax Rate

$44.49 per Assessed Value (Greene County Tech School District inside the city limits of Paragould) per thousand.
  RATE
County General 2.60
County Road 1.00
Library 1.00
Paragould City 2.00
Paragould Fire .40
Greene County Tech School 37.49
Total Millage 44.49

Total millage for the Paragould School District inside the city limits of Paragould - 44.62

Total millage for the Marmaduke School District inside the city limits of Marmaduke - 41.10

Total millage rate times assessed value (20% of appraised value).

 


State Corporate Income Tax: 1.0% - 6.5%

Additional Information


State Franchise Tax: The Arkansas Franchise Tax is an annual tax imposed on Arkansas corporations for the grant of charter privileges and on non-Arkansas corporations for the privilege of doing business in Arkansas.

Rate & Additional Information


Unemployment Insurance Rate (New Business): Rate & Additional Information


Incentives

Local Incentives: Paragould is committed in assisting companies with relocation and expansion in our community.

The city has a permanent quarter-cent sales tax which can be used toward incentives, including infrastructure assistance, training assistance or land purchase, as negotiated with company on a case-by-case basis. Local sales taxes on building materials and other items relating to construction and start-up may be rebated through the Arkansas Tax Back incentive (see below).

INVESTMENT INCENTIVES

State Investment and Job Creation Incentives:

The state of Arkansas offers incentives for new and expanding businesses.

TAX BACK: Sales and use tax refund for building materials and taxable machinery and equipment for new and expanding industries which also are creating jobs. Local endorsement resolution required.

ADVANTAGE ARKANSAS: State income tax credit based on payroll of new, full-time, permanent employees hired during expansion period.

CREATE REBATE: Annual cash payments for a period of years based on payroll for new, permanent, full-time jobs. Discretionary incentive available for major projects in an extremely competitive situation with approval of Governor and Director of the AEDC.

ARKPLUS: State income tax credit of 10 percent of total investment amount, with nine-year carry forward. Discretionary incentive available for major projects in an extremely competitive situation with approval of Governor and Director of the AEDC.

INFRASTRUCTURE GRANTS:  AEDC shares the cost of project infrastructure needs by committing grants from state and federal infrastructure funds. The amount of assistance committed is dependent upon the strength of the company, number of jobs, average wage, project investment and costs associated with facility/site improvements. 

TARGETED BUSINESS INCENTIVES: For Knowledge-based businesses, providing refunds of sales and use taxes paid on building materials, machinery and equipment associated with project, as well as transferrable income tax credits based on payroll, investment and research and development expenditures. Offered at discretion of AEDC Director.

RESEARCH AND DEVELOPMENT INCENTIVES: Arkansas’s Research and Development incentive programs are intended to provide incentives for university-based research, in-house research, and research and development in start-up, technology-based enterprises. Tax credits under these programs may be carried forward for nine years and may offset up to 100% of a business’ tax liability in a given year.

EQUITY INVESTMENT TAX CREDIT: Transferrable state income tax credit on investment in technology based businesses. Offered at discretion of AEDC director.

NON-PROFIT INCENTIVES: Annual 4 percent rebate on payroll of new, permanent, full-time employees hired by national or regional non-profit headquarters locating or expanding in Arkansas. Offered at discretion of AEDC director.

TOURISM DEVELOPMENT INCENTIVES: State sales and use tax and income tax credits for approved tourism attraction projects. Offered at discretion of AEDC director.

SPECIALIZED INCENTIVES: are available in the areas of Digital/film production; tuition reimbursement; construction of onsite child care facilities; and purchase of recycling equipment.

DIGITAL PRODUCTION/FILM REQUIREMENTS:  Each project submitted for funding under this program is evaluated on a case-by-case basis.

TUITION REIMBURSEMENT:  State income tax credit to eligible companies for reimbursements they make on behalf of employees for approved educational expenses. The employees must successfully complete the course at an accredited Arkansas post-secondary educational institution.

COMPANY CHILDCARE FACILITIES:  Tax incentive for businesses that provide childcare for their employees.

RECYCLING EQUIPMENT:  An income tax credit for the purchase of equipment used exclusively for reduction, reuse or recycling of solid waste material for commercial purposes, whether or not for profit, and the cost of installation of such equipment by outside contractors.

BOND FINANCING: approved by voters as Amendment 82 to the Arkansas Constitution allows state to issue General Obligation Bonds to finance infrastructure costs associated with eligible companies locating or expanding in Arkansas.

Additional Information