In Arkansas, a locksmith must adhere to the Gross Receipt Sales Tax law, which combines Arkansas and local tax.
The sales tax your business charges depends on the location of your business’s service provision.
That means if you helped a homeowner regain access to their house in Hope, AR after they locked themselves out, you would combine the local sales tax value of Hope with the Arkansas state sales tax to determine the percentage of sale tax.
If you helped a teen locked out of their car in Ft. Smith, AR, though, you would charge the local sales tax in Ft. Smith combined with the state sales tax.
This is true even if your business is located in Little Rock.
You also must obtain an Arkansas Sales and Use Tax Permit before you open your business.