How To Start a Business in Fayetteville

City Tax

Fayetteville has a 2% city sales tax.  If your business is a hotel, motel, or restaurant then there is an additional 2% HMR tax that will apply.  If your business serves alcohol, there is another city tax, and you must apply for both a city and state alcohol permit and you will be required to file a supplemental beverage tax report and submit the taxes collected to the city.

  • City Sales Tax - Fayetteville has a 2% city sales tax. No matter what business you are in, the city sales tax is always 2%.

Example Sales Tax Scenarios:

Grocery Store Tax Structure:

State Sales Tax           1.50%
(grocery store rate)

County Sales Tax        1.25%

City Sales Tax             2.00%

Total                  4.75%

Regular Retail Tax Structure:

State Sales Tax          6.00%
(grocery store rate)

County Sales Tax       1.25%

City Sales Tax            2.00%

Total                  9.25%

Sales Tax and Hotel, Motel, and Restaurant (HMR) Tax Structure:

State Sales Tax           6.00%
(grocery store rate)

County Sales Tax        1.25%

City Sales Tax             2.00%

City HMR                     2.00%
(Hotel/Motel & Restaurant)

Total                11.25%