Arkansas Code Title 26. Taxation § 26-77-201. Mercantile businesses

(a) Cities of the first class are authorized to license, regulate, and tax the privilege of engaging in the mercantile business in their cities. However, this section shall not apply to persons who remain in the mercantile business for a continuous period of six (6) months.

(b) Cities of the first class in order to determine who are or may be liable to pay the license or tax may require all persons who enter into the mercantile business in their cities to execute a bond to the city with good and sufficient security, to be approved by the city clerk thereof, conditioned that, if the merchant does not remain in continuous business for a period of six (6) months or longer, then the amount of the license or tax will be paid to the city.

(c) This section shall not apply to or be construed to include any vegetables, grain, fruit, or other farm products or livestock of any description.