What to know about the Arkansas sales tax holiday weekend set for Aug 2 & 3
LITTLE ROCK, Ark. – Arkansas families hoping to save money on back-to-school expenses can take advantage of the annual Aug. 2 & 3 sales tax holiday weekend.
State or local taxes will not be charged on certain items purchased that weekend for students getting ready for the new school year. The savings apply to purchases made online or in person, the latter provided they are shipped to an address in Arkansas.
Many categories of items fall under the tax-free holiday, but two categories have per-item price limits. Clothing for back-to-school is tax-free as long as the individual item costs $100 or less. Additionally, accessories like watches, handbags, or jewelry are tax-free if they cost $50 or less.
State law mandates that any item priced above the limits for these two categories will be taxed on its full value, not just the amount exceeding the limit.
Other categories without item price limits include school instruction materials, school classroom or art supplies and certain electronics. The school supplies category is fairly broad, extending to backpacks, paper, binders, notepaper, pencils, rulers and similar items.
Electronics were added to the tax-free weekend in 2021. This includes calculators, desktop & laptop computers, computer accessories like printers or monitors, tablets, e-readers and even cell phones, though video games and gaming systems will still be taxed.
Department of Finance and Administration spokesperson Scott Hardin noted that shoppers may be surprised to find some of the items on the no-tax list, including costumes, watches, wigs and hair pieces, cosmetics, diapers, and sunglasses. He believes picking up some of these items during the tax-free holiday could offer families big savings.
“Since businesses are not required to submit taxes or sales details for the weekend, we don’t have a specific financial impact,” Hardin said. “However, it is certainly safe to say Arkansans are saving several million dollars over the two-day period.”
Although there are many items to save on during the weekend, some will remain taxable. Some of those include sewing supplies, protective equipment, and sports equipment. A full list is available on the DFA website.
Arkansas Legislature Act 757 established the sales tax holiday, effective beginning in 2011.
from KARK https://ift.tt/O39bwz0
0 Response to "What to know about the Arkansas sales tax holiday weekend set for Aug 2 & 3"
Post a Comment