Fayetteville Arkansas, University of Arkansas--Old Main Overview

Fayetteville Arkansas, University of Arkansas--Old Main Overview
Overview of Fayetteville, AR

Saturday, July 16, 2011

Savings for Everyone August 6-7—Sales Tax Holiday

Everyone enjoys a nice holiday. The word holiday evokes family gatherings, perhaps a paid day off from work, or a trip to see grandma (or the grand kids).

How about a holiday from sales taxes on everyday items? This is a holiday unlike all others. It’s a real break for families.

For 48 hours, beginning 12:01 a.m. August 6th and ending at 12:00 p.m. August 7th, state and local taxes will not be collected on a long list of items families normally buy, especially for school. For example, all clothing costing less than $100 per item will be exempt from any sales tax. Accessories and equipment costing less than $50 per item will also be exempt. I would venture a guess that not many families are planning to buy articles of clothing costing more than $100 each.

The Arkansas Legislature passed this law in 2011 as a way to keep shoppers from going to neighboring states to take advantage of sales tax holidays there, especially at get-ready-for-back-to-school shopping.

I think this break was long overdue. Families can now do their shopping at Arkansas merchants and save gasoline at the same time.

The list of items exempt from sales tax on August 6-7 is quite generous. It includes most every normal school need you can think of: books, binders, book bags, pens, calculators, notebooks, lunchboxes, and even certain art supplies. Of course, textbooks, maps and reference materials are also included.

Many items not usually associated with back to school needs are also exempt from sales taxes on the holiday. I’ve previously mentioned items of clothing less than $100 each. The tax-exempt items include accessories such as cosmetics, wigs, wallets and purses, jewelry and watches, belts, umbrellas, and more. Accessories are limited to items costing less that $50 each.

The sales tax holiday is such a boon for average people. Between state and local taxes, most of us in NW Arkansas pay 9.25% sales tax on every item listed above. The easiest way to comprehend the savings is to round the tax to 10%. If you spend $100 on the holiday weekend, you save $10 in tax. If your local store were offering a 10% discount, people would be lining up to take advantage of the sale.

It’s interesting to note the list of tax-exempt items includes things most of us would probably overlook when getting ready for back-to-school shopping. I would not have thought about diapers, receiving blankets, swimsuits, uniforms and neckties.

So mark your calendars now for big savings August 6-7. It’s the only weekend all year where you can have a tax-free holiday.

For more information, click here.

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