The Arkansas Department of Finance and Administration has issued Rule 2012-2 Arkansas Sales Tax Holiday. The regulation explains the following general provisions:
- Defined items shall be exempt from state and local Arkansas sales and use tax during the sales tax holiday.
- The sales tax holiday will commence at 12:01 am on the first Saturday in August and end 11:59 pm the following Sunday each year. In 2012, the dates are August 4-5.
The following general items will be exempt:
- Clothing less than $100 per item;
- Clothing accessory or equipment less than $50 per item;
- School art supply;
- School instructional material; and
- School supply.
In comparison to other states, Arkansas has a surprising list of things that qualify as clothing for the sales tax exemption. Items not found on some other states’ lists include:
- Aprons for household and shop use
- Bathing suits and caps
- Baby receiving blankets
- Ear muffs
- Hosiery
- Neckties
- Wedding apparel
Items that are not considered clothing for the purpose of the sales tax holiday include belt buckles, costume masks, protective equipment, sport or recreational equipment and patches and emblems.
Some clothing accessories and equipment that you don’t find with other state tax holidays include:
- Watches
- Handkerchiefs
- Cosmetics (except for soap)
- Umbrellas
- Wigs and hair pieces
The regulation provides more information on how the exemption applies to layaway sales, bundled sales, coupons and discounts, splitting of times normally sold together, rain checks, back orders, exchanges, delivery charges, returns, and purchases made in different time zones. To read more, click here.
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