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Arkansas Sales Tax Holiday

  • Jul 30, 2012 | Susan McLain

The Arkansas sales tax holiday begins on Saturday, August 4, 2012 at 12:01 a.m. and ends Sunday, August 5, 2012 at 11:59 p.m.

The sales tax holiday applies to both state and local sales taxes on items such as school supplies, school art supplies, school instructional materials and clothing.

All retailers are required to participate. The following guidance is given by the state of Arkansas regarding special circumstances of purchases:

Buy One, Get One Free or for a Reduced Price: The total price of the items cannot be averaged and split between the two. “The amount of sales tax due depends on the actual price paid for each item sold.”

Discounts, Coupons, Rebates: Store discounts or coupons may be used to reduce the price of the qualifying item for the sales tax holiday. Manufacturer’s coupons and rebates do not reduce the selling price and may not be used to qualify an item.

Layaways: Layaway items qualify for the exemption if final payment as long as full payment is made during the sales tax holiday.

Rain Checks: Rain checks may be used to purchase items during the sales tax holiday. Rain checks obtained during the holiday but used afterward do not qualify the item for the exemption.

Time Zones: “The time zone of the seller's location determines the authorized time period for the sales tax holiday exemption when the purchaser is located in one time zone and a seller is located in another.”

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”