If it seems too early for states to prepare for a Back-to-School sales tax holiday, it isn’t. The Arkansas Department of Finance and Administration recently released the dates for its annual tax-free weekend. It will begin at 12:01 a.m., Saturday, August 2, 2014, and conclude at 11:59 p.m., Sunday, August 3, 2014.
Some states, such as Alabama, allow localities the choice of participating in a sales tax holiday. In Arkansas, participation in the tax-free period is mandatory.
Tax exempt items include, but are not limited to:
- Clothing (aprons, earmuffs, formal wear, underwear, etc) costing less than $100 per item;
- Accessories (briefcases, handbags, jewelry, wallets, etc) costing less than $50 per item;
- School supplies (binders, book bags, lunch boxes, paper, etc), no price limit;
- School art supplies (clay, paints, sketch pads, etc), no price limit; and
- School instructional materials (reference books, textbooks, workbooks, etc), no price limit.
Taxable items include, but are not limited to:
- Sewing equipment and supplies;
- Protective equipment such as hard hats and tool belts; and
- Sport or recreational equipment.
A complete list of taxable and tax exempt items is available on the Arkansas Department of Finance and Administration website, where there are also instructions for retailers.
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