Tax-free weekend this Saturday and Sunday.
In its seventh year, Arkansas’ sales tax holiday allows shoppers to purchase items tax free just in time for back-to-school shopping.
This year, it’ll be observed on Saturday and Sunday. The Natural State started observing the holiday after the state Legislature passed Act 757 of 2011, which was spearheaded by state Rep. Matthew Shepherd, R-El Dorado.
Clothing items and footwear priced under $100 per item, clothing accessories priced under $50 per item, school and art supplies; and school instructional materials are exempt from state and local taxes, according to the Arkansas Department of Finance and Administration. Chamber of Commerce President & CEO Mike Dumas said the holiday helps keep local dollars in the area.
“The school items will be purchased and, if those items are available in El Dorado, they will be purchased in El Dorado. You would save time and money by not having to drive out of town. So I certainly believe the local economy benefits from the tax-free holiday,” Dumas said.
Arkansas’ sales tax holiday not only benefits students and parents, but teachers as well, said Smackover High School teacher and state Rep. Sonia Eubanks Barker, R-Smackover.
“Our tax-free holiday offers a timely price break to educators with classroom needs and families who need to buy clothing and supplies for their children without sacrificing other monthly expenses,” Barker said. “I wish we could find ways to offer a reduction in taxes in other areas as we do for school supplies because every opportunity we take to put people’s money back in their own pockets empowers them to better care for themselves and their families.”
In the Bayou State, purchases up to $2,500 containing “most items of tangible property” will be subject to a state sales tax rate of only 3 percent, 2 percent lower than its usual rate, according to the Louisiana Department of Revenue.
According to the department’s website, “the state sales tax exemption does not apply to vehicles subject to license and title and meals furnished for consumption on the premises where purchased, including to-go orders … Transactions for the purchase of taxable services and transactions for the lease or rental of tangible personal property do not qualify for the annual sales tax holiday exemption.”
The tax exemption only applies to state taxes. Local taxes propel the usual 5 percent toward total rates around 10 percent, which is the reason Louisiana has the highest sales tax in the country, according to the New Orleans TimesPicayune.
State Sen. Trent Garner, R-El Dorado, said the state should continue observing the annual tax-free holiday and, as “a supporter of lower taxes for all,” he’s working on a bill that will give Arkansas a Second Amendment sales tax holiday, similar to one in neighboring Louisiana, which will be observed Sept. 1 through Sept. 3.
“Arkansas is known nationally for our hunting and the people of Arkansas love to hunt and be outdoors,” Garner said. “I want to make sure those hunters spend their money in Arkansas and our local communities. A tax-free weekend before the fall hunting season is a great way to support our hunters and hunting industries.”
Louisiana’s annual sales tax holiday will be observed today and Saturday.