Arkansas’ tax-free weekend can help savvy shoppers save money with a little advance planning.
The sales tax holiday in Arkansas occurs during the first weekend of August each year. This year it begins at 12:01 a.m. Saturday and ends at 11:59 p.m. Sunday. State and local sales taxes will not be collected on the purchase of certain products, and all Arkansas retailers are required to participate.
During the two-day event, shoppers can buy certain electronic devices, school supplies, school art supplies, school instructional materials and clothing — all free of state and local sales or use taxes.
Laura Hendrix, associate professor and extension personal finance expert for the University of Arkansas System Division of Agriculture, said consumers can save money if they plan purchases and stick to a budget.
“Although it may be tax-free, it’s still not a bargain if it’s not something you will use,” she said.
Independent reporting for Pine Bluff & Jefferson County since 1879.
WHAT’S INCLUDED?
A list of items and restrictions is available at dfa.arkansas.gov/images/uploads/exciseTaxOffice/HolidayItemizedList.pdf
While the list of qualifying items is extensive, some limits apply. The list of qualified clothing, for example, includes clothing, shoes, undergarments, belts, outerwear, even diapers and wedding apparel. Clothing must cost no more than $100 per item, but there is no limit to the number of items. Items for making clothes, such as patterns, fabric and sewing notions, are excluded.
There is no cost limit on electronics, which include calculators, cellular phones, computers, printers and computer accessories such as mouses, monitors and keyboards.
BEFORE YOU SHOP
Smart shopping strategies during the sales tax holiday are crucial for anyone hoping to cash in on savings.
“This is especially important for large-ticket items but also for back-to-school shopping,” Hendrix said. She recommends these tips for anyone trying to save money in the long run:
Take inventory of what you need or want to purchase.
Examine your budget and determine how much you will spend.
Have a plan for how you will pay. Credit card fees and interest can offset any savings from not paying sales tax.
If using credit cards, pay them off as soon as possible.
Make a shopping list. Set a spending limit.
Compare prices to make sure you are getting the best deal.
More practical financial information is available at the uaexMoney blog; uaex.uada.edu/life-skills-wellness/personal-finance/uaex-money-blog/.
To learn about Extension programs, contact a local Cooperative Extension Service agent or visit www.uaex.uada.edu.
Tracy Courage is with the University of Arkansas System Division of Agriculture.