Arkansas sales tax-free holiday this weekend
Parents, students can save on back-to-school necessities Aug. 3-4
By Ralph Hardin
news@theeveningtimes.com
Families in Crittenden County looking to save money on back-to-school expenses can take advantage of the annual August sales tax holiday weekend.
From Saturday, Aug. 3 at 12:01 a.m. until Sunday, Aug.
4 at 11:59 p.m., no state or local taxes will be charged at the register on certain items needed by students heading back to class. This tax-free benefit applies to purchases made online or in person.
Purchases must be delivered to an Arkansas address to be eligible but do not have to be delivered within the dates of Aug. 3 or Aug. 4. They may be delivered later. It is important to note that shipping is included in the prices and items may be subject to tax if the shipping charge causes them to exceed the price limit. There are several categories of items that fall under the tax-free holiday, but two categories have per-item price limits. Clothing for back-toschool is tax-free if the individual item is $100 or less, while clothing accessories like watches, handbags or jewelry are tax-free if they cost $50 or less. Items priced over these limits will be subject to tax on the full value of the item, not just the amount over the limit.
Other categories without item price limits include school instruction materials, school classroom or art supplies, and certain electronics. School supplies such as backpacks, paper, binders, notepaper, pencils, rulers, and similar items are included in the taxexempt holiday.
Electronics, which were added to the tax-free weekend a couple years ago, include calculators, desktop & laptop computers, computer accessories like printers or monitors, tablets, e-readers, and even cell phones. However, video games and gaming systems are still taxable.
While there are many items eligible for tax exemption during the weekend, some items will remain taxable.
These include sewing supplies, protective equipment, and sports equipment. A full list of taxable items is available on the Arkansas Department of Finance and Administration website: www.dfa.arkansas.gov.
Savings to be had during Sales Tax Holiday
A recent survey by the National Retail Foundation revealed that families plan to spend an average of $875 for children starting or returning to school.
Arkansas State Rep. Milton Nicks (D-Marion) recently shared this information and more during this week’s legislative update from Little Rock.
“This time of year can be financially burdensome for many families across Arkansas,” said Nicks. “To ease this burden, we want to remind you about the upcom-
See TAX, page A8
Photo courtesy of MSD TAX
From page A1
ing Arkansas Sales Tax Holiday. This year, the event starts at 12:01 a.m. on Saturday, August 3rd, and continues until 11:59 p.m. on Sunday, August 4th.”
Act 757 of 2011 established a sales tax holiday in Arkansas during the first weekend of August each year.
“During this period, state and local sales taxes are not collected on certain products,” Nicks said. “Clothing items priced under $100 each and clothing accessories priced under $50 each are exempt from sales tax during this weekend. Accessories include handbags, cosmetics, jewelry, umbrellas, and more. Most school supplies, such as book bags, binders, paper, crayons, pencils, and rulers, are also tax-exempt.”
In the 2021 Regular Session, we passed Act 944, which extended the sales tax holiday to include electronics.
“Examples of exempt electronics include calculators, desktop computers, cell phones, e-readers, laptops, monitors, printers, keyboards, and tablets,” said Nicks.
“Video game systems and televisions are not included.”
Statewide, the sales tax holiday is estimated to save Arkansans millions of dollars annually.
Online purchases of specified items will be tax-free as long as the transaction is processed between 12:01 a.m. on the 3rd and 11:59 p.m. on the 4th and the items are shipped to an Arkansas address.
“The sales tax holiday was created to help Arkansas families,” Nicks said. “We encourage you to take advantage of this opportunity. For a complete list of tax- exempt items and answers to frequently asked questions, visit arkansashouse.org.”
Nicks also offered an update on items the legislature worked on this year ahead of the 2024-25 school year.
“Early childhood education lays the foundation for lifelong learning,” he said. “Improving access to high-quality childcare programs helps to provide structured environments where children can explore, play, and interact, fostering critical thinking, creativity, and cooperation.
This week, we would like to share a recent announcement regarding increased access to affordable childcare. The Arkansas Department of Education announced important changes to the Child Care Development Fund (CCDF) subsidy program under the LEARNS Act.”
The Child Care Assistance is a program available for lowincome families. This program provides financial assistance for quality childcare and is made possible by the CCDF.
The changes below, which became effective on July 1, are the result of efforts by the State Board of Education Committee on Early Learning and local early childhood lead organizations and their continued engagement with stakeholders.
Required work hours: Families must now show they completed 20 hours of work each week, a reduction from 30 hours. This change expands access to high-quality early childhood opportunities, making it easier for working families to balance work and home life.
Household income determination: Instead of updating the eligibility-based state median income every two years, ADE will update this criteria every year. This ensures eligibility determinations are more accurate.
Family Co-Payment: Arkansas now waives family co-payments for families at or below 75 percent of the state’s median income. This is a change from 40 percent, so more families can afford highquality early childhood opportunities for their children.
Removal of lifetime limit:
The previous 60-month limit to receive benefits has been removed, allowing eligible families to now qualify indefinitely.
Unified application: Families can now use one application for both Arkansas Better Chance and CCDF programs.
ADE serves approximately 16,000 Arkansas families annually through CCDF. There is no deadline for families to apply. As long as funding is available, the department will process eligible applications.
To learn more, visit https://dese.link/childcare assistance.
