The Arkansas sales tax exemption may be a boon for school children, but buyers should shop with caution, said Laura Hendrix, associate professor and personal finance expert for the Agriculture System’s division. ‘University of Arkansas.
This year’s sales tax holiday begins August 7 at 12:01 am and continues through August 8 at 11:59 pm National and local sales taxes will not be collected on purchases of certain products. All retailers are required to participate, according to a press release.
The sales tax holiday covers clothing, footwear, school supplies, art supplies, and educational materials. Hendrix said the 2021 sales tax holiday now includes electronics such as computers, printers, tablets, e-readers and cellphones.
“While this may be tax exempt, it’s still not a good deal if it’s not something you’ll be using,” Hendrix said. “Continue to use smart buying strategies during the sales tax exemption period.”
There are restrictions on these purchases. Clothing must cost less than $ 100 per item, but there is no limit on the number of items.
While most clothing is covered, items such as patterns, fabrics, and sewing skills are not included. The list of qualified clothing is long, covering almost everything from layers to wedding attire. Shoes, underwear, belts and outerwear are included. There is no cost limit for electronic devices.
ADVICE BEFORE YOU BUY
Before leaving for the back-to-school races, Hendrix recommends:
Take inventory of what you need or want to buy.
Take a look at your budget and figure out how much to spend.
Have a plan for how you’re going to pay. “Credit card charges and interest can offset any savings you might make by not paying sales tax,” Hendrix said. “If you use credit cards, plan to pay them off as soon as possible. “
Make a shopping list.
Set a spending limit.
Find practical financial information on the uaexMoney blog; https://www.uaex.edu/life-skills-wellness/personal-finance/uaex-money-blog/.
To view this year’s list of articles and restrictions on tax-free leave, visit https://www.dfa.arkansas.gov/images/uploads/exciseTaxOffice/HolidayItemized.pdf.
To learn more about extension programs in Arkansas, contact a local Cooperative Extension Service agent or visit www.uaex.uada.edu. The University of Arkansas Agricultural System Division offers all of its extension and research programs and services without discrimination.