By Mary Hightower
U of Arkansas System Division of Agriculture
It’s not too early to plan for the Aug. 2-3 back-to-school sales tax holiday, said Laura Hendrix, extension personal finance expert for the University of Arkansas System Division of Agriculture.
“The old saying is ‘failure to plan is planning to fail’,” she said. “Plan ahead by making a list and setting a spending limit.”
Budgets are easy to break when shoppers are confronted with so many choices and stores are designed to encourage spending.
“Making a shopping list ensures that you prioritize necessary items and helps avoid impulse buys,” Hendrix said. “Examine your budget to determine how much you can afford to spend. Setting a spending limit frees you from the stress of overspending.”
One important factor is deciding how to pay.
“Credit card fees and interest can offset any savings you might have from not paying sales tax,” she said. “If using credit cards, have a plan to pay them off as soon as possible.”
What is a sales tax holiday?
The sales tax holiday in Arkansas occurs during the first weekend of August each year. State and local sales taxes will not be collected on the purchase of certain products. All retailers are required to participate. This year, it begins at 12:01 a.m. on Saturday, Aug. 2, , and ends at 11:59 p.m. on Sunday, Aug. 3.
The sales tax holiday allows Arkansas shoppers to purchase certain electronic devices, school supplies, school art supplies, instructional materials and clothing free of state and local sales or use taxes.
“Some limits apply. For example, clothing must be less than $100 per item but there is no limit to the number of items,” Hendrix said. “Most clothing is covered but sewing patterns, fabric, and sewing notions are excluded.
“The list of qualified clothing is extensive, covering almost everything from diapers to wedding apparel, including shoes, undergarments, belts, and outerwear,” she said. “There is no cost limit for electronic devices.
This year’s list of items and restrictions is available online
To learn about extension programs in Arkansas, contact your local Cooperative Extension Service agent or visit www.uaex.uada.edu. Follow us on X and Instagram at @AR_Extension. To learn more about Division of Agriculture research, visit the Arkansas Agricultural Experiment Station website: https://aaes.uada.edu/. Follow on X at @ArkAgResearch. To learn more about the Division of Agriculture, visit https://uada.edu/. Follow us on X at @AgInArk.
