The Arkansas sales tax holiday may be a boon for schoolchildren, but buyers should shop with caution, said Laura Hendrix, associate professor and personal finance expert for the Agriculture System Division at the University of Arkansas.
This year’s sales tax holiday begins at 12:01 a.m. on Saturday, August 7 and continues until 11:59 p.m. on Sunday, August 8. National and local sales taxes will not be levied on the purchase of certain products. All retailers are required to participate.
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.
âWhile it may be tax exempt, it’s still not a good deal if it’s not something you’ll be using,â Hendrix said. âContinue to use smart buying strategies during the sales tax break. “
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.
CLICK HERE for a list of this year’s items and restrictions.
Before heading out for the back-to-school races, Hendrix recommends:
– Take inventory of what you need or want to buy.
– Look at your budget and figure out how much you are spending.
– Have a plan on how you are going to pay. âCredit card charges and interest can offset any savings you might make by not paying sales tax,â Hendrix said. âIf you use credit cards, plan to pay them off as soon as possible. “
– Make a shopping list.
– Set a spending limit.