Tax & Accounting Blog

Arkansas Passes Annual Sales Tax Holiday Bill

Indirect Tax, Sales and Use Tax March 2, 2011

On February 23rd the Arkansas House passed a bill 90-3 that would grant parents buying school items a tax break on their back-to-school shopping starting this year. The holdiay would occur on the first Saturday in August. Similar bills have failed in past years. Six surrounding states have sales tax holidays however. Although the holiday is projected to cost the state about $2 million dollars in lost tax revenue the hope is that Arkansas retailers will benefit not only from back-to-school shoppers staying at home, but that those same consumers will also use the money they save to make non-school related purchases as well.