Tax & Accounting Blog

Arkansas Second Tax Holiday Keeps Retailers Busy

Indirect Tax, ONESOURCE, Sales and Use Tax August 10, 2012

 Many stores across Arkansas saw very busy first weekends in August as many shoppers took advantage of sales tax savings during the state’s second annual back-to-school tax holiday August 4th and 5th.  Clothing and footwear $100 and under, accessories $50 and under, and school supplies were all exempt from sales tax for this time.  Retailers saw major increases in their sales, while local governments took a hit on their normal revenue intake.  Even so, the state ended its last fiscal year with a nice surplus, so it appears that the holiday may be around to stay with the strong public support it generated once again.