Arkansas’ Annual Back-to-School Sales Tax Holiday is This Weekend

Taxes

Arkansas’ annual back-to-school sales tax holiday is this weekend, August 2-3.

In 2011 the Arkansas Legislature created a back-to-school sales tax holiday. During the first weekend in August, the state doesn’t collect sales taxes on school supplies, clothing sold for less than $100 apiece, instructional material, and electronic devices commonly used by students.

The Arkansas Department of Finance and Administration provides a full list of items exempt from sales tax here as well as answers to commonly asked questions.

Family Council supported legislation creating the state sales tax holiday in 2011, because it’s like giving families a 6% – 7% discount on their back-to-school shopping. It helps everyone — including home schoolers.

Over the years, there have been discussions at the capitol about eliminating the annual tax holiday, but 14 years running, it seems to be helping families in Arkansas.

Articles appearing on this website are written with the aid of Family Council’s researchers and writers.

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AR Lawmakers Looking at Proposal to Tax Churches

Taxes,

This morning the Arkansas Tax Reform and Relief Task Force met at the Capitol in Little Rock.

Among the items on the task force’s agenda is a proposal to tax investments, passive income, and sales by churches.

Under current law, Arkansas does not impose a state tax on interest churches earn investing money in savings accounts or on the sale or rental of church property.

This tax break has been on the books for more than 30 years, but now some lawmakers want to discuss doing away with it.

Charities and churches contribute at least $378 billion to the U.S. economy each year — and possibly much more than that, according to some estimates.

Many churches operate on budgets that are so tight they likely would have to shut their doors if they were taxed at the same rate as for-profit corporations. Our state needs to think twice before increasing the tax burden churches and charities carry.

This isn’t the first tax increase the task force has looked at this year. A few weeks ago the task force voted to move forward with discussions about increasing the state sales tax on groceries and ending Arkansas’ annual back-to-school tax holiday.

Family Council supported efforts to eliminate the grocery tax and worked very hard to help pass legislation creating the tax holiday in 2011.

If you are concerned about the Tax Reform Task Force’s proposal to raise taxes on churches, I encourage you to contact your state representative and state senator. If you need help contacting them, call our office at (501) 375-7000.

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Gov. Hutchinson Opposes Grocery Tax Hike

Current Events

Today Gov. Asa Hutchinson sent a letter to the legislature’s Tax Reform and Relief Task Force expressing his opposition to increases in the grocery tax.

Under current law, the sales tax on groceries is slated to fall from 1.5% to 0.125% on January 1, 2019.

Last week the Tax Reform and Relief Task Force voted to review and discuss a plan to raise the sales tax on groceries to as high as 6%.

The task force cannot raise the grocery tax itself, but it can develop a plan to raise the tax and make recommendations to the legislature in 2019.

From 2009 – 2013 Family Council supported Governor Beebe’s effort to reduce and ultimately eliminate Arkansas’ sales tax on groceries. People shouldn’t be penalized financially for buying basic necessities like bread and milk.

Hats off to Gov. Hutchinson for opposing the grocery tax!

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