Arkansas consumers in the market for computers, tablets, smartphones, and printers should consider buying this coming weekend, August 7-8, as the state's customary sales tax holiday has been expanded to include these electronic devices. Individuals and even businesses may even be interested in doing some buying on the weekend to take advantage of the temporary tax exemption.
Arkansas's sales tax holiday, which occurs annually on the first weekend in August, historically has provided a temporary tax exemption for school supplies, clothing under $100, and accessories under $50.
Act 944 of 2021 expanded the tax holiday exemption to also apply to "electronic devices." Electronic devices are cellular phones, tablets, e-readers, laptop or desktop computers, computer accessories (mouse, keyboard, monitor), and printers. The Department of Finance and Administration has updated its list of items qualifying for exemption to include these electronic devices. The agency has also updated instructions for retailers.
While the tax holiday is intended to help students buy equipment that they need for school, other purchasers should also be able to buy tax free: The holiday applies to sales of all eligible items and is not limited to students and parents. With average combined sales tax rates in Arkansas approaching 10%, many individuals and small businesses may find it advantageous to buy computers and phones over the holiday. Online sales should qualify for the holiday as well, although buyers may want to be careful that the holiday exemption is being applied correctly.