Tax Holiday Sets Cash Registers Ringing

— Just a few hours ago, the annual Arkansas sales tax holiday came to a conclusion for 2012.

It was the second year for the state’s tax-free weekend promoted as a way to give a financial break to families who need to gear up for a new school year.

The Legislature followed the lead of other states in 2011. A year ago, the first two-day hiatus on sales tax drove crowds to retailers. It’s not quite the same chaos as the Black Friday holiday blitz after Thanksgiving, but the crowds are enough to make anyone without kids in school turn around and head for Starbucks.

The sales tax holiday is a welcome break from taxation. Someone spending $500 on qualifying items will save somewhere in the neighborhood of $40 to $50, depending on the local tax rates where they shop.

But it’s not a shopping free-for-all. You can’t head down to the electronics shop and buy that 60-inch flat-panel television for $2,000 and save nearly $200 in taxes.

Deer stands don’t qualify.

Don’t try to sneak in the purchase of a Razorback pop-up canopy for tailgating with your children’s school clothes.

But if you wanted to buy them a necktie with Razorbacks all over it, count up your savings.

All “human wearing apparel suitable for general use” costing less than $100 per item qualified, according to the Arkansas Department of Finance and Administration.

According to the agency’s list of qualifying items, that includes garters and garter belts, girdles, athletic supporters (as in cups, not fans) and scarves.

Strangely, the list also includes wedding apparel. I haven’t quite figured out how that’s a back-to-school item, but I’m sure future brides appreciated the tax break. I know a few who wish that had been available before June.

Wigs and hairpieces were exempt from sales tax as well. The state likely assumed some parents would be pulling their hair out trying to get all their shopping done on a single weekend, so why not a tax break for some follicle replacement?

The state’s list of exempt items included scissors, which many students need for various projects throughout the year. That makes perfect sense.

The same list also described items that were taxable. Included on that list were, well, scissors.

Apparently, scissors as school supplies were tax-free. Scissors for sewing were not.

I didn’t spot any cashiers holding out a Bible on which customers had to swear they would use their scissors only for school projects, but it might have happened. I did spot someone who may have been swearing on a book of state tax regulations. Or they might have been swearing at it. I’m not sure.

Athletic uniforms were on the list as tax-free. But cleated or spiked athletic shoes were deemed taxable.

I was born in Arkansas, so I know what kind of “hick” remarks outsiders make when they’re ignorant of our state. Does our own state government expect our high school football players to run around the fields barefoot? How are uniforms exempt and the shoes needed to play the sport are not?

But they could buy cool pairs of back-to-school sunglasses without paying taxes on the purchases. Students, you know, need to be able to doze off in class without their teachers being able to see their eyes.

Of course, what’s not to be thankful for anytime government decides citizens need a break from taxation?

I was thankful for the savings. Now, I’m going to be able to buy some of the candles, cups, coupon books or candies all the students will be hawking within the next few weeks as fundraisers for their schools.

Greg Harton is editor of the Northwest Arkansas Times.

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