Thursday, November 20, 2008

Committee on Revenue and Taxation Discuss Back to School Sales Tax Holiday

The Senate and House Committees of Revenue and Taxation met together to discuss a proposal from Sen. Denny Altes to create a one day back to school sales tax holiday on the first Saturday in August. The committee hearing took several interesting turns, particularly when Rep. Lindsley Smith asked about whether the sales tax exemption would include underwear. I visited with Sen. Altes after the hearing and he said he has already pre-filed SB 12 which will create the one day back to school holiday on clothing items less than $75. He told me he hopes this will help low and middle income families to be able to better afford clothing for their school aged children. The DFA impact study projects that the bill would have a revenue impact of around $1.6 million.

UPDATE - Seth Blomely from the Arkansas Democrat Gazette also covered the hearing and comments on the underwear story as well.

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