AR HB1033

Creates an annual back-to-school tax-free holiday on the first Saturday in August from 12:01 a.m. to 11:59 p.m., exempting clothing from gross receipts tax and compensating use tax.

Exemption applies only to clothing items priced at $75.00 or less; items exceeding this price are subject to sales tax.

Excludes sport or recreational equipment, clothing accessories, and protective equipment designed specifically for athletic activities or injury protection from the tax exemption.

Defines "clothing" as all human wearing apparel suitable for general use, with the Department of Finance and Administration authorized to promulgate rules for implementation.

Declares an emergency and makes the act effective June 1, 2011, citing the high costs of clothing school children to ensure families can utilize the exemption for back-to-school purchases.