HEADLINES : Arkansas
Ark. House passes annual sales tax holiday
LITTLE ROCK, Ark. (AP) - The Arkansas House on Wednesday passed a measure that would grant a sales tax holiday during the back-to-school shopping season, even as the Joint Budget Committee pondered an accounting quirk that puts the state on the hook for $23.5 million to pay for state workers for leap years and other odd days.
State employees won't get an extra check. The problem is one of accounting for extra days that accumulate over the course of a decade.
"It's treated like a one-time obligation; it's treated like a capital expenditure because it happens once every 10 years," Gov. Mike Beebe said.
The governor, a Democrat, said he's not happy about having to come up with the extra millions, which will be all the harder if the Legislature keeps approving tax cuts.
The sales tax holiday would occur on the first Saturday in August, a day that sponsoring Rep. Matthew Shepherd, R-El Dorado, says Arkansans now use to travel to bordering states that have their own sales tax holidays.

