Parents can get an extra boost for their back-to-school shopping today and until midnight Saturday, July 27, as the state’s Sales Tax Holiday will include school supplies in the items that are exempt from sales tax for the first time
A sales tax holiday is a temporary period when sales taxes are not collected or paid on purchases of specific products and/or services. Sales tax is not due on the sale of clothing, footwear, or school supplies if the sales price of a single the item is less than $100.
The Sales Tax Holiday applies to each eligible item selling for less than $100, regardless of how many items are sold at the same time.
The state guide to the Sales Tax Holiday defines the different exemptions. They include:
- “Clothing” is any article of apparel designed to be worn on the human body including pants, shirts and blouses, dresses, coats, jackets, belts, hats, undergarments, and multiple piece garments sold as a set.
- “Footwear” is any article of apparel for human feet except for skis, swim fins, roller blades, skates, and any similar items.
- “Accessories” as jewelry, handbags, luggage, umbrellas, wallets, watches, briefcases, garment bags and similar items do not qualify for the Sales Tax Holiday.
- “School Supplies” means items that are commonly used by a student in a course of study.
The Sales Tax Holiday applies to each eligible item selling for less than $100, regardless of how many items are sold at the same time. Items priced at $100 or more are subject to state sales tax at the regular retail rate of 7 percent.
When eligible items are normally sold with non-eligible items as a set or a single unit, the full price is subject to sales tax if the value of the non-eligible (taxable) item exceeds the eligible ones.
Lists of eligible and non-eligible items are available on the state Department of Revenue’s website. Anyone having any additional questions regarding the tax holiday may contact state officials at (601) 923-7015.