State Sales Tax Holidays | TaxConnections

Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Although not all states offer sales tax holidays to consumers, 17 states across the country (as well as Puerto Rico) currently offer specific dates where shoppers can buy certain items without paying the sales tax on them. While they’re designed as an incentive for consumers to support local businesses, and they’re an interesting approach some states take, it’s difficult to know if they’re really all that effective in driving the local economy – plus these holidays can cause quite a headache for retailers. Which States Offer Sales Tax Holidays?

Here is a quick summary:

Alabama: Severe weather preparedness, February 22-24 and back to school, July 19-21
Arkansas: Back to school, August 3-4
Connecticut: Clothing and footwear, August 18-24
Iowa: Clothing and footwear, August 2-3

Written by Monika Miles | Posted in TaxConnections

Alabama

Back to School Sales Tax Holiday: August 2–4, 2013

State sales tax (or use tax) will not be collected on the sale/purchase of the following “covered items”: 1) articles of clothing with a sales price of $100, or less, per article of clothing; 2) a single purchase, with a sales price of $750, or less, of computers, computer software, and school computer supplies; 3) noncommercial purchases of school supplies, school art supplies, and school instructional material, up to a sales price of $50 per item; and 4) noncommercial purchases of books with a sales price of not more than $30 per book. (Ala. Code § 40-23-211; Ala. Code § 40-23-210; Ala. Admin. Code r. 810-6-3-.65). A county or municipality may, by resolution or ordinance adopted at least 30 days prior to the first full weekend of August, provide for the exemption of “covered items” from county or municipal sales or use taxes during the same time period, under the same terms, conditions, and definitions as provided for the state sales tax holiday.

Arkansas

Back to School Sales Tax Holiday: August 3–4, 2013

State and local sales tax will not be collected on the sale of 1) clothing and footwear with a sales price of less than $100 per item; 2) clothing accessories and equipment with a sales price of less than $50 per item; 3) school supplies; 4) school art supplies; and 5) school instructional materials.