12 states holding back-to-school sales tax holidays this first weekend in August
Wednesday, August 01, 2012
Attention back-to-school shoppers in Alabama, Arkansas, Florida, Iowa, Louisiana, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee and Virginia.
This weekend you'll be able to buy some things your kids (or you!) need (or want!) without paying sales tax on the products.
Yep, it's that time of year again, when sale-loving folks get to keep a few dollars out of their state tax collectors hands.
Actually, it could be more than just a few bucks.
While most of the upcoming tax holidays have relatively small price tag limits on exempt items, say $100 for a piece of apparel or $50 for shoes, in some places you can buy a tax-free computer.
In Tennessee where the tax-free computer spending limit is $1,500, that's $105 dollars that shoppers there don't have to volunteer to the state tax collector.
Missouri shoppers have it even better. That state tax holiday has a $3,500 computer maximum that could show a shopper almost $150 in tax savings.
But even with smaller savings, shoppers love tax holidays.
That's a key reason why states that really would rather have some of the tax dollars they give up during tax holidays still keep them on the calendar. Lawmakers know that happy shoppers are potential happy voters.
And the events' popularity is why the annual back-to-school tax holidays are this week's Weekly Tax Tip.
The table below provides the highlights for the dozen states that kick off tax holidays this first weekend in August.
|
State and its |
Tax holiday dates |
Tax-exemption items and per-item price limits |
| Alabama 4% | Friday, Aug. 3 through Sunday, Aug. 5 | Books, $30 or less. School supplies, $50 or less. Clothing, $100 or less. Computers and software, $750 or less. |
| Arkansas 6% | Saturday, Aug. 4 through Sunday Aug. 5 | Clothing, $100 or less. Apparel accessories, $50 or less. School supplies, no dollar limit. |
| Florida 6% | Friday, Aug. 3 through Sunday, Aug. 5 | School supplies, $15 or less. Clothing, footwear and accessories, $75 or less. |
| Iowa 6% | Friday, Aug. 3 through Saturday, Aug. 4 | Clothing and footwear, less than $100. |
| Louisiana 4% | Friday, Aug. 3 through Saturday, Aug. 4 | Most tangible personal property, $2,500 or less. |
| Missouri 4.225% |
Friday, Aug. 3 through Sunday, Aug. 5 |
School supplies, $50 or less. Clothing, $100 or less. Computer software, $350 or less. Personal computers and peripheral devices, $3,500 or less. |
| New Mexico 5.125% |
Friday, Aug. 3 through Sunday, Aug. 5 | School supplies, $15 to $100 or less, depending on the type of supply. Clothing, $100 or less. Computer peripheral devices, $500 or less. Computers, $1,000 or less. |
| North Carolina 4.75% |
Friday, Aug. 3 through Sunday, Aug. 5 | Sports and recreation equipment, $50 or less. Clothing and footwear, $100 or less. School supplies, $100 or less. School instructional materials, $300 or less. Computers, $3,500 or less. Computer supplies, $250 or less. |
| Oklahoma 4.5% | Friday, Aug. 3 through Sunday, Aug. 5 | Clothing and footwear, $100 or less. |
| South Carolina 6% | Friday, Aug. 3 through Sunday, Aug. 5 |
No maximum price limits on: Clothing, accessories and footwear. School supplies. Computers, software, printers and printer supplies. Bed linens. Bath furnishings. |
| Tennessee 7% | Friday, Aug. 3 through Sunday, Aug. 5 | Clothing and footwear, $100 or less. School supplies, $100 or less. Computers, $1,500 or less. |
| Virginia 4% |
Friday, Aug. 3 through Sunday, Aug. 5 | School supplies, $20 or less. Clothing and footwear, $100 or less. |
Be a smart tax shopper: If you're heading out to the mall to pick up some tax-free items this weekend, be a smart shopper.
Make a list of what you intend to buy.
Check your state's tax holiday Web page to make sure that the items on your list are tax exempt. Also check out the rules regarding special shopping situations, such as layaways, delivery charges and online purchases.
"Consumers should be aware of specific information regarding the items that qualify for the holiday, in order to get the greatest tax savings," says Carol Kokinis-Graves, senior state tax analyst with tax software and publishing company CCH. "Generally, there are a number of restrictions that apply."
Some states also allow cities and counties the choice to opt out of tax holiday participation. Make sure your locality isn't one of them or your tax-saving shopping excursion center could be for naught.
Finally, don't be sucked into impulse buying of items that don't make the tax-free list.
Sorry, retailers, but if folks have been waiting for the tax holiday to make their purchases, it doesn't make sense for them to immediately blow their tax savings.
More tax holidays on the way: If you live in Connecticut, Georgia, Maryland and Texas, mark your calendars. Your back-to-school sales tax holidays are just a little later this month:
- Connecticut -- Aug. 19 through Aug. 25
- Georgia -- Aug. 10 through Aug. 11
- Maryland -- Aug. 12 through Aug. 18
- Texas -- Aug. 17 through Aug. 19
As those days near, I'll provide you with your state's tax holiday guidelines.
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