Although it still feels like summer to you, your state and retailers are geared up for getting your children back to school. Each year, around this time, several states around the nation offer sales tax holidays to their resident shoppers. The purpose is twofold. First, to help make it just a little cheaper to get your child ready to return to school or college in the fall. The second is to provide a sales spike for retailers.
Retailers have a love-hate relationship with this holiday. While their sales may increase – it can cost some retailers a fortune to re-configure their point of sale systems (POS = computerized cash registers). The larger the variety of merchandise inventory, the more items have to be re-coded to NOT charge sales tax. Then, after a few days, they have to re-code their computers to re-set all the sales tax tags.
That’s not your problem. YOU can reap the rewards. August brings sales tax holidays to Alabama, Connecticut, Florida, Illinois, Iowa, Louisiana, Maryland, Missouri, New Mexico, North and South Carolina, Oklahoma, Tennessee, Texas, and Virginia.
There will be holidays in September, too – in Louisiana and West Virginia.
Each state has a different list of excluded items, and different limits to the total purchases. In fact, some states have holidays on the purchase of energy efficient appliances. You’ll find the current list here, on the Federation of Tax Administrators’ website.
Incidentally, the site also has a compilation of state tax amnesty programs – historically, from 1982 through to the present.
And remember, you can find answers to all kinds of questions about tax holidays, tax amnesties, and other tax issues, free. Where? Where else? At www.TaxMama.com.[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips by e-mail, that never appear on the site. Please click on the join TaxMama.com link – it’s free!]
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