Even though it's the middle of summer, the back to school catalogues have arrived at my house: they've been dutifully dog-eared and starred. And yes, while I was shopping for a router this weekend, my kids were already begging for notebooks and planners. Despite the fact that school doesn't start in our county for another six weeks or so, my kids are ready.
Of course, that all translates to money out of pocket. Back to school (and back to college) is a $72 billion industry, according to the National Retail Federation (NRF). Last year, families with school-age children planned to spend an average $634.78 on apparel, shoes, supplies and electronics to get ready for the school year.
When every dollar counts, parents look for sales. According to the NRF, promotions are already popping up: L.L. Bean has discounted backpacks by 25% and
Another way to save on back to school is to take advantage of state sales tax holidays. While some states balked at a discount this year (North Carolina took its off the books as of July 1), about a third of all states are offering sales tax holidays for back to school items. Keep in mind that some states have no state-wide sales tax (Alaska, Delaware, Montana, New Hampshire, and Oregon) while others (like Pennsylvania and Vermont) already exempt some necessities like clothing.
Here's a quick list of states that usually do charge sales tax which are offering taxpayers a break this year:
- Alabama (August 1-3) Exemptions apply to purchases of clothing ($100 or less per item), computers (single purchase up to $750), school supplies, art supplies or school instructional materials ($50 or less per item) and books ($30 or less per item).
- Arkansas (August 2-3) Exemptions apply to purchases of clothing ($100 or less, per item), clothing accessories ($50 or less per item), school supplies, art supplies and school instructional materials.
- Connecticut (August 17-23) Exemptions apply to purchases of clothing and footwear ($300 or less per item); for any item that costs $300 or more, sales tax applies to the entire price of that item.
- Florida (August 1-3) Exemptions apply to purchases of clothing, footwear and certain accessories ($100 or less per item), school supplies ($15 or less per item), and computers and computer accessories (applies to the first $750 per item).
- Georgia (August 1-2) Exemptions apply to purchases of clothing (up to $100 per item but does not include clothing accessories such as jewelry, handbags, umbrellas, eyewear, watches, and watchbands), computers and related accessories ($1,000 or less per item) and school supplies ($20 or less per item).
- Iowa (August 1-2) Exemptions apply to purchases of clothing or footwear (up to $100 per item); for any item that costs $100 or more, sales tax applies to the entire price of that item.
- Louisiana (August 1-2) Exemptions apply to purchases on most individual items of tangible personal property for non-business use ($2,500 or less per item); for any item that costs $2,500 or more, sales tax applies to the purchase price in excess of $2,500. Some notable exclusions apply, including vehicles, meals, taxable services (such as hotel occupancy), and leases or rentals of tangible personal property.
- Maryland (August 10-16) Exemptions apply to purchases of clothing and footwear ($100 or less per item); accessories are not included.
- Mississippi (July 25-26) Exemptions apply to purchases of clothing and footwear ($100 or less per item); accessory items such as jewelry, handbags, wallets, watches, backpacks, and similar items are not included. Footwear does not include cleats and items worn in conjunction with an athletic or recreational activity.
- Missouri (August 1-3) Exemptions apply to purchases of clothing ($100 or less per item), school supplies ($50 or less per purchase), computer software ($350 or less), personal computers ($3,500 or less) and computer peripheral devices ($3,500 or less).
- New Mexico (August 1-3) Exemptions apply to purchases of footwear and clothing ($100 or less per item); school supplies ($30 or less per item); computers ($1,000 or less per item); computer peripherals ($500 or less per item); book bags, backpacks, maps and globes ($100 or less per item); and handheld calculators ($200 or less, per item).
- Oklahoma (August 1-3) Exemptions apply to purchases of clothing and footwear ($100 or less per item). The exemption does not apply to the sale of any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.
- South Carolina (August 1-3) Exemptions apply to purchases of clothing, clothing accessories, footwear, school supplies and computers.
- Tennessee (August 1-3) Exemptions apply to purchases of clothing ($100 or less per item), computers ($1,500 or less) and school and art supplies ($100 or less per item).
- Texas (August 8-10) Exemptions apply to purchases of clothing or footwear ($100 or less per item), backpacks ($100 or less, per item, but does not include athletic/duffle/gym bags, computer bags, purses or framed backpacks) and school supplies ($100 or less per item); for any item that costs $100 or more, sales tax applies to the entire price of that item.
- Virginia (August 1-3) Exemptions apply to purchases of clothing and footwear ($100 or less per item) and school supplies ($20 or less per item). Sports or recreational items are not exempt.
Quick notes:
- Updated to confirm South Carolina's dates. H/T: Alan Bittig. Thanks!
- Updated to confirm Vermont already exempts clothing. H/T:
@msbusinesscp. Thanks! - Updated to confirm New Mexico's dates and exempt purchases. H/T: Carol Kokinis-Graves, senior state sales tax analyst for Wolters Kluwer, CCH.
It's also worth noting that this list is meant to provide general guidelines for the state sales tax holidays. Some states are pretty specific about what you can exempt so be sure to click on the links to your individual state's revenue announcement for more details. Also keep in mind that some states offer counties and towns the option not to participate so again, check out the specific sites if you have questions.
I'll continue to update the list as information is made available. Happy shopping!
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