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Back-To-School Tax Holiday Helps Consumers Save, BBB Advises

8/1/2012

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back to school Retailers already are advertising back-to-school sales, but some smart shoppers are waiting for this year’s Missouri sales tax holiday to make major purchases of clothing and school supplies.

The Alabama sales tax holiday runs from 12:01 a.m. Friday, Aug. 3, to midnight Sunday, Aug. 5. Qualifying items will be exempt from the state’s sales tax. Some cities, counties and taxing districts have opted out of the holiday. As of right now, Georgia will not have the tax holiday this year.  Legislators have not passed the bills necessary since 2009 to reinstate the tax holiday.

The Better Business Bureau (BBB) urges consumers to check on which items are eligible before heading out to shop. In general, they are:

  • Clothing: any article having a taxable value of $100 or less.
  • School supplies, not to exceed $50 per purchase.
  • Computer software with a taxable value of $350 or less.
  • Personal computers valued at $3,500 or less.
  • Computer peripherals valued at $3,500 or less.

A full list of eligible and ineligible items is available at the Department of Revenue website.

As with any sale, it’s best to buy only the items you need. Many schools publish lists of what students will need for school on their websites or send them to parents before the start of school. Some schools may require a particular type of notebook, folder or other supplies, for example. Having a checklist with you when you shop helps you be sure you get what you need and no more.

In general, the sales tax holiday is available to any individual who purchases items for personal use, regardless of whether they are used for school. However, businesses who buy items such as computers for their company use are not eligible for the sales tax exemption.
Teachers may buy items for their classrooms without paying the tax if they are using their own funds, according to the Department of Revenue website.

The sales tax holiday applies to online purchases or to items that are ordered but not delivered during the tax holiday period, as long as payment is made within that period. The payment must be completed in full during the sales tax holiday period.
 

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