2006 State Sales Tax Holidays

Before the kids head back to school, at least fourteen states across the United States are offering sales tax holidays. Most fall during the month of August. Be sure to carefully schedule your shopping trip or you could miss out on the savings! In addition, make sure the items you purchase are eligible for savings. Some goods will save you sales-tax dollars, while others won't.

Alabama: From August 4-6, 2006, the following are exempt: clothing costing $100 or less per article; a single purchase costing $750 or less of computers, software and school computer supplies; noncommercial purchases of school supplies and instructional materials up to a sales price of $50 per item; and noncommercial purchases of books up to $30 each.

Connecticut: Clothing and footwear sold for less than $300 are exempt from sales and use tax from August 20-26, 2006. The holiday exemption replaces the regular exemption for clothing and footwear costing less than $50, which remains in effect for all other periods, and it does not apply to athletic or protective clothing and footwear, jewelry, handbags, luggage, umbrellas, wallets and watches.

District of Columbia: During the August tax holiday from August 5-13, 2006, shoppers are eligible to save the usual 5.75 percent sales tax when purchasing clothes, accessories, school items, and shoes. To qualify, each item must cost $100 or less.

Florida: Books, clothing, footwear and certain accessories with a sales price of $50 or less per item, and school supplies with a sales price of $10 or less per item, are exempt from Florida sales and use tax from July 22-30, 2006. The exemption does not apply to sales within a theme park, entertainment complex, public lodging establishment or airport.

Georgia: From August 3-6, 2006, Georgia sales and use tax does not apply to certain school supplies (up to $20 per item); clothing and footwear (priced at $100 or less per article); computers, computer-related accessories and energy-efficient products for noncommercial use (for a single purchase of $1,500 or less).

Iowa: The state's sales tax holiday on select clothing and footwear runs August 4-5, 2006. During the holiday, no sales tax, including school and local option sales taxes, will be collected on clothing or footwear that have a selling price of less than $100 per item. Certain accessories are excluded from the tax holiday.

Maryland: From August 23-27, 2006, clothing and footwear (excluding accessories) costing $100 or less are exempt.

Massachusetts: This tax holiday falls on the weekend of August 12-13, 2006. Retail sales of single items of tangible personal property costing less than $2,500 are exempt from sales and use taxes. The following do not qualify for the sales tax holiday exemption and remain subject to tax: sales of telecommunications services, tobacco products, gas, steam, electricity, all motor vehicles, motorboats, meals and any single item priced over $2,500.

Missouri: From August 4-6, 2006, retail sales of the following are exempt from state sales tax: clothing and footwear (excluding certain accessories) costing $100 or less; school supplies costing $50 or less; computer software with a taxable value of $350 or less; and personal computers and computer peripheral devices sold for $3,500 or less. If less than 2 percent of a retailer's merchandise qualifies for the tax holiday, the retailer must offer a tax refund in lieu of the tax holiday.

New Mexico: Customers may buy the following items free of tax from August 4-6, 2006: clothing or shoes sold for less than $100 (excluding items primarily for athletic or protective use); computers (but not handheld computers) sold for no more than $1,000, and any associated monitor, speakers, printer, or related items sold for no more than $500; notebooks, paper, writing instruments, crayons, art supplies, paper clips, staples, staplers, scissors and rulers priced under $15; and book bags, backpacks, handheld calculators, maps and globes priced under $100. However, retailers are not required to participate.

North Carolina: The sales and use tax holiday runs from August 4-6, 2006. Items such as clothing and school supplies with a sales price of $100 or less are exempt. Other exempt items include sports and recreation equipment with a sales price of $50 or less; computers with a sales price of $3,500 or less; and computer supplies costing $250 or less. Clothing accessories, protective equipment, furniture and rentals are not exempt during the holiday.

South Carolina: During the weekend of August 4-6, 2006, clothing, clothing accessories, footwear, school supplies, computers, printers, printer supplies, computer software and linens for the bed and bath are exempt from state and local sales tax. Certain items, including, but not limited to jewelry, cosmetics and furniture, are not exempt during the holiday.

Tennessee: Clothing and school supplies costing $100 or less and computers costing $1,500 or less are exempt from August 4-6, 2006.

Texas: From August 4-6, 2006, sales of most clothing and footwear priced at less than $100 are exempt from state and local sales taxes. Clothing and footwear used primarily for athletic activities or for protective wear are ineligible for the exemption. Accessories and rentals of clothing also are excluded from the holiday.

Virginia: From August 4-6, 2006, retail sales of clothing and footwear costing $100 or less and school supplies costing $20 or less are exempt from tax.

Source: AccountingWeb.com