Sales, Use and International Tax Activity Update - August 2009

Computers, Fire Arms and Footwear – It Must be Sales Tax Holiday Time

As the second half of the year approaches, back to school supplies and energy items are the main focus for retailers to exempt. Thus most states may offer one or more of the following sales tax holidays: clothing and school supplies, and energy efficient appliances. Clothing and school supplies Sales Tax Holidays occur just before school starts, and are usually in August. The exemption on clothes includes restricting tax-free purchases by price, and most states have specific product lists of eligible items. Energy efficient appliances are generally in the winter and have the longest periods. These exempt items are generally energy efficient appliances that are Energy Star certified.

(Please Note: Linked items below open in a new window to the State Websites.)

District of Columbia
In an attempt to avoid the loss of sales tax revenue, the District of Columbia legislation has decided to repeal the August 2009 sales tax holiday. It’s November 27-December 6, 2009 holiday exemption is still in effect until further notice. However, most states will retain their Sales Tax Holiday exemptions to ease the burden for consumers.

Louisiana
In addition to the South Carolina law to exempt handguns, shotguns, and rifles, Louisiana is also taking a shot at exempting noncommercial purchases of firearms, ammunition, and hunting supplies. Of course this exemption does not apply to purchases of animals for the use of hunting.

Other States
The states below are participating in the second half 2009 Sales Tax Holiday. Please contact the States’ Departments of Revenue to get full explanations of the products that qualify for the Sales Tax Holiday in each state.

• Alabama-August 7-9: clothing (not accessories or protective or recreational equipment) with sales price of $100 or less per item; single purchases, with a sales price of $750 or less, of computers, computer software, school computer equipment; noncommercial purchases of school supplies, school art supplies, and school instructional materials with sales price of $50 or less per item; noncommercial book purchases with sales price of $30 or less per book.
  
• Connecticut-August 16-22: clothing and footwear (not accessories or athletic or protective) costing less than $300 per item.
  District of Columbia-November 27-December 6: clothing, footwear, accessory items, and school supplies costing $100 or less per item. (NOTE: DC repealed the August sales tax holiday for 2009)
  
• Georgia-July 30-Aug. 2: noncommercial purchases of school supplies (up to $20 per item), clothing or footwear ($100 or less per article or pair), and personal computers and related accessories (single purchases of $1,500 or less).
  
  Oct. 1-4: noncommercial purchases of energy efficient products and water efficient products with a sales price of $1,500 or less per product.
• Iowa-August 7-8: clothing and footwear (not accessories, rentals, athletic or protective) with sales price of less than $100 per item.
• Louisiana-August 7-8: first $2,500 of sales price of noncommercial purchases (not leases) of items of tangible personal property (not vehicles or meals). Does not apply to local taxes (may be allowed in St. Charles Parish).
  
  September 4-6: noncommercial purchases of firearms, ammunition, and hunting supplies. Purchases of animals for the use of hunting are not eligible for the exemption.
• Mississippi-July 31--August 1: clothing or footwear (not accessories, rentals, or skis, swim fins, or skates) with sales price under $100 per item.
• Missouri-August 7-9: noncommercial purchases of clothing (not accessories) with taxable value of $100 or less per item; school supplies up to $50 per purchase; computer software with taxable value of $350 or less; computers and computer peripherals up to $3,500. Localities may opt out. If less than 2% of retailer's merchandise qualifies, retailer must offer a tax refund in lieu of tax holiday.
  
  August 19-25: Show Me Green Sales Tax Holiday for all retail sales of Energy Star certified new appliances of up to $1,500 per appliance.
• New Mexico-August 7-9: footwear and clothing (not accessories or athletic or protective clothing) with sales price of less than $100 per item; school supplies; computers with sales price of $1,000 or less per item; and computer peripherals with sales price of $500 or less per item. Retailers are not required to participate.
  
• North Carolina-August 7-9: clothing (not accessories or protective equipment) and school supplies with sales price of $100 or less per item; school instructional materials with sales price of $300 of less per item; sport/recreational equipment with sales price of $50 or less per item; computers with sales price of $3,500 or less; computer supplies with sales price of $250 or less per item.
  
  November 6-8: noncommercial purchases of specified Energy Star qualified products.
• Oklahoma-August 7-9: items of clothing and footwear (not accessories, rentals, athletic, or protective) with sales price of less than $100.
• South Carolina-August 7-9: clothing (not rentals), clothing accessories, footwear, school supplies, computers, printers, printer supplies, computer software, bath wash clothes, bed linens, pillows, bath towels, shower curtains, bath rugs.
  
  November 27-28: handguns, shotguns, and rifles.
  
  The sales tax holiday on energy efficient products has been invalidated by the South Carolina Supreme Court
• Tennessee-August 7-9: clothing (not accessories), school supplies, and school art supplies with sales price of $100 or less per item; computers with sales price of $1,500 or less per item.
• Texas-August 21-23: clothing and footwear (not accessories, athletic, protective, or rentals) and school backpacks with sales price of less than $100 per item.
• Vermont-August 22: items of tangible personal property sold to individuals for personal use at a sales price of $2,000 or less.
• Virginia-August 7-9: clothing and footwear with selling price of $100 or less per item; school supplies with selling price of $100 or less per item; school supplies with selling price of $20 or less per item.
  October 9-12: noncommercial purchases of Energy Star and WaterSense qualified products with a sales price of $2,500 or less per item.
• West Virginia-September 1 - November 30: noncommercial purchases of Energy Star qualified products with sales price of $5,000 or less.

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