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Sales, Use and International Tax Articles

Sales, Use and International Tax Activity Update - September 2012

Hectic Sales Tax Holiday Season Varies State-to-State

While the late summer/early fall bring a bevy of sales tax holidays, the specifics vary greatly from state-to-state. Some noteworthy examples of these differences are:

  • States where all local jurisdiction taxes are exempted for the holiday to states where the local jurisdictions can determine if they want to participate or not. A nice wrinkle is you have one state where all they have is a state tax, no local taxes, BUT cities in the state can opt out of participating in the state sales tax holiday.
  • States where the holiday rules and participating jurisdictions are clear and identified well in advance of the holiday period. In contrast you have other states where there are notices and changes to the rules and participating jurisdictions occurring up to the beginning of the actual holiday period.
  • States with varying definitions of what qualifies for an exempt holiday item - an item might be considered as exempt holiday clothing in one state where in another state the exact same item is not considered as exempt holiday clothing
  • States with varying threshold levels for holiday exempt category items
    • Clothing threshold level is less than $100 in one state, in another state the clothing threshold level is $100 or less (What a difference a penny could make)
    • School supplies costing less than $25 in one state, schools supplies costing less than $75 in another state
  • To make it even more interesting, there are states that will vary whether those threshold levels are applicable on an item/unit basis versus an invoice amount basis

As corporate tax professionals, it is essential to track these sales tax holidays and make sure all measures are taken.

The coming months will bring some of the following sales tax holidays:

Georgia - (10/5 - 10/7) Water and Energy efficiency products for home use
Louisiana - (9/7 - 9/9) 2nd Amendment holiday exempting consumer purchases of firearms, ammunition and hunting supplies
North Carolina - (11/2 - 11/4) Energy Star products for home use
Virginia - (10/5 - 10/8) Energy Star products for home use

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