The sales tax holiday on school items will soon begin in 45 of the 50 states. Many are also offering a tax holiday on energy efficient appliances and natural disaster supplies. Upon buying school supply items, shoppers will get an exemption of their state’s sales tax, along with an exemption of any applicable local taxes.
The five states that have no sales tax are Alaska, Montana, New Hampshire, Delaware and Oregon. However, these states may have applicable local sales tax. During the holiday, sales taxes will not be charged on back-to-school items, such as clothing, book bags, printers, computers, school supplies, shoes, and computer tablets.
The date of the beginning of the tax holiday is different in each state but for the majority of the states, the dates of the tax holiday are August 2 through August 4, 2013.
Before shopping, it is best to check the state’s website to know what restrictions apply and how much applicable local sales tax is charged, if any. Collectively, shoppers are expected to save millions in taxes on back-to-school shopping in each participating state.
If a taxpayer’s state is not offering a tax holiday on back-to-school items, they can make purchases from the state that does. When a purchase is made, the sales tax will be automatically deducted on qualifying back-to-school items. Anyone who makes the purchase, regardless of whether they are a resident of that state receives the benefits of the exemption.
Taxpayers must ensure they know the correct dates of the tax holiday in advance in order to plan properly. As each state has its unique tax policy, checking the state’s Department of Revenue website can provide information on the items that qualify for exemption and the dates of which the exemption is available.