Analysis

2016 sales tax holidays for back-to-school purchases

Multistate Tax alert | July 12, 2016

In this tax alert, we summarize the state-by-state sales tax holidays currently scheduled to occur during the balance of calendar 2016, as of the date of this alert.

Overview

Each year, numerous states provide a sales tax holiday for consumers, typically exempting purchases of back-to-school-related items (e.g., books, clothing, etc.) from sales tax if the eligible purchase(s) occurs during a specified period.

In this tax alert, we summarize the state by state sales tax holidays currently scheduled to occur during the balance of calendar 2016, as of the date of this alert.

State

Qualifying Items1

Sales tax holiday dates

Alabama2 3

  • Clothing and footwear with a sales price of $100 or less per item
  • Single purchases of computers, computer software, and school computer supplies with a sales price of $750 or less
  • School supplies, school art supplies, and school instructional material with a sales price of $50 or less per item
  • Books with a sales price of $30 or less per book (for noncommercial use)

August 5–7, 2016

Arkansas4 5

  • Clothing and footwear with a sales price of less than $100 per item
  • Clothing accessories or equipment with a sales price of less than $50 per accessory
  • Commonly used school supplies and artwork supplies
  • Written material commonly used by a student in a course of study as a reference to learn the subject being taught (i.e.,–textbooks)

August 6–7, 2016

Connecticut6

  • Clothing and footwear with a sales price of less than $100 per item

August 21–27, 2016

 

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State

Qualifying Items

Sales tax holiday dates

Florida7

  • Clothing, wallets, or bags with a sales price of $60 or less, per item
  • School supplies with a sales price of $15 or less, per item

August 5–7, 2016

Georgia8 9

  • Clothing and footwear with a sales price of $100 or less per item; the exemption excludes clothing accessories
  • Single purchases of $1,000 or less of computers, computer components, and pre-written
  • computer software (for non-commercial personal use)
  • School supplies, art supplies, school computer supplies, and school instructional materials with a sales price of $20 or less per item

July 30–31, 2016

Iowa10 11

  • Clothing and footwear with a sales price of less than $100 per item

August 5–6, 2016

 

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State

Qualifying items

Sales tax holiday dates

Louisiana12 13

  • Sales of tangible personal property are subject to a reduced state sales tax rate of 3 percent, instead of the standard state sales tax rate of 5 percent during the sales tax holiday
  • Exemption applies to the first $2,500 of the purchase price of most items of TPP, except vehicles subject to license and title & meals for consumption on the premises where purchased, including to-go orders

August 5–6, 2016

Maryland14 15

  • Clothing and footwear with a sales price of $100 or less per item

August 14–20, 2016

Mississippi16 17

  • Clothing and footwear with a sales price of $100 or less per item; the exemption excludes clothing accessories

July 29–30, 2016

 

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State

Qualifying Items

Sales tax holiday dates

Missouri18 19

  • Clothing and footwear with a sales price of $100 or less per item
  • School supplies not exceeding $50 per purchase
  • Computer software with a sales price of $350 or less per item
  • Single purchases of computers/computer peripheral devices with a sales price of $1,500 or less
  • Graphing Calculators with a sales price of $150 or less

August 5–7, 2016

New Mexico20 21

  • Clothing and footwear with a sales price of less than $100 per item
  • School supplies normally used by students with a sales price of less than $30 per item
  • Book bags, backpacks, maps, and globes with a sales price of less than $100 per item
  • Handheld calculators with a sales price of under $200
  • Desktop, laptop, tablets, or notebook computers with a sales price of $1,000 or less per item

August 5–7, 2016

Ohio22 23

  • Clothing and footwear with a sales price of $75 or less per item
  • School supplies and school instructional materials with a sales price of $20 or less per item

August 5–7, 2016

Oklahoma24 25

  • Clothing and footwear with a sales prices of less than $100 per item

August 5–7, 2016

 

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State

Qualifying Items

Sales tax holiday dates

South Carolina26

  • Clothing and footwear, school supplies, computers, printer supplies, and computer software
  • Bedding/linens, pillows, bath rugs, blankets, and towels

August 5–7, 2016

Tennessee27 28

  • Clothing and footwear with a sales price of $100 or less per item
  • School and art supplies with a sales price of $100 or less per item
  • Computers with a sales price of $1,500 or less; the exemption includes laptops and tablets

July 29–31, 2016

Texas29 30

  • Clothing and footwear with a sales price of less than $100 per item
  • School supplies with a sales price of less than $100 per item

August 5–7, 2016

Virginia31 32

  • Clothing and footwear with a sales price of $100 or less per item
  • School supplies with a sales price of $20 or less per item

August 5–7, 2016

 

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Contacts:

If you have questions regarding back-to-school sales tax holidays and their applicability to specific items or tax rate, please contact any of the following Deloitte Tax professionals.

Dwayne Van Wieren, partner, Deloitte Tax LLP, Los Angeles, +1 213 593 3734

Brian Hickey, director, Deloitte Tax LLP, Cincinnati, +1 513 784 7171

David Welliver, senior manager, Deloitte Tax LLP, Minneapolis, +1 612 659 2938

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Multistate Tax alert archive

The Multistate Tax alert archive includes external tax alerts issued by Deloitte Tax LLP's Multistate Tax practice during the last three years. These external alerts highlight selected developments involving state tax legislative, judicial, and administrative matters. The alerts provide a brief summary of specific multistate developments relevant to taxpayers, tax professionals, and other interested persons.

View the list of archived Multistate Tax alerts.

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References

1 The list of items qualifying for an exemption from sales tax (and associated exclusions) during each state’s sales tax holiday is not intended to be exhaustive. If questions arise as to eligibility of certain purchases, readers are advised to consult with the Jurisdictional Technical Lead for the specific jurisdiction.

2 Ala. Stat. § 810-6-3-.65; Note: Local counties and municipalities may provide for the exemption of “covered items” during the same period as the state sales tax holiday, if they adopt a resolution or ordinance at least 30 days prior to the first full weekend in August. A list of local governments that have notified the Alabama Department of Revenue regarding their participation can be found at: https://www.revenue.alabama.gov/salestax/STholiday.cfm.

3 Sales Tax Holiday Quick Reference Sheet of Exempt Items, as published by the Alabama Department of Revenue, available at: https://www.revenue.alabama.gov/salestax/STHolidayQuickRefSheet16.pdf.

4 Ark. Stat. § 26-52-444.

5 2016 Arkansas Sales Tax Holiday, as published by the Arkansas Department of Revenue, available at: http://www.dfa.arkansas.gov/offices/exciseTax/salesanduse/Documents/holidayItemized.pdf.

6 Conn. Stat. § 12-407e.

7 Florida Sec. 24 Uncodified Legislation Ch. 2016 – 220 (H.B. 7099).

8 O.C.G.A. § 48-8-3(75).

9 Informational Bulletin Sales Tax Holiday July 30-31, 2016, as published by the Georgia Department of Revenue, available at: http://dor.georgia.gov/sites/dor.georgia.gov/files/related_files/press_release/2016%20Sales%20Tax%20Holiday%20Back%20to%20School.pdf.

10 Iowa Stat. § 423.3(68)a.

11 Taxable and Exempt List, as published by the Iowa Department of Revenue, available at: https://tax.iowa.gov/sites/files/idr/documents/STHList.pdf.

12 Louisiana. Stat. § 47:305.54 – as enacted by Acts 25 & 26 of the 2016 First Extraordinary Session of the Louisiana Legislature.

13 Informational Publication Sales Tax Holiday August 5-6, 2016, as published by the Louisiana Department of Revenue, available at: http://www.revenue.louisiana.gov/NewsAndPublications/salestaxholiday.

14 Mary. Stat. § 11-228.

15 Shop Maryland Week’s list of taxable and exempt items, as published by the Comptroller of Maryland, available at: http://comptroller.marylandtaxes.com/Public_Services/Agency_Information/Office_of_the_Comptroller/Comptroller_Initiatives/Shop_Maryland_Tax-free_Week/TaxableItems.pdf.

16 Miss. Code Ann. § 27-65-111(bb); Note: Local jurisdictions can choose to not participate in the sales tax holiday if they enact a resolution to not participate and notify the department 90 days prior to the sales tax holiday. A list of local jurisdictions which are participating in the sales tax holiday can be found at: http://www.dor.ms.gov/Business/Documents/2016%20Sales%20Tax%20Holiday.pdf

17 Official Guide to the Sales Tax Holiday, as published by the Mississippi Department of Revenue, available at: http://www.dor.ms.gov/Business/Documents/2016%20Sales%20Tax%20Holiday.pdf

18 Mo. Rev. Stat. § 144.049; Note: Local jurisdictions can choose to not participate in the sales tax holiday if they enact an ordinance to not participate and notify the department 45 days prior to the sales tax holiday. A list of local jurisdictions which are participating in the sales tax holiday can be found at: http://dor.mo.gov/business/sales/taxholiday/green/cities.php or http://dor.mo.gov/business/sales/taxholiday/green/counties.php.

19 Frequently Asked Questions–Back to School Sales Tax Holiday, as published by the Missouri Department of Revenue, available at: http://dor.mo.gov/business/sales/taxholiday/school/faq.php.

20 N.M. Stat. § 7-9-95.

21 New Mexico Bulletin B-200.18-List of Taxable and Nontaxable Items for New Mexico’s Gross Receipts Tax Holiday, as published by the New Mexico Taxation and Revenue Department, available at: http://www.tax.newmexico.gov/uploads/files/Tax%20Holiday%20Item%20List%2003-14.pdf.

22 S.B. 264, Laws 2015.

23 Sales Tax Holiday FAQ’s, published by the Ohio Department of Taxation, available at: http://www.tax.ohio.gov/sales_and_use/salestaxholiday/holidayfaq.aspx.

24 Okla. Stat. § 1357.10.

25 Oklahoma Sales Tax Holiday Questions, as published by the Oklahoma Tax Commission, available at: http://www.ok.gov/tax/faqs.html#c412.

26 South Carolina Information Letter 16-6; https://dor.sc.gov/resources-site/lawandpolicy/Advisory%20Opinions/IL16-6.pdf.

27 Ten. Code Ann. § 67-6-393.

28 Tennessee’s Sales Tax Holiday, as published by the Tennessee Department of Revenue, available at: ttp://tn.gov/revenue/article/sales-tax-holiday

29 34 Tex. Admin. Code § 3.365(b).

30 Texas Publication 98-490 – Sales Tax Holiday, as published by the Texas Comptroller of Public Accounts, available at: http://comptroller.texas.gov/taxinfo/taxpubs/taxholiday/d/

31 Va. Ruling of Commissioner, P.D. 15-149–Sales and Use–Taxability of persons and transactions–Sales Tax Holidays–Guidelines for combined tax holiday.

32 Lists of Exempt School Supplies and Exempt Clothing and Footwear, as published by the Virginia Department of Taxation, available at: http://www.tax.virginia.gov/sites/tax.virginia.gov/files/LIST%20OF%20QUALIFYING%20SCHOOL%20SUPPLIES%20AND%20CLOTHING.pdf.

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