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Analysis

2018 sales tax holidays for back-to-school purchases

Multistate Tax alert | July 2, 2018

This tax alert summarizes the state-by-state sales tax holidays currently scheduled to occur during the calendar year 2018, 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) occur during a specified period.

State Qualifying items1 Sales tax holiday dates
Alabama2 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 per item

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 non-commercial use)
July 20–22, 2018
Arkansas3 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

The written material commonly used by a student in a course of study as a reference to learn the subject being taught (e.g., textbooks, reference books, workbooks)
August 4–5, 2018
Connecticut4
Clothing and footwear with a sales price of less than $100 per item August 19–25, 2018
Florida5 Clothing, footwear, 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 3–5, 2018
Iowa6 Clothing and footwear with a sales price of less than $100 per item August 3–4, 2018
Louisiana7 Exemption applies to the first $2,500 of the purchase price of most items of tangible personal property, except vehicles subject to license and title, and meals for consumption on the premises where purchased, including to-go orders August 3–4, 2018
Maryland8 Clothing and footwear (no accessories) with a sales price of $100 or less per item

The first $40 of a backpack/bookbag
August 12–18, 2018
Mississippi9 Clothing and footwear with a sales price of $100 or less per item; the exemption excludes clothing accessories July 27–28, 2018
Missouri10 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 3–5, 2018
New Mexico11 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 per item

Desktop, laptop, tablets, or notebook computers with a sales price of $1,000 or less per item

Computer peripherals with a sales price of $500 or less per item
August 3–5, 2018
Ohio12 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 3–5, 2018
Oklahoma13 Clothing and footwear with a sales prices of less than $100 per item August 3–5, 2018
South Carolina14 Clothing, clothing accessories, footwear, school supplies, computers, printer and printer supplies, and computer software

Bedding/linens, pillows, bath rugs, blankets, and towels
August 3–5, 2018
Tennessee15 Clothing 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 27–29, 2018
Texas16 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 10–12, 2018
Virginia17 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 3–5, 2018
Wisconsin18 Clothing with a sales price of $75 or less per single item

School supplies if the sales price of any single item is $75 or less

Computers for personal use with a sales price of $750 or less

School computer supplies with a sales price of $250 or less per item
August 1–5, 2018

Contacts:

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

Kirsten Gulotta, managing director, Deloitte Tax LLP, New York, +1 212 436 3202

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. Admin. Code. § 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. A list of local governments that have notified the Alabama Department of Revenue can be found here and Sales Tax Holiday Quick Reference Sheet of Exempt Items, available here.

3 Ark. Stat. § 26-52-444 and 2018 Arkansas Sales Tax Holiday.

4 Conn. Stat. § 12-407e and Annual One-Week Sales and Use Tax Exclusion for Clothing and Footwear Costing Less Than $100.

5 Florida Sec. 54, Ch. 118 (H.B. 7087), Laws 2018. Back-to-School Sales Tax Holiday, published by the Florida Department of Revenue.

6 Iowa Stat. § 423.3(68). See also, Iowa Admin. Code r. 701-231.15. Taxable and Exempt List, as published by the Iowa Department of Revenue, available at here.

7 Louisiana. Stat. § 47:305.54 and R-1002A (LA Dept. of Rev. Jan 2017).

8 Mary. Stat. § 11-228. 8 Shop Maryland Week’s list of taxable and exempt items, as published by the Comptroller of Maryland, available here.

9 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. Official Guide to the Sales Tax Holiday, as published by the Mississippi Department of Revenue, available here.

10 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 not participating in the sales tax holiday can be found at here.

11 N.M. Stat. § 7-9-95. FYI-2013 (N.M. Taxation and Revenue Department, March 2014). New Mexico Bulletin B-200.18—List of Taxable and Nontaxable Items for New Mexico’s Gross Receipts Tax Holiday, available here.

12 Ohio Rev. Code Ann. §5739.02(B)(56). Sales Tax Holiday FAQ’s, published by the Ohio Department of Taxation, available here.

13 Okla. Stat. §68-1357.10. Oklahoma Sales Tax Holiday Questions, as published by the Oklahoma Tax Commission, available here.

14 S.C. Code Ann. §12-36-2120(57). South Carolina Sales Tax Free Weekend, as published by the South Carolina Department of Revenue, available here.

15 Tenn. Code Ann. § 67-6-393. Tennessee’s Sales Tax Holiday, as published by the Tennessee Department of Revenue, available here.

16 Tex. Tax Code Ann. §151.326, §151.327. Texas Publication 98-490—Sales Tax Holiday, as published by the Texas Comptroller of Public Accounts, available here.

17 Va. Code Ann. §58.1-611.2. Virginia’s Sales Tax Holiday, as published by the Virginia Department of Taxation, available here.

18 Wis. Stat. §77.54(67). Wisconsin’s Sales Tax Holiday, as published by the Wisconsin Department of Revenue, available here.

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