My oldest daughter is going into the fourth grade and my son is starting kindergarten. They need school supplies! Thankfully, Georgia’s 2009 Sales Tax Holiday begins next week. I should be able to save a little money, buying school supplies and some clothing, sales tax free.
Several states offer Sales Tax Holidays, including the state where we live, Georgia. (Click here to visit the Georgia Department of Revenue and read all about our 2009 Sales Tax Holiday. If you live in another state, my man Jim over at Bargaineering has a comprehensive list of states that have sales tax holidays.)
According to the GADOR website –
Q. What merchandise qualifies for the exemption?
A. The sales tax exemption pertains to items in three categories:
Articles of Clothing. The exemption applies to articles of clothing and footwear with a sales price at time of purchase of $100 or less per item. There is no monetary limit on a purchase as long as the price of a single item does not exceed $100. Clothing accessories such as handbags, umbrellas, etc. are not exempt. See the lists of exempt and taxable items for more information.
Personal Computers. A single $1,500 or less purchase of a personal computer (PC) and/or related accessories is exempt. The exemption does not require the purchase of a “personal computer base unit†(tower, desktop, laptop) and is extended to peripheral devices such as modems, printers, speakers, non-recreational software, etc. If a single purchase exceeds the $1,500 maximum the entire purchase is taxable. A single purchase is considered the total of all sales made to a customer in one visit to a store. See the lists of exempt and taxable items for more information.
General School Supplies. The exemption applies to the purchase of general school supplies with a sales price at the time of purchase of $20 or less per item. There is no monetary limit on the purchase as long as the price of a single item does not exceed $20. See the lists of exempt and taxable items for more information.
Remember, while the holiday is designed to benefit families with school-age kids, anyone can buy the above mentioned items, and pay no sales tax. Personally, I usually take advantage of the tax holiday and buy dress shirts. I’ve noticed that one of our local department stores usually discounts there dress clothes during the holiday, and I like to stock up. Last year, I purchased several really nice dress shirts for less than $7 per shirt.
If you own your own home business, a sales tax holiday might be a great time to buy a new computer, or to stock up on paper, staples, scissors, pencils, and other office supplies. Just stay below the above mentioned price limits, and you could save a substantial amount of money.
That’s how I’m saving money this week – I’m taking advantage our a sales tax holiday. I will not have to pay state or local sales tax. Sweet!
One note – If you go into debt, simply to take advantage of a sales tax holiday, you might be making a big mistake. Remember, if you have to pay interest, you’ll be throwing away any advantage you might have derived from the holiday. Personally, if I have to make the choice between using credit (and paying no tax) or waiting to pay cash (and pay some tax), I’m going to wait. Never let a temporary sale or discount prevent you from making a well-thought-out-purchase!