If you are lucky, you live in a state (and a city) that offers a "sales tax holiday" for back to school shopping. Slowly but surely, more states legislatures across the country are passing laws that suspend, albeit temporarily, the collection of sales tax for a few days during back to school shopping season. No sales tax CAN lead to significant savings but even this "holiday" has limitations. Make sure you get all the information you need before loading up your shopping cart!
1. Find out exactly when and where the "holiday" will be observed - Just because you are not paying STATE sales tax does not mean that you are not paying city and/or county taxes. Investigate, ahead of time, to find out exactly which cities and stores will be participating.
2. Find out what items are eligible for the "no tax" offer - Most states have designated specific items and/or spending amounts to be exempt, but not all items in a participating store will be exempt. To get the most savings, make sure that you are actually purchasing items that are included.
3. Stock up - Especially when buying school supplies, stock up on items that you may need to replenish during the year. It will help you be more organized and it will spread your savings over a longer period of time.
4. Make a shopping plan - Know where you need to go and what you need to get so that you can minimize your time and expense. The more time you spend wandering around a store, the more likely you are to buy something you don't need and that is not tax exempt.
5. Be aware of marketing! Retail store owners and operators make LOTS of money during back to school sales. They make even more money off what you buy that is NOT tax exempt. Just getting you in the store almost guarantees that you will buy a regular priced, non-exempt item. Be aware of sales on regular items and don't be distracted by early buys on Halloween, Thanksgiving and Christmas merchandise.
6. Be safe - Stores are likely to be crowded so take extra precautions for you and your families. Watch your purses, wallets and personal items. Also, be careful while you are in and around parking lots.
Absolutely, the best way to take advantage of the sales tax holiday is to plan ahead and be fully informed. For more information about the sales tax holiday in your state, go to the
Federation of Tax Administrators web site. Also, check the web site for the Department of Revenue in your state.
As of now, there are 15 states participating. They are:
Alabama
Connecticut
Florida
Georgia
Iowa
Maryland
Missouri
New Mexico
New York
North Carolina
South Carolina
Tennessee
Texas
Virginia
Washington D.C.
HAPPY SHOPPING!
