How to Save Money from the Sales Tax Holiday
The first Sales Tax Holiday weekend was first introduced in 1999. Back then, tax exemption was only limited to clothing but later on, school supplies were added. This Back-to-School Season the Sales Tax Holiday is happening once again and consumers must take advantage of this opportunity to save money. How can you make the most of the annual tax break? Here are some tips:
Know when it happens.
The Sales Tax Holiday weekend varies depending on the State. You should be aware of your own State’s schedule so you can be prepared. If you live in Alaska, Delaware, Montana, New Hampshire and Oregon, take note that these States do not have Sales Tax Holiday season.
Shop during off-peak hours.
Shop early morning so you can avoid large crowds and choose items you need more conveniently. Between 8 am to 10 am is the best time as most shoppers make their way to stores later in the afternoon.
Create your shopping list.
Never rush into the department store or bookstore without a shopping list on hand. Creating your list in advance will give you time to carefully consider which items you need to buy and which items you don’t need. Once your list is done, you can look up which items are eligible for tax exemption. Clearly mark these items so you can properly estimate your budget.
Buy in bulk.
Based on your shopping list, find out which items you need to buy in large quantities and take advantage of the Sales Tax Holiday weekend to maximize your savings. Parents with two or more children should definitely not miss this once-a-year opportunity to enjoy special tax deductions.
Know which items are on tax sale.
Take note that not all items will be eligible for tax sale deduction. For example, backpacks that are priced at less than $100 qualify for tax exemption. However, framed backpacks, briefcases, duffle bags, gym bags, computer bags, and luggage do not. Cowboy boots and hiking boots that cost less than $100 are also exempted but other types of boots are not such as fishing boots, rubber work boots, ski boots, etc.
Some people may think that the items in their shopping cart are all tax free, only to discover later on that most of their purchases are taxed. So before you visit the department store, do your research first and make sure that you know which items qualify for tax exemption.
Tax free items may not be the same for all States.
For instance, in Alabama, tax free items include computers that are priced at $750 or less, school supplies priced at $50 or less, books at $30 or less and clothing priced at $100 or less. In Connecticut, tax exempted items include shoes priced at $300 or less and clothing priced at $300 or less. In Florida, non-taxable items include books that cost $50 or less, school supplies prices at $10 per item or less, and clothing priced at $100 or less.
