Published: Sat, August 05, 2017
Health Care | By Jeffery Armstrong

Back-to-School Sales Tax Holiday

Back-to-School Sales Tax Holiday

"Since 2011, we have relentlessly worked to cut taxes and put more money back in families' pockets", said Gov. Rick Scott.

For three days, Oklahoma shoppers pay no sales tax on shoes and clothing less than $100 dollars, which some think helps low-income families save on back-to-school shopping. Normally, Iowa's sales tax rate is 6 percent.

The sales tax holiday does not apply to vehicle purchases, restaurant orders, hotel occupancy, leases or rentals of tangiple personal property, fix work, or admission to athletic, entertainment or recreational functions.

The state is also on the hook for making up lost sales tax revenue to cities.

Businesses open during the holiday are required to participate.

The Sales Tax Free Weekend is typically the first weekend of August every year. More specifically, it runs from 12:01 a.m. Friday through midnight Saturday. It does not include Sunday.

There's no sales tax on many back to school items under $20 and clothing under $75. Coupon and discount codes can also be applied to make the item less than $100. For instance, backpacks for elementary and secondary school students costing less than $100 are eligible for the exemption but consumers are limited to purchasing 10 of them.

Qualifying Energy Star™ or WaterSense™ products purchased for noncommercial home or personal use - $2,500 or less per item.

And since Louisiana, Alabama and Oklahoma have some of the highest sales tax rates in the country (at 5.01%, 4.93% and 4.28%, respectively), those residents better get their shopping on.

In fact, the study showed that during the sales tax holiday period from August 7-9, 2015, the state actually saw an increase in sales tax collections of about 9 percent, "which could be attributed to the fact that consumers increase purchases of non-exempt items while shopping for tax-exempt items".

Parents also said they would spread out their purchases across a wide variety of stores.

What if I exchange something after the holiday?

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