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Shop ‘Til You Drop (the Tax): Upcoming Sales Tax Holidays

A sales tax holiday is a brief period when certain goods or services are exempt from sales taxes, implemented by governments to boost consumer spending and the economy. Typically lasting a few days or a weekend, these holidays often occur during back-to-school season or before major holidays. Commonly exempted items include school supplies, clothing, electronics, and energy-efficient appliances. The goal is to encourage purchases during this tax-free period, benefiting consumers and businesses. Since rules and eligible items vary by state or locality, it's important to check specific guidelines from local tax authorities.

As consumers and businesses begin to peruse through the stores, shopping for their next project or necessities for the office, they tend to wonder as they look at the prices, “I wonder how much additional tax I’ll have to pay at the register.” Paying more than the price on the shelf can get complicated when purchasing in bulk. Don’t fret! We have compiled a list of upcoming Sales Tax Holidays that can make shopping a little more stress-free.

State	Date	Sales Tax Holiday Details
Arkansas	August 3rd – August 4th	Purchases of clothing, clothing accessories or equipment, electronic devices, school art supplies, school instructional materials, and school supplies will be exempt.
Connecticut	August 18th – August 24th	Exemptions for purchases of clothing and footwear costing less than $100.
Florida	August 24th – September 6th	Businesses and consumers can prepare for the upcoming hurricane season as emergency supplies are tax exempt. This includes items such as batteries, reusable ice packs, fire extinguishers, and portable generators.
Florida	July 29^th - August 11^th	During the sales tax holiday period, tax is not due on the retail sale of: Clothing, footwear, and certain accessories with a sales price of $100 or less per item Certain school supplies with a sales price of $50 or less per item Learning aids and jigsaw puzzles with a sales price of $30 or less Personal computers and certain computer-related accessories with a sales price of $1,500 or less, when purchased for noncommercial home or personal use
Iowa	August 2nd – August 3rd	Purchases of select clothing and footwear costing less than $100 will be tax free.
Maryland	August 11th – August 17th	Maryland holds a sales tax holiday for back-to-school items. Purchases during this time will be exempt from tax should they qualify.
Missouri	August 2nd – August 4th	The purchase of clothing costing $100 or less per purchase, school supplies not exceeding $50 per purchase, computer software costing $350 or less, graphing calculators having a taxable value of $150, and personal computers or computer peripheral devices not to exceed $1,500 will be tax-free.
Mississippi	July 12th – July 14th	The purchase of clothing and footwear, and retail sales of school supplies will be exempt from tax.
New Mexico	August 2nd – August 4th	The purchase of clothing and footwear worth less than $100, computers costing less than $1,000, classroom school supplies ($30 per unit), and computer equipment costing less than $500 will be tax-free.
Virginia	August 2nd – August 4th	The purchase of certain hurricane preparedness equipment; certain school supplies, clothing, and footwear; and certain energy-efficient and water-efficient products will be tax exempt.

Important Information for Businesses

States offering sales tax holidays should clearly define which items are exempt and which remain taxable. Small businesses, especially those without a tax department or tax engine, may find it challenging to determine which items are taxable.

Having a tax department or tax engine helps ensure tax is collected correctly. If a business incorrectly exempts non-qualifying items during the sales tax holiday, they will be unable to explain why tax was not collected. Under audit if the business has no proof of exemption for these taxable items, outstanding tax will be owed along with penalties and interest.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state, and local tax compliance and consulting for large US and global corporations. Allyn tax professionals utilize their expertise in sales tax regulations to ensure full compliance, minimize tax liability, and expertly handle sales tax returns in every US state.

We minimize your time spent on sales tax issues by handling the details and keeping you updated on progress and findings. Additionally, we do it all with our renowned dedication to customer service.

Get in touch with us, and we'll tailor a cost-effective solution specifically for your company's needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe and Asia and Allyn regional headquarters are strategically located in Fort Myers FL USA, Shanghai P.R. CHINA and Prague, CZECH REPUBLIC. For more information, go to www.allynintl.com