The majority of the changes in August have to do with Back to School Sales Tax Holidays. 15 state sales tax holidays appeared in this update, including holidays in Alabama, Connecticut, Florida, Illinois, Iowa, Louisiana (including St. Charles Parish), Maryland, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. Additionally, at the time of this publication there is one pending sales tax holiday expected to occur in Massachusetts.
Alabama
4.5% Thomasville; 1.0% Thomasville (Automotive Sales and Use Tax); 2.25% Thomasville (Manufacturing Sales and Use Tax); 2.25% Thomasville Police Jurisdiction; 0.5% Thomasville Police Jurisdiction (Automotive Sales and Use Tax); 1.125%Thomasville Police Jurisdiction (Manufacturing Sales and Use Tax); 3.0% Valley Grand; 1.5% Valley Grand Police Jurisdiction; 3.0% Valley Head; 2.0% Valley Head (Automotive and Manufacturing Sales and Use Tax); 1.5% Valley Head Police Jurisdiction; 1.0% Valley Head Police Jurisdiction (Automotive and Manufacturing Sales and Use Tax).
Sales Tax Holiday occurring from 8/6/10 – 8/8/10.
$100 or less per item on qualifying Clothing and Footwear; $750 or less per item on qualifying Computers, Computer Software, and Computer Supplies; $50 or less per item on qualifying non-business purchases of School Supplies and Textbooks; $30 or less per item on purchases of qualifying non-business purchases of Books.
Note that the exemption does not apply if goods are delivered or received outside the Sales Tax Holiday. Additionally, local authorities have the option to participate, partially participate or not participate in the Sales Tax Holiday.
Connecticut
Sales Tax Holiday occurring from 8/15/10 to 8/21/10.
$299.99 or less per item on purchases of qualifying Clothing and Footwear.
Florida
Sales Tax Holiday occurring from 8/13/10 to 8/15/10.
$50 or less per item on qualifying purchases of Clothing and Footwear; $10 or less per item on qualifying purchases of School Supplies; $50 or less per item on qualifying purchases of Books.
Note that the exemption does not apply to the sale of books, clothing or school supplies within a theme park, entertainment complex, public lodging establishment or airport.
Illinois
Sales Tax Holiday occurring from 8/6/10 to 8/15/10.
Reduced sales tax rate of 1.25% on qualifying purchases of Clothing and Footwear $99.99 or less per item; reduced sales tax rate of 1.25% on qualifying purchases of School Supplies (no limit).
Note that the reduced rate of tax applies only to school supplies used by students in the course of study. The applicable taxes for local jurisdictions are required to be collected during the Holiday period.
Iowa
Sales Tax Holiday occurring from 8/6/10 to 8/7/10.
$99.99 or less per item on qualifying purchases of Clothing and Footwear.
Louisiana
State Sales Tax Holiday and St. Charles Parish Sales Tax Holiday occurring from 8/6/10 to 8/7/10.
First $2,500 per item on qualifying non-business purchases of all Tangible Personal Property.
Note that the Sales Tax Holiday does not apply to purchases of taxable services, leases, or rentals of tangible personal property, vehicles, or food for immediate consumption.
Maryland
Sales Tax Holiday occurring from 8/8/10 to 8/14/10.
$100 or less per item on qualifying purchases of Clothing and Footwear.
Missouri
Sales Tax Holiday occurring from 8/6/10 to 8/8/10.
$100 per item on qualifying non-business purchases of Clothing and Footwear; first $3,500 per invoice on qualifying non-business purchases of Personal Computers and Computer Peripheral Devices; first $350 per invoice on qualifying non-business purchases of Computer Software; first $50 per invoice on qualifying non-business purchases of School Supplies.
Note that the exemption does not apply to the sales of books, clothing, footwear, school supplies, or computer software within the Missouri State Fair Grounds. Local authorities have the option to participate or not participate in the Sales Tax Holiday. Consumer’s Use Tax and Seller’s Use Tax are not eligible for the Sales Tax Holiday Exemption.
New Mexico
Sales Tax Holiday occurring from 8/6/10 to 8/810.
$99.99 or less per item on qualifying purchases of Clothing, Footwear, and School Supplies (Other); $1,000 or less per item on qualifying purchases of Computers; $500 or less per item on qualifying purchases of Computer Accessories; $14.99 or less per item on qualifying purchases of School Supplies.
Note that participation in the Sales Tax Holiday is optional for retailers. Backpacks for hiking and similar activities are taxable.
North Carolina
Sales Tax Holiday occurring from 8/6/10 to 8/810.
$100 or less per item on qualifying non-business purchases of Clothing, Footwear, and School Supplies; $3,500 or less per item on qualifying non-business purchases of Computers; $250 or less per item on qualifying non-business purchases of Computer Supplies; $300 or less per item on qualifying non-business purchases of School Instructional Materials; $50 or less per item on qualifying non-business purchases of Sports and Recreational Equipment.
Oklahoma
Sales Tax Holiday occurring from 8/6/10 to 8/8/10.
$99.99 or less per item on qualifying purchases of Clothing and Footwear.
South Carolina
Sales Tax Holiday occurring from 8/6/10 to 8/8/10.
No limit on qualifying non-business purchases of Clothing, Footwear, Computers, and School Supplies.
Tennessee
Sales Tax Holiday occurring from 8/6/10 to 8/8/10.
$100 or less per item on qualifying non-business purchases of Clothing, Footwear, and School Supplies; $1,500 or less per item on qualifying non-business purchases of Computers.
Texas
Sales Tax Holiday occurring from 8/20/10 to 8/22/10.
$99.99 or less per item on qualifying purchases of Clothing, Footwear, and non-business purchases of Backpacks and School Supplies.
All school supplies and backpacks for use by non-elementary and non-secondary students are taxable.
Virginia
7.0% Christiansburg (City Meals Sales Tax); 7.5% Covington (City Meals Sales Tax).
Sales Tax Holiday occurring from 8/6/10 to 8/810.
$100 or less per item on qualifying purchases of Clothing and Footwear; $20 or less per item on qualifying purchases of School Supplies.
Additional information regarding qualifying products for each state’s Sales Tax Holidays can be found at their respective Department of Revenue websites. Stay tuned for more Sales Tax Holidays occurring in September for Alaska and West Virginia.
New York has issued a summary of changes to state taxes enacted as part of the fiscal year 2010-11 Budget Bill (L. 2010, A9710 (c. 57). Sales and use tax changes discussed include the temporary suspension of the state sales and use tax exemption for clothing and footwear priced under $110 per item and the narrowed definition of a sales tax vendor. The definition of a vendor for sales tax purposes now excludes certain activities of in-state affiliates performed on behalf of an out-of-state seller from the list of activities that would make that seller a vendor for sales tax purposes. Under the new law activities of an affiliate in providing accounting or legal services or advice to a seller, or in directing the activities of a seller, including but not limited to, making decisions about strategic planning, marketing, inventory, staffing, distribution, or cash management, do not make the seller a vendor for sales tax purposes.
There are quite a few sales tax holidays coming up in August even though a few states have decided not to hold their annual sales tax holidays this year due to budgetary woes. Here is a list of the states where you will be able to get in a little tax-free back to school shopping. 
Residents of the Quad Cities will now have more options for tax-free back to school shopping. On Wednesday Illinois Governor Patt Quinn signed into law a sales tax holiday on back-to-school items that will run from August 6Th to August 15Th. The new holiday will overlap Iowa's holiday which lasts only two days -- August 6Th and 7Th this year. Most school supplies as well as clothing costing less than $100 dollars are included in the Illinois holiday. 
South Carolina is hosting a back to school sales tax holiday from 6 August 2010 to 8 August 2010. The exemption will apply to clothing, some clothing accessories (hats, scarves, etc.), footwear, school supplies, computers, printers, computer software, bedding, and bath supplies (shower curtains, towels, etc.). Items not qualifying for the exemption include, but are not limited to, jewelry, cosmetics, eyewear, wallets, watches, furniture, items placed on layaway, rental of clothing or footwear, and sales or leases of items used in trade or business.
In the dispute between a shooting range operator and the Missouri Director of Revenue, the Missouri Administrative Hearing Commission (AHC) ruled that the operator is not liable for the use tax on the purchase of the clay targets because it resold the targets to its customers. AHC stated that since the shooting range is a place of recreation, the operator is not liable for sales tax on paid for options, as these are not considered fees due to their voluntary nature and the lack of profit made on the options.
Powered by Compendium Blogware
