August Sales Tax Holiday: School Supplies and Clothing

For most Virginians school begins the week of August 23rd, and with it the need to shop for school supplies.  Don't get caught up in the back-to-school marketing blitz; at least not yet.  If you can hold out for two weeks you will be rewarded with a little extra change in your pocket.  If you are wondering how, read on.

The Virginia August Sales Tax Holiday takes place on August 6-8, 2010. 

What's Exempt?:

During this three-day period, purchases of qualifying school supplies selling for $20 or less per item, and purchases of qualifying clothing and footwear selling for $100 or less per article will be exempt from sales tax. Retailers may also choose to absorb the tax on other items during the holiday period, but they are responsible for paying the tax on those items to the Department of Taxation. 

What items are included under school supplies?: 

Virginia defines school supplies as items that are commonly used by a student in a course of study. The list of items that are included in the exemption includes virtually all “school supplies." However, computers and peripherals do not qualify for the exemption. 

For the school supplies exemption, must the item be intended for use in school or in connection with a school activity to receive the exemption?: 

No. The item need not be intended for use in school, nor must the item actually be used in school activities to qualify for the school exemption. So long as the item is one of the exempt items and does not exceed the threshold cost, and is purchased during the sales tax holiday period for clothing and school supplies, the purchase will not be subject to sales tax and use tax. 

What items are included under clothing?:

Clothing means any article of wearing apparel and typical footwear intended to be worn on or about the human body. Clothing does not include sporting equipment or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear. Clothing accessories are not exempt, as are most sports items. 

Will sneakers and running shoes qualify for the sales tax holiday exemption, or are they considered sports equipment?:

Both sneakers and running shoes will qualify for the sales tax holiday, provided they fall within the $100 threshold. 

For more information and lists of specific items and articles, visit the official Virginia site.  If you are not from Virginia, you can find information about sales tax holidays for other states here.  

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