Alabama Sales Tax Holiday
- Sales Tax News
- Jul 27, 2012 | Susan McLain
Counties and municipalities may opt to exempt sales from local sales and use taxes during the same time period. Local districts may opt to exempt all of the sales and use tax or “…only a portion of the locality’s total sales and use tax levy….”
Retailers should be aware of the following:
- Layaway sales. Layaway sales must be paid for in full and given to the consumer during the exemption period in order to qualify for the exemption from sales tax.
- Rain checks. “Covered items purchased during the exemption period with the use of a rain check will qualify for the exemption regardless of when the rain check was issued.” The item must be actually purchased during the exemption period to qualify. A rain check given during the period but purchased after the holiday does not qualify for exemption from sale tax.
- Mail, telephone and Internet sales. “The sale of a covered item qualifies for exemption when sold through the mail, telephone, e-mail or Internet when the item is paid for and delivered to the customer during the exemption period….”
- Time zones. The Purchaser’s location time zone is used for the purposes of the authorized time period of the sales tax holiday.
The retailer “…should clearly identify the type of item sold, the date on which the item was sold, the sales price of all items and, if applicable, any tax charged…” on sales made during the exemption period.
- Clothing - $100 or less per article of clothing. Examples include belts, boots, diapers, dresses, neckties, jeans, shoes, shorts, sneakers, underwear.
- Computers, computer software and school computer supplies - $750 or less single purchase price. Examples include laptops, desktops but computer parts and devices not sold as part of a package with the Central Processing Unit will not qualify for the exemption. School computer supplies include disks, personal digital assistants, printers and printer supplies.
- School supplies, school art supplies and school instructional material - $50 or less single item price. Examples include chalk, book bags, calculators, index card boxes, notebooks, pencil boxes, pens, pencils, writing tablets, clay, paints, reference maps, globes and textbooks.
- Books - $30 or less for single item price. Not included: magazines, newspapers, periodicals and other non-bound documents.