Avalara Taxrates > Blog > Sales Tax News > Alabama Sales Tax Holiday - Avalara

Alabama Sales Tax Holiday

Alabama’s sales tax holiday begins 12:01 a.m. Friday, August 3, 2012 and ends midnight, Sunday, August 5, 2012 this year. This is the seventh consecutive year for Alabama’s August sales tax holiday.

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.

Items that are included:

  • 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.

Get Free Tax Rate Tables

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”