Looking to save money on back to school items? If so, be aware that each year the state of Georgia honors a sales tax holiday for such items. This holiday is observed between 12:01 on the last Thursday of July and ends at 11:59 PM on the following Sunday. These four days offer shoppers the opportunity to save money on many school essentials and other items. In 2009, the sales tax holiday will run from July 30th through August 2nd.
Exempt School Items During the Sales Tax Holiday
There are numerous items for which state and local sales taxes are not imposed during the holiday. Not having to pay these taxes are a great opportunity for budget-conscious consumers. Examples of items that can be purchased tax-free are as follows:
- Clothing with a sales price of $100 or less per item
- School supplies with a sales price of $20 or less per item
- Computers with a sales price of $1,500 or less per item
Note that the sales tax holiday was intended to benefit individual consumers and not businesses. Therefore, the exemption is not allowed for items that are rented during this period of for use in conjunction with a trade or business. For more detail and examples of school supplies that are exempt, please refer to Georgia Department of Revenues FAQ web page. Additionally, some of the most frequently asked questions regarding the sales tax holiday have been provided below.
Participating Stores
Which stores participate in the Georgia sales tax holiday? By law, every store must participate in the sales tax holiday and not charge tax on eligible items.
Layaway Items
Do layaway items qualify for the sales tax exemption? Eligible items purchased that were placed on layaway prior to the sales tax holiday are exempt if the final payment is made during the tax-free period. However, items placed on layaway during the period are still taxable.
Rain Check Purchases
Are items purchased using a rain check subject to sales tax for eligible items? Yes, but only if these items are delivered during the tax holiday period.
Refund of Sales Tax
What if a retailer charged a consumer the wrong tax? If this happens, a buyer must return to the retailer with a copy of the receipt to obtain a refund. Without a receipt, the retailer will be unable to refund any tax since they have no proof it was charged.
Internet, Mail Order, and Telephone Sales
Do purchases made via remote sales qualify for the sales tax holiday? Yes. In fact sales made via non-storefront locations such as on the Internet, by mail order, or over the phone qualify for the exemption for eligible items. To qualify, the buyer must order and pay for the item during the tax holiday period and the retailer must accept the order and being filling the order for immediate delivery.
Georgia Sales Tax Rates
Please visit the Georgia Department of Revenue website for the current state and local sales tax rates.
Energy Star Sales Tax Holiday
Each year the state of Georgia also has a sales tax holiday for Energy Star qualified products. This is observed between 12:01 on the first Friday of October and ends at 11:59 PM the following Sunday. These four days offer shoppers the opportunity to save sales tax on many Energy Star appliances.
References:
Georgia Department of Revenue website
The information contained within this article is for general guidance only. As such, it should not be used as a substitute for consulting with professional accounting, tax, legal or other competent advisers.
 |
 |
 |
 |
