What is a state sales tax holiday?
Some states offer a period of time during which certain purchases you make are not subject to state sales taxes.
Each state program varies. Some states limit the type of purchase to a particular product (i.e., school supplies, clothing, energy savings products, etc), or to a specific amount (i.e., purchases up to $2,100).
Although you may not have to pay state sales tax during sales tax holidays, you may still have to pay taxes levied by local counties or jurisdictions.
In Georgia, legislation restricts local taxes from being charged during sale tax holidays.
Two Tax Holidays Each Year in Georgia
Georgia's House Bill 120 provides for a sales tax exemption from both state and local sales taxes for certain items purchased July 30 - August 2, 2009. The Bill also provides an exemption for specific energy and water efficient products purchased October 1 - 4, 2009.
Information related to the energy efficient sales tax holiday will be available at later date on the Georgia Department of Revenue website.
Back-to-School Supplies, Personal Items, and Computers
During the sales tax holiday period, a sales tax exemption applies to purchases of tangible personal property in the following categories:
- Back-to-School Supplies: The exemption applies to the purchase of general school supplies with a sales price of $20 or less per item. See list of exempt items which includes general supplies, backpacks, and even lunch boxes.
- Clothing: Tax-free shopping applies to articles of clothing and footwear with a sales price of $100 or less per item. Items that are not exempted (you have to pay regular sales taxes) include: clothing accessories such as handbags, umbrellas, cuff links, handkerchiefs, jewelry, key cases, wallets, watches and watch bands, and ponytail holders and/or similar hair products are not exempt. See lists of exempted clothing items.
- Personal Computers:You do not have to pay sales and use taxes on a single purchase of $1,500 or less of personal computers and/or related accessories. If the single purchase exceeds $1,500, the entire transaction is taxable. See list of exempt items which includes hardware and software and certain peripherals.
Other Tax Holiday Restrictions
The tax holiday exemptions only apply to items purchased for personal use by individuals. They do not apply rented, leased, purchased items by businesses, or items that are purchased for resale.
The tax exemption does not apply to items sold at theme parks, entertainment complexes, hotels, restaurants, or airports.
