This year’s sales tax holiday is a result of House Bill 120, which Governor Perdue signed into law on May 4.
During the sales tax holiday, clothing and footwear up to $100 per item are exempt from payment of sales tax. There is no limit on the number of shoes and clothing items an individual can buy. If the price of an article of clothing or pair of shoes exceeds $100, the item will be taxed at the full retail price. Clothing accessories, jewelry, handbags, umbrellas, eyewear, watches, watchbands and similar items are not exempt from sales tax during the tax-free period.
School supplies bought for classroom use or classroom-related activities are exempt if they cost $20 or less per item. Qualifying items include pens, pencils, notebooks, paper, book bags, calculators, dictionaries, thesauruses, children’s books and books listed on approved school reading lists for pre-kindergarten through 12th grade. Sales tax will be due on the purchase of any single school supply item that exceeds $20.
Purchases of personal computers and accessories are exempt up to $1,500 per transaction. Qualifying items in the personal computer exemption category include monitors, personal computer base units, keyboards, handheld computers, printers, modems, non-recreational software and other peripheral devices.
Personal digital assistants are exempt unless they allow voice communication. Other items that would not be exempt are regular cell phones, digital cameras, furniture and any systems, devices, software or peripherals designed or intended primarily for recreational use.
The sales tax exemption for all qualified merchandise is intended only for individuals and their personal use.
The exemption does not apply to purchases made for resale, purchases by businesses, for items leased or rented, or items sold at sports facilities, theme parks, restaurants, public lodging establishments, and airports.
