CCH Updates Back-to-school State Tax Holidays for 2011
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New State Joins List, While Others Phase Out Tax Holidays
RIVERWOODS, Ill., July 28, 2011 /PRNewswire/ — As the days draw closer to another school year, shoppers in 16 states can expect sales tax breaks on the purchase of various school-related goods in upcoming weeks, according to CCH, a Wolters Kluwer business and a leading global provider of tax, accounting and audit information, software and services (CCHGroup.com). States holding these “tax holidays” allow back-to-school items such as clothing, footwear, school supplies, computers and certain other products to be purchased free of state sales tax. Local sales taxes may continue to be imposed in some places, however.
“Although many states continue to struggle with enormous budget deficits, they’re often unwilling to eliminate tax holidays,” said Carol Kokinis-Graves, JD, CCH Senior State Tax Analyst. “Some states decided not to re-enact tax holidays, but others are staying the course.”
Arkansas was the only state to enact a new back-to-school tax holiday for 2011. Illinois chose not to continue its back-to-school tax holiday from 2010 and both Georgia and Vermont haven’t held back-to-school tax holidays since 2009.
2011 Back-to-school Tax Holidays
Sales tax holidays timed for back-to-school shopping begin as early as July 29. While some limit the exemption to clothes and shoes, others extend exemptions to a wide range of personal items. All place dollar limits on the amount exempt from sales tax, from as little as $15 for school supplies in Florida to as much as $3,500 for computers and computer peripherals in Missouri.
Alabama: On Aug. 5-7, the following are exempt: clothing (not accessories or protective or recreational equipment) with a sales price of $100 or less per item; single purchases, with a sales price of $750 or less, of computers, computer software, school computer equipment; noncommercial purchases of school supplies, school art supplies and school instructional materials with a sales price of $50 or less per item; and noncommercial book purchases with a sales price of $30 or less per book.
Arkansas: On Aug. 6-7, the following are exempt: sales of clothing items under $100, clothing accessories or equipment under $50, school art supplies, school instructional materials and school supplies.
Connecticut: On Aug. 21-27, clothing and footwear costing less than $300 per item are exempt. Not included are accessories or athletic or protective clothing.
Florida: On Article source: PRNewswire
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