Shoppers are expected to spend nearly $84 billion on school supplies this year, in the busiest shopping season except Christmas. Parents are expected to spend an average of $688.62 on clothes, electronics and school supplies, an increase of nearly $85 from 2011, according to the National Retail Federation.
Georgia's back-to-school tax holiday, Friday and Saturday, is its first since 2009. After that year, the state stopped the eight-year tradition to save the estimated $12 million in lost revenue. Gov. Nathan Deal reinstated the tax holiday. A Department of Revenue spokesman said he did not know how much this tax holiday is expected to cost the state.
Clothes and shoes that cost less than $100 — from football pads to shoe laces and diapers to insoles — will be tax-free. But accessories will not: Shoppers will have to pay taxes on umbrellas, briefcases, makeup and glasses. Anything bought in airports, restaurants or theme parks will be taxed.
Some electronics items are tax-free. Computers, scanners, web cameras and modems will not be taxed, as long as the total sale is $1,000 or less. Neither will educational, word-processing, financial or anti-virus software. But tax will be charged on regular batteries, cellular telephones, digital cameras, game systems, surge protectors and televisions.
School supplies that cost $20 or less per item will be tax-free.
Q: When is the back-to-school tax holiday?
A: It begins at 12:01 a.m. Friday and ends at midnight Saturday.
Q: What is exempt?
A: Clothes and shoes that cost less than $100 an item are exempt from sales tax. So are school supplies that cost less than $20 an item. Personal computers and accessories that cost less than $1,000 per purchase are exempt. For a complete list of tax-exempt items, go to bit.ly/MrNd5M
Q: What do I have to pay tax on?
A: You have to pay the sales tax on clothes, shoes and school supplies that cost more than the tax-free limit. You also have to pay taxes on accessories, such purses, umbrellas, cosmetics or glasses; and on any electronic devices that aren't related to personal computers, such as televisions, MP3 players or game controllers. You have to pay taxes on medical or janitorial supplies. Anything that is rented will still be taxed, as will anything intended for resale.
Q: What if I'm buying items online?
A: You do not have to pay sales tax on tax-exempt items bought online.
Q: What if I'm buying shirts at a hotel gift shop?
A: There are some places where items will be taxed that would be tax-free elsewhere. You'll have to pay taxes on all items purchased at theme parks, entertainment complexes, hotels, restaurants or airports.
Q: What if I'm charged sales tax and I don't think I should have been?
A: If you are charged sales tax online or in a store and you do not think the tax should have been charged, fill out an ST-12 form and turn it in to the Georgia Department of Revenue. The form can be found here: bit.ly/O4DPVY
Q: What if my electronics purchase costs more than $1,000?
A: Tax will be charged on any electronics purchase that costs more than $1,000. So a computer that costs $1,200 will be taxed for the full amount. A keyboard, monitor, motherboard, mouse, scanner, web camera and zip drive on one ticket will be tax-free if the total is less than $1,000, but if the total is more than $1,000, all of the items will be taxed.
Q: Do I have to pay sales tax if I'm not doing back-to-school shopping?
A: You do not have to pay sales tax on tax-exempt items, whether you're buying them to use at school or not.
Q: When is the last time we had a tax holiday?
A: Georgia's last one was in 2009. The state had sales tax holidays each year from 2002 to 2009, but stopped them because it wanted to keep in state coffers the estimated $12 million the holiday cost.
Q: Will we have a tax holiday again next year?
A: Yes. Next year's tax holiday is from 12:01 a.m. Aug. 9 to midnight Aug. 10.
Q: Is there a cap to the amount of money I can spend?
A: There is no cap on the amount you can spend on clothes, shoes and supplies as long as each item is below the individual item cap. You cannot escape the tax if you spend more than $1,000 on electronics items in a single checkout.
Q: What has changed since the last sales tax holiday?
A: This year's tax holiday is shorter than in 2009. The cap on electronics purchases has also been reduced, from $1,500 to $1,000 for a single checkout.
Q: Is Georgia the only state that has tax holidays?
A: No. Georgia is one of 18 states that has tax-free sales days for back-to-school shopping. Alabama, Tennessee, Florida, North Carolina and South Carolina all have tax-free back-to-school shopping.
Q: Are there any other kinds of tax holidays?
A: Georgia will have a tax-free holiday Oct. 5-7 for energy-efficient purchases that cost less than $1,500 per item. Other states have tax-free holidays for energy efficiency, severe weather preparedness or firearms.
Q: What are some tax-free items I might not think of?
A: Antique and vintage clothes are tax-free, as are aprons, bathing suits, sport uniforms, formal wear, lingerie, rain wear, skates, lab coats, insoles, costumes, diapers and receiving blankets. Car adaptors for laptops, e-readers, tablet computers, microphones and anti-virus and word-processing software are tax-free. Chalk, children's books, dictionaries, lunch boxes and book bags are all tax-free, as long as they cost $20 or less apiece.
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