Q. What types of items qualify as school supplies?
A. "School supplies" include only the following items: binders; book bags; calculators; cellophane tape; blackboard chalk; compasses; composition books; crayons; erasers; folders (expandable, pocket, plastic, and manila); glue, paste, and paste sticks; highlighters; index cards; index card boxes; legal pads; lunch boxes; markers; notebooks; paper; loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper; pencil boxes and other school supply boxes; pencil sharpeners; pencils; pens; protractors; rulers; scissors; and writing tablets.
Q. What items of clothing qualify?
A. "Clothing" is defined as all human wearing apparel suitable for general use. "Clothing" includes, but is not limited to, shirts; blouses; sweaters; pants; shorts; skirts; dresses; uniforms (athletic and nonathletic); shoes and shoe laces; insoles for shoes; sneakers; sandals; boots; overshoes; slippers; steel-toed shoes; underwear; socks and stockings; hosiery; pantyhose; foot-lets; coats and jackets; rain-wear; gloves and mittens for general use; hats and caps; ear muffs; belts and suspenders; neckties; scarves; aprons (household and shop); lab coats; athletic supporters; bathing suits and caps; beach capes and coats; costumes; baby receiving blankets; diapers, children and adult, including disposable diapers; rubber pants; garters and garter belts; girdles; formal wear; and wedding apparel.
Q. What items are not included in the definition of clothing?
A. Clothing accessories or equipment: briefcases; cosmetics; hair notions, including, but not limited to, barrettes, hair bows, and hair nets; handbags; handkerchiefs; jewelry; sun glasses (non-prescription); umbrellas; wallets; watches; and wigs and hair pieces.
• Protective equipment: breathing masks; clean room apparel and equipment; ear and hearing protectors; face shields; hard hats; helmets; paint or dust respirators; protective gloves; safety glasses and goggles; safety belts; tool belts; and welders gloves and masks.
• Sewing equipment and supplies: knitting needles, patterns, pins, scissors, sewing machines, sewing needles, tape measures, and thimbles; and sewing materials that become part of "clothing" including, but not limited to, buttons, fabric, lace, thread, yarn, and zippers.
• Sports or recreational equipment: Sport or recreational equipment includes ballet and tap shoes; cleated or spiked athletic shoes; gloves, including, but not limited to, baseball, bowling, boxing, hockey, and golf; goggles; hand and elbow guards; life preservers and vests; mouth guards; roller and ice skates; shin guards; shoulder pads; ski boots; waders; and wet-suits and fins.
• Belt buckles sold separately. Costume masks sold separately. Patches and emblems sold separately.
Q. What types of items qualify as school instructional material?
A. "School instructional material" includes only the following items: reference books, reference maps and globes, textbooks, and workbooks.
More of the nitty-gritty:
Q. Does the $75 exemption apply to the first $75 of an item of clothing? In other words, if the selling price of an item of clothing is $80, is the first $75 exempt from sales tax?
A. No. The exemption applies to items selling for $75 or less. If an item of clothing sells for more than $75, tax is due on the entire selling price.
Q. What about buy one, get one free or items sold for a reduced price?
A. The total price of items advertised as "buy one, get one free" or "buy one for a reduced price" cannot be averaged to qualify both items for the exemption. The exemption depends on the actual price paid for each item. For example, if a consumer buys one clothing item at $80 and receives another item for free, the purchase would be subject to sales tax.
Q. How are coupons and discounts handled?
A. If a retailer offers a discount to reduce the price of an eligible item to $20 (applies to school supplies) or less or $75 (applies to clothing) or less, the item will qualify for the exemption. This applies to all discounts even if a retailer's coupon or loyalty card is required to secure the discount. If a retailer accepts a coupon that entitles the retailer to third-party reimbursement, such as a manufacturer's coupon, the discount provided by the coupon does not reduce the item's sales price for purposes of determining whether the item is eligible for the exemption.
Q. Does the exemption apply to rain checks?
A. Eligible items purchased during the sales tax holiday using a rain check qualify for the exemption only if the rain check is redeemed during the sales tax holiday. If it is redeemed after the holiday period, the purchase is taxable.
Q. Does the exemption apply to layaway sales?
A. Qualifying items placed or picked up from layaway during the sales tax holiday are exempt from sales tax. Roderer Shoes on North Main Street in Dayton, for example has sent out a back-to-school promotional post card offering 20 percent off select shoe styles, plus another 7.25 percent on any children's and adult shoes priced at $75 and under. "Use our Lay-a-way to hold your shoes for this special weekend," they suggest.
Q. Does the exemption apply to rebates?
A. Rebates occur after the sale and do not reduce the sales price of an item for purposes of the sales tax holiday threshold. If the price of the item before rebate exceeds the threshold, it is taxable.
Q. Does the exemption apply to mail, telephone, email, and internet orders?
A. Qualified items sold to consumers by mail, telephone, e-mail, or Internet qualify for the sales tax exemption if the consumer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period. However, if the order and payment were made before the sales tax holiday, even if the item was delivered during the sales tax holiday, it would not qualify for the exemption. Additionally, if an item is back-ordered and payment does not occur until a later shipment, the item would not qualify for the exemption.
Q. Does the exemption apply to shipping and handling charges?
A. If all items in a shipment qualify as eligible items and the sales price for each is within the sales tax holiday price threshold, the shipping and handling charges are not taxable.
Q. How will retailers handle exchanges and returns?
A. If a consumer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, the retailer should not charge sales tax even if the exchange is made after the end of the sales tax holiday. If a consumer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, the retailer must charge sales tax on the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday.
If a consumer buys an eligible item before the holiday period, but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item. The retailer must provide the consumer credit for both the purchase price and sales tax paid on the item being returned.
Happy Shopping! And don’t leave your glass slipper — or, in this case, one of your gym shoes — on the store steps!
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