SPANISH FORT, Ala. — Spanish Fort residents are gearing up for the third annual Alabama sales tax holiday.
The holiday will begin at 12:01 a.m. on Friday, Aug. 1 and end at midnight on Sunday, Aug. 3. This weekend, shoppers can purchase …
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SPANISH FORT, Ala. — Spanish Fort residents are gearing up for the third annual Alabama sales tax holiday.
The holiday will begin at 12:01 a.m. on Friday, Aug. 1 and end at midnight on Sunday, Aug. 3. This weekend, shoppers can purchase back-to-school items free of state sales tax.
This is a statewide event where each city chooses whether to participate; retailers in participating cities must participate legally cannot charge state tax on items that are tax-exempt during the holiday weekend, according to the Alabama Department of Revenue’s Web site.
Items such as binders, bookbags, calculators, crayons, index cards, glue and other staples commonly used by students are tax-free during the weekend, according to the department.
Clothing articles must be $100 or less, per article of clothing; school and art supplies must be $50 or less, per item; and each book must be $30 or less, according to the department. A book is defined as a set of printed sheets bound together and published in a volume with an ISBN, for it to be tax-exempt. Magazines and newspapers — or any other printed document in a non-bound form — will be disqualified from exemption, according to the department.
Computers, software, laptops and blank CDs are exempt from the tax as long as the single purchase sale price is $750 or less. Computer parts and devices not sold as part of a package with a central processing unit will not qualify for the exemption, according to an Alabama Retail Association news release.
“We do expect people will be planning their shopping around this weekend,” Nancy Dennis, director of public relations for the Alabama Retail Association, said.
“It’s a great opportunity for people to save money.”
According to a National Retail Association survey of 8,361 participants, 22.7 percent of parents in the South with school-aged children held on to a portion of their stimulus checks for back-to-school shopping.
The average household in the South is expected to spend $611.02 on back-to-school shopping, according to Dennis. In this instance, if a city has a 10 percent sales tax, the household would save $61 on back-to-school shopping during the tax weekend.
But the holiday is not limited to those planning to go back to school. Anyone can purchase tax-exempt items and save money, as long as the items are displayed are eligible. Diapers are even tax exempt, according to the ARA.
Retailers can, however, charge a district tax. The Eastern Shore Centre will collect a 1 percent district tax during the tax holiday weekend, according to Donna Dunning, secretary at Spanish Fort City Hall.
A district tax is a fee levied at the centre in accordinance of state code for use of providing services or maintaining the district and property owned, according to City Attorney David Conner. The tax works in conjunction for public improvements of that site to pay for the bond.
Kristen Kammer-Hattox, marketing director at the Eastern Shore Centre, said some big name stores at the centre won’t charge the district tax and will pay off the 1 percent fee, passing the savings on to shoppers.
For complete details on the sales tax holiday and a list of tax-free items, visit revenue.alabama.gov/salestax/salestaxhol.htm.