Taxes get holiday this weekend

By Donna Riley-Lein
Independent Staff Writer
Posted 7/31/08

Pencils, pens, notebooks, and let’s not forget school clothes. Getting a youngster or two or three or four ready for school, (which starts Aug. 11 for most) can be an expensive proposition.

But, it won’t be quite as costly this weekend. For …

This item is available in full to subscribers.

Subscribe to continue reading. Already a subscriber? Sign in

Local reporters keeping you informed across the Alabama Gulf Coast.

You can cancel anytime.
 

Please log in to continue

Log in

Taxes get holiday this weekend

Posted

Pencils, pens, notebooks, and let’s not forget school clothes. Getting a youngster or two or three or four ready for school, (which starts Aug. 11 for most) can be an expensive proposition.

But, it won’t be quite as costly this weekend. For the third year, Alabama will have a sales tax holiday. The sale runs from 12:01 a.m. on Friday Aug. 1, and ends at midnight on Sunday, Aug. 3.

This means that “all human wearing apparel” sold for $100 or less (not including hard hats and the like) and school supplies that retail for $50 or less will be free of state sales tax. Computers and computer software under $750 is also on the tax-exempt list. Flash drives, blank compact discs and printers can also be purchased tax-free this weekend. A complete list of tax-exempt items can be found on-line at ador.state.al.us/salestax/SalesTaxHol.htm

And, if your favorite store is in one of the many communities in Baldwin County that have decided to not collect local taxes during the holiday, you have a savings of eight percent on most back-to-school items. The county has also voted to participate in this weekend’s tax holiday.

All the communities in the Independent area, with the exception of Silverhill will be participating in the holiday.

“We don’t have any businesses that would be involved,” explained Town Clerk Bonnie McNeil in a telephone interview, adding that there is one chain store in the community that has declined to participate because of the paperwork involved.

That’s true for a number of smaller communities said Carla Snellgrove, a spokesperson for the Alabama Department of Revenue.

“Many of the smaller communities have chosen not to participate,” said Snellgrove. “But, the 4 percent state sales tax is waived for everybody.”

While the savings are welcome for consumers, it’s also a shot in the arm for retailers.

“We’re excited about all this,” said Josh Braverman, a spokesperson for the Family Dollar chain of stores. The chain boasts about 6,500 stores in 44 states, and Braverman believes “about 12 or so” states will have some version of a tax holiday this weekend.

“This is great,” said Braverman. “It puts more money in people’s pockets just when they need it the most. It lets people get what they need at a reduced cost.”

And, as in the past, revenue examiners from the Department of Revenue will be just a phone call away. If a consumer had a question, ALDOR representatives will be available at 1-866-576-6531 Saturday and Sunday from 8 a.m. to 5 p.m.

“We got a lot of questions the first year,” said Snellgrove. “But, this is the third year, and as people have gotten used to the program, the calls have decreased.”

Reprogramming cash registers and the computer systems retailers use to keep track of sales for one weekend can be a big job, Braverman allows.

“It’s something we know is coming,” said Braverman. “We have folks in the tax department, programmers, and folks in the field to help.”

The idea of a back-to-school tax holiday has become popular in recent years. However, don’t be surprised if you see a few more Mississippi and Florida license plates near your favorite store — those states don’t have a tax holiday.

“They are very welcome to come and shop here,” said Snellgrove.