By Lorrie Ross
Staff Writer
With Americans facing economic challenges every day, even a little financial respite can be positive. Families often need extra funds for their students’ school needs, which may range from new clothes and backpacks, to pencils and lunchboxes. For that reason, several states offer tax-free weekends to help. In Clay County, Monday, Aug. 29 is the first dayof school for students.
What options are available for local residents? North Carolina consumers who want to take advantage of tax-free savings will have to weigh the price of gas to drive elsewhere against potential tax savings. North Carolina legislators ended their state’s tax-free days in 2013.
For those who do not mind a drive or who may be vacationing in another state and want to do some shopping, 20 states have tax-free shopping days. Head south to South Carolina for its tax-free weekend. From 12:01 a.m. Friday, Aug. 5 through Sunday, Aug. 7 a sales tax holiday is offered on several categories of goods. Retailer participation is mandatory and includes all clothing and footwear, school supplies and select bed and bath items. In addition, computers, printers, printer supplies and software are tax-free; however, this does not include cell phones, smartphones or other handheld devices which will make phone calls or devices primarily used to read books, listen to music or watch videos.
If you would rather go north, Virginia has a combined tax-free holiday starting at 12:01 a.m Friday, Aug. 5 and ends at 11:59 p.m. on Sunday, Aug. 7. Not only can you stock up on school supplies, but you may also buy hurricane and emergency preparedness supplies, along with certain Energy Star and WaterSense products during its tax-free weekend.
Clothing and footwear items must be $100 or less, while school supplies must be priced at $20 or less. Other price limits are portable generators priced at $1,000 or less, gas-powered chainsaws priced at $350 or less and chainsaw accessories priced at $60 or less. Other allowable hurricane preparedness items must be priced at $60 or less. The price limit for Energy Star and WaterSense products purchased for noncommercial home or personal use is $2,500 or less.
Unfortunately, some neighboring states like Tennessee have already celebrated a tax-free holiday for school supplies and clothing. Yet those who like to buy their food in bulk may find a drive across the border to be beneficial. Tennessee is giving a break on all food and food ingredients from August 1-31. You read right, the entire month of August allows people to buy food tax-free with some exclusion, which include candy, alcoholic beverages, dietary supplements, prepared food and tobacco.
Heading to Florida for some beach time? Children’s books are tax-free through August 14, while school supplies, clothing and computers under $1,500 are tax-free through August 7. Some price limits apply and Florida will have numerous tax-free days in 2023.
Other states offering tax-free savings for 2022 include Alabama, Arkansas, Connecticut, Illinois, Iowa and Maryland. In addition, Massachusetts, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oklahoma, Texas and West Virginia also have tax-free days. Complete details for all states with tax-free days may be found at: https://www.taxadmin.org/sales-tax-holidays.
So why did North Carolina end the tax-free back to school shopping in its state? Lawmakers in 2013 wanted to simplify tax rules and guidelines. Some even felt it was hurting retailers who had to pay to adjust electronic checkout systems for a few short days. Others said the state was losing money because so much more money was spent by residents, as well as non-residents, but no tax benefit to the state’s pocketbook.
North Carolina used to allow tax exemptions on items such as clothing, school supplies, computers, computer supplies and sports equipment on the first weekend of August. Later each year, the state often allowed tax breaks on Energy Star appliance holiday. According to the North Carolina Department of Revenue, the tax-free weekend cost the state more than $13.5 million dollars. Because of that, North Carolina tax reform legislation was passed to end future sales tax holidays. The extra revenue was intended to offer broad tax relief by cutting personal and corporate income taxes.
For a breakdown of North Carolina sales tax by city and county, visit: https://www.sale-tax.com/NorthCarolina.