MEDIA ALERT: States Offering Back-to-School Tax Breaks Expand

Rhea-AI Summary

Wolters Kluwer Tax & Accounting highlights the significance of upcoming state sales tax holidays for parents preparing for the school year. These tax exemptions, lasting only a few days in various states, aim to ease financial burdens. Alabama's tax holiday starts on July 15, 2022, followed by others into August. This initiative underscores the need for parents to plan for qualified items and applicable sales limits to maximize savings during this critical shopping period.

Positive

• Sales tax holidays provide financial relief for parents during back-to-school shopping.
• Several states are offering tax exemptions on essential school items, encouraging local spending.

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• None.

Wolters Kluwer Tax & Accounting explores upcoming state sales tax breaks to help parents as they prepare for a new school year

Wolters Kluwer Tax & Accounting:

What: Back-to-school sales tax holidays remain popular in many states. With many students returning to a normal classroom for the first time in a couple of years, the sales tax holidays may be especially important for parents. These temporary tax exemptions are available for a very short time and only apply to specific items and amounts outlined by each state.

Why: It is important to keep in mind and prepare for the tax holiday period in your state since the tax holiday period may be as short as only a couple of days. The earliest tax holiday, in Alabama, starts on July 15, 2022.

States Offering Back-to-school Sales Tax Holidays in 2022 (in alphabetical order):

Alabama	July 15-17	Clothing (not accessories or protective or recreational equipment) with sales price of $100 or less per item; single purchases, with a sales price of $750 or less, of computers, computer software, school computer equipment; noncommercial purchases of school supplies, school art supplies, and school instructional materials with sales price of $50 or less per item; noncommercial book purchases with sales price of $30 of less per book.
Arkansas	August 6-7	Clothing items under $100, clothing accessory or equipment under $50, school art supplies, school instructional materials, electronic devices, and school supplies.
Connecticut	August 21-27	Clothing and footwear that costs less than $100 (not any special clothing or footwear primarily designed for athletic activity or protective use, and not jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items).
Florida	July 25-August 7	Clothing, school supplies, learning aids and puzzles, and personal computers.
Illinois	August 5-14	Clothing items that each have a retail selling price of less than $125; and school supplies used by students in the course of study. Items that qualify for the tax holiday are subject to tax at a reduced rate of 1.25%.
Iowa	August 5-7	Clothing and footwear (not accessories, rentals, athletic or protective) with sales price of less than $100 per item.
Maryland	August 14-20	Any item of clothing or footwear with a taxable price of $100 or less, excluding accessory items such as jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles; and the first $40 of the taxable price of any backpack or bookbag.
Mississippi	July 29-30	School supplies, clothing or footwear (not accessories, rentals, or skis, swim fins, or skates) with sales price under $100 per item.
Missouri	August 5-7	Noncommercial purchases of clothing (not accessories) with taxable value of $100 or less per item; school supplies up to $50 per purchase; computer software with taxable value of $350 or less; personal computers and computer peripherals up to $1,500; and graphing calculators with a taxable value of $150 or less. Localities may opt out. If less than 2% of retailer's merchandise qualifies, retailer must offer a tax refund in lieu of tax holiday.
New Mexico	August 5-7	Footwear and clothing (not accessories or athletic or protective clothing) with sales price of less than $100 per item; school supplies with sales price of less than $30 per item; computers with sales price of $1,000 or less per item; computer peripherals with sales price of $500 or less per item; book bags, backpacks, maps and globes with sales price less than $100 per item; and handheld calculators with sales price of less than $200 per item. Retailers are not required to participate.
Ohio	August 5-7	School supplies with a price of $20 or less, clothing with a price of $75 or less, and school instructional materials with a price of $20 or less.
Oklahoma	August 5-7	Any article of clothing or footwear (excluding accessories, rentals, and athletic or protective clothing) that is designed to be worn on or about the human body and that has a sales price of less than $100.
South Carolina	August 5-7	Clothing (not rentals), clothing accessories, footwear, school supplies, computers, printers, printer supplies, computer software.
Tennessee	July 29-31	Clothing (not accessories), school supplies, and school art supplies with sales price of $100 or less per item; computers with sales price of $1,500 or less per item.
Texas	August 5-7	Clothing and footwear (not accessories, athletic, protective, or rentals), school supplies, and school backpacks with sales price of less than $100 per item.
Virginia	August 5-7*	School supplies and clothing: clothing and footwear with selling price of $100 or less per item, and school supplies with selling price of $20 or less per item. *Unless Virginia takes further action, this provision will expire on July 1, 2022.
West Virginia	August 5-8	Clothing with a price of $125 or less; school supplies with a price of $50 or less; school instructional materials with a price of $20 or less; laptop and tablet computers, not purchased for use in a trade or business, with a price of $500 or less; and sports equipment, not purchased for use in a trade or business, with a price of $150 or less.

Who: Mark Luscombe, JD, LL.M, CPA, principal analyst for Wolters Kluwer Tax & Accounting, and Carol Kokinis-Graves, JD, attorney and senior state tax analyst for Wolters Kluwer Tax & Accounting who specializes in tracking, analyzing, and reporting issues regarding state and local sales and use taxes, are available to discuss specific sales tax holidays for each state, including:

• 2022 effective dates
• Qualifying items (school supplies, clothing, computers, software, etc.)
• Dollar limits

PLEASE NOTE: The content of this article is designed to provide accurate and authoritative information in regard to the subject matter covered. The information is provided with the understanding that Wolters Kluwer Tax & Accounting is not engaged in rendering legal, accounting, or other professional services.

Contact: To arrange interviews with Mark Luscombe or Carol Kokinis-Graves and other federal and state tax experts from Wolters Kluwer Tax & Accounting on this or any other tax-related topics, please contact Bart Lipinski.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220622005630/en/

KELLY DE CASTRO

614-286-5640

kellly.deCastro@wolterskluwer.com

Source: Wolters Kluwer Tax & Accounting

FAQ

What are the benefits of back-to-school sales tax holidays for WTKWY investors?

Back-to-school sales tax holidays can boost consumer spending, positively impacting retailers and potentially benefiting the stock performance of companies like WTKWY.

When does the Alabama sales tax holiday start in 2022?

The Alabama back-to-school sales tax holiday starts on July 15, 2022.

What items qualify for sales tax exemptions during back-to-school holidays?

Qualifying items typically include clothing, school supplies, and computers, with specific price limits varying by state.

Which states are offering back-to-school sales tax holidays in 2022?

States like Alabama, Arkansas, and Florida will offer sales tax holidays for back-to-school shopping in 2022.