Restock on Business Supplies During a Sales Tax Holiday

Sales tax holidayWhen is the best time to buy office supplies for your business? Time your shopping to coincide with a sales tax holiday.

Planning to shop during a sales tax holiday can offset the loss of a particular benefit under the newly enacted Tax and Jobs Act: the law ends your ability deduct state and local taxes from your federal tax return.

A lot of the things you use on a daily basis for your venture can be obtained tax free during so-called tax holidays, which are scheduled for a couple of days this year in 14 different states.

Computers and Office Supplies

Although these states limit what is tax free to certain product categories, more than a third of them include computers and about half include school supplies, which is close enough to office supplies that you should be able to find things you might use.

Even if your own state isn’t participating in this phenomenon, all of the 14 states that are offering the tax-free windows on more than one day of the year, which might make it easier to travel to one of the shopping magnets listed in the chart at the bottom of this post.

If you don’t feel like traveling to one of the 14 states that offer sales tax holidays, you could always head to one of the four states that never charge sales taxes: Alaska, Montana, Nevada and Oregon.

It Goes Around

Sales tax holidays actually have benefits that go beyond your own business, which ultimately redounds back to your business: These days help stimulate the economy on a local level, which has a way of circulating money toward those who might transact with you throughout the year.

Speaking of local economic effects, don’t assume that all of the states having sales tax holidays this year will do so again next year. Already five states have discontinued having sales tax holidays since their peak year of 2010.

Fellow entrepreneurs, have you availed yourself of sales tax holidays yet — or are you interested in shopping during any of the ones listed in the chart below? What about shopping in states that have no sales tax?

Sales Tax Holidays

 

State
Days
 

Items Included
 

Maximum Cost
1stYear
 


Dates
 

Information Links 
Alabama3hurricane preparedness
generators – $1,000
supplies – $60
2012February 23-25http://www.revenue.alabama.gov/
Alabama3clothing – $100
computers – $750
school supplies – $50
books – $30
2006July 20-22http://www.revenue.alabama.gov/
Arkansas2clothing – $100
school supplies
2011August 4-5http://www.dfa.arkansas.gov/
Connecticut
7
clothing and footwear – $100
2001
August 19-25http://www.ct.gov/drs/
Iowa
2
clothing – $100
2000
August 3-4https://tax.iowa.gov/
Louisiana
2
hurricane preparedness
supplies – first $1,500
(2% rate reduction)
2008
May 26-27http://www.revenue.louisiana.gov/
Louisiana
2
Annual Holiday
all TPP – $2,500
2007
August 3-4http://www.revenue.louisiana.gov/
Louisiana
3
firearms, ammunition and hunting supplies
2009
September 7-9http://www.revenue.louisiana.gov/
Maryland3energy star products2011February 17-18http://www.comp.state.md.us/
Maryland7clothing & footwear-$1002010August 12-18http://www.marylandtaxes.com/
Mississippi
2
clothing & footwear – $100
2009
July 27-28http://www.dor.ms.gov/
Mississippi3firearms, ammunition and hunting supplies2014August 25-27http://www.dor.ms.gov/
Missouri7energy star products – $1,5002009April 19-25http://dor.mo.gov/
Missouri3clothing – $100
computers – $1,500
school supplies – $50
2004August 3-5http://dor.mo.gov/
New Mexico3clothing – $100
computers – $1,000
computer equip. – $500
school supplies – $30
2005August 3-5http://www.tax.newmexico.gov
Oklahoma
3
clothing – $100
2007
August 3-5http://www.tax.ok.gov/
South Carolina
3
clothing
school supplies
computers
other
2000
August 3-5http://www.sctax.org/
Tennessee
3
clothing – $100
school supplies – $100
computers – $1,500
2006
July 27-29http://tn.gov/revenue/
Texas
3
generators – $3,000
storm devices – $300
preparedness items – $75
2016
April 28-30http://comptroller.texas.gov
Texas
3
energy star products
air conditioners – $6,000; other – $2,000
2008
May 26-28http://comptroller.texas.gov/
Texas
3
clothing, backpacks and school supplies- $100
1999
August 10-12http://comptroller.texas.gov/
Virginia
3
clothing – $100
school supplies – $20
energy star products – $2,500
hurricane preparedness items – $60
generators – $1,000
2006
August 3-5http://www.tax.virginia.gov/

 

 

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