CullmanTimes.com - Cullman, Alabama

August 5, 2010

Tax free shopping

Back to school tax holiday set for this weekend

By Trent Moore
The Cullman Times

— With the new school year only days away, local parents have one last chance to pick up supplies and back to school clothes at a discount this weekend.

The fifth annual Alabama tax free holiday is slated to begin on August 6 and last until August 8. The holiday covers clothing priced at $100 or less, school supplies valued at $50 or less, books costing $30 or less, and computers and computer equipment selling for $750 or less. The sales tax holiday applies to everyone, not just those buying back-to-school items.

Both the City of Cullman and Cullman County are participating in the tax free weekend, and Cullman County Commission Chairman James Graves said he hopes local shoppers will take advantage of the offer.

“They give folks a lot of leeway on what they can buy, and a lot of things are covered under that,” he said. “So, we encourage everyone to go out and spend their money in Cullman County.”

The president of the Alabama Retail Association, Rick Brown, told the Associated Press that retail sales have been recovering slowly from the recession, and the sales tax holiday should provide even more momentum.

In Cullman, the back to school weekend is normally a big draw for shoppers, Factory Connection store manager Tonya Hardy said.

“We are expecting a large crowd for the upcoming tax free weekend and we always have a record number of customers coming through,” she said. “We also have layaway that most other retailers can’t offer, so this is a wonderful way for us to help out all those back to school shoppers.”

Kmart store manager Sheila Earnest agreed the tax free weekend makes for one of the busiest times of the year.

“We’re expecting a really big weekend,” she said. “That’s normally a really good time for us.”

Jessica Waldrop, with the Cullman Area Chamber of Commerce, said the holiday should be a boost for local residents and businesses during the current economic malaise.

“The Chamber is hoping that residents of the City of Cullman and Cullman County will shop until they drop,” she said. “We are excited about relieving consumers of county and municipal sales tax for the weekend. Shoppers will have the opportunity to purchase certain school supplies, books, computers and clothing.”

For the three-day holiday, the state is waiving its 4-percent sales tax, and 265 cities and counties are participating — though not all communities are taking part this year.

Some counties, such as nearby Jefferson County, chose not to participate in the tax holiday this time around — a move Graves hopes will drive more shoppers to local stores.

“We hope some of those folks might head on up here and shop in Cullman County,” Graves said.

The Details

CLOTHING

$100 or less per article of clothing

Exempt:

Includes all human wearing apparel suitable for general use. This is not limited to, but includes the following articles: Belts, boots, caps, coats, diapers, dresses, gloves, gym suits, hats, hosiery, jackets, jeans, neckties, pajamas, pants, raincoats, robes, sandals, scarves, school uniforms, shirts, shoes, shorts, socks, sneakers, underwear.

Taxable Items:

Clothing Accessories: belt buckles (sold separately), briefcases, cosmetics, costume masks (sold separately), hair notions (barrettes, hair bows, etc.), handbags, handkerchiefs, jewelry, patches and emblems (sold separately), sewing equipment and supplies (pins, patterns, scissors, tape measures, etc.), sewing materials (thread, fabric, buttons, zippers, etc.), sunglasses, eyeglasses, contacts (prescription or nonprescription), umbrellas, wallets, watches, wigs and hairpieces,

Protective Equipment: Breathing masks, clean room apparel and equipment, ear and hearing protectors, face shields, hard hats, helmets, paint or dust respirators, protective gloves, safety glasses and goggles, safety belts, tool belts, welders gloves and masks

Sport or Recreational Equipment: Ballet or tap shoes, band instruments, cleated or spiked athletic shoes, gloves (baseball, bowling, boxing, hockey, golf, etc.), goggles, hand and elbow guards, life preservers and vests, mouth guards, roller and ice skates, shin guards, shoulder pads, ski boots, waders, wetsuits and fins.

 

 COMPUTERS, COMPUTER SOFTWARE, SCHOOL COMPUTER SUPPLIES

A single purchase with a sales price of $750 or less

Exempt:

Computers – For purposes of the exemption, a computer may include a laptop, desktop, or tower computer system which consists of a central processing unit (CPU), and devices such as a display monitor, keyboard, mouse, and speakers sold as a computer package. Computer parts and devices not sold as part of a package with the CPU, will not qualify for the exemption.

Computer Software

School computer supplies – An item commonly used by a student in a course of study in which a computer is used. All inclusive list includes: Computer storage media (diskettes, compact disks), handheld electronic schedulers, except devices that are cellular phones, personal digital assistants (except devices that are cellular phones), computer printers, printer supplies for computers (printer paper, printer ink).

Taxable:

 Furniture, any systems, devices, software, peripherals designed or intended primarily for recreational use, or video games of a non-educational nature.



SCHOOL SUPPLIES, SCHOOL ART SUPPLIES, SCHOOL INSTRUCTIONAL MATERIAL

Sales Price of $50 or less per item (Noncommercial Purchases)

Exempt:

School supplies: All inclusive list: Binders, blackboard chalk, book bags, calculators, cellophane tape, compasses, composition books, crayons, erasers, folders (expandable, pocket, plastic and manila), glue, paste, and paste sticks, highlighters, index cards, index card boxes, legal pads, lunch boxes, markers, notebooks, paper (loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper), pencil boxes and other school, supply boxes, pencil sharpeners, pencils, pens, protractors, rulers, scissors, writing tablets

School art supplies: All inclusive list: Clay and glazes, paints (acrylic, tempora and oil), paintbrushes for artwork, sketch and drawing pads, watercolors  

School instructional material: All inclusive list: (Written material commonly used by a student in a course of study as a reference and to learn the subject being taught), reference maps and globes, required textbooks on an official school book list with a sales price of more than $30 and less than $50

Books: Sales price of $30 or Less, per book (Noncommercial Purchases)

Exempt:

Books: The term book is defined as a set of printed sheets bound together and published in a volume with an ISBN number.

Taxable:

Magazines, newspapers, periodicals, any other document printed or offered for sale in a non-bound form.



* The Associated Press contributed to this report.



* Trent Moore can be reached by e-mail at trentm@cullmantimes.com, or by telephone at 734-2131, ext. 220.