Tax holiday begins Friday
Published 4:14 am Monday, July 30, 2007
By By Lisa Tindell – news reporter
Shirts, pants, notebooks, computers and pencils are among an extensive list of items eligible for tax-exempt status - but for a very limited time.
Brewton area residents will have an opportunity to purchase school supplies, including clothes, which will be exempt from state and city taxes beginning at midnight Friday.
The sales tax holiday will continue through midnight Sunday, Aug. 5.
East Brewton has also joined in the efforts to reduce the cost of sending children back to school this fall.
County officials will still collect the 1 percent county sales tax in the tax holiday event, since most of that tax benefits schools.
Of the 8 percent sales tax paid by Brewton area residents, 4 percent is state sales tax, 1 percent is county tax and 3 percent is city tax. Those who make eligible purchases during the tax holiday period will only be required to pay the 1 percent sales tax levied by the county.
State officials put a sales tax holiday in effect in 2006 and pledged to continue the efforts in 2007 in cooperation with the Chamber of Commerce Association of Alabama and the Alabama Retail Association.
Any business that sells clothing, school supplies, books, or computers and computer equipment is included in the tax holiday program, according to officials with the Alabama Department of Revenue.
According to the ARA, merchants across the state indicated an increase in Alabama sales tax collections in August 2006.
Clothing items such as jackets, pants, shirts, coats, dresses, hats, school uniforms, socks, underwear, sneakers and other shoes are included on the tax-exempt list. Only items with price tags of less than $100 are included on the list. Accessories, protective equipment and sport or recreational equipment or uniforms are not included in the holiday program and are fully taxable.
Computers, computer software and school computer supplies including printers, diskettes or compact disks as well as printer supplies and other handheld digital devices are also included. Cost for those items is limited to $750 or less.
School supplies, school art supplies and school instructional materials priced at $50 or less per item are exempt from state and city taxes. Books priced $30 or less are also included on the list.