What’s the Deal with “Tax Free” Days on Certain Products?
Throughout certain times of the year depending on which state you live in, you will be able to live like a New Englander and purchase tax-free clothing—and maybe even a tax reduction on other consumer products thanks to the Tax-Free Holiday Weekend.
About the Tax Free Holiday Weekend
This is a holiday that eliminates taxes on certain items or at least reduces them for a certain period of time—typically throughout the weekend. This holiday is celebrated in 13 states starting from Friday to Sunday.
The Tax Free Holiday is usually celebrated around the end of the summer, strategically placed around back-to-school shopping time. Going back to school isn’t the only reason that this holiday is conveniently placed around this season.
During this time of year, natural disasters are known to strike and again, depending on your home state, some products like disaster recovery items might be part of the tax reduction for the holiday.
What’s in it for Them?
Of course, not only does the consumer benefit from these tax breaks, it’s also a good incentive for businesses. Many companies find this holiday to be a great opportunity to promote certain products or even use it as a way to boost their business and give it visibility.
What Kind of Products are Tax Free?
Here is a short list of products that are marked down in taxes or are completely tax-free:
- School Supplies – Tax-free items under this category include clothing, footwear, school supplies, books and even computers!
- Preparedness Items – Under this category, preparedness items might be generators, batteries, battery-operated radios, firearms, ammunition and hunting supplies.
- Energy Star Products – Any appliance that has been marked with the energy efficient star like refrigerators, dishwashers, washer and dryers, and air conditioning units might also be available at either a tax-free rate, or at best sold at a reduced price.
- Other – Depending on the state, sports equipment, diapers, and health and beauty aid can be purchased tax-free.
The state of Texas’s Sales Tax Holiday for 2016 is August 5-7. So now is the time to start saving your money to take advantage of some tax-free deals. For those of you who might have chosen to save your tax refund, this might be a good opportunity to take advantage of this holiday. Use your tax refund to purchase items tax-free!
Unfortunately, there is a limit to what and how much merchandise you can purchase tax-free. With clothing, footwear, and school supplies, anything under $100 qualifies for tax exemption. For businesses that are selling bigger products and appliances, their stipulations vary.
Success Tax Relief: Helping You Save Money
When it comes to the word “taxes”, it doesn’t always have to have a negative connotation. Here at Success Tax Relief, we take a vested interest in helping you save money any way possible. To get more helpful advice about taxes, contact on of our tax professionals at 1-877-825-1179 or schedule a free consultation with us online today.