This marks the 20th year of Alabama’s back-to-school sales tax holiday, from Friday, July 18, through Sunday, July 20.
Alabama’s back-to-school sales tax holiday
Lee County, which includes Auburn and Opelika, has approved an ordinance to participate in Alabama’s back-to-school sales tax holiday. The tax holiday begins on the third Friday of July at midnight and ends the following Sunday at midnight.
This sales tax exemption removes the city’s 4% sales tax on specific items when shopping. It aims to reduce expenses on essential items such as school supplies, clothing and more. While this benefits families by allowing them to shop without paying tax, there are some limitations to note.
For instance, you can use discounts and coupons during the sales tax weekend only if the new price is under the allotted limit. Furthermore, if you purchase both tax-free and regular items and use a discount on the entire purchase, you only pay tax on items that don’t qualify for the holiday.
Exempt items
During the weekend, shoppers can purchase clothing, computers, computer software and school supplies exempt from sales tax. Here is a quick breakdown:
- Clothing: Apparel suitable for general use is exempt unless it otherwise appears on the taxable list. These clothing items must cost $100 or less per article to be exempt.
- Computers and computer software: Items exempt include computers, computer software and school computer supplies. One single purchase with a sales price of $750 or less can be exempt.
- School supplies: Any common item of $50 or less per item used by a student in a course of study is exempt. This can include art supplies, maps and globes, textbooks on an official school list with a sales price of more than $30 but less than $50 and books with a sales price of $30 or less per book.
Excluded items
However, Alabama’s back-to-school sales tax holiday does not cover items such as jewelry, sports equipment, protective gear or video games. Examples of items excluded from this tax break include:
- Clothing accessories: Items like handbags, jewelry, sunglasses and umbrellas.
- Sports or recreational equipment: Items such as ballet or tap shoes, athletic gloves, goggles or sports balls.
- Protective gear: Breathing masks, hard hats, helmets and safety belts are not included.
- Furniture of any sort.
- Video games.
- Any systems, devices or peripherals designed primarily for recreational use.
- Magazines, newspapers, periodicals or any other document printed or offered for sale in a non-bound form.
Summary
Visit the Alabama Department of Revenue for a complete list of what qualifies for the tax exemption. If you’re new to the area and looking for a place to call home in Auburn or Opelika, connect with Ryan Roberts for all your home search needs before heading back to school!
Until then, continue reading our blogs for more local events, news and real estate updates.