- Footwear and Clothing
Tax-free footwear and clothing that are sold for less than $100 are tax exempt. The exemption applies to each eligible item that sells for less than $100, regardless of how many items are sold on the same invoice to a customer.
For example, if a customer purchases two shirts for $80 each, then both items qualify for the exemption, even though the customer's total purchase price ($160) exceeds $99.99.
The exemption does not apply to the first $99.99 of an otherwise eligible item that sells for more than $99.99.
For example, if a customer purchases a pair of pants that costs $110, then sales tax is due on the entire $110.
Backpacks priced under $100 sold for use by elementary and secondary students are exempt during the sales tax holiday.
Backpacks do not include items defined as luggage, briefcases, athletic bags, computer bags, purses or framed backpacks (example - hiking bags).
- School Supplies
School supplies priced at less than $100 purchased for use by a student in an elementary or secondary school are tax-exempt.
- Layaways and Rainchecks
A sale of a qualifying item under a layaway plan qualifies for exemption if the customer places the qualifying merchandise on layaway during the holiday or makes the final payment during the holiday.
Eligible items that customers purchase during the holiday with use of a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check by a seller during the holiday period will not qualify an eligible item for the exemption if the item is actually purchased after the holiday is over even if the rain check is presented at the time of purchase.