“Back To School” Sales Tax Holiday This Weekend

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If you’ve been waiting to buy school supplies, now’s the time.  Alabama’s “Back To School” Sales Tax Holiday is officially underway.

Stores have shelves stocked to the gills with school supplies, clothes and other items.  The sales tax holiday started Friday at 12:01 a.m. and continues until midnight on Sunday, August 5.  This is Alabama’s seventh year for the event.

You can buy certain school supplies, clothing, computers and books free of state sales tax.  Local sales tax may apply, but many cities and counties are waiving it as well.

Here’s information on which items are tax exempt and which aren’t:

CLOTHING:
$100 or less, per article of clothing, is tax exempt
*Accessories, protective equipment and sport/recreational equipment is not included

COMPUTERS, COMPUTER SOFTWARE, & SCHOOL COMPUTER SUPPLIES:
A single purchase with a sales price of $750 or Less is tax exempt
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, systems/devices/software designed for recreational use
Non-educational video games

SCHOOL SUPPLIES, SCHOOL ART SUPPLIES & SCHOOL INSTRUCTIONAL MATERIAL -
Sales Price of $50 or Less, per item, are tax exempt

BOOKS
Sales price of $30 or less are tax exempt
*Magazines, newspapers, and other periodicals are taxable.

See the Alabama Department of Revenue’s reference sheet for more specific details on clothing, supplies and more.  

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