• Rachel Dauchy

State-by-State Sales Tax Rules

Sales Tax update from Quickbooks, for those that use the sales tax center

Don't forget -- sales tax rules can change and update every month. While it can be

overwhelming to keep up with it all, there are some great tools out there to help you stay on top of tax codes. For QuickBooks Online users, their QuickBooks Sales Tax program not only tracks and records your relevant data, but they also stay up to date on all the changes, so you don't have to! QBO recently put out some great info on upcoming changes to state sales tax codes and accumulated them all in one place. Check below to see if your state has any updates for August or recent months and to see about any sales tax holidays you may be eligible for!


 

"We have put together the following summary of rate and rule changes that will occur in QuickBooks Sales Tax this month and may affect your business transactions. Knowing these changes will eliminate surprises to you or your clients. You can use [this] free sales tax calculator anytime to find rates for any US address.

RATE UPDATES

Arizona (Globe)

SALES TAX HOLIDAYS


Arkansas's annual sales tax holiday will take place August 6-7. During this period qualifying sales of clothing, footwear, clothing accessories and equipment, school supplies, school art supplies, school instructional materials, and electronic devices are exempt from sales tax.

Connecticut's annual sales tax holiday for clothing and footwear runs from Sunday, August 21 through Saturday, August 27. During this period, clothing and footwear costing less than $100 per item will be exempt from sales tax.

Illinois will have a sales tax holiday for sales of qualifying clothing and school-related products, effective Friday, August 5, 2022, through Sunday, August 14, 2022. During this period, the state is reducing its portion of tax by 5 percent (5.00%), from 6.25 percent (6.25%) to 1.25 percent (1.25%). Tax holiday items include qualifying clothing and footwear priced less than $125, and school supplies generally used by students in the course of study, regardless of price.

Iowa will have their annual sales tax holiday for clothing and footwear starting Friday, August 5 running through Saturday, August 6. During the holiday sellers are not required to collect sales tax, including school and location option sales taxes, on sales of qualifying clothing or footwear having a selling price of less than $100.

Maryland's Shop Tax-Free Week runs from Sunday, August 14 through Saturday, August 20. During this period sales tax does not apply to sales of qualifying clothing or footwear priced $100 or less and the first $40 of a backpack/bookbag purchase.

Massachusetts' annual sales tax holiday runs from Saturday, August 13 through Sunday, August 14. During this period, retail items of up to $2,500, purchased in Massachusetts for personal use on these two days, will be exempt from sales tax.

Mississippi's 2nd Amendment sales tax holiday takes place between Friday, August 26 and Sunday, August 28. During this period, Mississippi sales tax does not apply to sale of firearms, ammunition and certain hunting supplies.

Mississippi's annual clothing and school supplies sales tax holiday occurs on July 29 and July 30. During this tax holiday period, Mississippi sales taxes are not collected or paid on purchases of articles of clothing, footwear, or school supplies if the sales price of a single item is less than $100.

Missouri’s back to school sales tax holiday will take place August 5-7. During this period qualifying sales of clothing and footwear, personal computer or computer peripheral devices, personal computer software, general school supplies are exempt from sales tax.

New Jersey will hold their first “sales tax holiday for certain retail sales” Saturday, August 27 through Monday, September 5th. Certain computers (with a price less than $3000), school art supplies, school computer supplies (with a price less than $1000), school instructional materials, school supplies and sport or recreational equipment will be exempt during the holiday.

New Mexico's annual sales tax holiday will take place August 5-7. During this period qualifying sales of clothing, computers, computer hardware, and school supplies are exempt from sales tax.

Ohio’s annual sales tax holiday will take place August 5-7. Clothing, school supplies, and items of school instructional material will be exempt during the holiday period.

Oklahoma's annual sales tax holiday will take place August 5-7. During this period qualifying sales of clothing and footwear are exempt from sales tax.

South Carolina's annual sales tax holiday will take place August 5-7. Clothing, clothing accessories, footwear, school supplies, computers, printers, computer software, bath and bed linens and supplies will be exempt during the holiday period.

Tennessee will suspend the sales or use tax due on grocery sales, beginning 12:01 a.m., Monday, August 1, 2022, and ending 11:59 p.m., Wednesday, August 31, 2022. During this tax holiday period, sales of food and food ingredients typically taxed at the reduced 4% state rate, plus any local rate, are tax free. The tax holiday does not apply to sales from micro markets or vending machines, nor does it apply to sales of alcoholic beverages, tobacco, candy, dietary supplements, or prepared food.

Texas will hold their annual back to school sales tax holiday starting Friday, August 5 running through Sunday, August 7. During this time qualifying clothing, footwear, school supplies and backpacks priced less than $100 are exempt from sales tax.

Virginia's annual sales tax holiday is taking place August 5-7. During this period qualifying purchases of school supplies, clothing, footwear, hurricane and emergency preparedness items, and Energy Star and WaterSense products are exempt from sales tax.

West Virginia's back to school sales tax holiday will take place August 5-8. During this time, state and local sales tax will not be charged or collected on certain sales of clothing and footwear, school instructional materials, school supplies, sports equipment, laptops, and tablets.


 

"Please note that these are the changes that have been released by the states as of August 1, 2022 and there is a possibility other small changes could be enacted late or retroactively by the states."

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