Virginia Sales Tax Holiday Approaches

Small firms based in or near Virginia should take note of the commonwealth's back to school sales tax holiday just around the corner.

The Aug. 1-3 holiday allows shoppers to save 5 percent on purchases of school supplies that cost less than $20 or clothing and footwear priced at $100 or less. The exemption applies to each individual item, not their total value. While it's tax-free time for consumers, retailers are responsible for paying the tax on those items to the Taxation Department.

Additionally, from Oct. 10-13, purchases in Virginia of products meeting Energy Star qualifications like energy-efficient appliances, will be exempt from the commonwealth's sales tax. Eligible products must be priced at $2,500 or less apiece and be purchased for noncommercial home or personal use.

The commonwealth also holds a recurring sales-tax holiday each May for hurricane and emergency preparedness equipment, and that includes a range of items like bottled water and battery-operated can openers.

Many states offer tax-free holidays. You can find more information on each state's Web site.

By Sharon McLoone |  July 24, 2008; 8:12 AM ET Tools and Tips
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According to the sales tax holiday site that you link to, retailers will not be responsible for the tax on exempted items. They will be allowed to "absorb the tax"--that is, not charge tax to the consumer but pay it themselves--on non-exempt items if they so choose. This can occur only during the sales tax holiday.

Posted by: John | July 24, 2008 10:35 AM

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