If you are planning to buy a new Apple product, especially a new Mac or an iPad, you should wait for your state’s sales tax holidays to start. Apple has recently outlined its products that will be eligible for the sales tax holidays in select U.S. states.
Check for Apple products on offer
During the period of sales tax holidays, Apple will not charge sales tax on the eligible products. Apple products qualifying for the deal include Macs, iPads, the iPod touch, and accessories, such as the Apple Pencil and Smart Keyboard.
In Missouri, New Mexico, South Carolina, and Virginia, the sales tax holidays will run from August 3 to August 5. In Wisconsin, the same holidays have already started and will go until August 5. There is bad news for the buyers in Alabama and Tennessee as the sales tax holidays in these states have already ended.
Each state has a different set of rules for these tax holidays. So, before you hit the buy button, it would be wise to check Apple’s website for information on the qualifying products, qualifying amount and other terms and conditions. Also, it must be noted that products on offer may vary as per the state, so it is better to confirm before you make a buying decision.
“Each state has different tax holiday rules. Check for your eligible dates and qualifying products,” Apple says.
For instance, rules for Alabama users were that the purchase be made within the sales tax holiday period “by an individual for personal use.” And, the total sales price of “exempt items cannot exceed $750, and local tax may apply. Computers and computer accessories, such as keyboards, mice, and speakers (when sold with a CPU and the total sales price does not exceed $750), qualify for this holiday.”
Sales tax holidays – all you need to know
New York was the first state to come up with the tax free holiday. It hosted the first modern tax free holiday in 1997, and since then, several states have joined in. Tax free holidays mostly fall in mid-to-late summer and are primarily hosted for parents to help them save some money before the new school year starts.
During the holiday’s period, offers are usually on school supplies, clothing and shoes, computers and more. As you might already know, these tax holidays offers are not for parents only, anyone can take advantage of them. However, states often put limits on the savings and there are also restrictions on the purchase price of the eligible items.
Nevertheless, tax holidays are still among the most popular shopping days. As per a survey from the National Retail Federation (conducted by Prosper Insights & Analytics), the average family with grade school children were done with 45 percent of their shopping by early August last year. The period coincides with the timing of the sales tax holidays.
Louisiana drops out, Wisconsin starts
Though more states are coming forward to host these tax holidays, one state has opted out. Louisiana, for the past two years, is going with a discounted tax rate, instead of a tax free weekend. Also, the state’s legislators have decided to drop the sales tax holidays completely for the next seven years. The decision is part of their effort to improve the state’s finances. However, local governments and retailers may choose to host their own tax free holidays. Louisiana also discontinued the Disaster Preparedness Sales Tax Holiday on the last weekend of May and the Second Amendment Sales Tax Holiday Sept. 7-9.
On the other hand, Wisconsin kicked-off its five-day sales tax holiday from August 1. During the period, the deal (no sales tax) is available on the following products – clothing (on items with sales price of $75 or less); personal computers (on products with sales price of $750 or less); school supplies (on items with sales price $75 or less); and school computer supplies for personal use (on items with sales price $250 or less).
Last week, Department of Revenue Secretary, Richard Chandler, in a statement said that the state enjoys a $400 million budget surplus due to its “sound fiscal management and a strong economy” and therefore, Governor Walker and the Wisconsin State Legislature decided to return some of that surplus to the taxpayers in the form of sales tax holidays.