Sales Tax Holiday

I'm cross posting this on my HP site as well.

This weekend was sales tax holiday in the commonwealth of Virginia. What this means is that school supplies, clothes, and shoes are tax free for three days. I just calculated that I saved $1.31 on the school supplies requested by the girls' school. I don't find this very helpful, but probably by the time all three of my kids are in middle school and high school needing many notebooks, book covers, pens, lots of paper, and the like the savings for our family will be larger. Still it will probably just be enough for lunch for one person with the school supplies.

The clothes situation is a bit different. That's a huge savings for any family as the limit is $100 per item. With a 5% sales tax, the savings add up quickly. Our next stop today is buying new running shoes for the girls. They don't really need new clothes. Inwe has plenty, Larien has so hand me downs from Inwe. However, baby clothes and diapers are also tax free this weekend! May have to see what's out there that is on sale. I don't want to just shop to save 5% on something we don't need.

From the Department of Taxation website:

• A Sales Tax Holiday is a temporary period when certain purchases are exempt from the sales tax. In 2006, the General Assembly approved Virginia's first Sales Tax Holiday, to take place each year on the first full weekend in August.

• In 2006, the Sales Tax Holiday will begin at 12:01 a.m. on Friday, August 4, 2006 and end at midnight on Sunday, August 6, 2006.

• During Virginia's Sales Tax Holiday, purchases of school supplies selling for $20 or less per item, and articles of clothing, including footwear, selling for $100 or less per item, will be exempt from sales tax. All retailers selling these items MUST participate in the Sales Tax Holiday. Sales tax exemptions do not apply to items selling for more than the amounts listed.

• Retailers may also choose to absorb the sales tax on other items during the Sales Tax Holiday, but they are responsible for paying the tax themselves to the Department of Taxation.