It’s that time of year again…back to school tax free shopping!
BACK TO SCHOOL SHOPPING AUGUST 6-8th
You can take advantage of the tax free items even if you are NOT a student. Here’s the basics on G.S. 105-164.13C.
Perfect time to couple end of season sales for sports wear and buy a new biking helmet (under $50) and some cool biking gear (up to $100) and pay no tax during the from 12:01 AM Friday August 6th through 11:59pm on Sunday August 8th.
For Mom’s it’s a way to shave a few dollars off the back-t0-school bill.
|clothing – $100
school supplies – $100
instructional material – $300
computers – $3,500
other comp. – $250
sports equip – $50
As an FYI, participation is NOT optional. Merchants cannot opt out of the tax free weekend. If you are erroneously charged tax on a qualified item, you can get a refund from the store, not the Dept of Revenue.
Other interesting points include the difference between retailer’s coupons and rebates as described by the NC Dept of Revenue.
Discounts from retailers’ coupons are deducted from the price of an item before you determine if the item is eligible for the sales tax exemption. Example: a customer buys a dress priced at $105 and uses a retailer’s coupon for a 10 percent discount. The discounted sales price of the dress is $94.50 ($105.00 – $10.50 = $94.50) and the dress is exempt from sales tax if purchased during the holiday. Manufacturers’ coupons are treated just the opposite way; manufacturers’ coupons are not deducted from the sales price before determining eligibility for sales tax exemption.
Rebates do not affect the sales price of an item for the sales tax holiday. Example: a computer priced at $4,000 with a $600 rebate is not exempt from sales taxes because the amount of the rebate is not considered when determining whether the computer is more than the $3,500 limit for computers.
Plan ahead for the last ENERGY STAR tax free shopping Friday through Sunday Nov 5-7th. Appliances must be US EPA ENREGY STAR rated. Most bear the familiar logo and an explanation about the efficiency.
The delivery can occur after the holiday period if the item is back ordered. Simply asking for a delivery period after the holiday does not qualify. Delays were common during the tax rebate period with customers getting their appliances a month later for popular items.
- Clothes washers
- central air conditioners
- room air conditioners
- airsource heat pumps
- geothermal heat pumps
- ceiling fans
- programmable thermostats
Savings can add up if you check out the additional rebates from Progress Energy. For example, if you replace a less efficient heat pump with a minimum 14 SEER with 7.8 HSPF, Progress Energy will credit your power bill for $100.
For a $5,000 systems that’s a whopping savings of $487.50 almost 10%. That’s real money!
Sales tax 7.75% = 387.50
- Progress Energy rebate = $100
Don’t you can afford to upgrade?
Low interest rate programs are available. Your installer can provide the paperwork. Check the DSIRE database maintained by NCSU’s Solar Center for details. DSIRE stands for Database of State Incentives for Renewables & Efficiency. It is the definitive resource for state, federal and local incentives.
- List of tax holidays for all 50 states – August is the most common, but not the only month
- Items exempt from taxes from NC Department of Revenue – examples of what is included
- FAQ – good questions if you are wondering how returns are handled and more!
- Sales tax bulletin – link to defined terms for clothing, sports wear, computer etc.
- ENERGY STAR Tax Weekend Bulletin
- Detailed list of ENERGY STAR items exempt during the tax-free weekend
- QUESTIONS: Call Taxpayer Assistance and Collection Center at telephone number 1-877-252-3052
- CONTACT: Taxpayer Assistance Division, North Carolina Department of Revenue, P.O. Box 25000, Raleigh,
- DSIRE database for NC incentives