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Alabama Sales Tax Holiday, July 2017

According to Act 2017-120, the dates of Alabama’s annual sales tax holiday have been changed from the first full weekend of August to the third full weekend of July making this year’s holiday from Friday, July 21 to Sunday, July 23.

The Alabama sales tax holiday will give shoppers the opportunity to purchase certain school supplies, computers and clothing free of state sales tax. However, local sales tax may apply and only certain cities and counties in Alabama are participating.

Exempt vs. Taxable 

– Clothing at $100 or less per article of clothing.

  • Exempt items include all human wearing apparel suitable for general use, inducing but not limited to belts, coats, diapers, gloves, hats, jeans, robes, scarves, shoes, underwear.
  • Taxable items include clothing accessories, protective equipment and sport equipment.

– Computers, computer software, and school computer supplies with a single purchase sales price of $750 or less.

  • Exempt computers items include a laptop, desktop, or tower computer system which consists of a central processing unit (CPU), and devices such as a display monitor, keyboard, mouse, and speakers sold as a computer package. Exempt school computer supplies include computer storage media, diskettes, compact disks, handheld electronic schedulers (except devices that are cellular phones), personal digital assistants (except devices that are cellular phones), computer printers and printer supplies for computers (printer paper, printer ink.)
  • Taxable items include computer furniture, any systems, devices, software, peripherals designed or intended primarily for recreational use or video games of a non-educational nature.

– School supplies, school art supplies and school instructional material with a sales price of $50 or less per item.

  • Exempt school supply items include an inclusive list of the following: binders, blackboard chalk, book bags, calculators, cellophane tape, compasses, composition books, crayons, erasers, folders (expandable, pocket, plastic and manila), glue (paste, and paste sticks), highlighters, index cards, index card boxes, legal pads, lunch boxes, markers, notebooks, paper (loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper), pencil boxes and other school supply boxes, pencil sharpeners, pencils, protractors, rulers, scissors and writing tablets.
  • Exempt school art supply items include an inclusive list of the following: clay and glazes, paints (acrylic, tempera and oil), paintbrushes for artwork, sketch and drawing pads and watercolors.
  • Exempt instructional material include written material commonly used by a student in a course of study as a reference and to learn the subject being taught.
    • Required textbooks on an official school book list with a sales price of more than $30 and less than $50.
  • Exempt books (a set of printed sheets bound together and published in a volume with an ISBN number) with a sales price of $30 or less per book for noncommercial use.
  • Taxable items include magazines, newspapers, periodicals and any other document printed or offered for sale in a non-bound form.

View the Alabama Department of Revenue quick reference sheet of exempt items.

About Vertex SMB

Vertex SMB offers a cloud-based sales tax solution that is designed to save time, effort, and risk associated with calculation, return, remittance, and compliance for small to medium-sized businesses. The Vertex SMB solution is flexible and works with all sizes and types of financial systems, ERPs, and ecommerce platforms.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net.

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