Sales Tax Holiday

Sales Tax Holiday is August 6th - 8th

By News Release

South Carolina shoppers annual three-day break from the states sales and use tax commonly known as the Sales Tax Holiday is Friday, Aug. 6th - Sunday, Aug. 8 this year.

Beginning at 12:01 a.m. that Friday, shoppers gearing up for the back-to-school rush will find many school-related items, including clothes and computers, exempt from the state's 5% sales and use tax and any additional local county sales tax.

This is the fifth year of the tax-exempt shopping weekend, which is, by law, the first full weekend of each August. The South Carolina Department of Revenue estimates that shoppers saved more than $2.3 million in sales and use tax last year during the tax break. But a three-year slump in the state's economy, sales tax holiday competition from South Carolina's bordering states and, to a degree, the ebbing of the novelty of it all, appear to have dampened shoppers' enthusiasm somewhat since the first tax-exempt weekend in 2000, when shoppers saved an estimated $3.6 million in sales and use tax.

Nevertheless, many South Carolina retailers have said the tax-free weekend is the busiest three-day shopping period for them outside of the post-Thanksgiving weekend and the weekend before Christmas. Interestingly, some retailers who do not carry tax-exempt items pay the sales tax for their customers to attract shoppers taking advantage of the tax free weekend.

Computers and printers, which are exempt from the sales and use tax, have become major purchase items during the Sales Tax Holiday. Clothes and school supplies are also popular tax-free targets. Other items, such as jewelry and cosmetics, are not exempt. A full list of exempt and non-exempt items and a number of the frequently asked questions about the holiday can be found at the Department of Revenue's website, http://www.thetandd.com/articles/2004/07/31/news/breaking_news/www.sctax.org, under "What's New."

EXAMPLES OF EXEMPT ITEMS

Adult diapers

Aerobic clothing

Antique clothing

Aprons

Athletic or sport uniforms or clothing (but not equipment such as mitts, helmets and pads)

Baby bibs

Baby clothes

Baby diapers (cloth or disposable)

Baby shoes

Bandannas

Barrettes

Bathing caps

Bathing suits

Bathing trunks

Beach capes and coats

Belt buckles

Belts/suspenders

Blouses

Bobby pins

Bonnets

Boots (climbing, hiking, riding, ski, waders, fishing, cowboy)

Bow ties

Bras

Bridal gowns and veils (must be sold; rentals are taxable)

Capri pants

Caps

Coats, capes and wraps

Computers (computer parts, such as computer monitors, keyboards and scanners, when not sold in conjunction with a central processing unit (CPU) and accessories are taxable)1

Computer hardware service contracts sold in conjunction with computers

Computer software service contracts sold in conjunction with computer software

Computer software service contracts when the true object of the contract is to obtain computer software updates during the contract period

Computer software

Corsets

Corset laces

Costumes (must be sold; rentals are taxable)

Coveralls

Daily planners or organizers when used by school children as a school supply

Dress shields

Dresses

Earmuffs

Elastic ponytail holders

Fishing boots

Formal clothing (must be sold; rentals are taxable)

Furs

Galoshes

Garters/garter belts

Girdles

Gloves (batting, bicycle, dress, garden, golf, ski, tennis)

Gowns

Graduation caps and gowns (must be sold; rentals are taxable)

Gym suits

Hair bows

Hair clips

Handbags

Hand muffs

Handkerchiefs

Hats

Headbands

Hosiery

Hunting vests

Ice skates (rentals are taxable)

In-line skates (rentals are taxable)

Jackets

Jeans

Jogging suits

Jumpers

Leg warmers

Leotards and tights

Lingerie

Mittens

Overshoes

Pantyhose

Nightgowns

Pajamas

Pants

Pantsuits

Personal Digital Assistants (hand-held computers used as daily planners)

Ponchos

Printers (replacement parts are taxable)

Printer supplies (replaceable ink cartridges used in printers are exempt from tax as "printer supplies")

Prom dress (must be sold; rentals are taxable)

Purses

Raincoats

Rainwear

Riding pants

Robes

Roller skates (provided the skates are permanently attached to the boots) (rentals are taxable)

Sandals

Scarves

School supplies including, but not limited to, pens, pencils, paper, binders, notebooks, books, blue books, bookbags, lunchboxes, musical instruments and calculators (school office and janitorial supplies are taxable)

School uniforms

Scout uniforms

Shawls and wraps

Shirts

Shoes (ballet, baseball, bicycle, boat, boots, bowling (taxed if rented), cleated, cross trainers, flip-flops, football, golf, jazz/dance, soccer, track, in-line skates, ice skates, running, etc.) (rentals are taxable)

Shorts

Shoulder pads for dresses, jackets, etc. (but not athletic or sport protective pads)

Ski boots (snow) (rentals are taxable)

Ski masks

Skirts

Ski suits (snow)

Skin diving suits

Sleepwear

Slippers

Slips

Sneakers

Socks

Sport clothing and uniforms (but not equipment such as mitts, helmets, and pads)

Sport jacket

Stockings

Suits

Support hosiery

Suspenders

Sweaters

Sweatbands

Sweat pants

Sweat shirts

Sweat suits

Ties/neckwear

Tights

T-shirts

Tuxedo (must be sold; rentals are taxable)

Umbrellas

Underwear

Waders

Wet and dry suits

Note: Fabric, thread, yarn, buttons, snaps, hooks, zippers and like items which become a physical component part of clothing listed above are exempt from tax.

EXAMPLES OF NON-EXEMPT ITEMS

Any clothing or footwear that is rented

Any item (whether sold or leased) used in a trade or business

Any item placed on layaway or similar deferred payment and delivery plan

Backpacks for hiking and camping (bookbags for school are exempt)

Briefcases

Change purse

Clocks (alarms clocks, wall clocks, etc.)

Clothing that is rented

Computer parts (such as computer monitors, keyboards and scanners when not sold in conjunction with a central processing unit (CPU)) and accessories other than printers and printer supplies (computers, computer software, printers, and printer supplies are exempt)6

Cookware

Cosmetics

Costume rentals (rentals are taxable; must be sold to be exempt)

Crib blankets

Daily planners or organizers (whether or not such include a calculator) when not used by school children as a school supply

Employee uniforms

Eyewear

Footwear that is rented

Formal clothing that is rented

Furniture

Gift wrapping paper

Glasses

Goggles

Golf clubs

Greeting cards

Hardware (hand tools, power tools, etc.)

Helmets (sport, motorcycle, bicycle, etc.)

Health food supplements

Hobby equipment, supplies and toys

Housewares

Jewelry

Key cases

Linens (sheets, blankets, etc.)

Mitts (baseball fielder's, hockey, etc.) (batting, bicycle, dress, garden, golf, ski, tennis, work gloves are exempt)

Music tapes, records and compact discs

Paper products that are not school supplies (greeting cards, gift wrapping paper, etc.)

Personal flotation devices

Printer replacement parts (printers are exempt)

Protective masks and goggles (athletic, sport, or occupational)

Roller skates not permanently attached to the boot

Safety clothing for use in a trade or business

Safety glasses and goggles

Safety shoes for use in a trade or business

School office and janitorial supplies

Sewing accessories

Shin guards and padding

Shoulder pads (football, hockey, etc.)

Sporting equipment (baseball mitts, golf clubs, helmets, hockey mitts, life jackets and vests, masks, pads, swim fins, swimming masks and goggles)

Stereo equipment

Sunglasses

Toys

Vitamins

Wallets

Watch bands

Watches

Wigs

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