Partial Sales Tax Holiday Coming up August 4th & 5th
It’s almost time to get ready for the new school year. As parents begin making the list of things they will need to buy for youngsters this year, you might want to know how to save a little money.
Louisiana has a Sales Tax Holiday every August as a way to get people to buy more items in our state, but it’s also a way to give people a break. What does it mean? Here’s what the Department of Revenue wants you to know:
“The Sales Tax Holiday provides an exemption from 2 pennies of the 5 cent state sales tax on the first $2,500 of the purchase price of most individual items of tangible personal property for non-business use. The full state sales tax is payable on the portion of the purchase price of any individual item in excess of $2,500.”
In previous years, all of the state sales tax was waived, but that was changed because of the state's budget crisis.
Although a two percent savings might not sound like much, it can add up if you have lots of back to school items on your list.
This tax break only applies to part of the state sales tax, not the local taxes you pay to your city or parish government or school board.
There are some exemptions. These items are not included:
- Amusement, recreational, and athletic admissions
- Repairs to tangible personal property
- Laundry, cleaning, pressing, and dyeing services
- Vehicle parking
- The furnishing of cold storage space
- Printing services
- Telecommunication services
- Leases or rentals of tangible personal property
This sales tax holiday begins at 12:01 a.m. on Friday, August 4, and runs through 11:59 p.m. on Saturday, August 5.