Information on how to get the most out of Alabama’s Third Annual Tax Free Weekend.

The fun begins at 12:01 a.m. (CST) on Friday August 1, 2008, and ends at twelve midnight on Sunday August 3, 2008.  On this day Alabama will hold its third annual sales tax holiday.  The state sales tax (4%) will be waived as well as the sales tax for participating cities and counties.  Participating cities will receive all of the 8% sales tax waived on their qualifying items.

This tax free weekend was created to give parents the opportunity to buy school supplies, computers and clothing free of the state sales tax or use tax before the start of school in the fall.  Although this weekend is intended for back to school shopping, shoppers all across the state will be enjoying the benefits. This is the third tax free weekend Alabama will be participating in and because of past success many stores have extended their hours and some are even hiring more staff to handle extra shoppers this year.

Tax exempt items for the weekend will include:
• Clothes priced at $100 or less per item.
• Computers and software priced at $750 or less.
• School supplies and art supplies priced at $50 or less. 
• School instructional materials priced at $50 or less.
• Books with a sales price of $30 or less.
A few details about what is covered might be helpful.  Clothing is defined as “all human wearing apparel suitable for general use, including sandals, shoes and sneakers.  To be exempt each article of clothing must cost $100 or less.  Clothing will not include any “items sold separately” along with the clothes.

The tax exemption is good on a “single purchase” of computers and computer software with a sales price of $750 or less.
School Supplies are defined as “any items of $50 or less per item commonly used by a student in a course of study.”  School supplies include things such as art supplies, reference materials, official school list textbooks that are $30 or less per book.
Here are a few of the items NOT exempt during the tax free weekend.  Clothing accessories, including briefcases, cosmetics, handbags, jewelry, sunglasses, umbrellas and hair pieces, are not covered. Protective equipment, including safety masks, helmets, gloves, goggles, tool belts and masks, are also not covered.  Sport or recreational equipment such as ballet and tap shoes, spiked athletic shoes, sports gloves, hand and elbow guards, life preservers, mouth guards, roller and ice skates, shin guards and shoulder pads, will not be also not be including in the tax free exemption.

For more details on what is exempt and what is not, view the ADOR list of items.

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