Stay up to date with sales tax: Join our mailing list!


In response to a taxpayer’s inquiry, the Florida Department of Revenue issued a Technical Assistance Advisement (“TAA”) clarifying three issues: 1) the taxability of electricity provided by light poles, 2) the taxability of purchases of light poles and pole fixtures, and 3) payment received for delivery of electricity for light, heat or power. The TAA stated on the first issue that the provision of light poles and light pole fixtures under contract for limited duration by utilities that provide electricity to retail customers is exempt as sales of electric power or energy. Such transactions are leases of tangible personal property and are not subject to sales tax as sales of electric power or energy because the charge for leasing the poles and fixtures is separate from the charge for the provision of electric power or energy. However, sales tax is due on the charge for the leasing of light poles and light pole fixtures to customers and on the separately-stated charge for the provision of electric power or energy. Also, the TAA exempts from Florida sales tax the purchases of light poles and light pole fixtures by utility companies to provide those poles and fixtures to their customers under contract for limited duration as purchases for resale. Furthermore, Florida gross receipt tax does not apply to amounts received as payment for separately stated charges that are exclusively for the leasing of light poles and light fixtures. Additional regulations and rules apply. (Technical Assistance Advisement, NO. 07A-025, Florida Department of Revenue)

(03/31/2008)

On October 31, 2007, President Bush signed into law a seven-year extension of the moratorium on state and local taxes on internet access. The measure will amend the Internet Tax Freedom Act Amendments Act of 2007, includes a new definition of “internet access” which means a service that enables users to connect to the Internet to access content, information, or other services. The grandfather clause that permits Internet access taxes that were generally imposed and actually enforced prior to October 1, 1998, is also extended until November 1, 2014. However, the grandfather clause will not apply to any state that has, more than 24 months prior to the enactment of this legislation, repealed its tax on Internet access or issued a rule that it no longer applies such a tax. [H.R. 3678, as agreed to by the U.S. House of Representatives, October 30, 2007]

(03/30/2008)

Alabama sales tax was due on carbon dioxide used in a chicken processing plant to cool the chicken immediately after it was cooked, so that it could be efficiently cut into pieces. Despite the fact that the carbon dioxide remained in the chicken, its function was to cool the chicken. Its subsequent presence in the chicken was merely incidental to that function and there was no evidence that the carbon dioxide served any other purpose than to cool the chicken. Therefore, it did not qualify for an exemption as an ingredient or component part. (Wayne Farms LLC d/b/a/ Dutch Quality House v. Alabama Department of Revenue, Alabama Department of Revenue, Administrative Law Division, NO. S. 06-797, January 14, 2008)

(03/30/2008)

Alabama: August 3-5

1. Clothing - $100 or less per article (excluding accessories and protective or recreational equipment)
2. Single purchases ($750 or less) of computers, computer software, and school computer supplies (excluding purchases for commercial use)
3. Noncommercial school supplies - $50 or less per item
4. Noncommercial purchases of books - $30 or less per item

Connecticut: August 19-25

1. Clothing and footwear - $300 or less per item (excluding clothing accessories and protective or athletic clothing).

District of Columbia: August 4-12

1. Clothing, footwear, clothing accessories, and school supplies - $100 or less per item

November 23 to December 2

1. Clothing, footwear, and clothing accessories - $100 or less per item

Florida: June 1-12

1. Qualifying hurricane supplies (excluding sales made within a public lodging establishment, theme park, airport, or entertainment complex)

August 4-13

1. School Supplies - $10 or less per item
2. Clothing, footwear, and handbags - $50 or less per item (excluding other accessories)
3. Books - $50 or less per item (excluding newspapers, magazines, and other periodicals)

Note: The exemption does not apply to sales within a theme park, entertainment complex, public lodging establishment, or airport

Georgia: August 2-5

1. School supplies - $20 or less per item
2. Clothing and footwear -$100 or less per item (excluding clothing accessories)
3. Single purchases of personal computers and/or related accessories - $1,500 or less per item (excluding items used for commercial purposes)

October 4-7

1. Energy efficient products for noncommercial home or personal use - $1,500 or less per product (must meet EPA and DOE standards for energy efficient)

Iowa: August 3-4

1. Clothing and footwear - $100 or less per item (excluding clothing accessories)

Louisiana: August3-4

1. Purchases of all tangible personal property - $2,500 or less per item

Massachusetts: August 11-12

1. Tangible personal property – Nonbusiness retail sales costing $2,500 or less per item

Note: The exemption does not apply to sales of telecommunications, gas, steam, electricity, motor vehicles, motorboats, meals, or tobacco products. Prior sales and layaway sales are also ineligible.

Missouri: August 3-5

1. Clothing - $100 or less per item (excluding clothing accessories)
2. School supplies - $50 or less per item
3. Computer Software - $350 or less per item
4. Computers/computer peripheral devices - $3,500 or less

New Mexico: August 3-5

1. Clothing and footwear items - $100 or less per item (excluding accessories, athletic or protective clothing or footwear)
2. School supplies – less than $15 per item
3. School supplies other - $100 or less per item (including backpacks – for school, maps, and other similar items. Backpacks for hiking an similar activities remain taxable)
3. Computers - $1,000 or less per item
4. Certain computer related items -$500 or less per item

North Carolina: August 3-5

1. Clothing - $100 or less per item (excluding clothing accessories)
2. Sport or recreational equipment - $50 or less per item (excluding protective equipment)
3. Computers - $3,500 or less
4. Computer supplies - $250 or less per item
5. School supplies - $100 or less per item

Oklahoma: August 3-5

1. Clothing and footwear - $100 or less per item (excluding accessories, clothing rentals, or special clothing or footwear designed for athletic or protective use)

South Carolina: August 3-5

1. Clothing and certain clothing accessories (excluding rentals)
2. Footwear
3. School supplies
4. Computers, printer supplies and computer software (excludes items used for commercial purposes)
5. Certain bed and bath items

Tennessee: April 27-29 and August3-5

1. Clothing - $100 or less per item (excludes clothing accessories or equipment)
2. School supplies -$100 or less per item
3. Computers - $1,500 or less per item (excludes computer software and any items for use in a trade or business)

Texas: August 17-19

1. Clothing and footwear -$100 or less per item (excluding accessories, athletic or protective clothing, and rentals of clothing or footwear); backpacks used by elementary and secondary students are included

Virginia: August 3-5

1. Clothing and footwear - $100 or less per item
2. School Supplies - $20 or less per item

October 5-8

1. Energy Star qualified products - $2,500 or less per item (purchased for noncommercial home or personal use)

(08/11/2007)

Please click here for information on various 2007 sales tax holidays.

(07/30/2007)

Pages

Scroll to Top