Sales Tax Free Shopping

Friday starts the big weekend for the back to school shopping rush.  Alabama’s sales tax holiday runs August 7-9 this year (12:01 a.m. Friday, to be exact), and many places are going all out, hoping to get YOUR money!  The way the economy’s looked this year, many stores are really banking on you spending extra cash.

So the question is, what can you buy tax free?  There are guidelines.  According to the website for the Alabama Department of Revenue, you can buy MOST clothing that costs $100 or less per article, computers and/or MOST computer equipment for $750 or less, school supplies that are $50 or less per item, and books that are $30 or less each.  Note: there ARE exceptions!  The link I provided is for the state’s main page on the weekend.  The page has additional important links that are more detailed about what items are included, plus which counties and cities are participating.  Keep in mind, it’s all about WHERE you shop.  For example, if you buy something inside Birmingham, you’ll buy without paying the state’s sales tax OR the city’s sales tax, because the city of Birmingham is participating in the holiday.  However, you’ll STILL pay the Jefferson COUNTY sales tax because the county is NOT participating.

You can also tell by the sales ads in the Sunday paper that stores all around are gearing up for students to go back to school.  This week’s stack of ads felt thicker than it has in a while—and a big majority of the ads are for back to school items (clothes, supplies, even lunchbox and after school snack options).  Even the coupon circulars felt bigger ... and full of similar deals.

So if you’re going shopping next weekend, what’s my advice?  DO YOUR HOMEWORK!  That’s the reason I posted this blog this weekend instead of next.  Make your list of what you have to buy, browse through the ads (on paper and online) so you know which places have the best deals, and check out the state’s website to make sure you know WHICH items you can get tax free ... and map out which city/county you’ll shop in to save the most.

Happy back-to-school shopping!  And as always, make sure you follow me on Twitter and me your suggested topics!