It isn’t just students that are lamenting the end of Summer break. Parents are feeling the sting of the new school year where it hurts: their wallets. New supplies, clothes, equipment, and other necessities are expensive, especially with inflation affecting retail stores everywhere. However, dollar-conscious consumers should be mindful of an upcoming deadline on September 4th. Parents, teachers, and students can save money with a statewide sales tax holiday that applies to a wide range of school-related supplies.
Tax holidays provide exemption from sales tax on certain sales when sold to an individual purchaser for non-business use. In New Jersey, there is an annual sales tax holiday leading up to the start of the school year.
For the next seven days, many retailers are selling certain goods that are included in the New Jersey sales tax holiday. These goods include many electronics, sports equipment, art supplies, and stationary. Some of the more expensive items that would generally carry pricier sales tax (such as computers and other electronics) are where consumers should experience the most savings. However, it’s important to know the goods that are exceptions to the tax holiday. For example, computers priced at $3,000 or greater are not included in the list of goods that are permitted to be included in the New Jersey sales tax holiday, and therefore will be taxed based on full-price. It is also important to note that in the case of computers, the price of the item refers to the price that the retail seller is listing. So, manufacturer coupons and/or discounts that bring the purchase below $3,000 might not exempt the item from the New Jersey sales tax holiday. If the retailer is offering a sale on an item that is normally above $3,000 that would bring it down below this threshold, the New Jersey sales tax holiday is applicable as long as the sale is exclusively offered by the retailer and not the manufacturer.
You can read more about what products are included, excluded, and more using the reference links below. Bowman & Company LLP is proud to have dozens of experts in both tax matters as well as public school accounting. Follow up with us using the button below, and we’ll direct your questions and/or business inquiries to the appropriate staff.
- New Jersey Division of Taxation – “Sales Tax Holiday for Certain Retail Sales”
- New Jersey Department of the Treasury – “Parents, Students, and Educators: Take Advantage of NJ’s Back-to-School Sales Tax Holiday”
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