(Washington, DC) The District of Columbia will offer a Sales Tax Holiday beginning 12:01 am Saturday, August 4, through midnight Sunday, August 12, to provide buyers an exemption from the 5.75 percent sales tax for shoes, clothing, accessory items and school supplies. The exemption covers each item costing $100 or less.
 
The sales tax exemption will apply to each eligible item regardless of how many items are sold on the same bill to a customer. It will also apply to layaway sales if the retailer and customer enter into a layaway agreement or the customer makes the final payment on the layaway order during the exemption period.

“The District’s Sales Tax Holiday comes at the perfect time of year as parents around the Washington-Metropolitan area prepare to send their kids back to school,” said Mayor Adrian M. Fenty. “Not only does it offer savings for families buying school supplies and clothing, it draws more consumers to the District as a boost to local business.”

"This break from sales taxes should come as a welcome relief, particularly to parents shopping for back-to-school bargains," said DC Councilmember Carol Schwartz, whose legislation created the District’s two sales tax holidays. “I hope everyone, including our suburban neighbors, will take advantage of this opportunity to shop in DC and, at the same time, save money.”

Retailers who use the Sales-and-Use tax forms for filing their monthly or annual tax returns should enter the total amount of tax exempted because of the Sales Tax Holiday, along with any other exempt taxes on the sales tax portion of the return (line no. 13). Retailers are also encouraged to clearly state in their records the type of item sold and the sales price of tax-exempt merchandise sold during the Sales Tax Holiday period.

For more information about the Sales Tax Holiday, the public and businesses should call the Customer Service Center at (202) 727-4TAX (4829).

In addition, there will be a second tax holiday held in November, beginning the weekend following Thanksgiving, November 23, and continuing through midnight December 2. The estimated fiscal impact for fiscal year 2007 is $1.14 million for both holidays.