(Washington, DC) This holiday season, the District of Columbia will offer shoppers an exemption from the 5.75 percent sales tax for clothing, shoes and accessory items costing $100 or less. The week-long tax holiday will begin Friday, November 28 thru Sunday, December 7.

The sales tax exemption applies to each eligible item regardless of how many items are sold on the same bill to a customer. It also applies 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.

“This tax-free shopping period in DC and the savings it will bring our residents and suburban neighbors who choose to shop here -- and the business it will bring our merchants -- is just what our economy needs right now,” said Council member Carol Schwartz, who introduced the legislation that established two permanent sales tax holidays each year. “The day after Thanksgiving is the busiest shopping day of the year, so we invite everyone in the region to come take advantage of our tax breaks and save needed dollars,” she added.

Stephen M. Cordi, deputy chief financial officer for the Office of Tax and Revenue, would like to remind retailers who use the Sales and Use tax forms for filing their monthly or annual tax returns to 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 state clearly 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) or visit OTR’s Web site at www.taxpayerservicecenter.com under “Sales Tax Holiday.”