(Washington, DC) The District of Columbia will offer another Sales Tax Holiday beginning Friday, November 26 at 12:01 am and running through midnight Sunday, December 5, 2004. The Sales Tax Holiday provides buyers an exemption from the 5.75 percent sales tax for shoes, clothing, and accessory items. The exemption covers each item costing $100 or less.
This is the second such opportunity to be held this year, with a similar period held in August. Because of permanent legislation passed by the DC Council, both “tax free” holiday periods will be annual events.
During the 10-day, two-weekend break, 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.
As with the August Sales Tax Holiday, this one is the result of a legislative initiative by Councilwoman Carol Schwartz to encourage people to purchase items in the District of Columbia. Two previous Sales Tax Holidays were held in 2001 and 2002.
Retailers filing monthly or annual Sales and Use tax returns should enter the total amount of tax exempted due to the Sales Tax Holiday along with any other exempt taxes on line 11 of the Sales Tax portion of the return. 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 further information, the public and businesses may contact the Office of Tax and Revenue Customer Service Center at (202) 727-4TAX.