(Washington, DC) The District of Columbia will offer another Sales Tax Holiday, Saturday, August 7 through midnight Sunday, August 15, 2004. The Sales Tax Holiday provides buyers an exemption from the 5.75% sales tax for shoes, clothing, accessory items, and school supplies. The exemption covers each item costing $100 or less.
During the nine-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.
The result of a legislative initiative by Councilwoman Carol Schwartz, the purpose of the “holiday” is to encourage people to purchase items in the District of Columbia. The August Sales Tax Holiday is held to encourage families who are preparing their children for the upcoming school year to shop in the District. Two previous August “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.
In addition to this August Sales Tax Holiday, there will be a second one held in November 2004, beginning the weekend following Thanksgiving, November 26, 2004, and continuing through midnight December 5, 2004. For further information, the public may contact the Office of Tax and Revenue Customer Service Center at (202) 727-4TAX.
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