(Washington DC) The District of Columbia will offer a Sales Tax Holiday from Saturday, August 6, 2005, through Sunday, August 14, 2005 – just in time for back-to-school shopping.
The Sales Tax Holiday saves shoppers the usual 5.75 percent sales tax when purchasing school items, clothes, accessories, and shoes. To qualify, each item must cost $100 or less.
The sales tax exemption applies to each eligible item – no matter how many items are on the bill. 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 Sales Tax Holiday.
This is the first of two Sales Tax Holidays that are now held annually in the District. The second one for 2005 will be held from November 25 to December 4.
When retailers file their Sales and Use Tax Returns, they should enter the total tax exempted due to the Sales Tax Holiday along with any other exempted sales tax on line 12 of their returns. As usual, retailers should list each tax-exempt item sold and its sales price in their records.
For more information, view the documents below or call OTR’s Customer Service Center at (202) 727-4TAX (727-4829).