Shoppers to save during sales tax holiday

Back-to-school shoppers can take advantage of the sales tax holiday that starts Friday and runs through the weekend.

The 14th annual sales tax holiday for school items begins Friday at 12:01 and goes through midnight July 21. Items exempt from sales taxes at stores statewide include school supplies, computers, books and clothing.

Like every year, businesses in Tuscaloosa and Northport will participate.

During that weekend, the state’s 4-percent sales tax rate will be waived for approved purchases. including clothing less than $100 per item, computers and related equipment priced $750 or less per item, school supplies costing $50 or less per item and books costing up to $30 each.

Melissa Warnke, manager of communications and engagement at the Alabama Retail Association, said the state collects a significant amount of sales tax revenue during tax-free weekends because shoppers are still making purchases such as gasoline and food.

"It’s a boost to our local economy and a boost to local retailers," Warnke said.

For years, the statewide holiday was held during the first week of August. The Legislature passed a law in 2017 changing the dates to the last week in July so parents would have a chance to shop for  children before the first day of school.

Alabama shoppers only make 10 percent of their purchases online, Warnke said. The sales tax holiday is frequently a weekend where parents have their kids in tow, to try on new clothing for the upcoming school year.

"This is an event you do with children," she said.

Jim Page, president of the Chamber of Commerce of West Alabama, said the holiday is a "win-win" for both consumers and businesses.

"It seems it grows in popularity year after year," he said. "More and more people are taking advantage of that."

Page said that Tuscaloosa County’s college student population is a significant driver of the local economy. With many of them away during the summer, the tax holiday helps boost local businesses, he said.

"When they come back, it’s a shot in the arm when it comes to business," he said.

The state also holds a severe weather sales tax holiday the last full weekend of February that waives taxes on items such as generators, batteries and other emergency-related items.

Visit the Alabama Retail Association's website for a detailed list of items exempt during the back-to-school holiday.

Reach Drew Taylor at drew.taylor@tuscaloosanews.com or 205-722-0204.

Clothing that will be tax exempt:

• Belts

• Boots

• Caps

• Coats

• Diapers

• Dresses

• Gloves

• Gym suits

• Hats

• Hosiery

• Jackets

• Jeans

• Neckties

• Pajamas

• Pants

• Raincoats

• Robes

• Sandals

• Scarves

• School uniforms

• Shirts

• Shoes

• Shorts

• Socks

• Sneakers

• Underwear

Computers and software that are tax exempt:

• Computers

• Computer storage

• Handheld schedulers

• Personal digital assistants

• Printers

• Printer supplies

School supplies that are tax exempt:

• Binders

• Book bags

• Calculators

• Tape

• Compasses

• Crayons

• Erasers

• Folders

• Glue

• Highlighters

• Index cards

• Legal pads

• Lunch boxes

• Markers

• Notebooks

• Paper

• Pencil boxes

• Pencil sharpeners

• Pencils

• Pens

• Protractors

• Rulers

• Scissors

• Clay

• Paints

• Paintbrushes

• Drawing pads

• Watercolors

• Reference maps and globes

• Required textbooks