Sales tax holiday set for Aug. 3-6

Gov. Sonny Perdue announced last week that Georgia's tax-free holiday begins 12:01 a.m. Thursday, Aug. 3, and will continue until midnight Sunday, Aug. 6. It combines last year's two tax-free shopping periods into one four-day period.

Georgia's single tax-free shopping holiday will include school supplies, clothing items, computers, computer accessories and certain Energy Star merchandise. All qualified items are exempt from both state and local sales tax during the four-day period.

It was also announced that Georgia teachers will be able to use their $100 gift cards during this same time period to purchase supplies for classroom use or classroom related activities tax-free, if they cost $20 or less. Sales tax will be due on the purchase of any single school supply item that exceeds $20.

Clothing and footwear are exempt up to $100 per item, but there is no limit on how many pairs of shoes and clothing items an individual may buy. If the price of an article of clothing or pair of shoes exceeds $100, then the item will be taxed at its full retail price. Clothing accessories such as jewelry, handbags and such are not exempt from sales tax.

Purchases of personal computers and accessories are exempt up to $1,500 per transaction. If the purchase exceeds this amount, the entire purchase price is taxable. Items included in the personal computer exemption category include monitors, personal computer base units, keyboards, handheld computers, monitors, printers, modems, non-recreational software and other peripheral devices.

Energy Star qualified merchandise includes windows, doors, dishwashers, clothes washers, air conditioners, ceiling fans, fluorescent light bulbs, dehumidifiers, programmable thermostats and refrigerators. The purchase of any exempted item cannot exceed $1,500. If it does, the entire purchase price of the item is taxable.

The sales tax exemption on all qualified merchandise is intended only for individuals and their personal use. It does not apply to purchases made for resale, purchases by businesses, items leased or rented or item sold at sports facilities, theme parks, restaurants, public lodging establishments or airports.