Wednesday, July 23, 2003
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Wednesday, July 23, 2003 |
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Shopping tips for sales tax holidays Preparing for back-to-school means more than a new pair of shoes. The average family will spend almost $500 before the shopping is done.Clothing, school supplies, calculators and even computers are just some of the items parents will be buying to outfit their children for school. "Gov. Perdue and the Georgia Legislature have stepped up to help families with four days to shop tax-free for school-related purchases," said Suzanne Boas, president of the nonprofit Consumer Credit Counseling Service. "Shop wisely for exempt items during the tax-free holiday to take advantage of the savings." House Bill 43 provides consumers with back-to-school state sales tax relief for four days, July 31 through Aug. 3.From bandanas and bowties to socks and underwear, clothing and footwear priced $100 or less per item is exempt and there is no limit on how many items may be purchased. A change from last year, clothing and footwear primarily designed for athletics and sporting activities will be included in the exemption. However, any single item priced more than $100 will be subject to tax. School supplies priced less than $20 per item are exempt from state sales tax. This includes pens, paper, pencils, notebooks, calculators, dictionaries and books listed on approved school reading lists for pre-kindergarten through 12th grade. In addition, computer and computer-related accessories are exempt for a single purchase of $1,500 or less. The exemption is granted to computers, modems, printers, monitors and non-recreational software. The single purchase must be less than $1,500 or the entire transaction is taxable. CCCS offers the following five tips to take advantage of the Georgia tax-free holiday: Write a back-to-school list and budget. Inventory your children's clothing and supply needs first. Don't forget to include often-overlooked expenses such as sport physicals, field trip money, band uniforms and club dues. Then, write down what additional items are needed to prepare them for school. Determine what you can afford to spend for those items and stick to that amount. Have your kids kick in their own money for items they think they "must have" that you cannot afford. Carry your shopping list with you and include your children's sizes and favorite colors. Shop at discount stores and resale shops to stretch your budget dollars. Review tax-free item list.Needed supplies such as diapers for toddlers and work uniforms for Mom or Dad are also tax exempt. For more information, contact the Georgia Department of Revenue at 404-417-6601 or view the list at http://www2.state.ga.us/departments/dor/salestaxholiday/sth_list_2003.pdf. Take advantage of the discount. Shop during the four-day tax-free holiday and stick to your list! Don't buy items just because you want them, or because they are on sale or tax-exempt. Your savings will evaporate if you place your purchases on a credit card and end up paying interest on them. Focus on needs, not wants. Look for additional savings.Last year, malls and department stores offered extra savings during the tax-free holiday.Keep an eye out for print advertisements and watch for broadcast specials. Buy taxable items before or after. Spread out your shopping by purchasing any needed taxable supplies before or after the sales-tax holiday. Then, you can focus on tax-free items July 31-Aug. 3. Consumer Credit Counseling Service of Greater Atlanta offers free budget and financial crisis counseling at offices throughout north Georgia, providing sound advice on fiscal management and operating at the highest ethical level. CCCS Atlanta also offers counseling via telephone and online, housing counseling, community and workplace education, and debt repayment plans. One of the largest CCCS organizations in the nation, CCCS Atlanta has been named Outstanding Agency for four consecutive years by the National Foundation for Credit Counseling and is accredited by the Council on Accreditation of Services for Families and Children.A nonprofit organization, CCCS Atlanta is supported by creditors, clients, foundations, governments, businesses and individuals. Contact CCCS Atlanta by phone at 800-330-CCCS (2227) or visit www.cccsinc.org.
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