Georgia tax holiday this weekend: What’s tax free and what’s not

Standing in the Columbus Best Buy store on Wednesday, gazing at an array of computers, Dante Lawson smiled broadly when told of Georgia’s tax-free holiday this weekend.

“I will hold off until Saturday. I really did not know,” said Lawson, an 18-year-old Columbus High School graduate headed this fall to Penn State University. “I got a laptop my freshman year and it’s getting kind of old, so I thought I would get a new one.”

Lawson said his grandfather is buying the computer for him and did not set a limit on the purchase price.

On top of the 8 percent savings in Georgia and Columbus sales tax, he and other local shoppers also can go to Best Buy’s website and print out coupons for various discounts on products, called “college student deals.” Those who wish also can text “studentdeals” to 332211.

The annual tax-free holidays have become a good way to save for computer equipment and accessories, back-to-school supplies and clothing in many states across the United States. The holiday takes place Aug. 5-7 in Alabama, with Phenix City, Auburn and Opelika all participating.

Nathan Humphrey, Georgia director of the National Federation of Independent Business, said Thursday the holiday should provide a boost to retailers who could really use it right now, particularly small businesses.

“It’s been a lackluster summer for a lot of small businesses,” he said. “The sales-tax holiday should help people get fired up and in the mood to spend.”

Columbus Best Buy general manager Peter Khun expects a big turnout this weekend for the holiday, with area residents taking home laptops, tablets and anything with the Apple label on it.

“We’ll be staffed pretty heavy,” he said. “It’s fun, it’s energized. We want to be ready, fully staffed and replenished to take care of the customers.”

In Georgia, the holiday kicks off at 12:01 a.m. Saturday and wraps up at midnight Sunday. Alabama holds its tax-break event over three days, with retailers offering certain items tax free from 12:01 a.m. Aug. 5 through midnight Aug. 7.

Computer items up to $1,000 each receive the tax exemption in Georgia, while such products are tax free up to $750 in Alabama. Georgia shoppers pay no tax on basic school supplies up to $20 per item, while in Alabama the limit on such supplies is capped at $50 per item.

Retailers must take part in the holiday and cannot charge sales tax on any items that are legally exempt.

(Click here for Georgia’s sample list of tax free and taxable items)

(Click here for Alabama’s sample list of tax free and taxable items)

“Tax-free weekends are a great opportunity that families on a budget can take advantage of to buy their children’s back-to-school supplies,” said Julio Sevilla, assistant professor of marketing at the University of Georgia. While it is geared toward schoolchildren who need new books, backpacks and other supplies, it’s also a good time to buy for anyone who requires items on the tax-exempt list, he said.

“Naturally, many items that are not strictly meant to be used for school or by consumers enrolled in school also qualify for the tax break, which provides a great opportunity for small and large businesses to organize special sales events in which consumers can get a wide array of products at lower prices than usual,” Sevilla said.

Here is a list of items from the Georgia Department of Revenue that are tax free in across the state this weekend, and some items that are not. It’s not an exhaustive list, and the list of items that are tax exempt in Georgia is similar to that in Alabama.

Note that clothing up to $100 per item is tax free in Georgia and Alabama, while accessories such as jewelry, handbags, umbrellas, eyewear and watches are not.

Computer equipment that is tax free

▪ Batteries (designed for a computer)

▪ Cables (computer)

▪ Car adapters for laptops

▪ Central processing units

▪ Compact disk drives

▪ Computers including electronic book readers and laptop, desktop, hand-held, tablet, and tower computers, consisting of a central processing unit, random access memory, and a storage drive

▪ Data storage devices (e.g., DVDs, CDs, flash drives, diskettes, memory cards) (excluding those designed for use in digital cameras or other taxable items)

▪ Docking stations (designed for a computer)

▪ Hard drives (computer)

▪ Keyboards (computer)

▪ Memory

▪ Microphones

▪ Modems

▪ Monitors

▪ Motherboards

▪ Mouses

▪ Personal digital assistant devices (except cellular telephones)

▪ Port replicators

▪ Pre-written computer software

▪ Printer cartridges

▪ Printers (including “all-in-one” models)

▪ Routers

▪ Scanners

▪ Speakers (computer)

▪ Web cameras

▪ Zip drives

Computer equipment that is not tax exempt

▪ Batteries (regular)

▪ Cases for electronic devices

▪ CDs and DVDs (music, voice or prerecorded item)

▪ Cellular telephones

▪ Computer bags

▪ Copy machines

▪ Digital cameras

▪ Game controllers (e.g., joy sticks)

▪ Game systems and consoles

▪ MP3 players or accessories

▪ Projectors

▪ Surge protectors

▪ Televisions

▪ Items purchased for commercial use

Clothing that is tax free

▪ Antique/vintage clothing

▪ Aprons, household and shop

▪ Athletic clothing (e.g., ski wear, uniforms, tennis apparel)

▪ Athletic pads and guards

▪ Athletic supporters

▪ Baby receiving blankets

▪ Baby clothes

▪ Bandanas

▪ Bathing suits and caps

▪ Bathing suit cover-ups

▪ Belts and suspenders

▪ Belts for weightlifting or back support

▪ Blouses

▪ Bras

▪ Caps and hats

▪ Coats and jackets of all types

▪ Capes, shawls and wraps

▪ Corsets and corset laces

▪ Costumes

▪ Coveralls

▪ Dresses

▪ Diapers, children and adult including disposable and reusable diapers and diaper covers

▪ Ear muffs

▪ Football pads

▪ Footwear of all types including cleated and spiked shoes

▪ Formal wear

▪ Garters and garter belts

▪ Girdles

▪ Gloves and mittens for any purpose

▪ Hats and caps

▪ Hand muffs

▪ Headbands (athletic)

▪ Helmets

▪ Hosiery

▪ Insoles and inserts for shoes

▪ Knee pads

▪ Lab coats

▪ Leg warmers

▪ Leotards and tights

▪ Lingerie

▪ Neckties and bowties

▪ Pants

▪ Rainwear

▪ Robes

▪ Scarves

▪ Shin guards

▪ Shirts

▪ Shoe laces

▪ Shorts and skorts

▪ Skates (ice, roller, roller blades)

▪ Skirts

▪ Sleepwear

▪ Socks

▪ Suits

▪ Sweaters

▪ T-shirts

▪ Underwear including long or thermal underwear

▪ Uniforms, athletic and non-athletic

▪ Vests

Clothing that is not tax exempt

▪ Baby bibs

▪ Belt buckles sold separately

▪ Briefcases

▪ Clothing accessories or equipment

▪ Corsages and boutonnieres

▪ Cosmetics

▪ Costume masks sold separately

▪ Crib blankets

▪ Cuff links

▪ Diaper bags

▪ Eyewear, non-prescription

▪ Fanny packs

▪ Hair notions including, but not limited to, barrettes, hair bows, and hair nets

▪ Handbags

▪ Handkerchiefs

▪ Hard hats

▪ Jewelry

▪ Key cases

▪ Life jackets and vests

▪ Masks and goggles, protective and swim

▪ Materials used to repair clothing and shoes

▪ Patches and emblems sold separately

▪ Personal flotation devices

▪ Sewing equipment and supplies

▪ Sewing materials

▪ Umbrellas

▪ Wallets

▪ Watches

▪ Watchbands

▪ Wigs and hair pieces

School supplies that are tax free

▪ Binders

▪ Blackboard chalk

▪ Book bags

▪ Calculators

▪ Cellophane tape

▪ Clay and glazes for artwork

▪ Compasses

▪ Composition books

▪ Computer printers, printer paper, and printer ink

▪ Computer storage media

▪ Crayons

▪ Erasers

▪ Folders (expandable, pocket, plastic, and manila)

▪ Glue, paste and paste sticks

▪ Hand-held electronic schedulers, except devices that are cellular phones

▪ Highlighters

▪ Index card boxes

▪ Index cards

▪ Legal pads

▪ Lunch boxes

▪ Markers

▪ Notebooks

▪ Paintbrushes for artwork

▪ Paints for artwork

▪ Paper (loose leaf ruled notebook paper, copy paper, graph paper, tracing paper, manila paper, colored paper, poster board, and construction paper)

▪ Pencil boxes and other school supply boxes

▪ Pencil sharpeners

▪ Pencils

▪ Pens

▪ Personal digital assistants, except devices that are cellular phones

▪ Protractors

▪ Reference books

▪ Reference maps and globes

▪ Rulers

▪ Scissors

▪ Sketch and drawing pads

▪ Textbooks

▪ Watercolors for artwork

▪ Workbooks

▪ Writing tablets

School supplies that are not tax exempt

▪ Briefcases

▪ Envelopes

▪ Janitorial Supplies

▪ Medical Supplies

▪ Supplies used in a trade or business

This story was originally published July 27, 2016 at 1:07 PM with the headline "Georgia tax holiday this weekend: What’s tax free and what’s not."