In the case of a buy-one-get-one-free, the total price must be under the $100 maximum. The exemption depends on the actual price paid for each item.
Items normally costing $100 but discounted for the tax holiday are exempt from taxes.
“This applies to all discounts, even if a retailer’s coupon or loyalty card is required to secure the discount,” according to the OTC.
However, coupons requiring third-party reimbursement are another matter. The original cost of the item will determine if it is eligible for the exemption in this case.
There is good news for people who need to put clothing in layaway. If the item is put into layaway, eligible items qualify for the exemption when final payment on the layaway is made and the item is given to the customer during the exemption period.
Eligible items purchased during the sales tax holiday using a previously issued raincheck qualify for the exemption. If a raincheck issued during the sales tax holiday is redeemed after the sales tax holiday, the purchase is not tax exempt, according to the OTC.
Clothing is defined as “all human wearing apparel suitable for general use,” according to the OTC.
Some types of tax exempt clothing are:
· Aprons, household and shop
· Athletic supporters
· Baby receiving blankets
· Bathing suits and caps
· Beach capes and coats
· Belts and suspenders
· Coats and jackets
· Diapers, children and adult, including disposable diapers
· Ear muffs
· Formal wear
· Garters and garter belts
· Gloves and mittens for general use
· Hats and caps
· Insoles for shoes
· Lab coats
· Rubber pants
· Shoes and shoe laces
· Socks and stockings
· Steel-toed shoes
· Uniforms, athletic and non-athletic
· Wedding apparel