Wednesday, August 02, 2006

Sales Tax Holiday

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COMMONWEALTH OF VIRGINIA Department of Taxation

Tax Department Extends Customer Service Hours to Answer Sales Tax Holiday Questions
~ Virginia’s First Sales Tax-Free ‘Holiday’ Set for Aug. 4-6 ~


RICHMOND, VA – The Virginia Department of Taxation is extending its customer service hours to answer questions about Virginia’s first sales tax holiday, which occurs Friday, Aug. 4 through Sunday, Aug. 6.

Tax Department customer service representatives will be prepared to answer questions about the sales tax holiday until 9 p.m. on Friday, Aug. 4, and from 8 a.m. to 9 p.m. on Saturday, Aug. 5.

The number to call is (804) 367-8037. The Department will be closed on Sunday, Aug. 6. For further details about the “holiday,” check the agency’s special sales tax holiday Web site -- http://www.tax.virginia.gov/salestaxholiday.

“We want to make sure people who still have questions about the sales tax holiday get the information they need to take advantage of this opportunity,” said Tax Commissioner Janie Bowen. A sales tax holiday is a temporary period when the retail sales tax is not collected or payable on exempted items.

Virginia’s General Assembly unanimously approved the state’s first sales tax holiday earlier this year. During Virginia’s “holiday,” retailers will not charge the 5 percent sales tax on selected school supplies priced at $20 or less per item, or on clothing and footwear priced at $100 or less per article or pair. An all-inclusive list of school supplies and a representative list of clothing qualifying for the exemption are available on the sales tax holiday Web site. Retailers who sell the exempted items are required to participate in the sales tax holiday.

Anyone who wants to purchase tax-free school supplies, clothing or footwear may do so during the three-day “holiday.” There is no requirement that items purchased be intended for school-related purposes.

Businesses may also voluntarily “absorb” the sales tax for customers on non-exempt items they sell during the three-day period. However, retailers who absorb the sales tax on non-exempt items must pay the sales tax to the Commonwealth. This means that all retailers have the opportunity to participate in the sales tax holiday.

The ”holiday” is expected to save shoppers about $3.6 million in retail sales tax. The three-day “holiday” will take place each year beginning on the first Friday in August and ending at midnight on the following Sunday.

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