|
NOTICE TO DISTRICT RETAILERS
November 16, 2001
DC Issues Sales Tax Holiday Guidelines
(Washington, DC) The District of Columbia Office of Tax and Revenue has made available the following definitions and guidelines related to the District's Sales Tax Holiday, which begins Friday, November 23, 2001, at 12:01 am, and ends Sunday, December 2, 2001, at 12:00 am. During this period, all clothing, accessories, or footwear sold in the District and priced less than $100 will be tax-free.
These guidelines provide detailed information on exempt items, how to apply the tax exemption to discounted merchandise, layaways, exchanges, returns, mail and Internet orders, and other special circumstances.
For further information, please call our Customer Service Center at (202) 727-4TAX (4829).
Sales Tax Holiday Definitions:
- Clothing — apparel for people
- Shoes — all footwear, except skis, swim fins, roller blades and skates
- Accessories — jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles.
- Exempt Sales — sales on which sales and use tax is not due because the article of clothing, accessories, or footwear is $100 or less and because the sale takes place between 12:01am on Friday, November 23, 2001 and midnight on Sunday, December 2, 2001. The exemption applies to each qualifying item selling for $100 or less per item, regardless of how many items are sold at the same time. For example, if a customer purchases two shirts for $80 each, each item qualifies for the exemption, even though the customer's total purchase price ($160) exceeds $100.
The Sales Tax Holiday does not apply to: taxable sales on skis, swim fins, roller blades and skates, or any accessory item, footwear, or article of clothing costing more than $100; taxable services performed on clothing, accessories, or footwear, such as alterations; and purchases of items used to make or repair clothing or footwear, including fabric thread, yarn, buttons, snaps, and zippers.
For example, sales tax is due on alterations to clothing, even though the alterations may be sold, invoiced, and paid for at the same time as the clothing being altered. If a customer purchases a pair of pants for $90 and pays $15 to have the pants cuffed, the $90 charge for the pants is exempt, but tax is due on the $15 alterations charge;
Sales Tax Holiday Guidelines
|
