NEWS RELEASE FOR IMMEDIATE RELEASE July 20, 2005 District to Offer Sales Tax Holiday August 6-14, 2005 Retailer Guidelines The District of Columbia Office of Tax and Revenue (OTR) has issued the following guidelines for retailers to follow during the upcoming "Sales Tax Holiday." For further information, please call OTR's Customer Service Center at (202) 727-4TAX (727-4829). Exempt sales mean that the Sales and Use tax is not due on the sale of a qualifying article of clothing, footwear, accessory items, or school supplies, if: The sales price of the item is $100 or less, and The sale takes place between 12:01 am on Saturday, August 6, 2005, and midnight on Sunday, August 14, 2005. 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 bill ($160) exceeds $100. Definitions “Accessory items” are jewelry, non-prescription eyeglasses, watches, watchbands, handbags, handkerchiefs, umbrellas, gloves, scarves, ties, headbands, hats, belts, belt buckles, and other traditional accessory items. “Clothing” is any article of apparel for humans, including pants, shirts and blouses, dresses, coats, jackets, belts, hats, undergarments, and multiple piece garments sold as a set, if $100 or less. “School supplies” are pens, pencils, stationery, art supplies, book bags, lunch boxes, calculators, and other items purchased for educational use in the classroom, at home, or for any school activity. “Shoes” are all footwear except skis, swim fins, roller blades, and roller-skates.

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