What does tax-free weekend shopping mean?
Beginning at 12:01 a.m. (CST) on Friday, July 21, 2017, and ending at twelve midnight on Sunday, July 23, 2017, Alabama will hold its annual sales tax holiday giving shoppers the opportunity to purchase certain school supplies, computers, and clothing free of state sales or use tax. Local sales and use tax may apply – see list of participating cities and counties.
Retailers in the state are required to not charge state tax on purchases during this weekend. Also, counties and cities themselves may choose to waive local taxes also.
Here are the local areas participating in the waiving of additional local taxes (some with restrictions listed):
Jefferson County – ONLY applies to Jefferson County’s regular sales and use tax of one percent (1%). Jefferson County DOES NOT GRANT a holiday for the “Education” (7137) sales and use tax of one percent (1%).
Oxford – ONLY applies to Oxford’s 4% sales and use tax. Oxford DOES NOT GRANT a holiday for the remaining 1% levied for education.
St. Clair County
Talladega/ Talladega County
These locations are NOT waiving local taxes: MOODY, Margaret and Ragland.
Looks like the best places to shop will be Pell City, Springville and Odenville since they will be waiving city taxes and are within St. Clair County (which is waiving all but 1%). Or Leeds or Trussville since they are waving city taxes and Jefferson County is waiving all but 1% of county taxes. If you shop in Moody, you will pay city taxes, but not state or county.
Items that will be exempt:
Clothing – less than $100 per item restriction (some exclusions apply)
School Supplies – less than $50 per item restriction
includes but not limited too: backpacks, binders, pens, pencils, crayons, markers, paper, calculators, etc.
Books – less than $30 per item restriction (some exclusions apply)
Also included are computers and certain accessories and software.