Date: July 6, 2023Attorney: Martin D. Hauptman

Learn How the Temporary Sales Tax Relief Supports Individuals in Preparing for the School Year.

A sales tax holiday is a temporary period during which specific items are exempt from sales tax. In this case, New Jersey will be hosting a sales tax holiday between August 26, 2023, and September 4, 2023. During this period, certain retail sales of computers, school supplies, and sport or recreational equipment will be eligible for the exemption.

The purpose of a sales tax holiday is to encourage consumer spending and provide financial relief to individuals making essential purchases. By temporarily eliminating the sales tax on specific items, the government aims to stimulate economic activity and make these goods more affordable for individuals, especially those preparing for the upcoming school year.

During the designated sales tax holiday period, retailers are prohibited from charging sales tax on eligible items. This means that when individuals purchase computers, school supplies, or sport or recreational equipment for personal use, they will not have to pay the additional sales tax on these items. The exemption applies to individual purchasers and excludes purchases made for business purposes.

The specific items that qualify for the sales tax holiday exclusion in New Jersey are as follows:

  1. Computers with a sales price of less than $3,000: This includes desktop computers, laptops, tablets, and similar devices used for personal purposes.
  2. School art supplies: These are materials used for artistic expression and creativity in educational settings, such as paints, brushes, sketchbooks, and clay.
  3. School computer supplies with a sales price of less than $1,000: This category includes computer accessories and peripherals necessary for educational purposes, such as printers, keyboards, mice, and computer speakers.
  4. School instructional materials: These encompass textbooks, workbooks, reference books, and other educational resources used for teaching and learning.
  5. School supplies: This category covers general supplies needed for school, such as pens, pencils, notebooks, binders, backpacks, and calculators.
  6. Sports and recreational equipment: Eligible items may include athletic gear, sports equipment, bicycles, helmets, golf clubs, fishing gear, and other recreational items.

It’s important to note that these exemptions apply only during the specified sales tax holiday period and are subject to certain price limits and eligibility criteria. After the sales tax holiday concludes, regular sales tax rates will be reinstated for these items.

The sales tax holiday provides an opportunity for individuals to save money on essential purchases and can be particularly beneficial for families and students preparing for the school year. It also serves as an incentive for retailers, as the temporary tax exemption can attract increased customer traffic and boost sales during the designated period.

To read more from the New Jersey Division of Taxation click here.

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