Like many states, Oklahoma offers a sales tax holiday each year to help consumers ease the financial burden of back-to-school shopping and to help boost sales during the dog days of summer. This year, the Oklahoma sales tax holiday will begin at 12:01 a.m. Friday, August 2, and conclude at midnight Sunday, August 4. During that time, qualified items are exempt from state and local sales tax.
Clothing and footwear (designed to be worn on or about the human body) costing less than $100 is exempt from sales tax during the holiday.
The following items are not exempt:
- Jewelry and watches.
- Accessories (handbags, umbrellas).
- Special clothing or footwear designed specifically for athletic activity or protective use.
- Rented clothing and footwear.
The Oklahoma Tax Commission provides a list of Frequently Asked Questions about the sales tax holiday, which clarifies numerous puzzling situations. Examples include:
- What if a retailer has a “buy one, get one free” special? The exemption depends on the actual price per item.
- What if an item that normally costs more than $100 is discounted to less than $100? The sales tax exemption applies.
- Are online purchases eligible for the exemption? If an item would be exempt if purchased in a store, it is exempt if purchased online, by mail, or over the phone.
It’s important for businesses to properly report exempt sales. How does your business manage sales tax?