West Virginia’s annual Sales Tax Holiday is to help families with their back-to-school shopping. It will begin at 12 a.m. on Aug. 2 and will end at 11:59 p.m. on Aug. 5.
During the Sales Tax Holiday, the state’s sales tax is eliminated for certain items including certain clothing and footwear costing $125 or less, certain laptop and tablet computers costing $500 or less, certain school instruction materials costing $20 or less, certain school supplies costing $50 or less and certain sports equipment costing $150 or less. There is no limit on the amount of the total purchase.
According to the West Virginia Tax Division, all vendors are required by law to comply with the Sales Tax Holiday. The exemption does not apply to items used in a trade or business.
The WV Tax Division says the tax holiday also applies to layaway items. According to the division’s website, qualifying items that are placed on or picked up from layaway during the sales tax holiday qualify for the exemption. It does not apply to rebates as they occur after the sale and does not reduce an item sales price for the item to qualify for the sales tax threshold.
While the exemption does not apply to separately-stated shipping and handling charges, the WV Tax division says items sold to West Virginia consumers by “mail, telephone, e-mail or Internet” will qualify for the sales tax exemption as long as the customer orders and pays for the item and the retailer accepts the order within the exemption period “for immediate shipment.” This applies even if the item doesn’t arrive until after the Sales Tax Holiday. However, if the customer requests a shipping delay for an ordered item, or if they order the item during the Sales Tax Holiday but do not pay for it until after, it will not qualify.
The WV Tax Division also says if retailers offer a discount or store coupon that reduces an item’s price to below the threshold amount for exemption, the product will then qualify for the exemption.
Eligible items that customers purchase during the sales tax holiday using a rain check qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the holiday will qualify an eligible item for the exemption only if the purchase price is paid in full at the time the rain check was issued.
If a consumer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, the retailer should not charge sales tax even if the exchange is made after the end of the sales tax holiday. However, if a consumer returns the item after the sales tax holiday period for credit on the purchase of a different item, the retailer must charge sales tax on the newly purchased item, even if it would have been eligible for the sales tax exemption.
For a more detailed list of items that qualify or do not qualify, as well as information on and rules for refunds, exchanges, discounts and sales during the Sales Tax Holiday, go to http://tax.wv.gov/Business/Pages/SalesTax Holiday.aspx.