Residents of Florida can save money on back-to-school supplies as state sales tax is relaxed. The tax break could boost e-commerce sales.
Florida started its 2023-2024 Back-to-School Sales Tax Holiday this Monday, July 24th, which will run through to Sunday, August 6th, 2023.
According to a Tax Information Publication, tax-exempt products include:
- Clothing, footwear, and certain accessories with a sales price of $100 or less per item.
- Certain school supplies with a sales price of $50 or less per item.
- Learning aids and jigsaw puzzles with a sales price of $30 or less.
- Personal computers and certain computer-related accessories with a sales price of $1,500 or less when purchased for noncommercial home or personal use.
The sales tax exemption doesn’t apply “to the rental or repair of any of the qualifying items” nor “to sales in a theme park, entertainment complex, public lodging establishment, or airport,” according to the Florida Department of Revenue.
Florida usually charges a general sales tax of 6%. This means a $100 product will incur a sales tax of $6, taking the total price to $106, but that’s before including any local taxes that could be charged on top.
Some localities charge up to 7.5% sales tax at the very highest. Add the state and highest local taxes, and a $100 product becomes $113.5.
That means in some parts of Florida, people can save up to 13.5% on back-to-school supplies.
It’s also worth noting that Florida will run a second exemption period from Monday, January 1st, 2024, to Sunday, January 14th, 2024.
What’s so interesting about Florida’s Back-to-School Sales Tax Holiday is that while it seeks to help consumers save money on school supplies, it could also encourage more e-commerce sales.