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Tuesday, August 4, 2020

Back-to-school delayed, but sales tax holiday begins Friday - WJXT News4JAX

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This year’s back-to-school sales tax holiday kicks off Friday and continues through Sunday even as many parents face an uncertain future on how to their children’s upcoming school year will look.

Pencils, notebooks and backpacks up to $15 are covered included in the sales tax holiday, but with the potential for distance learning, reopening delays or even potential school closures preparing for the 2020 school year is more complicated than ever.

“Some students might not start off with a backpack cause they’re not gonna be leaving the house and that’s okay, but we have some students who will need a book bag,” said Dr. Danielle Thomas, vice president of education for the Florida PTA.

But many items on the list that could be helpful whether your child returns to the classroom or end up learning from home.

“Writing utensils, the paper, the notebooks -- those types of things that they will probably need no matter what,” Thomas said.

Computers and accessories like webcams will be needed for anyone continuing with distance learning and they are also exempt from taxation this weekend.

“It’s up to $1,000 on a computer purchase,” said Scott Shalley, president and CEO of the Florida Retail Federation. “So we’re happy with that, especially at a time when you’re going to have a lot of people opting for virtual learning.”

Best Buy and Walmart have taken notice, running online ads that banner the state’s tax-holiday period above computer discounts. State lawmakers included the tax break for computer equipment in a bill passed in March that also included the breaks for clothes and school supplies.

Also exempt this weekend are clothing items under $60. And, for the first time ever, face masks are also on the tax-free list.

"Masks are either highly encouraged or required in many cases and of course comes a cost with that," said Thomas.

PRINT IT: Full list of items exempt from sales tax this weekend

If you don’t feel safe going into a crowded store, remember the tax exemption also applies to items purchased online.

“And of course the stores themselves are implementing a lot of measures to ensure a safe shopping experience,” Shalley said.

Even though this year’s tax-free holiday is two days shorter than last year’s, the Retail Federation anticipates Floridians will still save around $40 million due to the expected demand for high-priced technology items.

Not everyone, however, is so enthusiastic about the holiday.

The Institute on Taxation and Economic Policy, a Washington, D.C.-based think tank, considers sales tax holidays “outdated gimmicks” that “provide dubious and poorly targeted benefits.”

Dylan Grundman, the institute’s senior state policy analyst, said holidays reduce revenue for state and local priorities like schools and health care and typically are more of a benefit to more affluent individuals.

“Wealthier taxpayers are often best positioned to benefit from the holidays since they have more flexibility to shift the timing of their purchases to take advantage of the tax break, an option that isn’t available for families living paycheck to paycheck,” Grundman said in a statement.

With the pandemic, wealthier taxpayers are also more likely to be able to shop online, setting up orders for curbside and home delivery.

“Lower-income households, on the other hand, may lack these conveniences and be forced to choose between keeping their families safe or going into a crowded store during peak hours to take advantage of the discount,” Grundman wrote.

News Service of Florida contributed to this report.

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August 05, 2020 at 03:55AM
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Back-to-school delayed, but sales tax holiday begins Friday - WJXT News4JAX

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