August 3rd, 4th & 5th

2 Sunday, July 29, 2012

TAX FREE WEEKEND

Campus Corner769 Asp Ave · 217.8454

IRISH PUB and GRILLE

August 3rd, 4th & 5th

Sunday, July 29, 2012 3

Beginning at 12:01 am on Friday, August 3, 2012 and endingat twelve midnight on Sunday, August 5, 2012, Oklahoma willhold a sales tax holiday giving shoppers the opportunity topurchase certain clothing and shoes free of sales tax. Thisincludes state and any local sales taxes.

Retailers are required to participate and may not charge taxon items that are legally tax-exempt during the sales tax holi-day. The sales tax holiday exempts the sale of clothing andshoes priced at less than $100 from sales taxes.

Oklahoma Sales Tax Holiday: August 3-5, 2012

What is a sales tax holiday?A sales tax holiday is a period of time when retail sales taxes are notcollectible or payable on a specific class of purchases.

Why is Oklahoma having a sales tax holiday?The Oklahoma Legislature passed Senate Bill 861 during the 2007Legislative Session to benefit both consumers and retailers in thestate by providing sales tax exempt shopping. This will help busi-nesses by providing a boost in the economy and the consumer byallowing them to save money when shopping for clothing andshoes.

What items are exempt from sales tax during thesales tax holiday?Sales of any article of clothing or footwear designed to be worn onor about the human body and the sales price of the article is lessthan one hundred dollars ($100) are exempt.

This does not apply to the sale of any accessories, special clothingor footwear primarily designed for athletic activity or protective usethat is not normally worn except when used for athletic activity orprotective use, or to the rental of clothing or footwear.

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What items are not exempt from sales tax duringthe sales tax holiday?Any special clothing or footwear that is primarily designed for anathletic activity or protective use that is not normally worn exceptwhen used for athletic activity or protective use for which it isdesigned.

Accessories including jewelry, handbags, luggage, umbrellas, wal-lets, watches, and other similar items carried on or about thehuman body, without regard to whether worn on the body in amanner characteristic of clothing are considered taxable.

The rental of clothing or footwear is also taxable.

Who may make sales tax-exempt purchases?Under the special holiday law, if an item is tax exempt, anyone maymake the purchase tax-free.

Are all retailers required to participate?Yes, retailers may not charge tax on items that are tax-exempt dur-ing the sales tax holiday weekend.

Is there a maximum price before an item becomes taxable?Yes, if an eligible item is less than $100 it is sales tax exempt duringthe sales tax holiday. An item that is $100 or more is taxable.

What if a retailer has a “bogo”—buy one, get onefree sale?The total price of items in the “bogo” cannot be averaged to quali-fy both items for the exemption. The exemption depends on theactual price paid for each item.

What if the retailer or purchaser has a coupon thatreduces the purchase price of an item to less than $100?If a retailer offers a discount to reduce the price of an eligible itemto less than $100 the item will qualify for the sales tax exemption.This applies to all discounts even if a retailer’s coupon or loyalty cardis required to secure the discount.

If a retailer accepts a coupon that entitles the retailer to third-partyreimbursement, such as a manufacturer’s coupon, the discount pro-vided by the coupon does not reduce the item’s sales price for pur-poses of determining whether the item is eligible for the exemption.

How is an exchange of merchandise handled?If a customer buys an eligible item during the sales tax holiday andlater exchanges it for the same item in a different size or color, taxis not to be charged even if the exchange is made after the sales taxholiday.

If a customer buys an eligible item during the sales tax holiday andreturns the item after the tax holiday period for credit on the pur-chase of a different item, sales tax applies to the sale of the newlypurchased item, even if it would have been eligible for the exemp-tion during the sales tax holiday.

If a customer buys an eligible item before the holiday period, butreturns the item during the sales tax holiday period and receivescredit on the purchase of a different item of eligible property, nosales tax is due on the sale of the new item.

Do items placed in layaway qualify for an exemptionfrom sales tax?Yes, eligible items will qualify for the exemption when final paymenton the layaway is made and the item is given to the customer dur-ing the exemption period.

I am ordering items online. Will these qualify for thesales tax holiday?Eligible items sold to purchasers by mail, telephone, email or inter-net shall qualify for the sales tax exemption if the customer ordersand pays for the item and the retailer accepts the order during theexemption period for immediate shipment, even if delivery is madeafter the exemption period.

What if a retailer runs out of an item and offers araincheck. Will the transaction still be sales taxexempt?Eligible items purchased during the sales tax holiday using a previ-ously issued raincheck qualify for the exemption. If a raincheckissued during the sales tax holiday is redeemed after the sales taxholiday, the purchase is not tax exempt.

On the sales tax report form, where do retailersreport the exempt sales made during the sales taxholiday?Sales of eligible items exempted by the sales tax holiday should bereported on line 3g, “Other Legal Sales Tax Exemptions” of theOklahoma Sales Tax report.

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Tax FreeWeekend

August 3rd,4th & 5th

6 Sunday, July 29, 2012

“Clothing” means all human wearing

apparel suitable for general use. A

nonexclusive list of clothing that is

exempt from sales and use taxes follows:

* Aprons, household and shop

* Athletic supporters

* Baby receiving blankets

* Bathing suits and caps

* Beach capes and coats

* Belts and suspenders

* Boots

* Coats and jackets

* Costumes

* Diapers, children and adult, includ-

ing disposable diapers

* Ear muffs

* Footlets

* Formal wear

* Garters and garter belts

* Girdles

* Gloves and mittens for general use

* Hats and caps

* Hosiery

* Insoles for shoes

* Lab coats

* Neckties

* Overshoes

* Pantyhose

* Rainwear

* Rubber pants

* Sandals

* Scarves

* Shoes and shoe laces

* Slippers

* Sneakers

* Socks and stockings

* Steel toed shoes

* Underwear

* Uniforms, athletic and non-athletic

* Wedding apparel

EXEMPTIONS

Tax Free Weekend August 3rd, 4th & 5thSunday, July 29, 2012 7

1- WE CREATE A MORE DYNAMIC BUSINESS CLIMATESuccess leads to success. The more prosperous busi-nesses we have, the more the local climate willencourage other entrepreneurs to set up business-es and create still more jobs.

2- WE GAIN MORE PROPERTY TAX INCOME TO INVEST IN OUR INFRASTRUCTUREThe more thriving businesses we have, the morethey will be able to expand. The more theyexpand, the more property and business tax theywill pay, generating money that can be used forthe good of our town and our citizens.

3- WE IMPROVE SERVICESA prosperous local economy is conducive toimprovements in social, medical, and sports andliesure services, as well as in tourism, the arts, andentertainment.

4- WE HAVE MORE CHOICE AND A WIDER VARIETY OF PRODUCTSThe sales figures of a business reflect its financialhealth, and when business is good, expansion pro-jects multiply. Expansion brings new products andnew services to our community.

5- WE BENEFIT LOCAL COMMUNITY ORGANIZATIONS Non-profit organizations receive many donationsfrom local business people. Donations are essentialto their survival, so it follows that the healthier theeconomy, the healthier our organizations.

6- WE MAINTAIN THE UNIQUE CHARACTER OF OUR TOWN AND REGIONThe charm of a municipality is in its dynamism andcharacter. Those go hand in hand with its econom-ic health. A municipality that can count on its pop-ulation to buy locally is a muncipality to be envied.

7- WE CREATE MORE JOBS IN OUR TOWN AND REGIONA thriving job market depends on the economichealth of our region.

8- WE HAVE A POSITIVE IMPACT ON THE ENVIRONMENTLocal enterprises purchase a lot more local prod-ucts, greatly reducing the transportation of prod-ucts from outside the region.

9- WE SUPPORT OUR REGION IN THE SEARCH FOR INVESTORSIf our region has a dynamic economy, it is bound toattract investors. If our municipality receives revenuesfrom business and property taxes, it can work toattract investors as well. Investors are like consumers:they are attracted to regions that are attractive!

10- WE INVEST IN OUR REGIONFor all the reasons listed above, buying local is log-ical, beneficial, and highly efficient. Buying localcreates the economic leverage that is vital to thedynamism of a region. By working together wecan support our local economy.