New Jersey Announces Sales Tax Holiday for Back to School Shopping: What You Need to Know
TRENTON, NJ – New Jersey shoppers gearing up for the back-to-school season are in for a budget-friendly boost. The state is offering a Sales Tax Holiday from August 26 through September 4, 2023, providing temporary exemptions on various school-related retail purchases.
Here’s everything you need to know.
Tax-Free Items
The Sales Tax Holiday applies to certain items purchased for non-business use. This includes computers priced under $3,000, school art and computer supplies under $1,000, school instructional materials, general school supplies, and sports or recreational equipment. A comprehensive list of eligible items can be found online.
No Purchase Limits or Exemption Certificates
There is no restriction on how many eligible items a customer can buy during this period, and sellers are not required to obtain exemption certificates for sales of eligible items.
Coupons and Discounts
Store discounts and coupons can be applied to reduce the price of computers and computer supplies that meet the price criteria. However, manufacturer’s coupons and rebates will not make an item eligible for the exemption.
Sales of Bundled Items
Items normally sold together as a single unit cannot be priced and sold separately to qualify for the exemption.
Rain Checks and Exchanges
Items purchased using a rain check are exempt only if redeemed during the Sales Tax Holiday. Exchanges of eligible items for different sizes or colors remain tax-free even if made after the exemption period. Return policies have specific guidelines based on timing and the nature of the exchange.
Computers Exceeding Price Threshold
Computers that exceed the price threshold of $3,000 do not qualify for the exemption, and Sales Tax will be charged on the entire sales price.
Delivery Charges
Delivery charges are considered part of the sales price, and if all items in a shipment are eligible, the delivery charge is not taxable. If a shipment includes eligible and taxable items, tax must be allocated accordingly.
Order Acceptance and Back Orders
An item is exempt if ordered, paid for, and accepted by the seller during the exemption period, even if there are delays in shipment. Delayed shipments requested by the customer do not qualify as immediate shipment.
Time Zones and Incorrect Sales Tax
The time zone of the seller’s location determines the Sales Tax Holiday period. If Sales Tax is incorrectly charged on an exempt item, customers can request a refund from the seller or the Division of Taxation within four years, providing necessary documentation.
This Sales Tax Holiday represents an opportunity for New Jersey residents to make significant savings on back-to-school shopping. Parents and students alike are encouraged to take advantage of these temporary exemptions, and retailers are preparing for what could be one of the busiest shopping periods of the year.
