Tax-Free weekend is here; these are the rules on what is and is not tax-free through Sunday
What items are exempt? How long does it last? Can I use coupons? Those answers and more inside.
In 2007, the Oklahoma Legislature passed Senate Bill 861 in a move to benefit both consumers and retailers in the state by providing sales tax-exempt shopping. Initially created as a way to boost the economy during the Great Recession, the Sales Tax Holiday has held ever since and proven to be a big help to parents during the back-to-school shopping season.
When is it?
The tax-free weekend officially started at 12:01 am on Friday morning and will last through Sunday at midnight. Retailers are required to participate, and some will even use the event to have special additional sales.
What items are tax-exempt?
Clothing and casual footwear under $100 are tax-exempt, with a few exceptions. OK.gov has a list of all the exceptions, as well as several answers to Frequently Asked Questions.
Confusion on Coupons, Rainchecks and Layaway
One loophole that folks have found to help even more is the use of coupons to bring an eligible item under the $100 mark, at which point the item becomes tax-exempt. The problem is, this loophole only applies to in-store coupons, not manufacturers coupons.
If you received a raincheck prior to the tax-free weekend, then purchasing that item during the tax-free weekend will get you a tax-exemption. However, a raincheck you get this weekend to be purchased afterward is not tax-exempt.
The same concept applies to layaway items. If you’re making your final payment during his weekend, it will be tax-free. If you’re placing something on layaway this weekend to be completed afterward, it will not be tax-exempt when you make that final payment.
What about exchanges?
If a customer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, tax is not to be charged even if the exchange is made after the sales tax holiday. If a customer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, sales tax applies to the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday. If a customer buys an eligible item before the holiday period, but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item.