The state-wide sales tax holiday is approaching from August 26 to September 4, 2023. This limited time offers a chance to save significantly as certain items are exempt from sales tax. Here’s what you need to know: Eligible items include computers (under $3,000), school supplies, instructional materials, and sports/recreational equipment used during an athletic or recreational activity. For a complete list of items, please visit The State of New Jersey Treasury. There is no limit on the number of eligible items you can buy, and no exemption certificates are necessary. Store discounts and coupons can be applied to reduce the sales price of eligible items, but manufacturers’ coupons and rebates do not qualify for the exemption.
A couple of additional notes while shopping:
- Exchanging an eligible item for the same item in a different size or color does not incur sales tax, even if done after the exemption period. However, suppose you return an eligible item after the holiday and use that credit to purchase a different item. In that case, sales tax applies to the new item, even if it would have been eligible for the exemption during the Sales Tax Holiday. On the other hand, returning an item during the holiday period and using that credit to purchase a different, eligible item means no sales tax is due on the new item, and the seller should refund the sales tax paid on the returned item.
- If you’re charged sales tax by mistake, don’t worry. Request a refund directly from the seller or file a Claim for Refund with the Division of Taxation within four years from the payment date, providing necessary documentation like copies of invoices, receipts, and proof of tax paid.
Take advantage of this N.J. relief by making smart tax-free purchases! Happy shopping!
For more information, please reach out to your WG advisor.