Tips To Save Money During Tax-Free Shopping Week
Tips To Save Money During Tax-Free Shopping Week
WALLINGFORD â Connecticut consumers shopping for back-to-school supplies can take advantage of the stateâs tax-free week, which runs from Sunday, August 19, through Saturday, August 25. The Connecticut tax holiday suspends sales tax from most clothing and footwear, up to a maximum of $300 per item.
According to the National Retail Federation, parents will be shopping carefully and making special efforts to save on supplies this school year. Thirty-one percent of families say they will do comparative shopping online compared to 29.8 percent last year; they will use more coupons (38.7 percent vs 36.9 percent); and cut back on extracurricular activities or sports (14.3 percent vs 10.2 percent).
Many retailers offer back-to-school specials and coupons to entice shoppers; Connecticutâs Better Business Bureau, however, recommends delaying the purchase of items you do not immediately need. BBB also suggests these tips:
Take inventory â There is always that endless supply of markers, crayons, and notebooks around the house. Reusing these can save hundreds of dollars over the years.
Look for the deals â Some retailersâ back-to-school specials are available for online and in-store purchase. Make sure to check out your local newspaper for deals. Many retailers will put ads showcasing the special buy-one-get-one-free deals, and even couple items like lunchboxes with backpacks to lure customers.
Set a budget â Decide how much you are willing to spend per child. After taking inventory, create a shopping list and stick to it. This will help you avoid costly impulse purchases and ensure nothing is forgotten.
Know what your childâs school allows â Schools will often provide parents with a list of required items for the school year, which can help determine what you need to purchase. These lists are also available at many retail stores and on school websites. Additionally, many schools have specific dress codes, so keep these restrictions in mind before spending money on clothes the school may not allow.
Check for refund and exchange policies â Be sure you can exchange or return items purchased during this time period. Keep in mind some items may be nonrefundable or have restocking fees associated with a return.
According to the state Department of Revenue Services (DRS), this one-week exclusion applies to clothing sales made by Connecticut and out-of-state retailers to Connecticut customers. It further explains:
*The exclusion applies to each item of clothing or footwear sold, regardless of how many items are sold to a customer on the same invoice. For any item that costs $300 or more, however, sales tax applies to the entire price of that item.
*Articles that are normally sold as a unit (for example, a pair of shoes) must continue to be sold in that manner; they cannot be separated and sold as individual items to qualify for the exclusion.
For instance, if a suit normally sells for $400, the retailer cannot sell the pants for $200 and the suit coat for $200 in order to qualify the suit for the exclusion. If, however, the pants and the coat are normally sold as separate items with separate price tags, the exclusion may apply to each item sold.
*The exemption during the âsales tax holidayâ week for articles of clothing and footwear includes most articles of clothing and footwear intended to be worn on or about the body, but certain items are excluded.
 For purposes of the exemption, clothing and footwear do not include:
*Any special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for the athletic activity or protective use for which it was designed.
*Jewelry, handbags, luggage, umbrellas, wallets, watches, and similar items carried on or about the human body but not worn on the body in the manner characteristic of clothing, and
*Articles of clothing considered safety apparel are fully exempt under a separate exemption in Connecticut.
For further information, call DRS during business hours, Monday through Friday, at 800-382-9463. To see more information on Tax-Free Week, visit the DRS website at www.ct.gov/DRS.
For more consumer tips, visit http://ct.bbb.org/Consumer-Tips/.