Sales tax holiday set for back to school shoppers

The Louisiana Department of Revenue confirmed Monday that Friday and Saturday have been designated as a sales tax holiday throughout the state.

First introduced in Louisiana in 2007, the two-day event, designated by statute as the first consecutive Friday and Saturday of August, is intended to offer back-to-school shoppers purchasing tangible personal property such as educational supplies and clothing, a break in expenses. It is also believed that such an event could boost retail activity.

Simply put, the amount on the price tag is what the consumer will pay without addition of the 4 percent state sales tax. The holiday may or may not include parish, municipality, school board or other local taxes.

The sales tax holiday extends beyond buying for the kids by including almost any retail good priced up to $2,500 per individual item, except motorized vehicles and prepared meals. Sales tax exemption also does not apply to hotel occupancy, recreational admission costs or entertainment activities, cleaning services, cold storage, leases, rentals, printing, utilities or telecommunication services.

The sales tax break applies to items being placed on layaway, acquired from layaway or scheduled for delivery.

Retailers that incur costs because they have to reprogram computers and cash registers during the two-day sales tax holiday will be allowed to take a credit on their sales tax returns in amounts up to $25 for each piece of equipment that required reprogramming.

Questions concerning the sales tax holiday may be answered by calling the DOR Taxpayer Service Division at (225) 219-7462.