By TEDDYE SNELL
For many area residents, Christmas is coming in August this year – at least, when it comes to shopping for clothes.
Beginning at 12:01 a.m., Friday, Aug. 7, people across the state can take advantage of shopping tax-free for certain items through Sunday.
According to the Oklahoma Tax Commission website, retailers are required to participate, and may not charge tax on items that are legally tax-exempt during the three-day event. The sales tax holiday exempts the sale of clothing and shoes priced at less than $100 from both state and local sales taxes.
The Oklahoma Legislature passed Senate Bill 861 during the 2007 legislative session to benefit both consumers and retailers in the state by providing sales tax-exempt shopping.
The idea is to help businesses by providing a boost in the economy and the consumer by allowing them to save money when shopping for clothing and shoes, which is particularly beneficial right before school starts.
Tahlequah Area Chamber of Commerce Executive Director David Moore said area businesses are prepared for the event.
“I’m excited first for the shoppers, because they have the chance to save 8.5 percent on all their clothing,” said Moore. “In these tough economic times, that’s significant. I’m also excited for our retailers, because it provides an opportunity to sell more. We’re hoping to draw people from smaller communities to our city, and we’re close enough to the Arkansas state line, where they still have taxes this weekend, that people may come here to shop.”
Linda Rangle, manager at Tahlequah’s Stage store, said they’re ready for the crowds.
“We already have good sales going on, which will give customers more bang for their buck with the holiday,” said Rangle. “We have lots of advertising out there, and will have extended hours throughout the weekend.”
“We have a wonderful selection of clothing for students of any age,” said Rangle. “We also have many, many items marked for clearance, so now it definitely the time to replenish a depleted wardrobe.”
The majority of participants in a Daily Press online poll, 37.5 percent, indicated they wouldn’t take part in the holiday, as they’re already broke and it won’t help. Twenty-five percent said they would be taking advantage of the holiday, and would restrict their shopping to Tahlequah. Another 20 percent said they planned to shop out of town.
According to the OTC, items exempt from taxes include “any article of clothing or footwear designed to be worn on or about the human body and the sales price of the article is less than $100.”
This doesn’t apply to accessories, special clothing or footwear designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.
For instance, sneakers, athletic uniforms and athletic supporters are considered tax-exempt items, along with wedding apparel, costumes, insoles for shoes, girdles and gloves.
While some people may be under the impression the sales tax holiday applies only to school children, the OTC indicated under the special holiday law, if an item is tax exempt, anyone may make the purchase tax-free.
It’s also important for consumers to remember that any item priced at $100 or more is subject to sales tax.
Many retailers have already reduced prices on many items to entice consumers. According to the OTC, if a retailer offers a discount to reduce the price of an eligible item to less than $100, the item will then qualify for the sales tax exemption. This applies to all discounts, even if a retailer’s coupon or loyalty card is required to secure the discount.
However, if a retailer accepts a coupon that entitles the retailer to third-party reimbursement, such as a manufacturer’s coupon, the discount provided by the coupon does not make the item eligible for the exemption.
For more information concerning the tax holiday, visit www.tax.ok.gov/holiday. html.
