All the Rules & Regs Regarding Oklahoma’s Sales Tax Holiday (August 3-5, 2012)
Oklahoma’s annual sales tax holiday will begin at 12:01 am on Friday, August 3rd and end at twelve midnight on Sunday, August 5th. The sales tax holiday gives shoppers the opportunity to purchase certain clothing and shoes free of sales tax (including all state, city, county and local municipality sales taxes.) Retailers are required to participate and may not charge tax on items that are legally tax-exempt during the sales tax holiday. The sales tax holiday exempts the sale of clothing and shoes priced at less than $100 from sales taxes.
Ready to shop but wondering how exactly tax-free shopping works? Here are the rules and regs that a savvy shopper needs to know:
- Beginning at 12:01 a.m. on the first Friday in August and ending at twelve midnight on the following Sunday, sales of any item of clothing or footwear with a sales price of less than one hundred dollars ($100) per article will be exempt from sales and use tax.
- This exemption does not apply to the sale of any accessories or to the sale of any special clothing or footwear primarily designed for athletic activity or protective use or to the rental of clothing or footwear.
- The Oklahoma Tax Commission defines "clothing" as all human wearing apparel suitable for general use, including belts and suspenders; boots; coats and jackets, diapers, gloves and mittens; hats and caps; hoisery; insoles for shoes; raingear; scarves; shoes and shoe laves; socks; underwear; athletic and non-athletic uniforms and more.
- It does not include belt buckles; costume masks; patches and emblems; sewing equipment and supplies, even when used to make clothing.
- Accessories including jewelry, handbags, luggage, umbrellas, wallets, watches, and other similar items carried on or about the human body, without regard to whether worn on the body in a manner characteristic of clothing are considered taxable.
Sales-tax exemption to the sale of clothing or footwear is illustrated by the following examples:
- A customer purchases three shirts for $45.00 per shirt. All three items qualify for the exemption, even though the customer's total purchase price ($135.00) exceeds $99.99.
- A customer purchases a pair of shoes for $110.00. The purchase does not qualify for the exemption because the customer's purchase price exceeds $99.99.
- A customer purchases a tie for $50.00, a shirt for $55.00 and a suit for $300.00. The purchase of the tie and shirt qualify for the exemption, but the suit does not qualify.
- A customer purchases a sport's team jersey for $35.00. The purchase would qualify for the exemption.
- A customer purchases a football uniform for $75.00 and football cleats for $50.00. The purchase of the football uniform would qualify for the exemption, but the football cleats do not qualify.
- A customer purchases a gold pin for $99.00. The purchase would not qualify for the exemption because the item is an accessory.
Mall Hours During Tax Free Weekend:
Quail Springs Mall (2501 W Memorial Rd, OKC)
Sooner Mall (3301 W Main St, Norman)
Sunday, 11am-7pm (Dillard's open until 9pm, JCPenney open until 8pm)
Penn Square Mall (1901 NW Expressway, OKC)
The Outlet Shoppes at Oklahoma City (7624 W Reno Ave, OKC)
Crossroads Mall (7000 Crossroads Blvd, OKC)
Other regulations to note:
- Articles that are normally sold as a unit may not be priced separately and sold as individual items in order to be exempt. For example: a pair of shoes sells for $198.00. The pair of shoes cannot be split in order to sell each shoe for $99.00 to qualify for the exemption; or a suit is normally priced at $300.00 cannot be split into a coat and slacks so that one of the articles may be sold for less than $100.00 to qualify for the exemption.
- A packaged gift set consisting of a wallet (ineligible item) and tie (eligible item) would not qualify for the exemption.
- If a seller offers "buy one, get one free" or "two for the price of one" on eligible items, the purchase shall qualify for the exemption when all other conditions of the exemption are met. However, if a seller offers a "buy one, get one for a reduced price" the two prices cannot be averaged to qualify both items for the exemption. For example, if a seller offers "buy one, get one free" on a pair of shoes. The first pair of shoes has a sale price of $99.00 and the second pair is free. Both pairs of shoes will qualify for the exemption because the first pair of shoes does not exceed the less than $100.00 exemption limitation.
- Discounts offered by the retailers at the time of sale and which are taken by the customer at the time of sale affect the sales price of the purchased item. For example, if a seller sells a pair of jeans with a sales price of $110.00 and offers to discount the item 10 percent at the time of sale, the exemption would apply because the actual sales price of the jeans is $99.00. Coupons offered by the seller or vendor and used at the time of sale to reduce the sales price of an eligible item affect the sales price of the purchased item. For example, if a seller offers a reduction in sales price of $10.00 through a store coupon for an item of clothing with a sales price of $100.00, the exemption would apply to the purchase because the seller's actual sales price to the customer is $90.00. However, coupons offered by a manufacturer that are used to pay for an eligible item do not affect the sales price of the purchased item. For example, if a customer gives to a seller a manufacturer's coupon for $20.00 for a pair of tennis shoes with a sales price of $100.00, the exemption would not apply.
- Rebates generally occur after the sale, thus the amount of the rebate does not affect the sales price of the purchased item. For example, if a pair of jeans was purchased for $100.00 with a manufacturer's rebate for $10.00, the exemption would not apply because the sales price is in excess of $99.99.
- Eligible items purchased during the exemption period using a gift certificate or gift card will qualify for the exemption, regardless of when the gift certificate or gift card was purchased.
- A gift certificate or gift card cannot be used to reduce the selling price of an eligible item in order for the item to qualify for the exemption.
For additional rules and FAQs about tax-free shopping, visit the Oklahoma Tax Commission website.