Frequently Asked Questions

+ Business Names
+ Registered Agent/Office
+ Corporations
+ Partnerships
+ Online Filings
+ Foreign Entities
+ General Questions
+ Unemployment Insurance Reporting
+ Workers' Compensation
+ Tax Information
+ Corporation Income Tax
+ Sales Tax Holiday
+ I don't sell very many items that qualify for the sales tax holiday.  Do I have to participate in the sales tax holiday?
The statute provides an alternative for retailers when less than two percent of their merchandise offered for sale qualifies for the sales tax holiday.  The sales tax holiday doesn't apply to those retailers, but they must offer a refund of tax to customers who purchase qualifying sales tax holiday related items.
+ What if I do not sell any of the qualified items for the sales tax holiday?
If you do not sell any of the qualified items, you will collect and remit sales tax as usual.
+ How do I collect and report the tax if one or more of the local jurisdictions in which my business resides chooses to not participate in the sales tax holiday?
You will collect from your customers only the local jurisdiction's sales tax on the sale of holiday related items.  You do not collect state sales tax on the sale of holiday related items.  Report holiday sales on a separate line for each business location.

Excerpt from Department of Revenue's Sales Tax Holiday Information for Vendors Below is an example of how the return should appear if one or more of your local taxing authorities does not participate in the sales tax holiday.

Total sales for the tax period were $3000.  Of the $3000, $1000 was received for qualifying school supplies.  Because the local taxing authorities are not participating in the holiday, the tax rate applied against the $1000 in sales is 2%.  (The normal tax rate for the area in this example is 6.225%, of which 4.225% is the state tax rate.  In order to find the reduced rate the customer should be charged, use the following formula: 6.225 - 4.225 = 2.000%.)  Even though the local taxing authority is not participating, the customer still receives an exemption from the state tax rate.

Business LocationCodeGross ReceiptsAdjustments
(+ Or -)
Taxable SalesRate
(%)
Amount of Tax
123 Main Street-$2000.00-$2000.006.225$124.50
Holiday Sales-$1000.00-$1000.002.000$20.00
+ Can I use a normal pre-printed voucher to file my sales tax that I collected during the sales tax holiday?
If your city, county, and taxing district are all participating in the sales tax holiday, you may use your pre-printed voucher.  Report sales of holiday related items as a negative adjustment on your return.

Excerpt from Department of Revenue's Sales Tax Holiday Information for Vendors Below is an example of how the return will appear if all local taxing authorities are participating in the sales tax holiday.

Total sales for the month were $3000. Of the $3000, $1000 was received for qualifying school supplies. Because the local taxing authority is participating in the holiday, the holiday sales are completely exempt from tax. The customer will receive an exemption from both state and local tax for this time period.

Business LocationCodeGross ReceiptsAdjustments
(+ Or -)
Taxable SalesRate
(%)
Amount of Tax
123 Main Street-$3000.00-$1000$2000.006.225$124.50
+ What if I have not received a sales tax holiday return in the mail?
If you have not received a sales tax holiday return, you can download a blank sales tax return ( Form 53-1 PDF file ).  Report sales made on holiday related items during the sales tax holiday on a separate line from all other sales you made for each location during the tax period.  For examples on how to fill out a blank sales tax return click here.
+ I only sell a few items that would be considered school supplies.  Do I have to reprogram all of my cash registers for the lower tax rate?
No.  If less than two percent of your merchandise offered qualifies for the holiday rate you do not have to participate in the holiday.  However, you must provide a refund of the applicable tax to the customer on their purchase of qualifying sales tax holiday items.
+ Would I be able to purchase a new computer tax-exempt during the sales tax holiday for my business?
No.  The sales tax holiday is for purchases of qualifying items for personal use only.
+ Sales by Farmers at Farmers Markets
+ Tire and Lead-Acid Battery Fee
+ Cigarette and Other Tobacco Products