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Don't let the timing fool you. The third sales tax holiday, which begins Saturday, is not just for back-to-school purchases.
By MARK ALBRIGHT
© St. Petersburg Times, published July 27, 2000
Florida's third sales tax holiday kicks off for a nine-day run beginning Saturday morning.
The tax holiday on most clothing represents shoppers' $41.2-million cut of more than $520-million worth of tax breaks the Florida Legislature doled out this year. With school set to open in August across the Tampa Bay area, retailers again will get to add sales tax savings to their usual parade of promotional sale events. The average family's back-to-school budget is $549 this year, according to a National Retail Federation survey.
Consumers can save the state and local sales tax on most apparel and footwear purchased between 12:01 a.m. Saturday and midnight Aug. 6. In the Tampa Bay area, sales tax is 6 or 7 percent depending on the county.
To be tax-exempt, each item must be priced at $100 or less.
For retailers the holiday comes just as their apparel sales could use a jolt. Ebbing consumer confidence and a lack of must-have fashion this summer turned clothing sales soft. Many of the summer leftovers from June remain unsold on the clearance racks.
While many retailers once were unsure if the tax-free holiday merely spread their back-to-school sales over more days, after two years of experience most now agree the holiday increases their sales overall.
"People tend to buy 6 or 7 percent more than they would have," said Conrad Syzmanski, president of Beall's Department Stores, which is based in Bradenton.
"It's become a major plus for our back-to-school business," said Carey Watson, senior vice president of marketing for Burdines, which is based in Miami.
"Our people think it's been a screaming success," said John Rogers, a lobbyist with the Florida Retail Federation.
The Legislature's decision to tie a tax break to the school calendar has led to confusion on one point: The tax exemption doesn't just apply to clothes for the kids.
"The perception is that this is only for back-to-school shopping, but it's really for anybody buying most any kind of apparel," said Dave Bruns, spokesman for the state Department of Revenue.
The rules are virtually identical to last year. While legislators aimed at making apparel and footwear tax-free, the lines were blurred once lawmakers recognized that some people's sporting goods have become other people's everyday wardrobe.
That's why baseball jerseys, martial arts attire, leotards and fishing and hunting vests are tax-exempt, but weightlifting belts, football pads and wet suits are not.
Lawmakers also tried to help parents of school children by declaring backpacks exempt. But they did not add other items considered luggage to the list of tax-free goods.
The rules make for some other puzzlers. Athletic supporters are tax-exempt but not elbow pads. Book bags are tax-exempt but not briefcases. Diaper bags are tax-free but not duffel bags. Garden gloves are exempt but not golf gloves.
The only notable addition to the tax-free list this year is snow-ski suits. Lawmakers figured many Floridians wear them during cold snaps so they are apparel, not sporting goods.
Though legislators wanted to limit the tax breaks to Florida residents, doing so would have been a logistical nightmare. Instead, they ordered the tax breaks on sales at all retail establishments except those in certain places where tourist hang out: theme parks, hotels and airports. Tax breaks are also good for mail order and online purchases. But shipping and handling fees must be added to the price in meeting the $100 per item limit.
While the appeal of a real savings may help draw crowds, the $41.2-million tax break is a tiny fraction of the state's $15-billion budget. Dividing the state's population by $41.2-million comes to less than $3 a person. Studies have shown that consumers are not moved these days until advertised discounts exceed 30 percent.
And the complex rules could trigger some checkout counter arguments. For instance:
Coupons issued by retailers can be used to lower a pricetag below $100 to qualify for the exemption. But a manufacturer's coupon cannot because the retailer is being reimbursed for the difference. An alterations bill also counts in the purchase price if the same store is doing the work.
The exemption is based on the price of each item, not the total tab. So a shopper could save up to $21 in taxes on a $300 transaction. But if a particular item is priced at $101, tax is due on a $101 sale.
The exemption cannot be applied to a gift certificate or rain check purchase unless they are redeemed before the end of tax-free holiday Aug. 6. While a product can be exchanged after the holiday for the same item (even in a different size), sales tax is due on an item returned and replaced by other items. Layaway sales are tax-exempt if the customer makes a deposit for the goods and the retailer separates them from others for sale.
Taxable
Athletic gloves or pads
Baseball gloves
Batting gloves
Belts for weightlifting
Bicycle gloves
Bowling shoes (rented)
Briefcases
Checkbook covers (separate from wallets)
Chest protectors
Cloth and lace, knitting yarns, and other fabrics
Clothing repair items
Corsages and boutonnieres
Cosmetic bags
Crib blankets
Diving suits (wet and dry)
Duffel bags
Elbow pads
Fins
Fishing boots (waders)
Football pads
Garment bags
Goggles (except prescription)
Golf gloves
Handkerchiefs
Hard hats
Helmets
Hockey gloves
Ice skates
Inline skates
Jewelry
Key chains
Knee pads
Life jackets and vests
Luggage
Makeup bags
Paint or dust masks
Patterns
Protective masks (athletic)
Rented clothing
Repair of wearing apparel
Roller blades
Roller skates
Rubber gloves
Safety glasses (except prescription)
Shaving kits/bags
Shoulder pads (football, hockey, sports)
Skates
Ski boots
Ski vests (water)
Skin diving suits
Sports helmets
Suitcases
Sunglasses (except prescription)
Surgical gloves
Swimming masks
Tennis gloves
Umbrellas
Watchbands
Watches
Wigs, toupees and chignons
Tax-exempt
Aerobic clothing
Antique clothing
Aprons/clothing shields
Athletic supporters
Baby clothes
Backpacks
Bandanas
Barrettes and bobby pins
Baseball cleats
Bathing suits, caps and coverups
Belt buckles
Belts
Bibs
Blouses
Book bags
Boots (except ski boots)
Bowling shoes (sold)
Bras
Caps and hats
Cleated and spiked shoes
Coats and wraps
Coin purses
Costumes
Coveralls
Diaper bags
Diapers, diaper inserts (adult and baby, cloth and disposable)
Dresses
Employee uniforms
Fanny packs
Fishing vests (non-flotation)
Formal clothing (unless rented)
Garden gloves
Garters and garter belts
Girdles, bras and corsets
Gym suits and uniforms
Hair nets, bows, clips and bands
Handbags and purses
Hats
Hosiery, including support hosiery
Hunting vests
Insoles
Jackets
Jeans
Lab coats
Leg warmers
Leather gloves
Leotards and tights
Lingerie
Martial arts attire
Neckwear
Overshoes and rubber shoes
Pants
Pantyhose
Ponytail holders
Raincoats, rainhats and ponchos
Robes
Safety clothing
Safety shoes
Scarves
Scout uniforms
Shawls and wraps
Shirts
Shoe inserts
Shoes (including athletic)
Shoulder pads (for dresses, jackets, etc.)
Shorts
Ski suits (snow)
Skirts
Sleepwear
Slippers
Slips
Socks
Sports uniforms
Suits, slacks and jackets
Suspenders
Sweatbands
Sweaters
Swim suits and trunks
Tights
Tuxedos, excluding cuff links and rentals
Underclothes
Vests
Wallets
Work clothes and uniforms
Work gloves
Source: state Department of Revenue