Oklahoma’s annual sales tax holiday will be August 6-8
Beginning at 12:01 a.m. on August 6 and ending at midnight on August 8, Oklahomans can make limited purchases of clothing and shoes free of state, city and county sales tax.
State Senator Don Barrington authored the law that created Oklahoma’s annual sales tax holiday, which mirrors a similar law in Texas and is timed to occur just before the start of fall classes.
“Oklahoma’s sales tax holiday helps families save money on purchases of clothing and shoes, and it provides a boost to Oklahoma’s economy, too,” Barrington, R-Lawton, said last year. “We created the back-to-school sales tax holiday to help Oklahomans save money on purchases of clothes and shoes, especially for parents of children who are about to go back to school.”
In 2007 the Oklahoma Legislature overwhelmingly passed Barrington’s Senate Bill 861. The bill created a three-day sales tax holiday on the first weekend of August each year, making purchases of clothing and shoes up to $100 free of sales taxes.
In 2009, there was an overall increase in sales tax collections due to the extra business generated by shoppers over the weekend.
Retailers are required to participate and may not charge tax on items that are legally tax-exempt during the sales tax holiday.
The exemption does not apply to the sale of any accessories, special clothing or footwear primarily designed for athletic activity or protective use that is not normally worn except when used for athletic activity or protective use. It doesn’t apply to the rental of clothing or footwear.
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.
If a retailer offers a discount to reduce the price of an eligible item to less than $100, the item will 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. 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 reduce the item’s sales price for purposes of determining whether the item is eligible for the exemption.
If a customer buys an eligible item during the sales tax holiday and later exchanges it for the same item in a different size or color, tax is not to be charged even if the exchange is made after the sales tax holiday. If a customer buys an eligible item during the sales tax holiday and returns the item after the tax holiday period for credit on the purchase of a different item, sales tax applies to the sale of the newly purchased item, even if it would have been eligible for the exemption during the sales tax holiday.
If a customer buys an eligible item before the holiday period, but returns the item during the sales tax holiday period and receives credit on the purchase of a different item of eligible property, no sales tax is due on the sale of the new item.
Eligible items sold to purchasers by mail, telephone, e-mail or internet qualify for the sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.
Eligible items purchased during the sales tax holiday using a previously issued raincheck qualify for the exemption. If a raincheck issued during the sales tax holiday is redeemed after the sales tax holiday, the purchase is not tax exempt.
Some Tax Exempt Items
Aprons, household and shop
Athletic supporters
Baby receiving blankets
Bathing suits and caps
Beach capes and coats
Belts and suspenders
Boots
Coats and jackets
Costumes
Diapers, children and adult, including disposable diapers
Ear muffs
Footlets
Formal wear
Garters and garter belts
Girdles
Gloves and mittens for general use
Hats and caps
Hosiery
Insoles for shoes
Lab coats
Neckties
Overshoes
Pantyhose
Rainwear
Rubber pants
Sandals
Scarves
Shoes and shoe laces
Slippers
Sneakers
Socks and stockings
Steel toed shoes
Underwear
Uniforms, athletic and non-athletic
Wedding apparel