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Tax Holiday Begins August 16

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The Connecticut Better Business Bureau reminds shoppers that Connecticut’s tax holiday runs Sunday, August 16, through Saturday, August 22.

According to the National Retail Federation (NRF) Back-to-School Spending Survey, the average family with children in grades K to 12 plans to spend $630 on electronics, apparel, and other back-to-school items this year.

The Connecticut Department of Revenue Services (DRS), has an extensive list of what items qualify for the tax exemption, which applies to items under $100.

Also according to the NRF, nearly a quarter of families start shopping for school supplies two months before school starts. The Better Business Bureau has tips for consumers to take advantage of all the savings possible:

Create a budget. A budget will help shape the shopping list and limit purchases to only items needed. A budget also allows shoppers to put money toward larger items or a special purchase.

Research major purchases. When shopping for laptops, calculators, dorm refrigerators, and other large purchases, homework is important. Research brands to see what meets expectations.

Check for educational discounts. Some computer and software companies offer discounts to students and teachers with .edu e-mail addresses.

Watch for sales. Compare prices between different retail stores, save coupons, and redeem cash-back or rebate offers. Check retailers’ social media for specials, and sign up for e-mail alerts for specials and discounts.

Do not skimp on certain items. There is little point in buying a $20 backpack that will have to be replaced by the end of the year. Pay a little more for items that are capable of withstanding wear and tear.

Shop out of season. The tax free holiday is helpful, but some shoppers prefer to wait to stock up on back-to-school items when prices fall and seasonal items go on clearance.

Buy in bulk. Some schools ask parents to buy items that will be used by the entire class (tissues, hand sanitizer, etc). Get together with other parents to shop in bulk. Parents of college students can also buy in bulk for snacks, toiletries, and other items for future ‘‘care packages.”

Save receipts. Receipts are needed to make an exchange or return an item. Some items are nonrefundable or have a 30-day return period.

While rebates are not permitted, the tax exemptions are applicable to eligible merchandise that is bought using a store discount or coupon. If the item costs more than $100, but a sale or discount brings it below $100 per item, it is tax-exempt. “Buy one-get one free’’ offers are eligible, so long as the item’s price is below $100. Internet sales also qualify for the tax break.

There is no sales tax on items under $100, and shipping costs are not considered to be part of the price of the merchandise, so it would therefore be tax exempt.

To see a full list of items eligible for the tax break, visit the Connecticut Department of Revenue Services website, ct.gov/drs/cwp/view.asp?a=1514&q=268900.

Connecticut’s annual tax holiday — which applies to items $100 and under — runs Sunday, August 16, through Saturday, August 22. The Better Business Bureau has tips for consumers to take advantage of all possible savings.
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