SALT Report 2783 – The Missouri Department of Revenue issued a reminder regarding the state’s upcoming sales tax holiday that is scheduled for August 2 – 4, 2013. During that time, the state sales tax will not apply to the following items:
Clothing that costs less than $100 – Eligible clothing includes items worn on or about the body, and footwear. The exemption also applies to material to make school uniforms or other school clothing. However, it does not include accessories such as watches, jewelry, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles.
School supplies that cost less than $50 – School supplies are those that are commonly used in a classroom; such as textbooks, notebooks, paper, pens, pencils, crayons, art supplies, rulers, book bags, backpacks, handheld calculators, chalk, maps and globes. School supplies do not include CD players, headphones, sporting equipment, portable telephones, copiers or other office equipment.
Personal computers and computer peripheral devices that cost less than $3,500 – Personal computers include laptops, desktops or tower computer systems that have a central processing unit, random access memory, a storage drive, display monitor, keyboard and other related devices. Peripheral devices include disk drives, memory modules, CD drives, microphones, modems, motherboards, mouse, speakers, printers, scanners, sound cards or video cards. Computer software is considered a school supply and is exempt from sales tax if it costs less than $350.
The sales tax holiday will apply to both the state and local sales taxes if the local jurisdiction chooses to participate in the holiday. However, local jurisdictions can choose not to participate if they enact an ordinance and notify the Department 45 days prior to the sales tax holiday. Therefore, if a business is located in a local jurisdiction that is not participating in the sales tax holiday, the business should exempt only the state’s portion of the tax on sales of qualified items.
If a business is located in a jurisdiction that is not participating in the sales tax holiday, they will receive a long form Sales Tax Return – Form 53-1. This return will replace the normal filing method for this period. When filing this return, all sales made at the full tax rate must be clearly indicated on one line, while all holiday related sales will be treated as an item tax, with a reduced rate, on a separate line.
If a business is located in a jurisdiction that is participating in the sales tax holiday, they should continue to use the normal filing method for this period. When filing this return, the business should enter the total gross receipts for all sales made, indicating holiday sales as a negative adjustment on the return.
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