SALT Report 3917 – During the sales tax holiday, eligible purchases of most items of tangible personal property are subject to a state sales tax rate of only three percent. This sales tax exemption applies to the first $2500 of the sales price or cost price of any consumer purchase of an eligible item.
The exemption applies statewide to all consumer purchases of tangible personal property provided that the property is not for use in a business, trade, or profession. The state sales tax exemption does not apply to vehicles subject to license and title and meals furnished for consumption on the premises where purchased, including to-go orders. The exemption for the sales tax holiday applies only to state sales tax. Local sales taxes apply in full unless specifically exempted by the local taxing authority.
Transactions for the purchase of taxable services and transactions for the lease or rental of tangible personal property do not qualify for the annual sales tax holiday exemption. This means that, in addition to the specific exclusions from the holiday for sales of vehicles and meals, the state sales tax holiday will also not apply to purchases of taxable services (hotel occupancy; amusement, recreational, and athletic admissions; repairs to tangible personal property; laundry, cleaning, pressing, and dyeing services; vehicle parking; the furnishing of cold storage space; printing services; and telecommunication services) or to leases or rentals of tangible personal property.