Oklahoma’s annual sales tax holiday will begin at 12:01 a.m. Friday and end at midnight Sunday. Certain clothing and shoe purchases are exempt from sales tax for this time period only. Qualified items are exempt from state, city, county and local municipality sales taxes.
The sales tax holiday was originally instituted by the passage of Senate Bill 861 during the 2007 legislative session. It was done in an effort to help businesses by boosting the economy and to help consumers by allowing them to save money when shopping for clothing and shoes.
Retailers are required to participate and may not collect state and local sales or use tax on most footwear and clothing that are sold for less than $100 during the holiday.
Clothing and footwear items that are not exempt are those that are primarily designed for an athletic activity or protective use that is not normally worn except when used for the athletic or protective use for which they are designed. Accessories such as jewelry, handbags, watches and other similar items are also ineligible. The rental of clothing of footwear during this time is taxable.
Product exchange rules for this time of year can be tricky.
According to the Oklahoma Tax Commission, if an item is bought during the holiday, it may be exchanged for the exact same item in a different size or color after the holiday with no additional tax to be charged. If an item is bought during the holiday but exchanged for a different item after the holiday, an additional sales tax must be charged. Items bought before Aug. 5 and exchanged during the holiday for store credit towards an eligible item should have no sales tax assessed on the new purchase.
Eligible layaway items will also be exempt if the last layaway payment is made during the holiday.
Purchases made for eligible items online, by mail or by phone during the holiday and accepted by the retailer for immediate shipment also qualify even if the product arrives after the coming weekend.
Reach Matt Moran at 580-482-1221, ext. 2071.