§ 44-18.1-23 Sales tax holidays. –(A) If a member state allows for temporary exemption periods, commonly referredto as sales tax holidays, the member state shall:
(1) Not apply an exemption after December 31, 2003, unlessthe items to be exempted are specifically defined in the Agreement and theexemptions are uniformly applied to state and local sales and use taxes.
(2) Provide notice of the exemption period at least sixtydays' prior to the first day of the calendar quarter in which the exemptionperiod will begin.
(B) A member state may establish a sales tax holiday thatutilizes price thresholds set by such state and the provisions of the Agreementon the use of thresholds shall not apply to exemptions provided by a stateduring a sales tax holiday. In order to provide uniformity, a price thresholdestablished by a member state for exempt items shall include only items pricedbelow the threshold. A member state shall not exempt only a portion of theprice of an individual item during a sales tax holiday.
(C) The following procedures are to be used by member statesin administering a sales tax holiday exemption:
(1) Layaway sales. A sale of eligible property under alayaway sale qualifies for exemption if:
(a) final payment on a layaway order is made by, and theproperty is given to, the purchaser during the exemption period; or
(b) the purchaser selects the property and the retaileraccepts the order for the item during the exemption period, for immediatedelivery upon full payment, even if delivery is made after the exemption period.
(2) Bundled sales. Member states will follow the sameprocedure during the sales tax holiday as agreed upon for handling a bundledsale at other times.
(3) Coupons and discounts. A discount by the sellerreduces the sales price of the property and the discounted sales pricedetermines whether the sales price is within a sales tax holiday pricethreshold of a member state. A coupon that reduces the sales price is treatedas a discount if the seller is not reimbursed for the coupon amount by athird-party. If a discount applies to the total amount paid by a purchaserrather than to the sales price of a particular item and the purchaser haspurchased both eligible property and taxable property, the seller shouldallocate the discount based on the total sales price of the taxable propertycompared to the total sales prices of all property sold in that sametransaction.
(4) Splitting of items normally sold together.Articles that are normally sold as a single unit must continue to be sold inthat manner. Such articles cannot be priced separately and sold as individualitems in order to obtain the exemption. For example, a pair of shoes cannothave each shoe sold separately so that the sales price of each shoe is within asales tax holiday price threshold.
(5) Rain checks. A rain check allows a customer topurchase an item at a certain price at a later time because the particular itemwas out of stock. Eligible property that customers purchase during theexemption period with use of a rain check will qualify for the exemptionregardless of when the rain check was issued. Issuance of a rain check duringthe exemption period will not qualify eligible property for the exemption ifthe property is actually purchased after the exemption period.
(6) Exchanges. The procedure for an exchange inregards to a sales tax holiday is as follows:
(a) If a customer purchases as item of eligible propertyduring the exemption period, but later exchanges the item for a similareligible item, even if a different size, different color, or other feature, noadditional tax is due even if the exchange is made after the exemption period.
(b) If a customer purchase an item of eligible propertyduring the exemption period, but after the exemption period has ended, thecustomer returns the item and receives credit on the purchase of a differentitem, the appropriate sales tax is due on the sale of the newly purchased item.
(c) If a customer purchases an item of eligible propertybefore the exemption period, but during the exemption period the customerreturns the item and receives credit on the purchase of a different item ofeligible property, no sales tax is due on the sale of the new item if the newitem is purchased during the exemption period.
(7) Delivery charges. Delivery charges, includingshipping, handling and service charges, are part of the sales price of eligibleproperty unless a member state defines "sales price" to exclude such charges.For the purposes of determining a sales tax holiday price threshold, if all theproperty in a shipment qualifies as eligible property and the sales price foreach item in the shipment is within the sales tax holiday price threshold, thenthe seller does not have to allocate the delivery, handling, or service chargeto determine if the price threshold is exceeded. The shipment will beconsidered a sale of eligible products. If the shipment includes eligibleproperty and taxable property (including an eligible item with a sales price inexcess of the price threshold), the seller should allocate the delivery chargeby using:
(a) a percentage based on the total sales prices of thetaxable property compared to the total sales prices of all property in theshipment; or
(b) a percentage based on the total weight of the taxableproperty compared to the total weight of all property in the shipment.
The seller must tax the percentage of the delivery chargeallocated to the taxable property but does not have to tax the percentageallocated to the eligible property.
(8) Order date and back orders. For the purpose of asales tax holiday, eligible property qualifies for exemption if:
(a) the item is both delivered to and paid for by thecustomer during the exemption period; or
(b) the customer orders and pays for the item and the selleraccepts the order during the exemption period for immediate shipment, even ifdelivery is made after the exemption period. The seller accepts an order whenthe seller has taken action to fill the order for immediate shipment. Actionsto fill an order include placement of an "in date" stamp on a mail order orassignment of an "order number" to a telephone order. An order is for immediateshipment when the customer does not request delayed shipment. An order is forimmediate shipment notwithstanding that the shipment may be delayed because ofa backlog of orders or because stock is currently unavailable to, or on backorder by, the seller.
(9) Returns. For a 60-day period immediately after thesales tax holiday exemption period, when a customer returns an item that wouldqualify for the exemption, no credit for or refund of sales tax shall be givenunless the customer provides a receipt or invoice that shows tax was paid, orthe seller has sufficient documentation to show that tax was paid on thespecific item. This 60-day period is set solely for the purpose of designatinga time period during which the customer must provide documentation that showsthat sales tax was paid on returned merchandise. The 60-day period is notintended to change a seller's policy on the time period during which the sellerwill accept returns.
(10) Different time zones. The time zone of theseller's location determines the authorized time period for a sales tax holidaywhen the purchaser is located in one time zone and a seller is located inanother.
§ 44-18.1-23 Sales tax holidays. –(A) If a member state allows for temporary exemption periods, commonly referredto as sales tax holidays, the member state shall:
(1) Not apply an exemption after December 31, 2003, unlessthe items to be exempted are specifically defined in the Agreement and theexemptions are uniformly applied to state and local sales and use taxes.
(2) Provide notice of the exemption period at least sixtydays' prior to the first day of the calendar quarter in which the exemptionperiod will begin.
(B) A member state may establish a sales tax holiday thatutilizes price thresholds set by such state and the provisions of the Agreementon the use of thresholds shall not apply to exemptions provided by a stateduring a sales tax holiday. In order to provide uniformity, a price thresholdestablished by a member state for exempt items shall include only items pricedbelow the threshold. A member state shall not exempt only a portion of theprice of an individual item during a sales tax holiday.
(C) The following procedures are to be used by member statesin administering a sales tax holiday exemption:
(1) Layaway sales. A sale of eligible property under alayaway sale qualifies for exemption if:
(a) final payment on a layaway order is made by, and theproperty is given to, the purchaser during the exemption period; or
(b) the purchaser selects the property and the retaileraccepts the order for the item during the exemption period, for immediatedelivery upon full payment, even if delivery is made after the exemption period.
(2) Bundled sales. Member states will follow the sameprocedure during the sales tax holiday as agreed upon for handling a bundledsale at other times.
(3) Coupons and discounts. A discount by the sellerreduces the sales price of the property and the discounted sales pricedetermines whether the sales price is within a sales tax holiday pricethreshold of a member state. A coupon that reduces the sales price is treatedas a discount if the seller is not reimbursed for the coupon amount by athird-party. If a discount applies to the total amount paid by a purchaserrather than to the sales price of a particular item and the purchaser haspurchased both eligible property and taxable property, the seller shouldallocate the discount based on the total sales price of the taxable propertycompared to the total sales prices of all property sold in that sametransaction.
(4) Splitting of items normally sold together.Articles that are normally sold as a single unit must continue to be sold inthat manner. Such articles cannot be priced separately and sold as individualitems in order to obtain the exemption. For example, a pair of shoes cannothave each shoe sold separately so that the sales price of each shoe is within asales tax holiday price threshold.
(5) Rain checks. A rain check allows a customer topurchase an item at a certain price at a later time because the particular itemwas out of stock. Eligible property that customers purchase during theexemption period with use of a rain check will qualify for the exemptionregardless of when the rain check was issued. Issuance of a rain check duringthe exemption period will not qualify eligible property for the exemption ifthe property is actually purchased after the exemption period.
(6) Exchanges. The procedure for an exchange inregards to a sales tax holiday is as follows:
(a) If a customer purchases as item of eligible propertyduring the exemption period, but later exchanges the item for a similareligible item, even if a different size, different color, or other feature, noadditional tax is due even if the exchange is made after the exemption period.
(b) If a customer purchase an item of eligible propertyduring the exemption period, but after the exemption period has ended, thecustomer returns the item and receives credit on the purchase of a differentitem, the appropriate sales tax is due on the sale of the newly purchased item.
(c) If a customer purchases an item of eligible propertybefore the exemption period, but during the exemption period the customerreturns the item and receives credit on the purchase of a different item ofeligible property, no sales tax is due on the sale of the new item if the newitem is purchased during the exemption period.
(7) Delivery charges. Delivery charges, includingshipping, handling and service charges, are part of the sales price of eligibleproperty unless a member state defines "sales price" to exclude such charges.For the purposes of determining a sales tax holiday price threshold, if all theproperty in a shipment qualifies as eligible property and the sales price foreach item in the shipment is within the sales tax holiday price threshold, thenthe seller does not have to allocate the delivery, handling, or service chargeto determine if the price threshold is exceeded. The shipment will beconsidered a sale of eligible products. If the shipment includes eligibleproperty and taxable property (including an eligible item with a sales price inexcess of the price threshold), the seller should allocate the delivery chargeby using:
(a) a percentage based on the total sales prices of thetaxable property compared to the total sales prices of all property in theshipment; or
(b) a percentage based on the total weight of the taxableproperty compared to the total weight of all property in the shipment.
The seller must tax the percentage of the delivery chargeallocated to the taxable property but does not have to tax the percentageallocated to the eligible property.
(8) Order date and back orders. For the purpose of asales tax holiday, eligible property qualifies for exemption if:
(a) the item is both delivered to and paid for by thecustomer during the exemption period; or
(b) the customer orders and pays for the item and the selleraccepts the order during the exemption period for immediate shipment, even ifdelivery is made after the exemption period. The seller accepts an order whenthe seller has taken action to fill the order for immediate shipment. Actionsto fill an order include placement of an "in date" stamp on a mail order orassignment of an "order number" to a telephone order. An order is for immediateshipment when the customer does not request delayed shipment. An order is forimmediate shipment notwithstanding that the shipment may be delayed because ofa backlog of orders or because stock is currently unavailable to, or on backorder by, the seller.
(9) Returns. For a 60-day period immediately after thesales tax holiday exemption period, when a customer returns an item that wouldqualify for the exemption, no credit for or refund of sales tax shall be givenunless the customer provides a receipt or invoice that shows tax was paid, orthe seller has sufficient documentation to show that tax was paid on thespecific item. This 60-day period is set solely for the purpose of designatinga time period during which the customer must provide documentation that showsthat sales tax was paid on returned merchandise. The 60-day period is notintended to change a seller's policy on the time period during which the sellerwill accept returns.
(10) Different time zones. The time zone of theseller's location determines the authorized time period for a sales tax holidaywhen the purchaser is located in one time zone and a seller is located inanother.
§ 44-18.1-23 Sales tax holidays. –(A) If a member state allows for temporary exemption periods, commonly referredto as sales tax holidays, the member state shall:
(1) Not apply an exemption after December 31, 2003, unlessthe items to be exempted are specifically defined in the Agreement and theexemptions are uniformly applied to state and local sales and use taxes.
(2) Provide notice of the exemption period at least sixtydays' prior to the first day of the calendar quarter in which the exemptionperiod will begin.
(B) A member state may establish a sales tax holiday thatutilizes price thresholds set by such state and the provisions of the Agreementon the use of thresholds shall not apply to exemptions provided by a stateduring a sales tax holiday. In order to provide uniformity, a price thresholdestablished by a member state for exempt items shall include only items pricedbelow the threshold. A member state shall not exempt only a portion of theprice of an individual item during a sales tax holiday.
(C) The following procedures are to be used by member statesin administering a sales tax holiday exemption:
(1) Layaway sales. A sale of eligible property under alayaway sale qualifies for exemption if:
(a) final payment on a layaway order is made by, and theproperty is given to, the purchaser during the exemption period; or
(b) the purchaser selects the property and the retaileraccepts the order for the item during the exemption period, for immediatedelivery upon full payment, even if delivery is made after the exemption period.
(2) Bundled sales. Member states will follow the sameprocedure during the sales tax holiday as agreed upon for handling a bundledsale at other times.
(3) Coupons and discounts. A discount by the sellerreduces the sales price of the property and the discounted sales pricedetermines whether the sales price is within a sales tax holiday pricethreshold of a member state. A coupon that reduces the sales price is treatedas a discount if the seller is not reimbursed for the coupon amount by athird-party. If a discount applies to the total amount paid by a purchaserrather than to the sales price of a particular item and the purchaser haspurchased both eligible property and taxable property, the seller shouldallocate the discount based on the total sales price of the taxable propertycompared to the total sales prices of all property sold in that sametransaction.
(4) Splitting of items normally sold together.Articles that are normally sold as a single unit must continue to be sold inthat manner. Such articles cannot be priced separately and sold as individualitems in order to obtain the exemption. For example, a pair of shoes cannothave each shoe sold separately so that the sales price of each shoe is within asales tax holiday price threshold.
(5) Rain checks. A rain check allows a customer topurchase an item at a certain price at a later time because the particular itemwas out of stock. Eligible property that customers purchase during theexemption period with use of a rain check will qualify for the exemptionregardless of when the rain check was issued. Issuance of a rain check duringthe exemption period will not qualify eligible property for the exemption ifthe property is actually purchased after the exemption period.
(6) Exchanges. The procedure for an exchange inregards to a sales tax holiday is as follows:
(a) If a customer purchases as item of eligible propertyduring the exemption period, but later exchanges the item for a similareligible item, even if a different size, different color, or other feature, noadditional tax is due even if the exchange is made after the exemption period.
(b) If a customer purchase an item of eligible propertyduring the exemption period, but after the exemption period has ended, thecustomer returns the item and receives credit on the purchase of a differentitem, the appropriate sales tax is due on the sale of the newly purchased item.
(c) If a customer purchases an item of eligible propertybefore the exemption period, but during the exemption period the customerreturns the item and receives credit on the purchase of a different item ofeligible property, no sales tax is due on the sale of the new item if the newitem is purchased during the exemption period.
(7) Delivery charges. Delivery charges, includingshipping, handling and service charges, are part of the sales price of eligibleproperty unless a member state defines "sales price" to exclude such charges.For the purposes of determining a sales tax holiday price threshold, if all theproperty in a shipment qualifies as eligible property and the sales price foreach item in the shipment is within the sales tax holiday price threshold, thenthe seller does not have to allocate the delivery, handling, or service chargeto determine if the price threshold is exceeded. The shipment will beconsidered a sale of eligible products. If the shipment includes eligibleproperty and taxable property (including an eligible item with a sales price inexcess of the price threshold), the seller should allocate the delivery chargeby using:
(a) a percentage based on the total sales prices of thetaxable property compared to the total sales prices of all property in theshipment; or
(b) a percentage based on the total weight of the taxableproperty compared to the total weight of all property in the shipment.
The seller must tax the percentage of the delivery chargeallocated to the taxable property but does not have to tax the percentageallocated to the eligible property.
(8) Order date and back orders. For the purpose of asales tax holiday, eligible property qualifies for exemption if:
(a) the item is both delivered to and paid for by thecustomer during the exemption period; or
(b) the customer orders and pays for the item and the selleraccepts the order during the exemption period for immediate shipment, even ifdelivery is made after the exemption period. The seller accepts an order whenthe seller has taken action to fill the order for immediate shipment. Actionsto fill an order include placement of an "in date" stamp on a mail order orassignment of an "order number" to a telephone order. An order is for immediateshipment when the customer does not request delayed shipment. An order is forimmediate shipment notwithstanding that the shipment may be delayed because ofa backlog of orders or because stock is currently unavailable to, or on backorder by, the seller.
(9) Returns. For a 60-day period immediately after thesales tax holiday exemption period, when a customer returns an item that wouldqualify for the exemption, no credit for or refund of sales tax shall be givenunless the customer provides a receipt or invoice that shows tax was paid, orthe seller has sufficient documentation to show that tax was paid on thespecific item. This 60-day period is set solely for the purpose of designatinga time period during which the customer must provide documentation that showsthat sales tax was paid on returned merchandise. The 60-day period is notintended to change a seller's policy on the time period during which the sellerwill accept returns.
(10) Different time zones. The time zone of theseller's location determines the authorized time period for a sales tax holidaywhen the purchaser is located in one time zone and a seller is located inanother.
