Back-to-School Tax Holiday Underway

It began at 12:01 am this morning and continues until midnight Sunday Night. It is the Alabama Back-to-School Sales Tax Holiday, and it is underway for the 2024-25 school year.

For the 19th year in a row, the event is an opportunity for parents to save some real dollars getting their children ready for the school bell to ring next month.

Alabama retailers are required to participate in the state’s sales tax holidays and cannot charge any waived sales taxes on the items that are legally tax-exempt during the three-day tax holiday. County and local sales tax holiday participation is up to the individual jurisdiction's discretion. Most, but not all, do participate.

In 2006, a sales tax holiday was enacted by the state legislature and made a part of the Code of Alabama, whereby no state sales or use tax is due on covered items as defined in the law and in the Back-to-School Sales Tax Holiday Rule. The sales tax holiday always begins the third full weekend of July.

Each year the Alabama Department of Revenue publishes a list of all county and municipal entities participating in the tax holiday. That can be found HERE.

Among the items eligible for the tax holiday are purchases of certain school supplies, computers, clothing, art supplies, school instructional material and books. The Alabama Department of Revenue's list of eligible supplies can be obtained HERE. The list also includes a number of items that are listed as ineligible.

Exempt items include:

• Clothing priced at $100 or less per article,
• School supplies valued at $50 or less per item,
• Books that cost $30 or less per book; and
• Tablets, laptops, computers and printers with a selling price of $750 or less.

Each year the Alabama Retail Association publishes an online flyer called, "By the Numbers" which serves as a consumer's guide for the tax holiday. That can be found HERE.

Also, the Alabama Department of Revenue, the Alabama League of Municipalities, the Alabama Retail Association and the Chamber of Commerce Association of Alabama put together a presentation to explain the law to businesses and answer any questions regarding how the sales tax holiday works. That may be found HERE.

Tuscaloosa City Schools begin classes on August 7th and Tuscaloosa County Schools follow the next day on the 8th.