In an effort to make purchasing back to school supplies more affordable for parents and to encourage additional retail sales, the Pettis County Commission will continue its participation in the Back-To-School Sales Tax Holiday.
The county sales tax of 1 percent, plus the state sales tax of 4.225 percent will save consumers 5.225 percent on qualified purchases. The Pettis County Commissioners have estimated that the reduced sales tax revenues from school supplies will be offset by increased sales from other items when folks travel to Pettis County to shop. Sedalia city sales taxes will still be applied to the purchase.
“We did an analysis on this a couple years back and determined that the little bit of sales tax that the county is forgiving, would be offset at least equally or even more by the folks traveling into Pettis County to shop and buy things other than what’s on the sales tax holiday list,” said Pettis County Presiding Commissioner John C. Meehan.
With nearby Henry, Moniteau, Benton, Cooper, Morgan and Saline counties not participating, the commission may have a sound idea.
“Those people who live in those area may be tempted to come into Pettis County, spend money and of course increase sales tax revenue for Pettis County. When people do that, its a positive impact for all the retailers in the county,” Meehan said.
Sedalia city sales taxes will still be applied to the purchase.
“People are sometimes confused sine the city of Sedalia is in Pettis County, but that’s up to the City to make their own determination. When you look at the real key here, the state sales tax of almost 4.25 percent and our sales tax of 1 percent, that means folks are going to save 5.25 percent over what they would normally spend,” Meehan said.
By state law, the sales tax holiday begins on the first Friday in August and continues through the following Sunday. In 2014, the three-day holiday begins at 12:01 a.m. on Friday, Aug. 1, and ran through Sunday, Aug. 3.
Certain back-to-school purchases, such as clothing, school supplies, computers, and other items as defined by the statute, are exempt from sales tax for this time period only.
The sales tax exemption is limited to:
* Clothing – any article having a taxable value of $100 or less
* School supplies – not to exceed $50 per purchase
* Computer software – taxable value of $350 or less
* Personal computers – not to exceed $3,500
* Computer peripheral devices – not to exceed $3,500
Qualifying Items Section 144.049, RSMo, defines items exempt during the sales tax holiday as:
“Clothing” - any article of wearing apparel, including footwear, intended to be worn on or about the human body. The term shall include but not be limited to cloth and other material used to make school uniforms or other school clothing. Items normally sold in pairs shall not be separated to qualify for the exemption. The term shall not include watches, watchbands, jewelry, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, or belt buckles.
“School supplies” - any item normally used by students in a standard classroom for educational purposes, including but not limited to, textbooks, notebooks, paper, writing instruments, crayons, art supplies, rulers, book bags, backpacks, handheld calculators, chalk, maps, and globes. The term shall not include watches, radios, CD players, headphones, sporting equipment, portable or desktop telephones, copiers or other office equipment, furniture, or fixtures. School supplies shall also include computer software having a taxable value of three hundred fifty dollars or less.
“Personal computers” - a laptop, desktop, or tower computer system which consists of a central processing unit, random access memory, a storage drive, a display monitor, and a keyboard and devices designed for use in conjunction with a personal computer, such as a disk drive, memory module, compact disk drive, daughterboard, digitalizer, microphone, modem, motherboard, mouse, multimedia speaker, printer, scanner, single-user hardware, single-user operating system, soundcard, or video card.
For more information visit dor.mo.gov/business/sales/taxholiday/school/