As summer rolls on, it’s never too early to start thinking about (and budgeting for) the approaching start of the school year and all of the family and household purchases that come with it. Fortunately, the New Jersey Division of Taxation has announced an upcoming “sales tax holiday,” which is a temporary suspension of the sales tax on certain (not all) retail purchases of computers, school supplies, and sports and recreational equipment. The New Jersey sales tax is currently 6.625%, so the savings can add up. Here’s what you need to know:
When: The sales tax holiday will run from August 26, 2023 through September 4, 2023.
What Types of Sales Are Exempt: The sales tax holiday does not universally apply to all purchases. For starters, it is intended for individuals/families, not businesses. It covers:
- Computers (under $3,000.00);
- School art supplies (e.g., paints, clay and glazes, brushes, drawing pads);
- School computer supplies (under $1,000.00) (e.g., printers, printer ink and paper, electronic schedulers);
- School instructional materials (e.g., textbooks, reference books);
- School supplies (e.g., binders, folders, pens, pencils, pads, rulers, scissors, etc.); and
- Sport and recreational equipment (e.g., ballet shoes, mouth guards, cleats, helmets, gloves, goggles, etc.).
How Do I Make an Exempt Purchase: Typically, an exempt sale requires completing and issuing an exemption certificate, but these are not required for the sales tax holiday. The seller should remove the tax automatically on eligible sales.
Households planning to make qualifying purchases of these items should take advantage of the sale tax holiday by marking the dates on the calendar.
Additional guidance from the New Jersey Division of Taxation available here and here.
