What’s the point of SC’s tax-free holiday? Here’s what shoppers should know.
South Carolina’s sales tax-free weekend runs this Friday through Sunday, meaning back-to-school essentials will be exempt from the state’s 6% sales tax and any other applicable local taxes.
The tax-free holiday is a state tradition dating back to 2000 to help South Carolina families get their children prepared for school. Statewide, shoppers typically save between $2 million and $3 million on the weekend-long tax exemption, according to the state Department of Revenue.
The holiday encourages consumer spending, which is a key indicator of a healthy economy (read: consumer spending = good). Tax holidays also tend to benefit low-income households that spend a relatively large share of their earnings toward the types of necessities exempted from sales tax, the Federal Reserve notes.
The Sales Tax Holiday happens the first weekend of August each year in South Carolina. All retailers with eligible products participate in the holiday, meaning big-name retailers such as Walmart and Target will be participating along with local retailers. South Carolina has no price restrictions for the holiday, meaning the tax exemption applies to all eligible items regardless of how expensive they might be.
Tax-exempt items generally include school supplies, apparel, electronics and bed and bath products, according to the S.C. Department of Revenue. That means backpacks, computers, printers, clothing and footwear are all tax-free, among other items. Customers can also choose to shop from home since the tax-free status applies to online and in-store shopping.
Items explicitly listed as non tax-exempt by the DOR include cameras, cell phones, jewelry, furniture, rentals and other items. A more complete, but not necessarily all-inclusive, list of tax-exempt and non-exempt items can be found here.
