List of eligible and ineligible items for NC’s last tax-free weekend

taxfree

This weekend is the last tax-free holiday in North Carolina. The popular weekend runs Friday through Sunday at midnight in which you can buy school supplies, clothes and computers tax-free.

Here are the items included:

1. Clothing with a sales price of one hundred dollars ($100.00) or less per item.

“Clothing” is defined as all human wearing apparel suitable for general use including coats, jackets, hats, hosiery, scarves, and shoes. The items listed below are included in the term and are therefore exempt from tax during the sales tax holiday period if the sales price of the item is $100 or less. View list of sample items.

2. Sport or recreational equipment with a sales price of fifty dollars ($50.00) or less per item.

“Sport or recreational equipment” is defined as items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use. The items listed below are included in the term and are therefore exempt from tax during the holiday period if the sales price of the item is $50 or less. View list of sample items.

3. Computers, including tablet computers and netbooks, with a sales price of three thousand five hundred dollars ($3,500) or less per item.

A “computer” is an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. For purposes of the exemption during the sales tax holiday, a computer includes a central processing unit, monitor, keyboard, mouse, and speakers since these items are deemed to be necessary in the operation of the computer.

The separate sale of a monitor, keyboard, mouse, or speakers is subject to the applicable tax when the item is not sold in conjunction with a central processing unit. Peripherals are not considered part of a computer and are subject to the applicable tax notwithstanding that they may be sold with the computer as a package. Peripherals must be separately stated on the invoice and the appropriate tax charged on those items.

An eReader with enhanced computing functions, such as internet access, e-mail, and the ability to download and run applications,
is a computer for purposes of the sales tax holiday period.

Basic eReaders are not computers and are subject to the State and applicable local sales and use taxes during the holiday.

4. Computer supplies with a sales price of two hundred fifty dollars ($250.00) or less per item.

A “computer supply” is an item commonly used by a student in a course of study in which a computer is used. The items listed below are included in the term and are therefore exempt from tax during the holiday period if the sales price of the item is $250 or less. This list is all-inclusive:

Computer storage media, including diskettes and compact disks
Handheld electronic schedulers, except devices that are cellular phones
Personal digital assistants, except devices that are cellular phones
Computer printers
Printer supplies for computers, including printer paper and printer ink

5. School supplies with a sales price of one hundred dollars ($100.00) or less per item.

A “school supply” is an item commonly used by a student in a course of study; the term includes school art supplies and school instructional materials. The items listed below are included in the term and are therefore exempt from tax during the holiday period if the sales price of the item is $100 or less. This list is all-inclusive:

Binders
Blackboard chalk
Book bags
Calculators
Cellophane tape
Clay and glazes
Compasses
Composition books
Crayons
Erasers

Items that do not qualify for the sales tax holiday:

1. Sales of clothing accessories or equipment.
2. Sales of protective equipment.
3. Sales of furniture.
4. Sales of an item for use in a trade or business.
5. Rentals.

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