8-11-2022 10:05am

Sales Tax Holiday for School, Sports Supplies, Aug. 27 - Sept. 5

P.L. 2022, c.21, establishes a Sales Tax Holiday for certain retail sales of computers, school supplies, and sports or recreational equipment when sold to an individual purchaser for non-business use.

The Sales Tax Holiday takes place between August 27 through September 5 of 2022. Sellers should not charge Sales Tax on eligible items when purchased during the Sales Tax Holiday.

Retail sales of the following are exempt during the Sales Tax Holiday:

Certain Computers

Computers with a sales price of less than $3,000. Computers with a sales price greater than or equal to $3,000 remain subject to tax during the Sales Tax Holiday.

School Art Supplies

"School art supplies" means items commonly used by a student in a course of study for artwork. School art supplies include the following:

Clay and Glazes
Paints (Including Acrylic, Tempera, and Oil)
Paintbrushes for Artwork
Watercolors
Sketch and Drawing Pads

School Computer Supplies

"School computer supplies" with a sales price of less than $1,000.

"School computer supplies" means items commonly used by a student in a course of study in which a computer is used.

Retail sales of school computer supplies with a sales price greater than or equal to $1,000 remain subject to tax during the Sales Tax Holiday.

School computer supplies include the following:

Computer Storage Media, 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, Printer Paper, and Printer Ink

School Instructional Materials

"School instructional materials" means written materials commonly used by a student in a course of study as a reference to learn the subject being taught.

School instructional materials include the following:

Reference Books
Workbooks
Reference Maps and Globes
Textbooks

School Supplies

"School supplies" means items commonly used by a student in a course of study. School supplies include the following:

Binders
Cellophane Tape
Composition Books
Folders (expandable, pocket, plastic, and manila)
Index Cards
Pencil Boxes and Other School Supply Boxes
Pens
Protractors
Book Bags
Blackboard Chalk
Crayons
Glue, Paste, and Paste Sticks
Index Card Boxes
Markers
Lunch Boxes
Legal Pads
Notebooks
Pencil Sharpeners
Pencils
Calculators
Compasses
Erasers
Highlighters
Paper (loose leaf ruled notebook, copy, graph, tracing, manila, colored, construction, and poster board)
Writing Tablets
Rulers
Scissors

Sport or Recreational Equipment

"Sport or recreational equipment" means items designed for human use and worn in conjunction with an athletic or recreational activity that are not suitable for general use.

Sport or recreational equipment includes, but is not limited to, the following:

Ballet and Tap Shoes
Goggles
Mouth Guards
Skates (roller and ice)
Shin Guards
Shoulder Pads
Ski Boots
Athletic Shoes (cleated or spiked)
Guards (hand or elbow)
Life Preservers and Vests
Waders
Gloves, (baseball, bowling, boxing, hockey, and golf)
Wetsuits and Fins
Helmets (bike, sport)

Sales Tax Holiday FAQs

What is the Sales Tax Holiday?

The Sales Tax Holiday is a temporary exemption period on certain retail sales of computers, school supplies, and sports or recreational equipment sold to individual purchasers for non-business use.

When is the Sales Tax Holiday?

The Sales Tax Holiday will occur from August 27 through September 5 of 2022.

What items are eligible for the Sales Tax Holiday?

Computers, with a sales price of less than $3,000; School art supplies; School computer supplies, with a sales price of less than $1,000; School instructional materials; School supplies; and Sports or recreational equipment sold to individual purchasers for non-business use.

Where is a list of items that are eligible for the Sales Tax Holiday?

A list of items can be found here, or above.

Is there a limit on how many eligible items an individual customer can purchase?

No. There is no limit on how many eligible items an individual customer may purchase during the Sales Tax Holiday.

Are sellers required to obtain an exemption certificate from a purchaser for eligible items during the Sales Tax Holiday?

No. Exemption certificates are not required to be obtained by the seller for sales of eligible items during the Sales Tax Holiday.

How are coupons and discounts handled during the Sales Tax Holiday?

Sellers may offer store discounts and/or coupons to reduce the sales price of computers with a sales price of $3,000 or greater, and computer supplies with a sales price of $1,000 or greater, in order for the items to be eligible for the Sales Tax Holiday. However, any reduction in the price of these items as a result of the manufacturer's coupons and rebates will not qualify an item to be eligible for the exemption.

Can items that are normally sold together as a single unit be purchased separately?

No. Items that are normally sold together as a single unit cannot be priced separately and sold as individual items in order to be eligible for the exemption.

How are rain checks handled during the Sales Tax Holiday?

Items purchased during the Sales Tax Holiday using a rain check are eligible for the exemption only if the rain check is redeemed during the exemption period. If it is redeemed after the Sales Tax Holiday, the purchase is taxable.

How are exchanges or returns handled during the Sales Tax Holiday?

If a customer buys an eligible item during the Sales Tax Holiday and later exchanges it for the same item in a different size or color, the seller should not charge Sales Tax even if the exchange is made after the exemption period.

If a customer buys an eligible item during the Sales Tax Holiday and returns the item after the exemption period for credit on the purchase of a different item, the seller must charge Sales Tax on the sale of the newly purchased item, even if it would have been eligible for the exemption during the Sales Tax Holiday.

If a customer buys an item before the Sales Tax Holiday but returns the item during the exemption period and receives credit on the purchase of a different eligible item, no Sales Tax is due on the sale of the new item. The seller should credit the customer for the Sales Tax paid on the item being returned.

If a customer purchases a computer during the Sales Tax Holiday that exceeds the price threshold, will it be exempt from the first $3,000 of that purchase?

No. If a customer purchases a computer during the Sales Tax Holiday that exceeds the price threshold, then the computer does not qualify for the exemption and the Sales Tax will be charged on the entire sales price.

How are delivery charges treated during the Sales Tax Holiday?

Delivery charges, including shipping and handling, are considered part of the sales price of an eligible item and thus are not subject to tax. If all items in a shipment are eligible items, the delivery charge is not taxable. If the shipment includes eligible items and taxable items, the seller must charge tax on the portion of the delivery charges allocated to the taxable items in the shipment.

The seller may either allocate the delivery charges by using a percentage of the total sales price of the taxable items compared to the total sales price of all items in the shipment, or by using a percentage of the total weight of the taxable items compared to the total weight of all items in the shipment.

How are order acceptance dates and back orders treated during the Sales Tax Holiday?

For the purposes of the Sales Tax Holiday, an eligible item is exempt if the customer orders and pays for the item and the seller accepts the order during the exemption period. The seller accepts an order when the seller has taken action to fill the order for immediate shipment. An order is for immediate shipment despite the shipment being delayed because of the seller's backlog of orders, unavailability of an item, or backorder. However, if the customer requests delayed shipment, then the order is not for immediate shipment.

What if the seller and purchaser are located in two different time zones?

When the seller and the purchaser are located in two different time zones, the time zone of the seller's location determines the time period of the Sales Tax Holiday.

What if a customer is charged Sales Tax on an exempt item during the Sales Tax Holiday, can they request a refund?

Yes, if New Jersey Sales Tax was incorrectly charged and collected by the seller, the customer can request a refund of the Sales Tax paid directly from the seller.

If the customer is unable to recover the tax from the seller, they can request a refund from the Division of Taxation. The customer must file a Claim for a Refund (Form A-3730) within four years from the date of the payment of the Sales Tax.

In addition, they must provide an explanation and submit supporting documentation to substantiate the claim. Documentation includes items such as copies of invoices, receipts, and proof of tax paid.

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