Tax Holiday Qualification

The state of Alabama will have a Tax Holiday August 1 through August 3.

To qualify for the exemption, the purchase MUST meet these criteria:

  • Items must be purchased by an individual for personal use.
  • Customer must be registered at POS as a consumer or individual education customer and linked to the transaction so the customer's name is on the receipt. (If it is an education customer, be sure the customer registers the teacher’s name, not the school’s name, as institution education sales will not qualify for the tax exempt benefit.)

Sales tax rates for the Alabama sales tax holiday:

  • R225 The Summit in Birmingham Alabama the tax rate will be 1% during the holiday
  • R266 Bridge St in Huntsville Alabama the tax rat will be 0%.

Qualified exempt items:

  • Desktop, laptop or notebook computers sold for no more than $750 (before tax).
  • Individual education sales are tax-exempt. Institution education sales are not tax exempt.
  • iTunes Music Store gift cards and Apple Store gift cards are exempt.

In addition to the limitations listed above, the following products are NOT eligible for the exemption:

  • Items purchased for a business or trade
  • Recreational Software, including action, adventure, entertainment and sporting
  • Digital cameras
  • Digital video cameras
  • Joysticks
  • Games pads and related game devices
  • MP3 players (including the iPod)

Additional Notes

  • Individual education sales are tax-exempt.
  • Institution education sales are not tax exempt.
  • iTunes Music Store gift cards and Apple Store gift cards are tax-exempt.
  • CD’s and printers are exempt in Alabama.

The transaction does NOT qualify for the exemption if:

  • The CPU costs more than $750 before tax.
  • The item is purchased for use in a trade or business. This exemption only applies to sales to individuals who will be using the item for personal use.
  • The item is an iPod or an iPod accessory.
  • The item is a Camera, bag or a similar item.
  • The item is purchased with the “Education Institution” discount.
  • The item is an AppleCare service part.
  • The item is a computer bag or ink.

Please also note the following:

  • While the sales Tax Holiday is in progress, all other exemptions remain in effect using the standard exemption process.
  • There will be no rainchecks. Items must be purchased during the Tax Holiday weekend.
  • If the customer wishes to order online, they must have a New Mexico shipping address to take advantage of the Tax Holiday.

Returns and Exchanges

  • If a customer purchases a qualifying exempt item during the sales Tax Holiday and later exchanges the item for the same item (different size, color, etc.), no additional tax will be due, even if the exchange is made after the sales Tax Holiday.
  • If the customer returns the item after the sales Tax Holiday and receives credit on the purchase of a different item, the sales tax will apply to the sale of the newly purchased item.