Do homework before stocking up during back-to-school tax holiday

Parents spend billions of dollars a year on their back-to-school and college shopping. In anticipation of the back-to-school crunch, Missouri offers a “sales tax holiday,” or tax-free weekend, on qualified school supply purchases each August. In 2018, the sales tax holiday begins at 12:01 am on Friday, August 3, and runs through Sunday, August 5.

Many retailers run big back-to-school sales in conjunction with the sales tax holiday, and it’s easy to get overwhelmed by the possibilities.

“It’s important to note that not every item you may be shopping for will be tax-free,” said Stephanie Garland, regional director of Better Business Bureau (BBB) Springfield. “Doing your homework and planning ahead can maximize your savings on your back-to-school shopping.”

According to the Missouri Department of Revenue, the tax holiday exempts any article of clothing or footwear designed to be worn on or about the body, personal computers and peripheral computer devices, computer software and typical classroom school supplies. Eligible purchases are limited to a taxable value of $100 for clothing or footwear, $1,500 for personal computers and peripheral devices, $300 for computer software, and $50 for school supplies. The tax-free exemption applies to purchases made in-store, online, by telephone and by mail.

To help save time and money, consider the following tips as they prepare for back-to-school shopping:

• Make a shopping list. Even if you don’t have a school supply list yet, you can still purchase other items like school clothing and in-class school essentials like pens, notebooks, and backpacks. Make a list for each child, but start by “shopping at home” for items that you may already have left over from last year. For some items, it’s worth spending a bit more (a high-quality backpack will last for years).

• Create a budget. Do a quick price search online for the items on your list and add them all up. Be sure to clip coupons, and make note of discount codes and any cash-back or rebate programs. If your goal is to reduce spending, now is the time to decide how much you want to cut. Of course, shopping on this tax-free weekend will help minimize that budget.

• Know the difference between “Back-to-School Sale” and tax-free items. Retail stores may advertise back-to-school sales because they know consumers are buying items for the upcoming school year. Certain discounts will still have taxes applied to them unless the item qualifies.

• Sign up for email alerts at your favorite stores. Monitoring pricing early on is key to finding good deals on quality products. Many sites will have an informed community of savvy shoppers on their blog or in their forums who willingly share deals, exclusive coupons, rebates and insider information on where and when to find the best prices and products. These alerts will assure you don’t miss out on the hottest items and limited opportunities.

• Take advantage of discounts. Many stores offer student and teacher discounts on hot items like laptops and uniforms. Retailers will try to make room for fall fashion and the newest models, so there are incredible savings to be had if you do a little research.

• Check the refund and exchange policies. Be sure you can exchange or return items that are purchased during this time. Keep in mind, some items may be non-refundable or have restocking fees associated with a return.

• Check a company’s BBB Business Profile at bbb.org or by calling 888-996-3887.