Area shoppers, especially those with children preparing for the rapidly approaching school year, are reminded that this weekend, Friday, Aug. 1 – Sunday, Aug. 3, is the annual Oklahoma Sales Tax Holiday.

During this special weekend, which begins at 12:01 a.m. Friday and ends at 11:59 p.m. Sunday, there is no tax on any clothing or footwear under $100. This includes all state, county, city, and local municipality sales and use tax.

All retailers, including on-line merchants and catalog companies, are required to participate the Oklahoma Sales Tax Holiday. The Oklahoma Tax Commission website explains that “Sales of any article of clothing or footwear designed to be worn on or about the human body and the sales price of the article is less than one hundred dollars ($100) are exempt.” The site adds, “This does NOT apply to the sales of any accessories, special clothing or footwear primarily designed for athletic activity of protective use that is not normally worn except when used for athletic activity or protective use, or to the rental of clothing or footwear.”

The Tax Commission Help Center clarifies that accessories such as jewelry, wallets, watches, umbrellas, handbags, luggage, etc. do NOT qualify for the tax-free discount.

Eligible items purchased by mail, telephone, email or internet qualify for this sales tax exemption if the customer orders and pays for the item and the retailer accepts the order during the exemption period for immediate shipment, even if delivery is made after the exemption period.

If an item is priced over $100, but the retail store offers a coupon or other discount that reduces the price of that item to less than $100, the item will qualify for the sales tax exemption. This exemption does not apply to manufacturer’s coupons, though.

If items from a previously issued raincheck are purchased during the tax holiday period, they will qualify for the exemption. However, if a raincheck issued during the tax holiday is redeemed after the tax holiday, the purchase in NOT exempt.

Many Oklahoma retailers plan ahead for this event, offering special sales items and other offers to attract customers, so shoppers should be prepared for larger than normal crowds.

Ohio and Michigan are credited with offering the first sales tax holidays in 1980, when they gave a one-time tax break for automobile purchases. New York offered the first tax holiday for clothing in 1997. The purpose of the New York tax holiday was to better compete with neighboring states that have lower sales tax rates.

Tax holidays have continued to spread to other states with different variations.