Tuesday, July 24, 2007

No Sales Tax on Clothing

This is one of those topics that surprises the heck out of my seminar participants, no matter where they are.

In states in the Northeast, and Minnesota, there is no tax on clothing. There are limitations though. Sports clothing and furs are usually taxable, but basic street clothes are generally not.

When I do seminars in that part of the country, people are often amazed that they have to pay tax in the rest of the US. And people in the rest of the country are usually stunned to find out that they won't have to pay tax on clothing when they go through the Pittsburgh airport (see photo).

Of course, when you buy those shoes in Pennsylvania, and take them back to Illinois, what should you be doing?

Yeah, paying use tax when you bring them home. Which, of course, you're doing. Right?

The Sales Tax Guy

See the disclaimer - this is for education only. Research these issues thoroughly before making decisions. Remember: there are details we haven't discussed, and every state is different.

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