North Carolina Sales Tax Holiday

Clothing, footwear, and school supplies of $100 or less per item; school instructional materials of $300 or less per item; sports and recreation equipment of $50 or less per item, computers of $3,500 or less per item; and computer supplies of $250 or less per item will be exempt.

Clothing accessories, jewelry, cosmetics, protective equipment, wallets, furniture, items used in a trade or business, and rentals are not covered by the exemption and will be subject to the applicable tax.

“Clothing” is defined as all human wearing apparel suitable for general use including coats,
jackets, hats, hosiery, scarves, and shoes. The items listed below are included in the term and
are therefore exempt from tax during the sales tax holiday period if the sales price of the item is
$100 or less. This list is not all-inclusive.

Aprons, household and shop
Athletic supporters
Baby receiving blankets
Bandannas
Bathing suits and caps; beach capes and
coats
Belts and suspenders
Boots; overshoes
Coats, jackets, capes, and wraps
Costumes (does not include costume
masks sold separately)
Diapers (children and adults, including
disposables)
Earmuffs; gloves and mittens for general
use; hats and caps; hosiery; scarves
Formal wear (does not include rentals)
Garters and garter belts; girdles; leotards
and tights; panty hose; socks; stockings
and footlets; underwear
Insoles for shoes
Jogging suits
Lab coats
Neckties
Rainwear
Rubber pants
Sandals; shoes and shoelaces; slippers;
sneakers; steel-toed shoes
Uniforms (athletic and nonathletic uniforms
when purchased for nonbusiness use)
Wedding apparel (does not include rentals)

“Sport or recreational equipment” is defined as items designed for human use and worn in
conjunction with an athletic or recreational activity that are not suitable for general use. The items
listed below are included in the term and are therefore exempt from tax during the holiday period
if the sales price of the item is $50 or less. This list is not all-inclusive.

Ballet and tap shoes
Cleated or spiked athletic shoes
Gloves (baseball, bowling, boxing, hockey,
golf, and other sports)July 12, 2012 Page 2
Goggles
Hand and elbow guards
Helmets (bicycle, skating, baseball, and
other sports)
Life preservers and vests
Mouth guards
Roller and ice skates
Shin guards
Shoulder pads
Ski boots
Waders, wetsuits, and fins

A “computer” is an electronic device that accepts information in digital or similar form and
manipulates it for a result based on a sequence of instructions. For purposes of the exemption
during the sales tax holiday, a computer includes a central processing unit, monitor, keyboard,
mouse, and speakers since these items are deemed to be necessary in the operation of the
computer.

The separate sale of a monitor, keyboard, mouse, or speakers is subject to the applicable tax
when the item is not sold in conjunction with a central processing unit. Peripherals are not
considered part of a computer and are subject to the applicable tax notwithstanding that they may
be sold with the computer as a package. Peripherals must be separately stated on the invoice
and the appropriate tax charged on those items.

An eReader, is not a computer and is, therefore, taxable.

A “computer supply” is an item commonly used by a student in a course of study in which a
computer is used. The items listed below are included in the term and are therefore exempt from
tax during the holiday period if the sales price of the item is $250 or less. This list is all-inclusive.

Computer storage media, including 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, including printer paper and printer ink

A “school supply” is an item commonly used by a student in a course of study; the term includes
school art supplies and school instructional materials. The items listed below are included in the
term and are therefore exempt from tax during the holiday period if the sales price of the item is
$100 or less. This list is all-inclusive.

Binders
Blackboard chalk
Book bags
Calculators
Cellophane tape
Clay and glazes
Compasses
Composition books
Crayons
Erasers
Folders (expandable, pocket, plastic, and
manila)
Glue, paste, and paste sticks
Highlighters
Index card boxes
Index cards
Legal pads
Lunch boxes
Markers
Notebooks
Paintbrushes for artwork
Paints (acrylic, tempora, and oil)
Paper (loose leaf ruled notebook paper,
copy paper, graph paper, tracing
paper, manila paper, colored paper,
poster board, and construction paper)
Pencil boxes and other school supply boxes
Pencil sharpeners
Pencils (includes pencil leads)
Pens (includes pen refills)
Protractors
Rulers
Scissors
Sketch and drawing pads
Watercolors
Writing tablets

“School instructional material” is written material commonly used by a student in a course of study
as a reference and to learn the subject being taught. The term is mutually exclusive of the terms
“school supply” and “computer supply.” The items listed below are included in the term and are
therefore exempt from tax during the holiday period if the sales price of the item is $300 or less
per item. (Prior to the 2008 holiday, these items were categorized as “school supplies” and were
exempt during the holiday period if the sales price of the item was $100 or less per item.) This list
is all-inclusive.

Reference books
Reference maps and globes
Textbooks
Workbooks