Thomson Reuters has integrated the upcoming back-to-school tax holidays into its ONESOURCE Indirect Tax Software.
The back-to-school tax holidays offer both consumers and retailers tax relief during the second biggest shopping time of the year. A Thomson Reuters research team of CPAs, attorneys and former tax auditors added the information to Thomson Reuters’ indirect tax product line. As other jurisdictions update their respective tax rates, the company’s tax researchers identify any legislative changes to keep the software tax compliant.
According to the National Retail Federation, last year families with children in grades K-12 spent nearly $690 on school-related items, but parents are eager to find any way possible to reduce their costs. In a recent survey conducted by BIGinsight, nearly 77 percent of families with school-aged children say the state of the U.S. economy will affect their back-to-school spending plans. As a result, retailers competing for these limited dollars are doing everything they can to keep costs down so they can pass those savings onto their customers.
“A company managing indirect tax in-house spends significant resources for each sales and use tax change, whether the tax law is permanent or for a select period of time,” said Carla Yrjanson, vice president of tax research & content for indirect tax at Thomson Reuters, in a statement. “However, for retailers working with a tax solution provider, the process is not only effortless, but also much more cost effective than managing it in-house. We’re pleased to help our retail clients focus on managing their businesses and maximizing sales, while we manage the cumbersome tax holiday rules.”
States differ on the variety of items that are exempt and the threshold amount. For example, some states exempt all tangible personal property, others in hurricane areas exempt related supplies, and others clothing, footwear, school supplies and computers.
To download a full 2013 sales tax holiday report, including back-to-school tax breaks, visit https://tax.thomsonreuters.com/wp-content/pdf/indirect-tax/tax-rate-reports/2013_Sales_Tax_Holidays.pdf.
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