When shipping and handling charges are included in the price of an item, how will sales tax eligibility be determined?
During the three-day sales tax holiday period, shipping and handling charges will not be included in the base price of the underlying item if that item qualifies for the sales tax holiday exemption. Shipping and handling charges will not be used to determine whether an item meets the $20 threshold for school supplies or the $100 threshold for clothing and footwear. Provided the underlying qualifying item meets the required threshold amount, that item will qualify for the sales tax holiday, and the associated shipping and handling charges will also be exempt from taxation. If an item exceeds the threshold requirements or is otherwise ineligible for exemption during the sales tax holiday, the shipping and handling charges will be included in the base price of the item, and the entire price will be subject to sales tax. This policy will be in effect only for the sales tax holiday period, and the general policy of adding the cost of handling or the combined shipping and handling cost to th
