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Apple touts tax holiday savings for customers in 10 states

post #1 of 14
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Ten states in the Union will soon let their residents buy various products with no tax added for a limited time, and Apple is taking advantage of the tax holidays by informing customers in those areas how to save hundreds on their next Apple Store purchase.



A new page appeared recently on Apple's web site, explaining how customers can take advantage of their state tax holiday period. The site lists ten states as participating in the holiday, each with a no-tax period falling early in August.

The states listed on Apple's site are Alabama, Florida, Georgia, Louisiana, Massachusetts, Missouri, New Mexico, North Carolina, South Carolina, and Tennessee. Alabama, Florida, Missouri, New Mexico, and North and South Carolina all have their sales tax holiday running from Aug. 2 through Aug 4. Tennessee's sales tax holiday runs from Aug. 2 through Aug. 5. For Georgia, the holiday covers Aug. 8 and 9, while Massachusetts' holiday runs over Aug. 10 and 11.

The different states have different cost thresholds determining whether an item is sales tax exempt. In Alabama, for instance, the total sale price for all exempt items cannot exceed $750, while in Georgia that limit is raised to $1,000, and in Louisiana it is $2,500.

The states also place limits on what types of items can qualify. New Mexico, for example, limits the price for exempt computers at $1,000, while accessories can sell for no more than $500. South Carolina places no limit on the total purchase, but computer, software, and accessory purchases must be made for personal use.

More detail on each state's policy is available at Apple's site.
post #2 of 14
In before complete fools claiming there should be no tax holidays, even for consumers.
post #3 of 14

I guess the big revenue states like California and New York wouldn't be offering anything like that.

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post #4 of 14
Quote:
Originally Posted by Tallest Skil View Post

In before complete fools claiming there should be no tax holidays, even for consumers.

Why would anyone claim that? They exist by design for whatever reason.

 

Quote:
Originally Posted by mstone View Post

I guess the big revenue states like California and New York wouldn't be offering anything like that.

They never have, but it doesn't really matter. It would be a savings of roughly 10% once a year, and you would have to structure purchases around that time. Most Macs exceed those limits anyway, aside from the one set by Louisiana.

post #5 of 14
Quote:
Originally Posted by mstone View Post

I guess the big revenue states like California and New York wouldn't be offering anything like that.

If California and New York offered a discount on sales tax once a year, maybe 2% less, they might actually receive more sales tax revenue because of the increase in purchases of vehicles and appliances. 

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post #6 of 14
Aww, no California? 1frown.gif

We need all the revenue we can get, I guess%u2026 *sigh
post #7 of 14
Quote:
Originally Posted by tribalogical View Post

Aww, no California? 1frown.gif

We need all the revenue we can get, I guess... *sigh

See the thing about California is that our residents and businesses pay substantially more into the federal tax coffers than we get back in federal funding. We pay for the other states that are net receivers of federal funding, indirectly supporting their shortfalls due to their own insufficient state tax base. Because they receive more money than they pay into the system they can afford to offer a tax holiday. No worries Alabama and the Carolinas, California will pay for your tax holiday. No thanks necessary, we're happy to do it.

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post #8 of 14
Quote:
Originally Posted by mstone View Post

I guess the big revenue states like California and New York wouldn't be offering anything like that.

New York started the tax holiday.

http://en.m.wikipedia.org/wiki/Tax_holiday
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post #9 of 14
Quote:
Originally Posted by mstone View Post

See the thing about California is that our residents and businesses pay substantially more into the federal tax coffers than we get back in federal funding. We pay for the other states that are net receivers of federal funding, indirectly supporting their shortfalls due to their own insufficient state tax base. Because they receive more money than they pay into the system they can afford to offer a tax holiday. No worries Alabama and the Carolinas, California will pay for your tax holiday. No thanks necessary, we're happy to do it.

According to Taxfoundation.org:

New Jersey receives 61¢, Nevada 65¢, Connecticut 69¢, New Hampshire 71¢, Minnesota 72¢, Illinois 75¢, Delaware 77¢ and California 78¢ for each tax dollar received. Here are some others:

 

Alabama $1.66, North Dakota $1.68, West Virginia $1.76, Louisiana $1.78 and New Mexico $2.03

 

Tennessee $1.27, Georgia 1.01, Florida 97¢, Missouri $1.32, North Carolina $1.08, South Carolina $1.35

 

You're partially correct.

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post #10 of 14
Quote:
Originally Posted by Tallest Skil View Post

In before complete fools claiming there should be no tax holidays, even for consumers.

 

As someone genuinely unfamiliar with the concept why do they exist?

 

At the risk of being called a "complete fool", doesn't this effectively just punish anyone who doesn't have the capacity to delay a purchase until some arbitrary date?

 

The benefit to business is obvious (sales spike) but why should only some consumers benefit? And what about citizens of the state (who are being denied tax revenue)? Wouldn't it be fairer to refund the tax on 1 computer per person and have that reimbursed through their personal tax return? Too much administration?

 

I wouldn't be surprised if one state implemented it so that their businesses could poach customers from interstate and then the surrounding states were forced to follow suit.


Edited by Dunks - 7/31/13 at 9:11pm
post #11 of 14
Quote:
Originally Posted by Dunks View Post

As someone genuinely unfamiliar with the concept why do they exist?

At the risk of being called a "complete fool", doesn't this effectively just punish anyone who doesn't have the capacity to delay a purchase until some arbitrary date?


The benefit to business is obvious (sales spike) but why should only some consumers benefit? And what about citizens of the state (who are being denied tax revenue)? 
Wouldn't it be fairer to refund the tax on 1 computer per person and have that reimbursed through their personal tax return? Too much administration?


I wouldn't be surprised if one state implemented it so that their businesses could poach customers from interstate and then the surrounding states were forced to follow suit.

It's probably being done now so parents can save money on back to school items which now more than ever include laptops and tablets.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #12 of 14
No love for NYC 1frown.gif

Apple increments product features one bite at a time...hence the logo. Want the next big thing? You're gonna have to pick another fruit from the Apple Tree.

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Apple increments product features one bite at a time...hence the logo. Want the next big thing? You're gonna have to pick another fruit from the Apple Tree.

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post #13 of 14

I am surprised Kansas isn't on the list, considering Gov Brownback wants to wipe out most of our taxes.

 

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mstone View Post

No worries Alabama and the Carolinas, California will pay for your tax holiday. No thanks necessary, we're happy to do it.

According to Taxfoundation.org:

New Jersey receives 61¢, Nevada 65¢, Connecticut 69¢, New Hampshire 71¢, Minnesota 72¢, Illinois 75¢, Delaware 77¢ and California 78¢ for each tax dollar received. Here are some others:

 

Alabama $1.66, North Dakota $1.68, West Virginia $1.76, Louisiana $1.78 and New Mexico $2.03

 

Tennessee $1.27, Georgia 1.01, Florida 97¢, Missouri $1.32, North Carolina $1.08, South Carolina $1.35

 

You're partially correct.

Seems correct to me, albeit simplified.

 

I'm seeing a definite red/blue state divide in those figures. Interesting. 

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post #14 of 14
It would be smarter to have a tax holiday that cut the tax in half even if it was twice as long. The state gets very little benefit from the tax holiday as it looses revenue and only gets a little more retail activity. By making it longer and less of a discount the state has the opportunity to create more sales where they would have had none as well as allowing more access to the deal for people who can not react as fast.

Or better yet... cut the tax rate for the whole state by a smaller amount and forget the tax holiday for more long term activity.
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