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Back to school deals abound on and off line

From sales tax holidays to electronics for less

A woman shops for folders and binders in the back-to-school section of a Target store August 11, 2005. With the start of school nearing, retailers are stocking up in anticipation of back-to-school shoppers.
Tim Boyle / Getty Images file
By Teri Goldberg
Shopping columnist
MSNBC
updated 6:05 p.m. ET July 31, 2006

We’ve all seen the commercials. Parents dancing in the aisles of the office supply store at the start of the back-to-school season. These ads ring a bell with many parents relieved to have their kids out of the way but safe and settled in for the new academic year. But what about the bell at the cash register? The less, the better, no? Some relief at the checkout counter is always welcome.

Tax breaks
To start with, consider a holiday before the school year even begins. That is, a sales tax holiday. Inaugurated in New York in 1997, sales tax holidays provide consumers with temporary sales tax exemptions on certain items for a specific period of time. The Federation of Tax Administrators (FTA), a non-profit organization that represents state revenue agencies, posts a comprehensive list of states that have initiated sales tax holidays this back-to-school season. Since each state has different rules and regulations, check with your state’s department of revenue or taxation before hitting the mall (see chart below.)

Most states limit tax breaks to traditional back-to-school merchandise, such as school supplies, clothes and footwear. Iowa’s Department of Revenue even provides an itemized list. For example, ponytail holders are taxable, aprons are not. Go figure.

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Most states also put a cap on the amount per item sold. School supplies less than $20 per item, and clothing less than $1000 are tax exempt in the state of Virginia, according to Virginia’s Department of Taxation.

Discount cards
Cash-strapped students are always on the hunt for deals on everything from late-night snacks to train tickets home. In general, it’s good fiscal policy not to spend money to save money. But there are exceptions. For example, a discount card from Boston-based Student Advantage costs $20 for a 12-month period but most students will get the initial fee and more back over the school year.

Cardholders are eligible for discounts from 20,000 locations nationwide including 50 national or online companies, from low-end department store such as Target to upscale Armani Exchange. Discounts range from 5 percent at Barnes and Nobles to 85 percent at Magazineline. Most discounts fall somewhere in between.

Students with plans to travel overseas also should consider an international student identification card from the International Student Travel Confederation.

Students can apply for a card in person at one of the associations 5,000 student and youth travel offices, request an application be sent by snail mail or apply online at STA Travel, a for-profit travel agency. Cardholders, who must be full-time students and as least 12 years old, are eligible for discounts at 32,000 locations in 106 countries.

Best known for its discounts on travel and accommodations, the ISIC card also can be used at museums, historical sites, entertainment and more. Cardholders can sort through the deals with an easy-to-use search engine. A search in the Austin, Texas area yielded discounts on transportation, art museums, the zoo and a yoga school. A card-carrying member in Belize can take advantage of discounts on hotel, food and transportation.


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