Fill the bag & your HEART

This is the second year we are participating in this laudable effort. Last year, the Galt Mile neighborhood donated more than two and a half tons of food and sundries. In a friendly community competition, Regency Tower placed third in the amount of food donated per unit (2.7 lbs/unit) and fourth in the total amount of food donated (548.5 lbs). Since the number of participating associations has increased this year from 8 to over 20, the projected Galt Mile collection goal is 15,000 lbs of food.

Hungry Families are Fed

Donations of canned meats and fish (tuna, Spam, ham, chicken, sardines, Vienna Sausage, etc); canned fruits; canned vegetables; canned meals (macaroni & cheese, spaghetti & meatballs, etc); soups (canned or instant); peanut butter & jelly/jam; dried milk; beans; pasta; rice; cereal and paper & plastic grocery bags are always needed. Baby food and baby formula (powdered or canned) and diapers of all sizes are also huge needs. Just as they get stocked on the shelves, they go right out. Also, donations of hygiene supplies such as small shampoos, conditioners, soap, toothbrushes, razors, and shaving cream help those living on the streets and barely making ends meet.

Articles that are normally sold as a unit may qualify for the tax exemption provided the individual items are specifically listed as tax exempt and the price of the package is $75 or less. When tax-exempt hurricane-preparedness items are sold together with items that are normally tax-exempt as a single set, unit, product, or package, and the package sells for $75 or less, the entire package qualifies for the exemption. When a package contains tax-exempt hurricane-preparedness items and it also contains taxable items that do not qualify for the hurricane-preparedness sales tax holiday, the full sales price of the package is subject to sales tax. The total price of items advertised as “buy one, get one free,” or “buy one, get one for a reduced price,” cannot be averaged together in order for both items to qualify for the exemption.

The sale of a gift certificate/card is not taxable. Eligible items purchased during the exemption period using a gift certificate/card will still qualify for the exemption, regardless of when the gift certificate/card was purchased. Eligible items purchased after the exemption period using a gift certificate/card are taxable even if the gift certificate/card was purchased during the exemption period. A gift certificate/card CANNOT be used to reduce the selling price of an item in order to qualify for the exemption.

When a customer purchases a qualifying item during the exemption period, then later exchanges the item for the same item, no tax will be due, even if the exchange is made after the exemption period. When a customer uses a store credit during the exemption period on qualified tax-exempt items, the purchase will be exempt from sales tax. When a customer uses a store credit issued during the exemption period and the tax-exempt period has expired, the appropriate sales tax will apply to the full sales price of the newly purchased item.

A customer who pays sales tax to a retailer on a qualifying item when no tax is due must secure a refund of the tax from the retailer and not from the Department of Revenue. When a customer returns a qualifying item during the period of June 1, 2007, through August 31, 2007, and wants a refund/credit for tax paid:

• The customer must produce a receipt or invoice showing tax was paid on the original purchase of the qualifying item, OR
• The retailer must have sufficient documentation to show that tax was paid on the original purchase of the qualifying item.

Manufacturer’s coupons do not reduce the sales price of an item. Therefore, a manufacturer’s coupon cannot be used to reduce the selling price of a qualifying item in order for the item to qualify for the exemption. Store coupons and discounts do reduce the sales price of an item. Therefore, a store coupon or discount can be used to reduce the sales price of a qualifying item to the “allowable threshold amount” in order for the item to qualify for the tax exemption. Rebates occur after the sale and do not affect the sales price of an item purchased. Eligible items purchased during the exemption period using a rain check will qualify for the exemption regardless of when the rain check was issued. However, issuance of a rain check during the exemption period will not qualify an eligible item for the exemption if the item is actually purchased after the exemption period.

A layaway sale is a transaction in which merchandise is set aside for future delivery to a customer who makes a deposit, agrees to pay the balance of the purchase price over a period of time, and receives the merchandise at the end of the payment period. For purposes of this exemption, qualified items will be eligible for the exemption if a retailer and a customer enter into a contract for a layaway sale during the exemption period, the customer makes the usual deposit in accordance with the retailer’s layaway policy, and the merchandise is segregated from the retailer’s inventory. If the final payment on a layaway order is made and the merchandise is given to the customer during the exemption period, that sale of qualified items will be eligible for the exemption, even when the qualified items were placed on layaway before the exemption period.

Rental of any of the items specified in this publication does not qualify for an exemption. For purposes of this exemption, eligible items purchased by mail order (including transactions made over the Internet) will receive the exemption if the order is accepted by the mail-order company during the exemption period for immediate shipment. When the acceptance of the order by the mail-order company occurs during the exemption period, the exemption will apply even if delivery is made after the exemption period.

• An order is accepted by the mail-order company when the mail-order company has taken an action to fill the order for immediate shipment. Actions to fill an order include placing an “in-date” stamp on a mail-order or assigning an “order number” to a telephone order.
• An order is considered to be for immediate shipment when delayed shipment is not requested by the customer. An order is for immediate shipment notwithstanding that the shipment may be delayed because of a backlog of orders or because stock is currently unavailable to, or on back order by, the company.

Shipping and handling charges are included as part of the sales price of the eligible item, whether or not separately stated. If multiple items are shipped on a single invoice, to determine if any items qualify for the exemption, the shipping and handling charge must be proportionately allocated to each item ordered and identified separately on the invoice. Repairs to qualifying items do not qualify for the exemption.