FOR SAVVY SHOPPERS across the U.S., the sales-tax holiday is an annual event worth waiting for — and this year is no exception.

Each summer, more than a dozen states temporarily suspend sales tax on certain products, such as clothing, computers and school supplies. The concept: soften the blow of back-to-school costs for parents (savings can often amount to discounts of up to 10%), while providing the extra bonus of boosting sales for local retailers. With rising fuel and food costs weighing heavily on consumers' budgets, some states are now taking the sales-tax holiday one step further by extending the holiday and broadening the scope of eligible products.

The resulting economic stimulation, the states hope, will more than offset the loss of tax revenue, explains Richard Ebeling, a senior research fellow with think tank American Institute of Economic Research. "For those few days, consumers are going to get more for their dollar," he says. "That's more in your pocket to spend on other things, like gas or groceries."

Newcomers Vermont and West Virginia bring the total tally of states offering sales-tax holidays this summer to 15, plus the District of Columbia. Vermont starts off the sales-tax holiday season, waiving its 6% tax on July 12 and 13 for all goods costing up to $2,000, and extending the break through July 18 for Energy Star appliances. By doing so, the state hopes to entice consumers who might otherwise shop in nearby tax-free New Hampshire, says Tasha Wallis, executive director for the Vermont Retail Association.

If you live in or near a state offering a sales-tax holiday (see our table below to find out which states will host one this year), here are the best ways to take advantage of this temporary tax reprieve:

See if the holiday applies to local taxes, too. Most states leave it to individual towns and counties to decide whether they will waive local taxes in addition to the state sales tax. Jefferson County, Ala., for example, is knocking out its 1% sales tax, but not the additional 1% levied for county school districts. In Missouri, cities including Branson and Jefferson City declined to waive any local taxes (4.375% and 2.975%, respectively) as have more than 50 counties, which they claim they need the tax revenue. Check with your state tax commission to see what your town offers before you hit the local mall.

Check for exemptions. Find out which items the tax holiday excludes before putting together a shopping list. New Mexico, for example, specifically excludes athletic apparel in its definition of clothing, while Washington, D.C. permits "any article of apparel for humans." North Carolina even throws in disposable diapers.

Check your receipt. Major chains can easily adjust their registers to account for the sales-tax holiday, but local shops may have a tougher time, says J. Craig Shearman, a spokesman for the National Retail Federation, a trade group. Review your receipt to ensure that you don't get charged.

Skip the store. Shop online when your state is having a sales-tax holiday. Any retailer that charges sales tax for purchases shipped to your state must waive it, as long as the order is processed within the holiday time period.

Mark your calendar with these dates for a sales-tax holiday near you:

2008 State Sales Tax Holidays
State Date Tax Savings* Eligible Products
(Cost is per item unless otherwise noted)
Alabama August 1-3 4% Books worth $30 or less. School supplies worth $50 or less. Clothing worth $100 or less. A single purchase of a computer, software and/or computer accessories with a combined value of $750 or less.
Connecticut August 17-23 6% Clothing and footwear worth $300 or less.
Georgia July 31-August 3 4% School supplies worth $20 or less. Clothing and footwear worth $100 or less. A single purchase of a computer, software and/or computer accessories with a combined value of $1,500 or less.
Georgia October 2-5 4% Energy- or water-efficient products worth $1,500 or less.
Iowa August 1-2 5% Clothing worth $100 or less.
Louisiana August 1-2 4% All "tangible personal property" — except vehicles, meals and services — worth $2,500 or less. (For more details, click here.)
Missouri August 1-3 4.23% School supplies worth $50 or less. Clothing worth $100 or less. Computers, software and computer accessories worth $3,500 or less.
New Mexico August 1-3 5% School supplies worth $15 or less. Clothing worth $100 or less. A single purchase of a computer, software and/or computer accessories with a combined value of $1,000 or less.
North Carolina August 1-3 4.25% Sports and recreational equipment worth $50 or less. School supplies and clothing worth $100 or less. Software, computer accessories and other computer supplies worth $250 or less. Computers worth $3,500 or less.
Oklahoma August 1-3 4.50% Clothing worth $100 or less.
South Carolina August 1-3 6% Purchases of any price in specific categories, including clothing, footwear accessories, school supplies, computers, software, computer accessories, bed linens, bath towels and pillows, among other items. (For a full list, click here.)
Tennessee August 1-3 7% Clothing and school supplies worth $100 or less. A single purchase of a computer, software and/or computer accessories with a combined value of $1,500 or less.
Texas August 15-17 6.25% Clothing and backpacks worth $100 or less.
Vermont July 12-13 6% All "tangible personal property" — except vehicles, meals and services — worth $2,000 or less (For more details, click here.)
Vermont July 12-18 6% Energy Star appliances worth $2,000 or less.
Virginia August 1-3 4% School supplies worth $20 or less. Clothing worth $100 or less.
Virginia October 10-13 4% Energy-efficient products worth $2,500 or less.
Washington, D.C. August 2-10 6% Clothing and school supplies worth $100 or less.
Washington, D.C. November 21-December 2 6% Clothing worth $100 or less.
West Virginia September 1-7 6% Energy-efficient products worth $2,500 or less.


* State tax only. Local taxes may or may not be waived, depending on location

Oh rats! California isn't one of the tax free states. And there aren't any close enough to be worth the drive.