AUGUST 1-14: TWO-WEEK SALES AND USE TAX EXEMPTION ON GARMENTS
        The tax law has been changed to allow for another two-week exemption from North Carolina State’s3% sales and use taxes for certain garments. However, the latest amendment differs considerably from thesame type of sales exemption that took place at the beginning of the year. This exemption does NOT applyto footwear. The new two-week exemption only applies to purchases of garments. Additionally, this latestexemption is limited to purchases with a cost of less than $100 per item, whereas the previous exemptionhad a cost limitation of $500.
          Although a suit could sell for $200, it could be broken down into $100 for the jacket and $100 forthe pants, thus enabling the buyer to meet the $100 requirement. This will be the last exemption of thiskind this year. The exemption applies to most clothing, assuming it is to be worn by human beings. Fabric,yarn, buttons, zippers, etch., are also covered, provided that these notions are actually part of the clothingitself. Although jewelry, watches, hats, etc., are worn on the body, they will remain taxable as under theprevious exemption rules.
36. The exemption is compared to ______.
(A) Sales exemptions
(B) Longer exemptions
(C) North Carolina’s taxes
(D) A previous exemtion