Taxes have been the bane of many American’s existence since way back. With the current state of the economy and budgetary concerns of state governments, tax relief is not in the cards any time soon on a large scale but there may be some highlights on a smaller scale.
Back to school shopping is big business for retail stores and a necessary evil for parents with school-aged kids. Since consumers are cutting back on spending and not hitting the malls as often as they (and retailers) would like, there may be new tax-free incentives coming to a state near you just in time for the school bell to ring.
The Back-to-School Tax Holiday
Believe it or not, sales tax holiday on school purchases have been around since the late 90’s. New York was the first state to offer families a period of time where items could be purchased tax-free. Consumers save a couple of bucks and give them extra incentive to shop at local retailers. Retailers win also because they sell more merchandise. Stores in states that offer sales tax holidays have reported significant increases during the special days. Since tax-free days are set up for only a limited time, there is a definite increase in the traffic headed out to the malls and retail outlets.
As for individual states, they also see incentives from sales tax holidays. Products not listed for sale at a tax-free price still tend to sell once shoppers head out to the stores. States see the revenue from the sales that may not have happened on a regular day. Additionally, consumers who live in non-holiday states which border other states offering tax-free sales holiday will often travel over state lines to do their shopping, increasing the sales revenue of holiday-offering state.
What’s Included in Tax-Free?
Included on the list of non-taxed items are typical back-to-school supplies including clothing, shoes, books, computers, sporting goods, and essentials like pencils, pens, crayons, and backpacks. State governments have also figured out inventive ways to increase the incentives being offered and the merchandise being sold. They have begun implementing sales tax-free holidays during other times of the year for consumers wanting to purchase energy-saving appliances, hunting supplies, and even emergency preparedness products.
Where are the Sales?
So far in 2010, 16 states have already announced sales tax holidays including the following upcoming dates:
August
- Alabama (6th-8th) – clothing, computers, school supplies, books
- Illinois (6th-15th) – clothing, footwear, school supplies
- Iowa (6th-7th) – clothing
- Louisiana (6th-7th) – tangible personal property
- Missouri (6th-8th) – clothing, computers, school supplies
- New Mexico (6th-8th) – clothing, computers, school supplies
- North Carolina (6th-8th) – clothing, school supplies, instructional materials
- Oklahoma (6th-8th) – clothing
- South Carolina (6th-8th) – clothing, school supplies, computers
- Tennessee (6th-8th) – clothing, school supplies, computers
- Virginia (6th-8th) – clothing, school supplies
- Maryland (13th-15th) – clothing, footwear
- Texas (20th-22nd) – clothing, backpacks, school supplies
September
- West Virginia (9/1 – 11/30) – energy star products
- Louisiana (3rd-5th) – firearms, ammunition, hunting supplies
October
- Virginia (8th-11th) – energy star products
November
- North Carolina (5th-7th) – energy star products
- South Carolina (26th-27th) – guns, rifles, handguns
More Information
For more information about sales tax holidays in your area, contact your state’s revenue or tax department for details about sales dates, tax-free merchandise, and any limitations on sales holidays.
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June 1st, 2011
Do these same kinds of go back to school tax holidays happen every year? If so, will you be posting another list again for 2011. Thanks!