This weekend, consumers in 12 states will get a break from sales tax on many items. There will be no sales tax on certain items, mainly clothes and school supplies, giving families a 5 to 10% savings depending on the state.
The sales tax holidays began mostly in southeastern US States of Alabama, Florida, Missouri, Louisiana, Iowa, Oklahoma, Tennessee, South Carolina, Virginia and Texas on Friday, August 7 and will run through the weekend till Sunday, August 9. Others states like Massachusetts and Maryland are set to have a tax holiday later in August.
Families that have children studying in school or college are the ones who will benefit from this sales tax holiday. However, it is not applicable for clothing or school-supplies that are purchased at a theme park, entertainment complex, public lodging or airport.
It is estimated that this year alone, shoppers will save an $87 million in state and local sales taxes during the sales tax holiday which have been an annual event since 1999.
Not all locations in the states with the tax holiday will participate and county taxes may still be applicable. The tax-free items will also vary from state to state
Here’s a list of items eligible for tax-free holiday:
- Clothing, footwear and certain accessories selling for $100 or less per item
- School supplies costing $15 or less
- PCs and certain computer-accessories of the first $750 of the sales price, purchased for personal use
The tax differs from state to state and city to city.