The tax-free weekend will included 21 states. Beginning August 2 at midnight and ending at midnight on August 4, the weekend will allow consumers to purchase specific items without paying sales tax.
Every state has different rules. However, the tax exemption will primarily include back-to-school supplies. As the school year is set to begin, consumers will save millions.
As reported by Web Pro News , 21 states will participate in the tax-free weekend this year:
- Alabama
- Arkansas
- Connecticut
- Florida
- Georgia
- Iowa
- Louisiana
- Maryland
- Mississippi
- Missouri
- New Mexico
- New York
- North Carolina
- Oklahoma
- South Carolina
- Tennessee
- Texas
- Vermont
- Virginia
- Washington D.C.
- West Virginia
Tax-exempt items will include school supplies, clothing, shoes, backpacks, computers, and other necessary items. Some states will include tablets that do not function as telephones.
The sales tax holiday began in 1997 and has continually gained support and participation. As discussed by Chicagofed.org, the practice began in New York in 1997 .
Retailers in New York were losing business, as consumers purchased clothing in New Jersey, where it is free of tax.
By 2008, 20 states were participating in the tax-free weekend.
During times of economic distress, the number of participating states declined. However, this year’s tax holiday will likely include 21 states.
Studies have found that families are likely to purchase up to 49 percent more back-to-school clothing and shoes when the items are exempt from tax. However, at least one state has lost millions in revenue.
As reported by WNCN , the Tax Reduction Act of North Carolina would eliminate the tax-free holiday. Last year the state of North Carolina lost over $12 million in revenue during the weekend.
The weekend saved consumers money on back-to-school items. However, a spokesman for Senate President Pro Tem Phil Berger explains that the Tax Reduction Act would save residents more money throughout the year.
The act would reduce corporate and individual income tax. However, sales tax would increase on electricity, service contracts, and movies.
The Tax-free weekend may be criticized by some state leaders. However, the weekend will offer consumers a break on much-needed, and often costly, back-to-school supplies.
[Image via Flickr ]
