It’s a time-honored back-to-school tradition: some states use the season as an excuse to offer tax holidays. That’s when they suspend the sales tax on certain items, like new clothing and school supplies, to decrease the financial burden on parents and encourage everyone to shop a little more. While shoppers love it, this doesn’t really work as an economic stimulus, since shoppers just shift planned purchases from other times to the tax holiday. [More]
Colorado residents might have circled Sept. 16 with a bright green marker on their calendars: that’s the day the state has decided to drop the 10% marijuana tax in order to comply with a tax provision in its constitution.
While it may be too early for some to be doing your back-to-school shopping, it’s the perfect time to look ahead at upcoming sales tax holidays in various states that are targeted at those looking to stock up before it’s back to drooling on the desk during trigonometry.
While most states’ summer sales-tax holidays have come and gone, shoppers in six states — Connecticut, Florida, Illinois, Maryland, Massachusetts and Texas — still have a chance to take advantage of tax-exempt shopping on a variety of things from clothing to school supplies.
In an effort to spur retail sales, many states offer sales-tax holidays each summer — periods of time where sales tax is temporarily suspended on certain products. This year the slumping economy has some states enhancing their efforts by extending the holiday dates and broadening the list of eligible products. Smart Money lists each state sponsoring a sales-tax holiday as well as the applicable dates and details of each offer. It also suggests a few helpful hints for making the most of a sales-tax holiday as follows: