Three-day ‘sales tax holiday’ begins in 13 US states

sales tax holiday

With Georgia and Mississippi states having completed their 'sales tax holiday' last weekend, at least 13 other US states have geared up for the characteristic 'windfall' of the tax-free back-to-school items - ranging from clothing and shoes to school supplies and computers.

The tax-holiday will last for three days - from Friday midnight to Sunday midnight - and offer a waiver on a huge array of items; for which the already cash-strapped state governments will bear the additional financial burden. In fact, budgetary concerns have led Florida, Massachusetts, Maryland and the District of Columbia to call off their tax holidays this year!

Commenting on the cancellation of the 'tax holiday' in some states, Mark Robyn - staff economist at Tax Foundation - said: "States are canceling their tax holidays now because they realize it's going to cost the government money, and they've decided they can't afford it."

By and large, the tax exemption - which includes exemption of sales tax at the state, city, county and local municipality levels - is applicable to the back-to-school items with a price of less than $100 per item. An exhaustive list of these items comprises gloves and mittens, neckties, uniforms; and even diapers and undergarments.

Justifying tax holiday, Daniel Schibley, senior state tax analyst at CCH, said that it brings "'relief' for hard-pressed consumers and 'stimulus' for hard-pressed retailers."