State sales tax holiday season 2017 is in full swing!
Friday, July 21, 2017
Alabama kicked off the annual back-to-school sales tax holiday 2017 season on July 21. Mississippi's and Tennessee's weekend events are at the end July. The 13 other summer sales tax savings periods aren't until August.
The reconfigured table below — it's still alphabetical, but the immediately upcoming back-to-school tax holidays are now in bold type and once a state's tax holiday is over, it will be moved to the bottom of the listing — will help you keep track of the remaining sales-tax-free shopping days.
With July half-way over, parents, students and especially retailers are variously anticipating and dreading school starting again.
I'll leave it those with kids to describe their attitudes. But I do know that for businesses, summer slipping away means that it's time for the annual back-to-school sales tax holidays.
Tax holidays are a temporary reduction or elimination of a tax. For the summer's back-to-school events and other similar holidays that some states hold at other times of the year, state sales taxes (or a percentage of them) are not collected on certain items.
Local sales taxes also usually are also waived.
But in some states, cities and counties are given the option to opt out of the tax holiday.
Bad tax policy, good shopping hook: These temporary tax cuts are appealing to shoppers. But let's get this out the way right now. Tax holidays might get more shoppers in stores, but they cost states much needed revenue.
That's why this year Georgia lawmakers decided to cancel the Peach State's tax-free shopping weekend. Massachusetts, which typically waits until the last minute to decide whether to hold a tax holiday, might go two straight years without a tax holiday.
And Louisiana is still giving its shoppers only partial tax savings during its tax holiday.
Still, shoppers love getting any bargains, especially when they're at the expense of the tax collector.
Most retailers are tax holiday fans, too, saying the events boost sales. (That's arguable. Many studies show that tax holidays simply cause consumers to shift their shopping trips.)
In the end, however, each year a handful of states hold tax holidays. Why? Because political considerations trump fiscal concerns.
Politicians who OK the tax-free events know that tax holiday shoppers are possible voters.
2017's state and local summer sales tax holidays: So exactly where are legislators pandering to their shopping constituents this year?
The table below has the alphabetical list of 2017 state and local sales tax holidays. Links provide more details directly from each participating state's tax department.
State sales tax rate shown Local taxes also may be waived (Click links for more details) |
Holiday Dates | Tax-free products and per-item price limits (Click links for more details) |
Connecticut 6.35% | Aug. 20-26 | Clothing and footwear priced at $100 or less |
Tax Holiday Completed | ||
Alabama 4% | July 21-23 | Clothing priced at $100 or less Books priced at $30 or less School supplies at $50 or less Computers and software priced at $750 or less |
Mississippi 7% | July 28-29 | Clothing, footwear $100 or less School supplies $100 or less Computers $1,500 or less |
Tennessee 7% | July 28-30 | Clothing, footwear $100 or less School supplies $100 or less Computers $1,500 or less |
Iowa 6% | Aug. 4-5 | Clothing and footwear priced at less than $100 |
Louisiana 5% | Aug. 4-5 | Most personal property sold for $2,500 or less qualifies for a 2% sales tax reduction meaning the holiday tax rate is 3% instead of 5% |
Florida 6% | Aug. 4-6 |
Clothing at $100 or less |
Missouri 4.225% | Aug. 4-6 | Clothing at $100 or less School supplies $50 or less Computer software $350 or less Personal computers and peripheral devices costing $1,500 or less |
New Mexico 5.125% | Aug. 4-6 | Clothing or shoes $100 or less Computers $1,000 or less Computer hardware $500 or less School supplies $30 or less |
Ohio 5.75% | Aug. 4-6 | Clothing priced at $75 or less School supplies and school instructional material priced at $20 or less |
Oklahoma 4.5% | Aug. 4-6 | Clothing and footwear priced at $100 or less |
South Carolina 6% | Aug. 4-6 | No purchase price limit on clothing, accessories and footwear; school supplies; computers, printers and printer supplies, computer software; and bed linens and bath furnishings |
Virginia 4.3% | Aug. 4-6 | Clothing and footwear priced at $100 or less School supplies $20 or less Energy Star & WaterSense products priced at $2,500 or less Hurricane preparedness items from $60 to $1,000 or less depending on product |
Arkansas 6.5% | Aug. 5-6 | Clothing $100 or less Apparel accessories $50 or less No dollar limit on school and art supplies or instructional materials |
Texas 6.25% | Aug. 11-13 | Clothing, footwear, backpacks priced at less than $100 School supplies at less than $100 |
Maryland 6% | Aug. 13-19 | Clothing and footwear priced at $100 or less |
If your state is holding a sales tax holiday, make your list before you head to your local shopping center. That's one of my tips on how to make the most of tax holidays.
Remember, too, that if you're going to another state to pick up some tax-free items, you'll still owe a use tax when you get those goods back home.
Happy shopping and happier sales tax savings!
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