Celebrate your state's sales tax holiday
Posted
Aug 01 2008, 06:24 PM
by
Karen Datko
Rating:
Kay Bell at Don't Mess With Taxes has the skinny on an event we're unfamiliar with (we live Montana, where every day is a sales tax holiday): Many states are waiving sales tax on purchases of school supplies, computers and clothing this weekend or later this month. Often, the holiday applies to local sales tax as well.
The celebration doesn't stop there. During the Friday and Saturday after Thanksgiving, South Carolina is waiving sales tax when people buy handguns, shotguns and rifles. And another round of tax-free days is coming up for energy-efficient appliances and other products in a few states.
Kay gives a breakdown of dates and general categories of eligible items at a post called "Sales tax holidays on tap." She suggests you check your state's list for a more detailed description of what's tax-free and what isn't. (You can find many links to them at her site.)
She writes: "Some of these tax-free vs. taxable designations are as entertaining as they are inscrutable. For example, can someone explain to me why Iowa lawmakers decided belts sans buckles are taxed during its two-day tax holiday, but a belt with a buckle attached is tax-free?" Good question.
An Associated Press story also points out that, in some states, items like lingerie and adult diapers are on the list of tax-exempt items during the back-to-school tax-free holidays.
Kay adds that some states are backing away from tax holidays as they deal with shrinking revenue, but suspects too many people are celebrating for the party to end. "So don't be surprised to see the holidays survive in some fashion, since lawmakers and shoppers alike seem happy enough with tax-code tweaks that provide political cover and temporary tax savings," she writes.
