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![handle is hein.taxfoundation/ffgdxz0001 and id is 1 raw text is: r:OuU NDAT10N.
August 3, 2006
Sales Tax Holidays: Politically Expedient but Poor Tax Policy
by Jonathan Williams, Curtis S. Dubay and Johanna Mausolf
Fiscal Fact No. 63
Sales tax holidays, the temporary suspension of state and local sales taxes levied on
certain goods, have become an annual event in many states. Lawmakers advertise them as
a generous tax cut on back-to-school shopping items, particularly for low-income
residents, but overall sales tax holidays amount to poor tax policy.
Sales tax holidays have been a feature of state and local tax systems for more than a
quarter century, and continue to rapidly spread throughout the country. Ohio and
Michigan began the trend in 1980 when they offered tax holidays for automobile
purchases. In 2006, 15 states and the District of Columbia will conduct sales tax holidays
(see Table 1).
Table 1: Number of Sales Tax Holidays Reaches 15 in 2006
.. . .. . . .. . . .. . . .. . . .. . . .. .. .. ................................. t s.......................................... :~ t .......... .......... .......... ....................................................................
:State Dates :Length Included Items
.Alabama :Aug. 4-6 3 Days 'Clothing under $100
Computers, school supplies under $750
Connecticut Aug. 20-26 :7 Days Clothing and footwear under $300
... ......................................... ..................................................................................................o f. .....5-1 3....Da y s.......o..su p p lie s.an d.clo th in g.un d e r.$1 0
District of Aug. 5-13 :9 Days School supplies and clothing under $ 100
:Columbia
..... i ....................................................... :] i 5 : 6................................................................. .. a ; ...................... i i i i n ? i i ~ o ~ ~ g g6............................................................................
Florida......uly 22-30 :9 Days :Clothing and books under$50 .
:School supplies under $10
. . . . . . . . . . . . . ...................... ..................... .......................................... . c ° ° s u p ! .. ~ .. . !................................................
Oct. 5-11 .7 Days, Energy-efficient products uinder $1,500
p c t . . . ............................................................. 7. . a ................ ..................... ...........
May 21-June 1 12 Days Hurricane supplies
Georgia :Oct. 6-9 :4 Days Energy efficient products under $1,500
:: e r i O t . 7 9 ...................................... . . . . ................. ....... . a ................. .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ........................... . . . . .
Aug. 3-6 .4 Days 0Clothing. and footwear under $100.
Iowa Aug. 4-5 2 Days :Clothing under $100
Maryland Aug. 23-27 :5 Days :Clothing and footwear under $100
M a s c h s t s ............ ... ..........! ................................. .... .... ............. .... .... .... ... .... .... .... ... ...................................................... . .
Massachusetts. Au .........2 Days -All sales under $2,500
Missouri Aug. 4-6 ::3 Days Clothing under $100
:School supplies under $50
::Computer software under $350
:Computers under $3,500
New Mexico 3 Day4. :Cloth adaar tnde $100](ViewImageLocal?handle=hein.taxfoundation/ffgdxz0001&div=1&collection=&method=preview&ext=.png&size=3)