Think Tank Questions Benefits of Sales Tax Holiday

Think Tank Questions Benefits of Sales Tax Holiday

Think Tank Questions Benefits of Sales Tax Holiday

The 2017 Tax Free Holiday weekend starts for Arkansas at midnight Friday night (Aug. 4) saving families money on back to school shopping.

Shoppers will not have to pay city, county or state sales tax on some school-related items again this year during the annual three-day Back-to-School Sales Tax Holiday Aug. 4-6.

Eligible items purchased during the sales tax holiday using a previously issued rain check qualify for the exemption.

The event, which is held every year on the first Friday and Saturday in August, allows Iowans to buy clothes and footwear that cost less than $100 without sales taxes. No sales tax also applies to online purchases, if you prefer not fighting the crowds.

OH is one of 16 states that observes the sales tax holiday. According to the South Carolina Department of Revenue, shoppers have saved upwards of $2-3 million the last few years.

"Ohio's sales tax holiday adds to that confidence by providing great bargains for everyone in the market for clothes, shoes or school materials", Gough said.

Because of that, Boehnke disputes the non-partisan Legislative Services Commission's estimates that OH will lose $14.7 million dollars in tax revenue this weekend.

"For example, Oklahoma has a tax credit that goes to all people below a certain income to help offset some of their sales tax burden, and we could expand that tax credit", Perry said. The foundation also maintained that large businesses lobby for the holidays as a way to receive free advertising. In 2015, the sales-tax holiday was 10 days long, but lawmakers settled on a shorter holiday this year. "We are excited about the weekend, and we know they are too". "One thing I would say is if that was the case, retailers wouldn't be making this one of their significant legislative priorities year in and year out".

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