Sales Tax Holidays

Publication Date: October 2008

Publisher: Tax Policy Center

Author(s): Carol Rosenberg; Kim Rueben

Research Area: Banking and finance

Keywords: Economy; State and Local Finance; Tax Policy; State and Local Issues

Type: Report

Abstract:

For the past 11 years, a growing number of states have held sales tax holidays, during which they exempt certain items from state - and often local - sales tax for a few days. Sixteen states and the District of Columbia have scheduled 25 tax holidays in 2008, most of which occurred in August. Holidays most frequently exempt clothing and school supplies, but some exempt computers, energy-efficient appliances, or hurricane preparedness items..