A sales tax holiday is a promotion done by individual states to encourage and help their residents buy certain products. When a sales tax holiday occurs, people are able to buy the products that are part of the sales tax holiday promotion without paying the state sales tax that is usually applied to the purchase. The amount of savings is determined by the amount of sales tax that the state usually charges.
While a sales tax holiday can promote any product, there are currently two main sales tax holidays that state
Back to School Sales Tax Holiday: Picking a few dates anywhere from the end of July through August is a popular time for sales tax holidays with the focus being on back to school costs. These sales tax holidays often include clothing, footwear, and school supplies while computers and computer related equipment are also promoted from time to time.
Energy Efficient Appliances Sales Tax Holidays: While not as popular as the back to school sales tax holidays, the energy efficient sale tax holidays are growing in popularity in states. These sales tax holidays usually are in late autumn and focus on energy efficient appliances such as EnergyStar rate appliances.
Due to the current economic troubles, some states that have had sales tax holidays in past years such as Florida and Massachusetts have canceled them for 2009. This is due to state budget constraints and a fall in revenue from state sales taxes. Hopefully, we will see more states promoting the sales tax holidays as the economy recovers.
The following states will have a sales tax holiday in 2009:
- New Mexico
- North Carolina
- South Carolina
- West Virginia
- District of Columbia
All the other states either do not have a state sales tax or are not going to promote a sales tax holiday in 2009. Sales tax holiday 2010 states will be updated as soon as the dates are known.