Planning to shop during a sales tax holiday can offset the loss of a particular benefit under the newly enacted Tax and Jobs Act: the law ends your ability deduct state and local taxes from your federal tax return.
A lot of the things you use on a daily basis for your venture can be obtained tax free during so-called tax holidays, which are scheduled for a couple of days this year in 14 different states.
Computers and Office Supplies
Although these states limit what is tax free to certain product categories, more than a third of them include computers and about half include school supplies, which is close enough to office supplies that you should be able to find things you might use.
Even if your own state isn’t participating in this phenomenon, all of the 14 states that are offering the tax-free windows on more than one day of the year, which might make it easier to travel to one of the shopping magnets listed in the chart at the bottom of this post.
If you don’t feel like traveling to one of the 14 states that offer sales tax holidays, you could always head to one of the four states that never charge sales taxes: Alaska, Montana, Nevada and Oregon.
It Goes Around
Sales tax holidays actually have benefits that go beyond your own business, which ultimately redounds back to your business: These days help stimulate the economy on a local level, which has a way of circulating money toward those who might transact with you throughout the year.
Speaking of local economic effects, don’t assume that all of the states having sales tax holidays this year will do so again next year. Already five states have discontinued having sales tax holidays since their peak year of 2010.
Fellow entrepreneurs, have you availed yourself of sales tax holidays yet — or are you interested in shopping during any of the ones listed in the chart below? What about shopping in states that have no sales tax?
Sales Tax Holidays
|
|
Days
|
|
|
1stYear
|
Dates |
|
| Alabama | 3 | hurricane preparedness generators – $1,000 supplies – $60 |
2012 | February 23-25 | http://www.revenue.alabama.gov/ | |
| Alabama | 3 | clothing – $100 computers – $750 school supplies – $50 books – $30 |
2006 | July 20-22 | http://www.revenue.alabama.gov/ | |
| Arkansas | 2 | clothing – $100 school supplies |
2011 | August 4-5 | http://www.dfa.arkansas.gov/ | |
| Connecticut |
7
|
clothing and footwear – $100 |
2001
|
August 19-25 | http://www.ct.gov/drs/ | |
| Iowa |
2
|
clothing – $100 |
2000
|
August 3-4 | https://tax.iowa.gov/ |
|
| Louisiana |
2
|
hurricane preparedness supplies – first $1,500 (2% rate reduction) |
2008
|
May 26-27 | http://www.revenue.louisiana.gov/ | |
| Louisiana |
2
|
Annual Holiday all TPP – $2,500 |
2007
|
August 3-4 | http://www.revenue.louisiana.gov/ | |
| Louisiana |
3
|
firearms, ammunition and hunting supplies |
2009
|
September 7-9 | http://www.revenue.louisiana.gov/ | |
| Maryland | 3 | energy star products | 2011 | February 17-18 | http://www.comp.state.md.us/ | |
| Maryland | 7 | clothing & footwear-$100 | 2010 | August 12-18 | http://www.marylandtaxes.com/ | |
| Mississippi |
2
|
clothing & footwear – $100 |
2009
|
July 27-28 | http://www.dor.ms.gov/ | |
| Mississippi | 3 | firearms, ammunition and hunting supplies | 2014 | August 25-27 | http://www.dor.ms.gov/ | |
| Missouri | 7 | energy star products – $1,500 | 2009 | April 19-25 | http://dor.mo.gov/ | |
| Missouri | 3 | clothing – $100 computers – $1,500 school supplies – $50 |
2004 | August 3-5 | http://dor.mo.gov/ | |
| New Mexico | 3 | clothing – $100 computers – $1,000 computer equip. – $500 school supplies – $30 |
2005 | August 3-5 | http://www.tax.newmexico.gov | |
| Oklahoma |
3
|
clothing – $100 |
2007
|
August 3-5 | http://www.tax.ok.gov/ | |
| South Carolina |
3
|
clothing school supplies computers other |
2000
|
August 3-5 | http://www.sctax.org/ | |
| Tennessee |
3
|
clothing – $100 school supplies – $100 computers – $1,500 |
2006
|
July 27-29 | http://tn.gov/revenue/ | |
| Texas |
3
|
generators – $3,000 storm devices – $300 preparedness items – $75 |
2016
|
April 28-30 | http://comptroller.texas.gov | |
| Texas |
3
|
energy star products air conditioners – $6,000; other – $2,000 |
2008
|
May 26-28 | http://comptroller.texas.gov/ | |
| Texas |
3
|
clothing, backpacks and school supplies- $100 |
1999
|
August 10-12 | http://comptroller.texas.gov/ | |
| Virginia |
3
|
clothing – $100 school supplies – $20 energy star products – $2,500 hurricane preparedness items – $60 generators – $1,000 |
2006
|
August 3-5 | http://www.tax.virginia.gov/ | |
Jackie Cohen is an award winning financial journalist turned turned financial advisor obsessed with climate change risk, data and business. Jackie holds a B.A. Degree from Macalester College and an M.A. in English from Claremont Graduate University.
