Summer brings more than just sun and fun: It also brings long-awaited sales tax holidays in several states. It’s the perfect time to save on school supplies and other essentials. Yes, you can save a bunch of dollars while shopping during tax holidays.
Eight states, including Iowa, Missouri, New Mexico, Oklahoma, South Carolina, Virginia, Arkansas and West Virginia, are set to offer you a tax break on your back-to-school purchases this weekend.
What Are Tax Holidays, and When Are They Happening?
Tax holidays are periods when certain products are exempt from sales tax, meaning you can purchase items such as clothing, shoes, electronics, and school supplies without paying taxes. This year, 17 states have decided to implement these special days to relieve families’ pockets a little during the school shopping season.
Here are the important dates for the upcoming state tax holidays starting this weekend:
- Iowa: From August 2 to 3
- Missouri, New Mexico, Oklahoma, South Carolina, Virginia: From August 2 to 4
- Virginia Occidental: From August 2 to 5
- Arkansas: From August 3 to 4
For those in Ohio and Florida, the tax holidays have already begun and will continue through August 8 and 11, respectively.
States Extending Their Tax Holidays — Prepare to Save Money as Never Before
Ohio and Massachusetts have decided to go beyond school shopping, extending their tax-free holidays to include a variety of other items. However, not all states are participating: New Jersey, for example, no longer offers a tax-free period for school supplies after the law was repealed earlier this year.
According to a recent survey from the National Retail Federation (NRF) and Prosper Insights & Analytics, more than half of families have already begun their back-to-school shopping. Katherine Cullen, NRF’s vice president of Industry and Consumer Insights, commented in a press release: “Families and students are eager to start shopping for the start of the school year. Retailers have anticipated this early demand and “They are well positioned to offer a variety of products at competitive prices.”
Back to School Expenses
The NRF reports that families with elementary and middle school-aged children plan to spend an average of $874.68 on clothing, shoes, electronics, and school supplies this year. Although this figure is slightly below last year’s record of $890.07, it is still the second-highest amount recorded in the survey’s history. Total back-to-school spending is expected to reach $38.8 billion, also the second highest on record after last year’s peak of $41.5 billion.
Tax Holiday Success Stories
One of the first restaurants to participate in the tax holiday pilot program in Red Hook, Brooklyn, is Jam’It Bistro. Dawn Skeete, owner of the restaurant, commented on the positive impact of accepting EBT and SNAP payments for hot meals: “We are one of the first restaurants in New York City to be approved. It gives them the opportunity to prepare nutritious meals that before they would not have been able to prepare.”
María Sánchez, program director at the Red Hook Adult Center, highlighted the social benefits of this program: “Eating out, at places like Jam’It Bistro, offers seniors the opportunity to interact socially and reduces the Social isolation”.
Examples in Other States
Several states, such as Arizona and Rhode Island, have implemented similar programs with positive results. In Arizona, the program has been especially beneficial for homeless people, providing them with access to hot meals they would not otherwise have.