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This year, 14 states plus the District of Columbia have announced tax holidays for August, eliminating the sales tax on clothing, school supplies and computers. A typical parent in those states could save enough for a month or so of school lunches.
Louisiana is the most recent addition, offering one of the more generous programs, exempting virtually all goods up to $2,500.
Massachusetts, on the other hand, didn't renew its all-goods-exempt holiday. But Bay State residents can head south to Connecticut, which has a tax holiday, or north to always-tax-free New Hampshire. (Other states that don't ever have sales taxes are Alaska, Delaware, Montana and Oregon.)
The back-to-school season has become the year's second-most-important shopping period (after Christmas), with the National Retail Federation estimating that spending will top $18 billion in 2007 -- an average of $563.49 for families with school-age children, up 6.9% over 2006.
On average, parents told BIGresearch they would spend $231.80 on clothing and accessories, up from $228.14 last year. Expenditures on footwear are expected to average $108.42, up 10.3% from last year. Parents expect to spend an average of $129.24 on electronics, up 13%. Families also said they would spend $94.02 on school supplies, up from $86.22 a year ago.
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A third of parents under 34 said they would shop online. But for those headed out to the malls, a few reminders:
- Consider local sales taxes. Cities and counties aren't necessarily in on the arrangements.
- Look out for loopholes. The list of tax-exempt items ranges from narrow (just clothing in Oklahoma) to broad (most retail goods up to $2,500 in Louisiana). Some retailers may not participate.
- Check your receipts. A tax holiday may require retailers to reprogram their registers. Errors could slip in.
Meanwhile, back-to-school shopping just got even cheaper. Wal-Mart announced this week that it would slash prices 10% to 50% on more than 16,000 items, a move that could start price wars with major competitors.
A list of sales-tax holidays and the goods they cover is below. Click on the links for more information.
Aug. 3-5 | Aug. 3-4 | Aug. 3-5 |
Clothing: $100 | Clothing: $100 | Clothing: $100 |
Computers: $750 | ||
School supplies: $50 | ||
Books: $30 | Aug. 3-4 | Aug. 3-5 |
Retail goods up to $2,500 | Clothing | |
(Vehicles excepted) | School supplies | |
Aug. 19-25 | Computers | |
Clothing: $300 | Linens | |
Aug. 3-5 | ||
Clothing: $100 | ||
Aug. 4-12 | Computers: $3,500 | Aug. 3-5 |
Clothing: $100 | School supplies: $50 | Clothing: $100 |
School supplies: $100 | School supplies: $100 | |
Computers: $1,500 | ||
Aug. 3-5 | ||
Aug. 2-5 | Clothing: $100 | |
Clothing: $100 | Computers: $1,000 | Aug. 17-19 |
School supplies: $20 | School supplies: $15 | Clothing and backpacks: $100 |
Computers: $1,500 | ||
Aug. 3-5 | Aug. 3-5 | |
Aug. 4-13 | Clothing: $100 | Clothing: $100 |
Clothing: $50 | School supplies: $100 | School supplies: $20 |
Books: $50 | Computers: $3,500 | |
School supplies: $10 | Other computer items: $250 | |
Sports equipment: $50 |
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