The tax free weekend is underway. So, you’ll probably be out there shopping for the best deals for back to school items for kids and more but why a tax free weekend anyway?
A tax holiday is a temporary reduction or elimination of a tax. Governments usually create tax holidays as incentives for business investment.
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In New York, a statewide sales tax holiday was first enacted by the New York legislature in 1996, enabling the first tax-free week in January 1997. Local governments in New York were given the option of whether or not to participate; most declined. Since then, the initiative has been adopted by thirteen states. It commonly takes the form of tax-free weekend lasting Friday through Sunday.
In 2016, Texas shoppers get a break from state and local sales taxes on Aug. 5 – 7 — the state’s annual tax holiday. As in previous years, the law exempts most clothing, footwear, school supplies and backpacks priced under $100 from sales and use taxes, which could save shoppers about $8 on every $100 they spend.
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