Sales tax holiday helps economy
Published 1:39 am Wednesday, July 19, 2017
Although it may seem counterintuitive, Andalusia Mayor Earl Johnson said the city generally sees a bump in sales taxes on the weekend in which back-to-school items are sold tax free.
“Historically, we’ve seen an increase in tax revenue for that weekend,” he said. “It appears that while people are out buying those back-to-school items, they spend money on other things as well. The result is a nice boost to local sales tax revenue.”
Alabama will celebrate its 12th sales tax holiday for school-related items this weekend. Beginning at 12:01 a.m. Fri., July 21, 2017, and ending at midnight Sun., July 23, 2017, shoppers may purchase certain school supplies, computers, books and clothing free of the state, county and city, sales or use tax in Covington County. Each county and municipality has the option to participate.
This is the first year the tax holiday will occur in July.
No sales taxes will be charged on:
- Clothing items costing 100 or less, including shoes.
- Computers
- Computer software
- School computer supplies
- School supplies, school art supplies and school instructional materials, including pencils, binders, book bags, calculators and paper.
- Books
Items that remain taxable this weekend include:
- Cosmetics, accessories, sewing materials, sunglasses, eyeglasses, contacts,
- Sports or recreational equipment such as helmets, ballet or tap shoes, goggles, life vests.
- Furniture
- Magazines, newspapers and periodicals.