Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called “bracket creep.” This is the phenomenon by which people are pushed into higher income tax brackets or have...
- Monday Map: Sales Tax Holidays in 2013
Monday Map: Sales Tax Holidays in 2013
Last week, the Tax Foundation released a new study on sales tax holidays explaining how they are poor tax policy, regardless of of their political expediency. Today's Monday Map illustrates the states that still have the holidays, what their dates are, and what is included.
All maps and other graphics may be published and re-posted with credit to the Tax Foundation.
(Click on map to enlarge)
Immediately, one notices the localized grouping of states in south; because the original idea for sales tax holidays was to prevent cross border shopping, it makes sense that after Florida enacted its holidays, other states around it began competing with the Sunshine State. The variety of items included in the holidays is also interesting, including everything from clothing "accessories" (AR) to firearms (LA). It's important to note that each state has its own dates and list of items included--which generally corresponds with things like hurricane, back to school, or hunting seasons--along with unique price caps on each item (See report for more details).
North Carolina was in the news this past week after it enacted major reforms to its tax code which will remove its sales tax holidays, effective July 1, 2014. And this week, Massachusettes legislators will vote on a "bill [...] that would establish the sales tax holiday for Aug. 10 and 11."
- Press Release for sales tax holiday study: Time for a Permanent Vacation from Sales Tax Holidays
- Sales tax holiday study, Special Report 209: Sales Tax Holidays: Politically Expedient but Poor Tax Policy
- Podcast: Why Sales Tax Holidays Are Poor Tax Policy
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The Tax Policy Blog is the official blog of the Tax Foundation, a non-partisan, non-profit research organization that has monitored tax policy at the federal, state and local levels since 1937. Our economists welcome your feedback. If you would like to send an e-mail to the author of a blog post, please click on that person's name to locate his or her e-mail address or visit our staff page here.