Quick Tax Quiz: When Did Sales Tax Holidays Start?

September 11, 2009

You chose B: Ohio and Michigan with tax holidays for automobile purchases in 1980.

CORRECT!

Ohio and Michigan offered tax holidays for automobile purchases in 1980. New York sparked the modern trend, with the first sales tax holiday for clothing in 1997.

To learn about the perils of sales tax holidays, read the new study, “Sales Tax Holidays: Politically Expedient but Poor Tax Policy,” or listen to a podcast on the same topic.


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