Sales Tax Holiday a Win-Win for Missouri
As I walked into a retail store earlier this week, I saw the stand near the front door that holds “the lists.” I’m sure you’ve seen them too. Most schools have their list posted informing parents what items they are recommending kids bring to school with them when they return in a few weeks. “Back to School” now has a new component in Missouri—one that is exciting for parents, tight budgets, and fiscal conservatives alike: the Sales Tax Holiday.
Missouri families can save money this weekend. You will pay no state sales tax on qualifying purchases like clothing, school supplies, and computers. Many local governments have joined this effort, suspending their own local sales taxes.
I worked on passing the Sales Tax Holiday for three years and finally succeeded in passing the bill in 2003. For the first time in 2004, Missouri shoppers were able to enjoy a weekend of shopping for necessities without the added burden of 4.225% state sales tax going to Jefferson City. The subsequent feedback from the 2004 weekend was so positive that the General Assembly and Governor Blunt made the Sales Tax Holiday permanent in 2005.
The Sales Tax Holiday is a simple, yet effective way to help Missouri taxpayers. The success of this event proves that consumers like the idea of lower taxes. Missouri businesses also have another tool to increase overall sales that will more than make up for any lost tax revenue. With 80% of Missouri’s population living within 50 miles of our state’s borders, this incentive keeps Missouri shoppers here. It also attracts other shoppers from Illinois, Kansas, and our other six neighboring states.
The sales tax exemption applies to:
• Clothing—any article having a taxable value of $100 or less
• School supplies—not to exceed $50 per purchase
• Computer software—taxable value of $350 or less per purchase
• Personal computers/computer peripheral devices—not to exceed $3,500
Unfortunately, some local governments have chosen to opt out of the Sales Tax Holiday. I think they are playing the role of the “Grinch” since they are viewing tax revenue as government’s money instead of the people’s money. I have encouraged local governments to partner with the state on this issue, and many have signed on. A list of cities and counties who are not participating is available online.
Now, go out and enjoy your Sales Tax Holiday!!
- Peter Kinder's blog
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