Tax-Free Shopping Coming in August

Back-to-school shopping will be tax-free for a few days next month in 13 states and the District of Columbia, according to a report by CCH.

During these "tax holidays," back-to-school items such as clothing, footwear, school supplies and computers may be purchased free of state sales tax. Local sales taxes may continue to be imposed in some places, however.

The states and districts with sales tax holidays are Alabama (Aug. 1-3), Connecticut (Aug. 17-23), D.C. (Aug. 2-10), Georgia (July 31-Aug. 2), Iowa (Aug. 1-2), Louisiana (Aug. 1-2), Missouri (Aug. 1-3), New Mexico (Aug. 1-3), North Carolina (Aug. 1-3), Oklahoma (Aug. 1-3), South Carolina (Aug. 1-3), Tennessee (Aug. 1-3), Texas (Aug. 15-17) and Virginia (Aug. 1-3).

Two big states are missing from the usual group of states offering tax holidays this August. Florida and Massachusetts are not participating in 2008 (although the Massachusetts Legislature may take last-minute action).

Vermont moved ahead of the pack with a broad-based holiday in July, suspending sales tax for two days, July 12-13, on sales to individuals for personal use of most items priced $2,000 or less.

Maryland, meanwhile, which suspended its annual August back-to-school holiday last year, plans to return with a weeklong holiday, but not until August 2010.

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