Tennessee's annual sales tax holiday will start at 12:01 a.m. on Friday and will end at 11:50 p.m. on Sunday.
Each year on the second weekend of August the Texas Comptroller's office offers a tax-free weekend for a number of school related items.
The Tax Foundation report, released Tuesday, argues that sales tax holidays simply encourage customers to shift their spending - not increase it - to one hectic weekend sandwiched between slower shopping weeks.
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Actually, there is only one positive example of this combination which comes to mind - the sales tax holiday in the state of Texas.
"Large retailers are often the biggest supporters of the sales tax holidays", the report says.
"There's a trickle down effect, you know".
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State and local taxes will not be collected on clothing, school and art supplies that cost $100 or less per item and computers that cost $1,500 or less. That grew to 19 states with the special exemptions in 2010, but there are only 16 now, according to the Tax Foundation.
ON THE NET Comptroller page on sales tax holiday.
Louisiana hosts three tax holidays each year, during which qualifying purchases do not include the state 4% tax. Sales tax holidays create additional tax compliance costs, but larger businesses tend to lobby for the holidays as a form of free advertising.
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