Sales Tax Break Should Benefit Area Elected officials say the annual state sales tax holiday coming up the first weekend in August could have an impact on consumers, and retailers, like never before.

By: Charlie Denn
Posted 11/7/19

The three-day sales tax holiday will be on Aug. 1-3. Retail stores in both Warrenton and Wright City will not charge any sales tax on specified back-to-school items throughout the weekend. The city …

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Sales Tax Break Should Benefit Area Elected officials say the annual state sales tax holiday coming up the first weekend in August could have an impact on consumers, and retailers, like never before.

Posted

The three-day sales tax holiday will be on Aug. 1-3. Retail stores in both Warrenton and Wright City will not charge any sales tax on specified back-to-school items throughout the weekend. The city of Marthasville will not participate in the event. City officials cited a lack of retail stores which carry back to school items as the reason for their decision. Any municipality has the right to opt out of the program if it chooses. Local governments which choose to opt out must notify the Department of Revenue no later than 45 days before the holiday. "With the economy the way it is now, I think this event can really help make a difference to most consumers," said Rep. Mike Sutherland (R-Warrenton). "Gas prices have eaten up a lot of money in most family budgets," added Sutherland, "so buying necessary items for back to school without having to pay any sales tax is a bigger deal now than it's ever seen." Sutherland takes particular pride in the sales tax holiday weekend because he was the legislator who essentially crafted the bill and pushed for its support in 2005. The sales tax holiday exempts items such as clothing, school supplies and computers and software from the traditional 7.875 cent sales tax on every $1 spent. Of that amount, 4.25 cents goes to the state with the remainder divided between county and city governments. The only items that are tax-free during the three-day "holiday" include clothing and shoes costing less than $100; personal computers of less than $3,500; computer software of less than $350; and school supplies of less than $50 per purchase, including textbooks, book bags, notebooks, paper, writing instruments, calculators, art supplies, maps and globes. The law also spells out items that aren't tax exempt, including watches, jewelry, umbrellas, ties, belt buckles, radios, CD players, sporting equipment, telephones, office equipment and furniture. The bill does not apply to retailers when less than 2 percent of their sales are for qualifying merchandise during the holiday. "And don't forget it impacts every purchase of the covered items," said Lt. Gov. Peter Kinder Monday during a visit to the Whispering Pines retirement community in Warrenton. "There are no limits to the number of stores you can purchase items at," Kinder added. "You can take advantage of this exemption as many times as you like throughout the weekend." Kinder was the originator of the first sales tax holiday in 2004, Sutherland said. The event was held in some communities around the state but did not receive widespread support until Sutherland's bill was approved two years later. "It's worked well," said Kinder. "Retailers love it because it usually brings them much more business than normal and the consumers enjoy getting a bit of a break on the money they spend. "It's a good law and impacts the majority of people around the state," added Kinder. "Items like clothing and school supplies and computers are all things parents would normally have to purchase anyway. This sales tax holiday brings them some relief." Surveys have shown that retail sales are typically much stronger than most merchants experience on the weekend before and the weekend after the event. "I'm very proud of the sales tax holiday and the impact it has had," said Sutherland. "I believe it's been a success for consumers. I think it's something they look forward to every year."


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