Tax holiday means no state taxes, but what about local taxes
Fri, 05 Aug 2011 03:05:00 GMT — Updated: Saturday, August 6 at 5:25 p.m.
Saturday the Columbia Mall was packed with shoppers taking advantage of the back to school tax free holiday which started Friday.
They saved money with the tax holiday, which saved shoppers the state tax of 4.225%.
One shopper we spoke with said he got some really good deals.
"It's crowded but in the end you get a good deal, you can save money, shopper Allen Buckman said. I just saved $20 at a store with coupons and taxes and stuff like that."
Mu extension specialist Brenda Proctor warned the tax holiday can help a little, but it's not a lifesaver for low-income families.
"Three days of a little bit of relief from state sales tax, that's great and I want families to take advantage of it, but what happens the rest of the year, Procter said. I TMm just not sure that this is very significant and it strikes me as just a little bit gimmicky in the larger scope of things. I'm not sure it's good tax policy."
Shoppers in more than 50 counties including Audrain, Boone, Callaway, Camden, Cole, and Osage and 169 cities are missing out on an additional tax break since they opted out of the savings plan at the local level.
Although it's often called the back to school sales tax holiday, you actually don't have to be a student or even a Missouri resident to take advantage of it.Original Story: Just in time for back-to-school shopping, Missouri TMs Sales Tax Holiday starts Friday and will continue throughout the weekend. But shoppers in most cities will miss out on one possible tax break as communities opt out of the savings plan.
KRCG's Meghan Lane investigated why in Thursday TMs Facebook Story of the Day.
"We're expecting a pretty busy weekend," Tiger Town Store Manager Cody Saxe said. For the Tiger Town store in the Columbia Mall, this weekend is the kick-off to their money making season. "During the summer we're really slow and then this is like the beginning of the hectic times, Saxe said. And his store will get another boost, according to the national federation of independent business, the weekend's sales tax holiday will help small businesses struggling to recover from the economic recession. Shoppers will not have to pay the states 4.225% sales tax on many items needed for students heading back to school. The state's taking the hit and not collecting the sales tax revenue for three days. "If you can get money off of any purchase, I TMm going to tell you to go for that, MU Extension Specialist Brenda Proctor said. On the other hand, I TMm afraid that some of that lost revenue might lead to cuts in education or social support, programs that people really need to get by." The lost revenue is why most local communities won't join in. More than 50 counties including Audrain, Boone, Callaway, Camden, Cole, and Osage and 169 cities will not cut their local sales tax.
Although it's often called the back to school sales tax holiday, you actually don't have to be a student or even a Missouri resident to take advantage of it.
Kristine Curry and her son are visiting from Tuscon, Arizona. We plan on going to the mall tomorrow to do some shopping," Curry said.
The tax savings only applies to specific items, like clothes, school supplies and computers.
The tax free list is quite extensive. For the complete list of the rules and regulations for the Back to School Sales Tax Holiday click here.