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Sales Tax Holiday Deserves Local Support Over the last four years I have frequently talked about the benefits that a Sales Tax Holiday would bring to Alabama. As a co-sponsor of this legislation for four years in a row I am proud that the legislature was finally able to have a Sales Tax Holiday enacted into law. It has been has been a fight to pull tax dollars away from a state government that does not seem to understand the necessity of providing tax relief when our state’s coffers have a surplus. The temporary Sales Tax Holiday from Friday, August 4, through Sunday, August 6, will relieve hard-working Alabamians from the burden of paying a sales tax on items needed by children for their education. At a time when parents and citizens need it the most this law makes their paychecks stretch a little bit farther. Items exempt from the state sales tax during the holiday include, clothing that costs less than $100, school supplies where single items cost less than $50, as well as books and computers. In addition to the savings for individual families this holiday will provide an economic boost for the retail community. Georgia, Tennessee, and Florida have all seen huge spikes in retail purchases during their sales tax holiday periods. All three states have commented on the economic boost it has given to their state and local economies. The Legislative Fiscal Office for Alabama has estimated that this tax exemption could save Alabama consumers around $3.35 million this year alone. Cities and counties will have the option to a sales tax holiday that coincides with the state Sales Tax Holiday. Local participation would increase the opportunity for taxpayer savings. Many communities throughout Alabama who are a lot less fortunate than Shelby County are joining the state in this holiday exemption. Shelby County has been blessed over the last several years with an explosion of retail development. I would encourage local leaders to count our blessings for this new growth and follow the state in enacting a local sales tax holiday on back to school items as well. This holiday will show the community how proud we are of what has been accomplished in our area and attract more shoppers to our local businesses. Many other states have reported that sales tax holidays are the second biggest shopping days of the year following only behind the day after Thanksgiving. With local support joining the state in this sales tax exemption more business would be generated for local merchants and our residents would receive a tax break they deserve. |