Back-to-School Shoppers Rejoice: Sales Tax-Free Holidays Offer Relief for Overburdened Parents
As the back-to-school shopping season approaches, parents across the United States are preparing to spend a record-breaking amount on school supplies. With an estimated total expenditure of $41.5 billion this year, an increase of nearly $5 billion from last year, the financial strain on parents is evident. To alleviate some of this burden, many states are implementing sales tax-free holidays, providing an opportunity for families to save on essential items.
According to the National Retail Federation (NRF), the average household expenditure on back-to-school shopping is projected to reach a high of $890.07, surpassing last year’s record by $25. Additionally, back-to-college shoppers are expected to spend more, especially on electronics and dorm or apartment essentials.
In response to the rising costs of education, several states have implemented tax-free holidays to incentivize back-to-school shopping. These events typically last for a weekend or week-long period, allowing shoppers to purchase items without paying sales tax. This year, more than a dozen states are participating, including Tennessee, Mississippi, Arkansas, Connecticut, Florida, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, and West Virginia.
Parents are eager to take advantage of these tax-free holidays, as 83% of them believe that the cost of education has become out of control. In fact, almost half of parents plan to increase their spending on back-to-school shopping compared to last year. With the combination of discounted prices and the elimination of sales tax, shoppers can expect substantial savings.
Marshal Cohen, the chief industry advisor at consumer behavior and retail industry company Circana, highlighted the benefits of tax-free holidays, stating, When you can take advantage of a sale on top of a 6% to 8% discount on sales-tax elimination, you’re talking about a pretty sizable chunk of change. Katherine Cullen, the NRF vice president of industry and consumer insights, added that consumers are seeking value for their dollars, particularly given higher prices and inflation.
While some shoppers have already started their back-to-school purchases during promotional events like Amazon Prime Day and Target Circle Week, the official tax-free holiday season is already underway in some states and will continue until September 4th. However, for those residing in states without tax-free holidays, there is still an opportunity to save by traveling to participating states or visiting tax-free states such as Alaska, Delaware, Montana, New Hampshire, and Oregon.
Each state’s tax-free holiday has its own set of rules and exemptions. For example, Connecticut offers tax-free purchases on clothing and footwear up to $100 per item, while Florida exempts learning aids, most school supplies, clothing, footwear, and accessories up to specific price limits. It is essential for shoppers to familiarize themselves with their respective states’ guidelines to maximize their savings.
As the back-to-school shopping frenzy continues, the implementation of tax-free holidays provides a welcome respite for overburdened parents. By taking advantage of these opportunities, families can save significantly on school necessities during a time when expenses are at an all-time high. So whether it’s clothes, supplies, or electronic devices, the summer of 2023 tax-free holiday season offers a chance for parents to give their wallets a well-deserved break.
References:
– https://www.marketwatch.com/story/heres-when-tax-free-weekends-begin-in-14-states-11627484939
– www.nrf.com
