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Why Some States Offer No Sales Tax Weekends

Sales tax is charged on the sale or lease of many goods in America. Most states offer a day or two of sales tax holidays. Most of these states require the items to be school supplies, computer or clothing. Sales tax holidays are often coordinated with the arrival of back-to-school shopping. A few states limit the amount of purchases to a specific dollar amount. Sales taxes are an important source of revenue for many states. These holidays provide a temporary break on paying taxes for a variety of items.

Retail merchants particularly look forward to no sales tax holidays, because thousands of shoppers flock to the stores during this time. Most shoppers put off their purchases so they can save during the no tax holiday. Merchant accounts must maintain sophisticated software to keep track of busy sales and credit card processing. Most merchant accounts report sales similar to the holiday season during the sales tax holiday. Credit card processing machines are in full swing, and merchants order more inventory than usual.

If you need more information about sales tax holidays in your state, visit your state’s government website for more information. You will find a list of common questions and answers, and a list of items that are eligible for the tax break. If you plan ahead, you can save a lot of money on items that you would normally purchase anyway. Merchants must check their cash registers for accuracy before the sales tax holiday arrives to avoid confusion.

Many merchants use the holiday to offer shoppers a variety of incentives including opening on Sunday when they normally would be closed. They also offer special events and additional discounts to attract customers to their retail stores. Some merchants report sales are even greater than other holidays such as Christmas and Easter.

Consumers benefit in some states by purchasing energy-efficient appliances that are eligible for the sales tax discount. If you need to buy new appliances, check your state’s eligibility list. Sales tax holidays usually run on the weekends for convenience to the consumers.

In some states, even hunting gear is eligible during the weekend sales tax holiday. This includes items such as firearms, ammunition and hunting apparel. It also applies to vehicles that are designed for hunting such as all-terrain vehicles. However, it does not include most recreational vehicles such as golf carts, motorcycles or bikes.

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