Markets Fall Again as Poor Earnings Reports Continue
Despite the pandemic, 16 states are proceeding with summer “back-to-school” tax holidays, temporarily exempting clothing, shoes, notebooks and other school supplies, sometimes including computers, from state, and often local, sales taxes.
What states are holding sales tax holidays this year?
States holding sales tax promotions in 2020, according to the Federation of Tax Administrators, are Alabama, Arkansas, Connecticut, Florida, Iowa, Maryland, Massachusetts, Mississippi, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas and Virginia.
Alaska, Delaware, Montana, New Hampshire and Oregon don’t charge statewide sales taxes in the first place. And other states may exempt clothing and food from sales tax, at least up to certain limits, year round.
How much can I save during a sales tax holiday?
State sales taxes range from about 4 to 7 percent but can be as high as 9 percent when additional local option sales taxes are included. Most sales tax holidays include state and local taxes, but some exclude local taxes or make them optional, reducing the savings.
Your savings may also be limited by a dollar cap on purchases, whether it is based on the cost of an individual item or on the total receipt.
Are computers eligible?
Fewer than half the states with tax holidays include computers on their tax-exempt menus, and all set limits on the exempt amount, according to a list compiled by the Federation of Tax Administrators. (The ones that do are Alabama, Florida, Massachusetts, Missouri, New Mexico, South Carolina and Tennessee.)
I’m not comfortable shopping in stores because of the pandemic. Can I get the tax break by shopping online?
Generally, online purchases are eligible for the tax break, tax experts say.
Article source: https://www.nytimes.com/live/2020/07/24/business/stock-market-updates-coronavirus