PHENIX CITY, AL – More local governments are participating in Alabama's fifth annual sales tax holiday than ever before, Governor Bob Riley said during a visit to a retail store on Tuesday as he encouraged shoppers to come out and take advantage of the three-day break from sales taxes on certain items.
And with Georgia lawmakers deciding to cancel their state's sales tax holiday this year, Governor Riley went to Phenix City to also encourage Georgians to cross the border this weekend so they can save, too.
"In some areas, consumers can save as much as 10 percent right off the bat, and that doesn't include the discounts stores are offering on top of the tax-free savings," said Governor Riley. "This weekend provides a unique opportunity for stores to boost sales and for families to save money. In previous years, Alabama consumers saved more than $6 million in sales tax in just one weekend. That's $6 million put back into the pockets of parents who need that money now more than ever."
Alabama's sales tax holiday is in its fifth year. The annual event this year is held on Aug. 6, 7 and 8. That's when the state's four percent sales tax is waived for certain purchases of clothing, school supplies, computer equipment and books. In addition to the state removing its sales tax, this year 267 cities and counties throughout Alabama will waive their local sales taxes, offering consumers even greater savings at the check-out aisle.
The idea for a sales tax holiday started at the suggestion of the late Montgomery city councilman Willie Cook and it's popularity in the capital city quickly saw it spread state wide.
Governor Riley called for a sales tax holiday during his State of the State Address in January 2006. The bill establishing Alabama's annual sales tax holiday passed with bipartisan support later that year and with the strong backing of the Alabama Retail Association.
The sales tax holiday applies to the following items:
- clothing priced at $100 or less
- school supplies and textbooks priced at $50 or less
- other books priced at $30 or less
- computers and computer equipment priced at $750 or less
For detailed information on Alabama's sales tax holiday, including a list of participating local governments, visit the Alabama Department of Revenue's website at http://www.revenue.alabama.gov/.