St. Louis Public Radio News
5:09 pm
Fri August 7, 2009

Mo. sales tax holiday underway

Jefferson City, MO – Missouri's back-to-school sales tax holiday is underway.

The state sales tax is suspended through Sunday on clothing priced at $100 or less, and on school supplies that don't exceed $50 per purchase.

Personal computers and computer peripheral devises not exceeding $3,500 and software not exceeding $350 are also exempt.

David Overfelt is President of the Missouri Retailers Association.

"It does stimulate sales...if a retailer gets involved, promotes (his business), he can get new customers into his brick-and-mortar store, and get them away from their computers and the Internet," Overfelt said.

Amy Blouin, Executive Director of the Missouri Budget Project, says, though, the sales tax holiday is not such a good idea.

"We're very concerned that they really aren't that effective at helping lower income families...they also create a real administrative burden for local governments, as well as the state and retailers," Blouin said.

Blouin added that an earned income tax credit would be a better way of helping middle and lower income families purchase what they need.

Meanwhile, many local communities are opting out of the holiday and will still apply their local sales taxes to purchases.

For a complete list, you can visit the Department of Revenue's website:

dor.mo.gov