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Confusion, Inconsistency Part of First Sales Tax Holiday

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By Matt Sepic, KWMU

St. Louis – Missouri's first-ever sales tax holiday started Friday. But interpreting the law is causing some confusion among retailers.

Clothing, school supplies, software and computer equipment are tax free through Sunday.

But there are limits of $100 per item on clothes, $50 per purchase on school items and $2,000 on computers.

Carol Fischer heads Missouri's Department of Revenue.

"So if you by a computer that costs $2,100, the entire amount of that computer is taxable," Fischer said. "The first $2,000 is not exempt. The entire amount is taxable."

But two major electronics stores KWMU contacted are doing different things.

One is charging tax only on the amount over $2,000. The other, as the law says, is taxing the entire amount.

Related story:

KWMU's Tom Weber has an in-depth look at the tax holiday.

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