Shoppers won't have to pay state sales tax on clothing, shoe purchases.
Consumers doing back-to-school shopping for their children will be getting a break next week, which is "Shop Maryland Tax Free Week." From Sunday, August 12th through Saturday, August 18th, shoppers who purchase clothing and shoes which cost under $100 under won't have to pay the 6% state sales tax. "It provides a big boost for shopping in Maryland at the end of th summer," says State Comptroller Peter Franchot, who was in Frederick on Monday to help kick off the event.
"The Tax Free Week has been a great success for the past two years, with retailers reporting double digit sales increases for the week. It has also provided real savings to families and allowed retailers to compete with retailers in Pennsylvania and Delaware and those online where sales taxes are not collected," says Patrick Donohoe, the President of the Maryland Retailers Association, in a statement.
Comptroller Franchot says even though the sales tax exemption during the week only applies to clothing and shoes priced at under $100, there's no limit on how many items consumers may purchase and not have to pay the tax. "We lose a little bit of money in sales tax money at the state level, but that's okay. We make it up in increased volume in other sales down the road," he says.
And it's not just limited to shoppers looking for back-to-school clothes for their children. "They don't have to be for back to school. They can be for any use whatsoever. As long as they're under $100," he says.
And not paying 6% sales tax can really make a big difference for any shopper. "A family can spend $1500 on back to school clothing for their kids. So that's a $90 savings and that's significant," says Franchot.
"Shop Maryland Tax Free Week" resulted from legislation passed by the General Assembly in 2007 during a special session. The law says "Tax Free Week" will take place each year during the week of the second Sunday of August following a Saturday. Franchot says he would like to see other items added to "Tax Free Week" in the future.