Seventeen states are offering consumers tax breaks on back-to-school shopping this season.
According to a report on CNN Money, the tax savings will amount to anywhere from 4 to 7 percent, on everything from crayons to computers.
Early projections from the National Retail Federation suggested average-per-family BTS spending is expected to drop this year, to $635 – on apparel, shoes, supplies and electronics – from $688 a year ago.
The tax-savings periods and amounts vary. Some states, like Alabama, Arkansas, Florida, Missouri and many others, restrict the savings to only a few days around the first weekend in August. In other states, like Connecticut and Maryland, the tax-savings period is later in the month, and lasts a week. In Mississippi, the period was held in July.
There are also variations, depending on what is purchased, how much is spent and even where the shopping occurs. In Alabama, for example, tax savings are available only for lothing worth $100 or less; computers and software worth less than $750; school supplies of $50 or less; and books priced at $30 or less. In Florida, exemptions do not apply to sales made within theme parks, entertainment complexes or airports.
Also in Florida, tax breaks for a personal computer are only available for something that costs less than $750. In Missouri and North Carolina, savings kick in for computers worth up to $3500.
Each of the 17 states is offering tax breaks on BTS clothing, but most limit the exemption to items that costless than $100. In Connecticut, however, the exemption is up to $300 an item. And in Louisiana and South Carolina, there is no limit.
The Tax Foundation has said that limiting the price limit encourages consumers to purchase cheaper goods, even if they would prefer a better quality item. “Advertising 5 percent off won’t get people through the doors,” said Joseph Henchman, vp for state projects at the Foundation.”But advertise ‘tax-free,’ they’ll break the doors down.”