Shoppers to enjoy Sales Tax Holiday
Parents getting the kids ready to head back to school can get a little break on state sales taxes this weekend. Mississippi will have another Sales Tax Holiday, starting at 12:01 a.m.Friday, July 30 and continuing through 12 midnight on Saturday, July 31, when the state’s seven-percent sales tax is not added to eligible items bought in stores across the state.
According to the Mississippi Department of Revenue (MDOR), the Sales Tax Holiday will apply statewide to all purchases of clothing, footwear and school supplies with a price tag of $100 per item or less. Items not defined as clothing or footwear will not qualify. Items sold at $100 or more will come under the state’s seven percent sales tax.
MDOR guidelines state that retailers may offer store discounts or coupons that reduce the cost of an item to below the $100 threshold during the weekend, however manufacturers’ coupons may not be used for that purpose.
Mail, internet, or telephone purchases made this weekend for items do not qualify for the tax holiday.
An item bought during the weekend and returned to the store after the holiday will get the weekend price in exchange, but exchanging one item for another after this weekend will require sales tax to be added to the new item.
The Sales Tax Holiday was passed by the Mississippi state Legislature in the 2009 session and was amended in the 2019 legislative session.
A more detailed list of eligible items and what qualifies for the Sales Tax Holiday is found on the Mississippi Department of Revenue website.
The Mississippi chapter of the National Federation of Independent Business (NFIB) says the Tax-Free Holiday is a good time to support local stores and businesses.
NFIB State Director Dawn McVea says the upcoming back-to-school sales tax holiday is a good opportunity for people who support local businesses impacted by the COVID-19 downturn. Mississippi’s tax holiday on clothes, shoes, and school supplies is July 30-31.
“Our economy is better than it was last summer, but a lot of local stores still are still recovering,” McVea said. “Our hope is that people remember that the sales tax holiday applies to local businesses as well as the chain stores and that they’ll support the small, independent businesses that contribute so much to Mississippi’s economy.”
Small businesses account for 99.3 percent of all businesses in the state, and they employ 46.5 percent of Mississippi’s workforce, according to the U.S. Small Business Administration. A study by American Express found that 67 cents of every dollar spent at a small business stays in the community and creates an additional 50 cents in local business activity as employees and owners purchase local goods and services.
“Small business really is the engine that drives Mississippi’s economy,” McVea said. “We should do everything we can to help local merchants get through these difficult times.”