newjerseynewsroom.com

BY BOB HOLT

NEWJERSEYNEWSROOM.COM

17 states have announced sales-tax holidays before September for consumers to buy back-to-school items.

Guess which state isn’t one of them? Let's just say you’re right.

But CNN reports that the discounts come with conditions. States are waiving sales tax only on certain items and have spending limits for those items. Virginia’s exemption only applies to items costing $100 or less.

New Jersey may be staying out of the sales tax holiday because it already exempts most clothing from sales tax, according to Tax Watch. Singleparents.about.com says that New Jersey has designated certain cities as Urban Enterprise Zones, where shoppers are charged less sales tax to bring more revenue into economically challenged areas.

Elsewhere, New York has reinstated a sales tax exemption for clothing and footwear costing under $110. And of course, Delaware has a sales tax holiday all year round. Residents of states that do not have sales tax holidays are urged to contact local representatives or even begin online petitions.

Not all that shockingly, Tax Foundation says tax holidays are a poor tax policy. They say the holidays shift the timing of consumer purchases instead of promoting economic growth. The site calls the policy a political gimmick that distracts taxpayers and lawmakers from true tax relief.

A National Retail Federation survey finds that shoppers across the nation are expected to spend $83.8 billion for back-to-school and back-to-college items this year.

States offering summertime sales tax holidays can be found here.