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Taking quick action, the Legislature has approved a bill authorizing a sales tax holiday for the weekend of August 13-14. The Governor's office has already said he will sign the bill, probably early next week.

The terms and conditions for the holiday will be identical to those of previous holidays; Technical Information Release 10-10 from last year's holiday will get a quick rewrite to make it work for this year.

DOR's preliminary estimate is that taxpayers will save about $20.5 million over the two days.

The holiday began as a one-day event 2004, and has been held annually since then with the exception of the summer of 2009, which was the same time the sales tax increased from 5 percent to the current 6.25 percent. The savings to taxpayers have been estimated as follows: 2004, $10.1 million; 2005, $15.4 million; 2006, $16.9 million; 2007, $15.9 million; 2008, $14.9 million; and 2010, $19.9 million (first time holiday was held with sales tax rate set at 6.25 percent).

 

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