August 5-7, which will be the state’s tax-free weekend, is quickly approaching and Alabamians are preparing to go out and take full advantage of the savings. The annual sales tax holiday will apply to clothing, computers, and school supplies and will provide relief to Alabamians who face the second-highest effective sales tax rate in the country.
High sales taxes can be a deterrent to commerce in a given region both on the supply and demand side. The Tax Foundation notes, “While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.”
RELATED: Only Obama’s hometown of Chicago has higher sales taxes than Birmingham, Montgomery
With such rates, summer 2016 has been less than stellar for many Alabama small businesses. Reporters at Alabama News Network spoke with Rosemary Elebash, the state director of the National Federation of Independent Business, to get her input on the upcoming relief.
“The sales-tax holiday should help people get fired up and in the mood to spend,” she said. “Combined with the back-to-school sales a lot of stores are having, the sales-tax holiday is going to help people get a bigger bang for their buck.”
Elebash also encouraged Alabamians to patronize small, local businesses to help the state economy. “When you shop at small, locally-owned businesses, you’re helping your friends and neighbors,” Elebash told ANN. “You’re supporting the businesses that support our schools and charities and create jobs in our communities.”
For those who want to get a head start – or procrastinate – on the holiday, it officially begins 12:01 a.m. Friday, Aug. 5, 2016, and ends at midnight Sunday Aug. 7, 2016
