Tax holiday

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Tax holiday

A reduced tax rate that a government provides as an inducement to foreign direct investment.

Tax Holiday

A temporary suspension of a tax, especially a sales tax. Jurisdictions declare tax holidays at certain times of the year on the theory that doing so will stimulate consumer spending and thereby induce economic growth. Some U.S. states routinely declare tax holidays before school begins each year, for example. Critics of tax holidays maintain that they deprive the jurisdictions of revenue and that their effect on growth is overstated.
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But only North Carolina created a new sales tax holiday in 2001.
Im proud that we have cut more than $7 billion in taxes, including more than $33 million in savings for Florida families from this important Back-to School Sales Tax Holiday starting tomorrow.
The sales tax holiday is an opportunity to help families and businesses across the commonwealth, as well as continuing efforts to improve the state's economy,'' said Senator Michael O.
This years Fighting for Floridas Future budget includes record per-student K-12 funding and a Back-to-School Sales Tax Holiday which will save families more than $33 million on necessary school supplies so students can succeed in the classroom.
The sales tax holiday applies to items of $2,500 or less purchased by consumers, except motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity and tobacco products.
But there are more effective and efficient means of alleviating the burdens on the working poor than a sales tax holiday.
This sales tax holiday will make items that help families prepare for the school year or for a potential emergency more affordable, said Governor McAuliffe.
Increased sales during sales tax holidays have been shown to be primarily the result of consumers' shifting the timing of their planned purchases,'' it wrote.
New York was the first state to approve a sales tax holiday in 1996.
An NRF survey conducted when a national sales tax holiday was considered in 2001 found 82 percent of consumers favored a tax holiday, 83 percent would take advantage by making purchases, and 69 percent would make purchases they otherwise would not have made.
Patrick are all looking favorably on the proposal for a sales tax holiday Aug.
Other cost-saving and efficiency measures recommended by the Legislative Budget Board, which revealed the budget on Tuesday night, include lifting the ban on Sunday liquor sales and tying the summer sales tax holiday to the state's financial condition.