With the start of school approaching, summer vacations are coming to a close. However that doesn’t mean all breaks have passed. Missouri and many of its communities will once again be celebrating a sales tax holiday Friday August 3 through Sunday August 5th.
According to the Missouri Department of Revenue, certain back-to-school purchases, such as clothing, school supplies, computers, and other items as defined by the statute, are exempt from sales tax for this time period only. The state sales tax rate is 4.225%.
By state law, the sales tax holiday occurs the first Friday in August and runs through Sunday.
Price limits exist on qualifying offers, with school supplies purchases up to $50 per purchase being exempt from sales tax. An article of clothing cannot exceed $100 in taxable value with a $150 limit on graphing calculators and $350 for computer software and $1,500 for computers and related devices.
While no state sales tax will be charged during this period for qualifying purchases, counties, cities and other tax districts can choose to opt out of the tax holiday.
If you are planning a shopping trip this weekend to take advantage of the tax holiday, you may want to avoid such destinations as Columbia, where the city as well as Boone County both have opted out of the holiday. Jefferson City, Camdenton, Osage Beach, Branson, Springfield and Joplin also will be charging sales tax as will Camden, Callaway, and Greene counties.
Scotland County and neighbors, Clark, Knox, Lewis, Schuyler and Adair, as well as their cities, will not be charging sales tax during the holiday.
Shoppers in Memphis will save 6.475% in sales tax on qualifying items during the holiday, avoiding the state (4.225%), county (1.25%) and city (1%) sales taxes.
NFIB State Director Brad Jones says this weekend’s sales tax holiday on clothing, school supplies, and computers will be a shot in the arm for many small businesses.
“A lot of stores, including small, locally-owned businesses, are having back-to-school sales,” Jones said. “When you combine those discounts with the sales tax holiday, you’re really going to put people in the mood to shop.” Missouri’s sales tax holiday begins Friday and ends Sunday.
NFIB, the state’s leading small-business association, is urging people to shop local and shop small this weekend, Jones said.
“You’ll see deals and merchandise you won’t find at the big chain stores,” Jones said. “Plus, when you support local businesses, you’re supporting your community. You’re supporting the employers who support our schools and local institutions and create jobs.” According to the latest figures from the U.S. Small Business Administration, small businesses employ 99.4% of Missouri’s private-sector workforce.