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Sales Tax Holiday Closer to Approval

By Alabama Public Radio

Montgomery, AL – The legislature is closer to approving a sales tax holiday for back-to-school purchases. The House passed the bill last month. The Senate Finance and Taxation-Education Committee approved it yesterday. Now the full Senate will get a chance to consider it. The bill would make the first Friday, Saturday and Sunday of August a sales tax holiday. It would remove the state's four percent sales tax on clothing costing up to 100 dollars per item, computer equipment and supplies up to 750 dollars each. It would also cover textbooks up to 50 dollars each. The Senate committee also voted for a companion bill that would make up part of the lost revenue by requiring companies that have contracts with the state to start charging sales taxes on their other sales in Alabama.

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