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Gov. Riley Optimistic About Tax Holiday

By Associated Press

Huntsville, AL – Gov. Bob Riley predicts that Alabama's sales tax holiday will give retailers a boost during the recession.

Alabama's fourth annual sales tax holiday begins at 12:01 a.m. Friday and continues until midnight Sunday. The state is waiving its 4 percent sales tax on many clothing and school purchases. An additional 253 cities and counties are lifting their local sales taxes.

Riley said Tuesday in Huntsville the weekend is an opportunity for families to save money and for retailers to get a shot in the arm. He said the state's sales tax collections for August have increased every year since the holiday began in 2006 because once people start shopping for tax-free goods, they end up buying additional items that are taxed.

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