Tax-free weekend for back-to-school purchases coming Aug. 4-6
Missouri’s Back to School tax holiday pauses all local taxes for the first time
A 2021 tax on online sales also ended local opt-outs for weekend set aside for purchasing new clothes and school supplies
BY: RUDI KELLER
Missouri Independent
The Back to School tax holiday covers:
Clothing, excluding watches, jewelry, belt buckles, scarves and ties but including disposable diapers for infants and adult use, up to $100 in value per item.
School supplies, excluding phones, sporting equipment and furniture but including backpacks, textbooks and art supplies, up to $50 per transaction.
Computers and peripherals, up to $1,500 in value per item.
Graphing calculators up to $150 in cost.
Computer software up to $350 in cost.
Since 2003, Missouri has set aside a weekend at the beginning of August when families won’t pay state tax on new clothes and school supplies as they prepare for the start of the school year.
For just as long, every city, county and special district that imposes its own sales tax has had the authority to opt out of the Back to School tax holiday. With local sales taxes often matching or exceeding the state charge, the impact of the discount was limited.
This year, for the first time, there will be no sales tax at all from 12:01 a.m. Friday until midnight Sunday on any sales of the exempt items like backpacks, calculators and jeans. The repeal of the opt-out provision was one of the changes in a 2021 tax law that allows Missouri and local governments to collect tax on online purchases.
Not being able to opt out is expected to cost local governments about $465,000, but it’s offset by additional revenue from online sales in communities that have rolled out what is called a use tax.