Sales tax holidays are limited periods of time during which specific products are exempt from state and/or local sales tax. Common sales tax holiday themes include back to school, energy efficiency, and emergency preparedness. More than a dozen states will offer a sales tax holiday in 2019.
While many state laws authorize annually recurring sales tax holidays, some states establish limited holidays (e.g., for 2018 only, or for 2018 and 2019 only). Yet as with all things related to sales tax, sales tax holidays are subject to change. For example, Louisiana recently cut back its annual sales tax holidays due to a budget crisis, and Massachusetts established an annual holiday starting in 2019 after offering one-year-only tax-free periods for many years.
Below is a list of 2019 sales tax holidays, with links to the most up-to-date state information. Some state departments of revenue don’t update sales tax holiday information until later in the year.
2019 tax-free periods
Louisiana used to offer three annual sales tax holidays. However, Act 1 (2018) temporarily removed state sales tax holidays from the list of approved sales and use tax exclusions and exemptions. As a result, there will only be one Louisiana tax-free period in 2019, and it will only exempt qualifying products from local sales tax; state sales tax continues to apply.
States that could offer a sales tax holiday in 2019
Florida law doesn’t provide an annual sales tax holiday, and as of this writing, the state has not announced a 2019 sales tax holiday. However, Florida has offered tax-free periods in the past; in 2018, there was a disaster preparedness sales tax holiday in June and a sales tax holiday for clothing and school supplies in August.
2017 Wisconsin Act 367 established a sales tax holiday in August 2018. However, the act did not provide for a tax-free period in subsequent years.
We’ll update this blog as additional information becomes available.
Sales tax holidays and out-of-state sellers
With more and more states now requiring out-of-state businesses to collect and remit sales tax, sales tax holidays are likely to complicate sales tax compliance for more retailers than ever in 2019. For an up-to-date list of states with remote sales tax laws, visit this Avalara resource page.