State says tax holiday cost it $26M in revenue
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Consumers saved an estimated $25.9 million in foregone sales tax during last weekend's sales tax holiday, according to the Department of Revenue (DOR), which will issue a report on the impacts as part of a December certification process.
The lost sales tax revenue was greater last weekend than the $24.6 million in 2013, or any year prior, according to data provided by spokeswoman Maryann Merrigan.
The DOR is also planning a tax amnesty program in December. The program was ordered in the annual budget, and proponents say they hope it will bring an influx of revenue without the need to raise taxes.
Eligible individual or business taxpayers will receive notices in the mail and will have a window from Sept. 1 through Oct. 31 to pay back taxes with interest, while avoiding penalties.
Though the sales tax holiday has become something of an annual tradition -- having occurred every year since 2004, except 2009 -- policymakers have expressed concern that neither the tax amnesty program nor the sales tax holiday should be seen as a given or else consumers and taxpayers could plan ahead for it, timing purchases they would have made anyway and relying on amnesty as a fallback.
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