Retail Federation calls for annual back-to-school sales tax holiday

The Florida Retail Federation is calling on lawmakers to bring back the back-to-school sales tax holiday this year.

A new study by The Washington Economics Group that examined the impact of the 2010 back-to-school sales tax holiday confirms that increased spending during the three-day period translated to augmented tax revenues for Florida. 

According to the report, the sales tax holiday generated $115 million more in taxable sales when compared to the same weekend from the previous year without a sales tax holiday.

The study found a $7 million net increase in tax revenues to the state over and above what would have been collected without any tax break incentive.

The study also surveyed five major Florida retailers during last year’s sales tax holiday weekend and found that store traffic, transaction counts, and payroll hours all increased as well. 

The three-day sales tax holiday is designed to give parents a break on school essentials such as paper, pencils and even inexpensive clothing.

Currently the sales tax holiday has to be approved by the legislature every year, but the Retail Federation said they would like it to be made an annual occurrence.

A bill to do that will be considered by the legislature this year.

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