Taxes

School year start highlights tax break debate

Back-to-school tax holidays continue to be the most common.
Richard Evans, a teacher at Hyde Park Elementary School, helps Ke’Arrah Jessie sound out a word during a reading circle in class on Thursday, Oct. 20, 2022, in Niagara Falls, N.Y. (AP Photo/Joshua Bessex)

Shoppers in 19 states paid less for school supplies and other items during sales tax holidays this year, as state leaders continue to embrace a tax break tradition that policy analysts have long criticized.

Analysts on the left and right agree that eliminating sales taxes on certain items for a few days or weeks doesn’t spur people to buy more and can create administrative problems for businesses. They say lawmakers should rethink their sales tax instead.

Stay informed
Subscribe to keep reading.

Sign up today to get the latest state new at your fingertips and in your inbox.