Alabama’s back-to-school sales tax holiday will move from the first full weekend of August to the third weekend of July under Act No. 2017-120, which the governor signed into law March 29, 2017.
This summer’s tax holiday will be July 21 to 23 instead of Aug. 4 to 6 as previously scheduled. The legislation that made the change – SB136 / HB132 – was sponsored by Sen. Tim Melson, R-Florence, and Rep. Lynn Greer, R-Rogersville, at the request of the Alabama Revenue Department.
The date change ensures the tax holiday will occur every year before the start of the school year throughout the state.
Twice since the sales tax holiday’s inception, sales tax collections experienced a decline in the month of August (See graphic). Both years, the tax holiday occurred at the absolute latest possible time it could, Aug. 7-9, well after most schools had started classes, making it impossible for parents to take advantage of the tax savings.
Alabama Retail championed this tax holiday and made its passage our top legislative priority in 2006, the year the holiday began. During this legislative session, your association advocated to have the tax holiday start on the third Friday of July each year.
Expect further communications on this date change from your association, especially if you sell the items covered by the tax holiday – school supplies, clothing, books and computers.
This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!