Like much of the region’s work force in August, District sales taxes for the next week are taking a holiday.
The annual back-to-school D.C. sales tax holiday runs through Aug. 13. Any clothing, footwear, accessory and school supply costing $100 or less per item will be exempt from the city’s 5.75 percent sales tax.
The weeklong break costs the city between $500,000 and $600,000, said Cheryl Hobbs Newman, deputy chief financial officer for tax and revenue. But the District collected $63.5 million in total sales taxes last August, she said, so it’s “not a lot of money in terms of revenue loss, but it is a lot of good will.”
Virginia kicked off its first-ever weekend-long sales tax holiday Friday. Commonwealth shoppers are expected to save $3.6 million, according to the state’s Department of Taxation, though the official deal only applies to selected school supplies priced less than $20 each, or on clothing and footwear priced $100 or less per item.
Some retailers are extending the break on Virginia’s 5 percent sales tax to other items. Some stores will pick up the tax for computers and related equipment such as printers, ink and monitors.
The District, at the prodding of Council Member Carol Schwartz, has offered a sales tax holiday for years — not just in August but also at the start of the holiday shopping season in November. Mayor Anthony Williams said Wednesday it is “good to see [Virginia] following our lead.”
