The District’s second sales tax holiday of the year kicks off at 12:01 a.m. Friday, traditionally the busiest shopping day of the season.
In addition to the back-to-school tax break offered in August, the nation’s capital also kicks its 5.75 percent sales tax to the curb from the day after Thanksgiving, Black Friday, until Dec. 3. The break applies to each piece of clothing, accessory or pair of shoes costing $100 or less — but does not apply to school supplies.
“You could literally spend thousands of dollars and pay no sales taxes,” D.C. Council Member Carol Schwartz, whose legislation established the two tax breaks, said in a statement. “We have great stores in the city, so I hope people will come discover our retailers, both big and small.”
The two tax holidays cost the District roughly $1.1 million a year, according to the Office of Tax and Revenue. But not everyone believes the breaks make good financial sense.
“We’re not too crazy about sales tax holidays,” said Ed Lazere, executive director of the D.C. Fiscal Policy Institute. “The research generally shows they don’t change behavior very much. They may affect the timing of when people buy but not how much they buy, so as aneconomic development tool they don’t do very much.”
For more information on the tax holiday, visit otr.cfo.dc.gov or call OTR’s Customer Service Center at 202-727-4TAX.
