During 2012, 18 states provided a sales tax holiday. Clothing, footwear, and school supplies were exempt from sales tax for a short period of time during back-to-school shopping season. Proponents of the sales tax holiday believe both consumers and retailers benefit from the reduced tax burden. Opponents argue that states lose valuable tax revenues by instituting a tax holiday. FOOF’s study reveals that if Ohio were to institute a sales tax holiday, it would not have significant impact.
This report was prepared for Focus on Ohio’s Future by the Economics Center of the University of Cincinnati.