I have been reading that a back-to-school tax holiday bill is sitting on the governor’s desk awaiting his signature.
I principle this sounds like a great idea to help parents buy needed back to school clothes and supplies. I doubt that our lawmakers have given much consideration to the logistics involved. While the law may help the parents this could be a nightmare for businesses.
Every business that sells the type of merchandise covered must be able change their point of sales systems to be able to switch the sales tax free from the current rate to zero. Not on all merchandise but on just on the types of merchandise covered. Three days later the businesses need to be able to switch the rate back.
If merchandise from the sales tax holiday is returned the business must be able to differentiate between merchandise covered and not covered or within the holiday period.
If notebooks or computers are covered can businesses stock up during those three days? Will all clothes be covered or just for students? How would you determine what clothes are covered and what is not?
I just think that the sender extra burden put on business will cause a lot of hardship especially for small businesses.