Published: August 16, 2006 09:51 am      

Tax holiday

Maryland waives its 5 percent tax for clothing next week

Tri-state residents considering the annual back-to-school shopping chore may want to delay their trip to the department store until next week, when the state of Maryland offers a tax-free holiday for such transactions.

Maryland's Sales Tax Holiday is scheduled for Wed. Aug. 23 through Sunday, Aug. 27. In a bid to keep shoppers from crossing state lines for back-to-school buys - and to lure other states' shoppers to Maryland - the state is waiving the 5 percent sales tax for most clothing and footwear priced up to $100.

Among the groups backing the event - the first since 2001 - is the Maryland Retailers Association. MRA President Tom Saquella said shoppers may also see special promotions and sales offered in conjunction with the tax free holiday.

"The 2001 tax free holiday was very successful and we expect this year to be even bigger," he said.

The event is also being promoted by the Maryland Office of Tourism Development.

"Tax-free shopping in Maryland is not only great for Maryland residents, but also great for our tourists, many of whom come to Maryland specifically to enjoy our great shopping experience," said Aris Melissaratos, secretary of the Maryland Office of Tourism Development.

In the wake of the 2001 tax free holiday, the Comptroller's Office reported that the week generated an additional $80 million in retail sales, helping to offset the loss of sales tax revenue to the state.

For more information, visit marylandtaxes.com.