Proposed Sales Tax Holiday Delayed, Awaiting Approval
Voting on proposed legislation for a nationwide sales tax holiday has been postponed and passage of it may not take place until early next year, according to officials with the National Retail Federation. Originally planned as a tax break for the holidays, the bill, S.1643, is now in line to take effect possibly around Feb. 15, said J. Craig Shearman, senior director of media relations for the National Retail Federation, the retail trade association that has participated in the development of the bill.
Proposed by Sens. Patty Murray, D-Wash., and Olympia Snowe, R-Maine, the bill calls for a 10-day nationwide suspension of sales tax collected by states and cities. If Congress approves the measure before it adjourns this year, state legislatures, which must also adopt the bill, can take up the vote when they reconvene in January, Shearman said.
Retailers and experts had hoped earlier legislation would give a boost to the critical fourth quarter in the sales cycle, but they still see an upside with the new date.
“Regardless of the timing, the bill would be the most immediate act of stimulation to take effect,” Shearman said. —Nola Sarkisian-Miller
