Read extensive and consolidated details about 2022 Tax Free Weekend Missouri. Also, learn about exempted items.
Did you come across the news about tax exemption in the United States and Canada? The tax holiday has been exercised in the USA for over a decade. Did you know why the tax holiday was announced this year in certain states of the US? Would you like to know on which items tax will be exempted? What are the disadvantages of tax holidays?
Let’s know more about 2022 Tax Free Weekend Missouri.
Tax Free Weekend:
The inflation in the USA has reached 40 years high. Amid the inflation, the schools are going to reopen soon. Households are in the process of recovering from the aftermath of the Covid pandemic. It was determined that sales tax holidays have begun; hence, it is a matter of timing your purchases to get tax exemption.
In Missouri, sales tax will be exempted per item of value:
- Clothing <= $100/item,
- School supplies of <= $50/item,
- Computer software <= $350/item,
- Personal computers <= $1,500/item,
- Computer peripheral devices <= $1,500/item, and
- Graphing calculators <= $150/item.
When Is Tax Free Weekend 2022?
The sales tax holidays will start on 25th July 2022 and until 17th August 2022 in various states of the USA. in Missouri, the Tax Free Weekend will start on 5th-August-2022 and ends on 7th-August-2022.
It must be noted that the sales tax holiday will exempt ONLY school supplies.
Why Tax Free Weekend is a big relief?
In the National Retail Federation annual survey, it was revealed that in 2019, parents used to spend approximately $697 on back to school supplies. But, post-pandemic and due to rising inflation, the parents will spend $864 this year. Hence, 2022 Tax Free Weekend Missouri is necessary.
The additional burden on parents’ pockets is anticipated to result in lower retail sales. It is because:
- 24% of parents said that they would make their child use last year’s items,
- 40% of parents said that they are researching cheaper alternatives and discounts on the internet and considering buying online, and
- Only 38% of parents said that they would spend on back to school supplies by lowering their budget on other requirements.
Why Tax Free Weekend is sighted as a nuisance?
- The method of federal tax calculation on different retail items differs,
- The items are categorized based on NAICS and other business codes, and
- The 2022 Tax Free Weekend Missouri depends on price of an item.
Hence, it is a nuisance and a complicated process for retailers to exempt tax ONLY during tax holidays.
Seventeen states will stage sales tax holidays on different dates within the given period. In many states, the Tax Free Weekend has already started. It is a matter of taking advantage of sales tax exemption during these three days in Missouri. You will save a good amount if your back to school purchases are timed between these three days.
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