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Franchot wants sales tax holiday expanded

Maryland Comptroller Peter Franchot would like to see the governor and General Assembly expand what merchandise is covered under Maryland’s tax-free week during the annual state-subsidized sale.

The week-long tax break for clothes and shoes under $100 wrapped up last weekend, and Franchot said during Wednesday’s Board of Public Works meeting the temporary tax break came as a relief to Maryland families, especially those with children preparing to go back to school.

With the students in mind, Franchot said eligible merchandise ought to be expanded to include back-to-school items such as backpacks.

“Other states do that and I think it would be equally well received and successful” in Maryland, Franchot said.

Franchot’s office estimates that the state forgoes $5 million in tax revenue during the sales tax holiday but drums up lots of business for local retailers.

The Washington, D.C.-based Tax Foundation was critical of the tax break this year, saying it does not increase purchases but instead  just changes when people make their purchases.

One comment

  1. Does it “drum up business” or shift when consumers make purchases they would make anyway?