Sales Tax Holiday May Become Permanent
In Ohio, consumers have been able to enjoy a sales tax free weekend for the past three years. The weekend only counts for clothing items up to $75 and school supplies up to $20 per item, so the big ticket expenses still get taxed. While the state loses approximately $16.3 million every year on these holidays, state lawmakers claim that the weekend provides an economic stimulus that outweighs the loss. In some cases, the economic stimulus actually increases sales tax revenue. Savings vary across the state, as sales tax rates range from 6.5% to 8%. The Ohio Senate has already approved a bill that would make this holiday permanent; if the bill passes the Ohio House, the sales tax holiday will take place the first Friday, Saturday, and Sunday of August.
Waukegan Sales Taxes Increase For Infrastructure
Waukegan, Illinois has long put infrastructure needs on the back burner, delegating tax revenues to more pressing concerns. In the meantime, infrastructure has deteriorated -- to the tune of $550 million dollars. The mayor cast a tie-breaking vote to raise the sales tax to 8.5% this summer, with the intent to funnel the extra funds towards infrastructure improvements. This .25% raise comes in conjunction with a rise in property taxes, as well as water and sewer rates.
Ride Services See Sales Tax for Mass Transit; Gas Sales Tax Increase For I-81
In Virginia, Senators are proposing applying a sales tax to ride-sharing services like Uber and Lyft. The Washington-metro area's mass transit system needs to raise $21 million to pay for new busses, as well as improvements to the Metro. Senators are also aware of the needs of rural Virginia. They just approved a 2.1% hike on motor fuels sales taxes, aimed at financing improvements to the 325 mile corridor of 81 that extends from Bristol to the West Virginia panhandle.