Hoosier Sales Tax Holiday?

FOR IMMEDIATE RELEASE: Jan. 8, 2008 BATTLES INTRODUCES INITIATIVE FOR STATE SALES TAX HOLIDAY (INDIANAPOLIS) - As part of an ongoing initiative to protect Hoosiers from escalating tax rates, State Rep. Kreg Battles (D-Vincennes) has filed a bill that will provide for an annual two day sales tax holiday beginning on the second Saturday of August. The provision for the sales tax holiday is contained in House Bill 1039, of which Battles is a co-author. According to the legislation, any item purchased at a retail price of less than $2,500 would be exempt from the state’s sales tax during the holiday. Battles said that the legislation was designed to give working Hoosier families a break for their back-to-school purchases. “Second to Christmas, back-to-school shopping results in the highest grossing retail time period of the year,” said Battles. “Not only would this bill cut costs for families with school children, but it would also spur economic development since consumers would be encouraged to make large scale purchases that they may have originally been hesitant about.” While the sales tax holiday would take place during back-to-school shopping time, the tax exemption would not be limited to school related-purchases. Battles noted that this legislation is being introduced at a crucial time, since Governor Mitch Daniels is pushing a 1 percent increase in the state sales tax to finance property tax relief. “Providing property tax relief for Hoosiers that are in danger of losing their homes is the number one priority of the General Assembly for the 2008 session,” Battles said. “Since this may require a shift toward higher sales tax, it would be of great value to all Hoosiers for the General Assembly to provide a sales tax holiday.” HB 1039 has been referred to the House Ways and Means Committee. “I’m optimistic that my colleagues in the House will give this bill the time and consideration it deserves,” Battles concluded. “This legislation has my full support, and I will do what I can to see that it makes its way through the legislative process.”