ANNAPOLIS, Md. (CBSDC) – Parents are rejoicing with the institution of Tax Free Week just in time for back-to-school savings in Maryland.
Shoppers showed up to malls and retail outlets in droves in the state on Sunday. Tax Free Week is here until Saturday, giving parents the opportunity to save big on back-to-school supplies, and shoppers around the state to omit the usual 6% sales tax required to pay on retail items.
Maryland State Comptroller Peter Franchot says Tax Free Week costs the state about $10 million in lost revenue but it more than pays for itself in increased sales when shoppers buy non-tax-free items.
The shopping holiday tax break includes most clothing and footwear priced under $100.
Tax Free Week was approved by the Maryland General Assembly in 2007 and instituted for the first time in 2010.
Retailers in the state have reported a spike in sales during the tax-free period in the years of the its existence.