Md. Tax-Free Week Starts Monday

ANNAPOLISComptroller Peter Franchot is encouraging shoppers to take advantage of Maryland’s tax-free week, which begins Sunday, Aug. 9, and runs through Saturday, Aug. 15.

During that time, any single, qualifying article of clothing or footwear priced $100 or less – regardless of how many purchased – will be exempt from the state’s 6 percent sales tax.

“Shop Maryland Tax-Free Week is a great opportunity to get deals on back-to-school clothes or to refresh a tired wardrobe,” Franchot said. “During these tough economic times, having a break from the 6 percent sales tax on shoes and clothing can make a real difference for families, enabling them to save more of their hard-earned money. Retailers also benefit with a boost in revenue. The savings can really add up for families, putting more money in their pockets.”

The comptroller will be promoting the annual shopping event at various retail locations throughout the state to encourage shoppers to take advantage of the sales tax break on back-to-school clothes and shoes. He will visit shops and stores in Baltimore, Baltimore County, Annapolis, Queenstown, Bethesda and Waldorf.

“Back-to-school shopping is the second biggest shopping season for retailers,” said Maryland Retailers Association spokesperson Tom Saquella. “Tax-Free Week has become a welcomed opportunity for consumers to save on clothing and footwear as they prepare for the new school year, and also for adults looking to buy something from the new fall clothing lines. Tax-Free Week is a wonderful gift provided every year to Maryland taxpayers and you can count on Maryland retailers to do their part with great sales and promotions.”

Resulting from legislation passed in the 2007 special session of the Maryland General Assembly, a tax-free week will occur every year during the second week in August, until the legislature decides to revisit the issue. During this period, each qualifying article of clothing or footwear selling for $100 or less is exempt from sales tax, regardless of how many items are purchased at the same time.

Businesses selling items that are not eligible for inclusion in the tax-free week can still participate in the program. Under “Sellers Privilege,” other unqualified merchandise can be sold tax-free but the retailer is responsible for paying the sales tax owed to the state.