Small Business Sales Tax Holiday

Several states are pushing for a Small Business Tax Holiday.  The idea is to allow customers to make purchases from of certain value from small businesses without having to pay sales taxes on them on Small Business Saturday (the Saturday after Thanksgiving).

So far Texas and Florida have proposed such bills that are making their way through their respective legislatures. 

In Texas the bill (TX HB2694) will allow businesses that collected and remitted between $50,000 and $312, 500 in sales tax during the calendar year ending September 30 will not have to collect sales tax on Small Business Saturday.  However, they will still have to collect local sales tax.  The Texas bill would limit the sale price of products to $5,000 or less. 

The Florida bill (Florida SB 384) will exempt small businesses from collecting sales tax on Small Business Saturday if they  collected and remitted less than $200,000 in taxes during the previous year.  This also applies tonewly created small businesses that exists as of November 28, 2015, has been inoperation for less than 1 year and has remitted less than $50,000 in taxes in at least 3 of the previous 12 months.

If enacted these measures would make small business products more attractive to consumers and give a boost to small businesses.

Sources:
Florida SB 384
TX HB2694

By Wendy Stewart