No Sales Tax Break For Back-To-School Shopping

If you’re in the market for clothes, shoes, school supplies or computers, the first weekend in August is the time to buy.

That’s when Missouri is holding its annual Back-to-School Sales Tax Holiday, saving shoppers 4.225 percent in state sales tax on certain items. It begins at midnight Friday, Aug. 5 and ends at midnight Sunday, Aug. 7.

Items eligible for the tax exemption include:

• Clothing–an article of clothing can’t exceed $100;
• School supplies–up to $50 per purchase;
• Personal computers and peripheral devices-$3,500 or less;
• Computer software-$350 or less.

Click here for a complete list of qualified items.

Cities and counties within the state have the choice of whether to take part in the program. St. Louis County, which has a 2.7-percent tax rate, has opted to waive its taxes during that weekend. However, Manchester and Town and Country are not waiving taxes during that weekend.

"The City of Manchester opted out of the sales tax holiday program several years ago," explained Franz Kraintz, Director of Planning, Zoning and Economic Development.

Kraintz said Manchester opted out of the holiday in Feb. 2006 and cited the following city ordinance.

"The legislation does not provide for the reimbursement to local government for lost revenues. Municipalities depend on sales tax revenues to provide essential services for their citizens." Kraintz said those services include police, parks, streets, code enforcement, etc. "These sales taxes were approved by a vote of the people who expect the promised services."

Manchester's sales tax rate is 2.25 percent. There is an additional .75 percent in the South Manchester Transportation Development District and additional 1 percent in the Manchester Highlands area (except Costco).  

Including county and state sales taxes, the total sales tax rate in Manchester is 8.175 percent. In the Transportation Development Districts the total is 8.925 percent and at the Manchester Highlands (except ), sales tax is a total of 9.175 percent.  

In Town and Country, the sales tax rate is 2.25 percent. There is an additional .5 percent in the Transportation Development District at Woods Mill and Clayton roads, which includes Lamp and Lantern Village and Town and Country Crossing.

Including county and state sales taxes, the total sales tax rate in Town and Country is 8.175 percent and in the Transportation Development District the total is 8.675 percent.

"Even though sales tax revenues are up approximately 1 percent, the city will not be participating as prudent planning and responsible decision making militates against extending the tax relief at this continued difficult economic time," said John Copeland, Town and Country city administrator and police chief.

Neighboring cities, including Ballwin and Ellisville are also not participating in the tax-free weekend. However, shoppers can still receive the tax exemption on state and county sales taxes at businesses in all of these areas, including Town and Country and Manchester.

For a list of other cities not participating in the tax-free weekend, visit the Missouri Department of Revenue website.

Nearby Chesterfield is participating in the program and will waive taxes during that weekend. Chesterfield’s tax rate is 7.925 percent, which includes 6.925 percent in state and county sales tax. Chesterfield receives the remaining 1 percent—half of which goes to a park fund and the rest goes into a capital improvement fund.

Meanwhile, the sales tax rate is 8.3 percent for businesses in the Chesterfield Valley, such as Walmart and Target. In 2005, voters approved the creation of a Transportation Development District and a special sales tax on purchases made at businesses in the district.