Look for Sales Tax Holidays

Many states have an annual sales tax holiday . This holiday is usually for a limited time, and it allows you to avoid paying state sales tax on certain items. This is one way that states draw more dollars as bargain hunters cross state lines. Additionally, it can be a good stimulus for local economies. And, of course, it saves consumers money.

Because of the recession and the drop in tax revenues, some states are forgoing their annual sales tax holidays. There are some states, though, that are continuing the tradition. But you have to be aware of which states are providing the break, and on what items. Also understand that in some states there is a limit on how much you can spend and receive the sales tax break . Kiplinger has a complete list of sales tax holidays in August , as well as some that can be taken advantage of September through November. Here are two examples provided by Kiplinger:

Alabama
* When : August 7-9
* How much : 4%
* On what : Clothing less than $100, computers less than $750, school supplies less than $50 and books less than $30

Connecticut
* When : August 16-22
* How much : 6%
* On what : Clothing and footwear less than $300

You can see that the discounts aren’t huge — in Connecticut it amounts to a savings of $18 when you buy $300 worth of clothing. However, it is still encouraging, and in this economy , $18 is still $18.

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