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Area cities participating in the event (according to the Department of Revenue website) include Dexter, Bernie, Advance and Sikeston. Cities and counties electing not to participate include Stoddard County, Bloomfield, Cape Girardeau, Malden, Kennett and Poplar Bluff. The state portion of the sales tax is still exempted in those areas.
By state law, the sales tax holiday begins on the first Friday in August and continues through the following Sunday. This year, the three-day holiday begins at midnight on Friday, Aug. 6, and runs through Sunday, Aug. 8. During this time period, the state's 4.225 percent sales tax will not be assessed on certain purchases made in Missouri. The local sales tax will be exempted in those cities and counties that participate.
"The Back-to-School Sales Tax Holiday benefits families because it gives them the opportunity to save more than 4 percent on the purchases of many clothing, school supply and computer items," said Alana M. Barragán-Scott, director of the Missouri Department of Revenue. "Families and students can begin to plan what they need to buy now and save when they make qualified purchases during the first weekend in August."
The director also noted that Missourians aren't the only ones who can save during the holiday.
"You don't have to be a Missouri resident to benefit during the sales tax holiday weekend," she said. "People from Kansas, Iowa, Arkansas, Oklahoma and the other border states are more than welcome to come to Missouri and save money on school supplies, clothes, personal computers and other items while they shop here."
The appropriate sales tax will not be charged on the following items during the holiday:
* Clothing that does not have a value of more than $100. The state's definition of clothing includes traditional apparel, including footwear, which is worn on or about the body. It also includes material to make school uniforms or other school clothing. It does notinclude accessories such as watches, jewelry, handbags, handkerchiefs, umbrellas, scarves, ties, headbands and belt buckles.
* School supplies, not exceeding $50 per purchase, that are used in a standard classroom for educational purposes. School supplies include, but are not limited to, textbooks, notebooks, paper, pens, pencils, crayons, art supplies, rulers, book bags, backpacks, handheld calculators, chalk, maps and globes. The definition for school supplies does NOT include watches, CD players, headphones, sporting equipment, portable telephones, copiers or other office equipment.
* Personal computers that don't cost more than $3,500 and computer peripheral devices that don't exceed $3,500. A personal computer can be a laptop, desktop or tower computer system which consists of a central processing unit, random access memory, a storage drive, display monitor, keyboard and other related devices. Peripheral devices include items such as a disk drive, memory module, CD drive, microphone, modem, motherboard, mouse, speakers, printer, scanner, sound card or video card. Computer software is considered a school supply and is free from sales tax if its value is less than $350.
Although anyone making qualified purchases does not have to be a student to benefit from the holiday, the sales tax exemption event is commonly referred to as the Back-to-School Sales Tax Holiday because it occurs near the beginning of the traditional school year for most students.
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That's a great idea to do this, too bad the rest of the country doesn't do it.
Yeah, and Missouri doesn't tax its residents to death like the states do, hence the 2nd cheapest gas in the US.
MISSOURI
Sales Taxes
State Sales Tax: 4.225% (prescription drugs exempt; food is taxed at 1.225%) Cities and counties as well as special taxing districts (such as fire districts) may impose a local sales and use tax that may raise the total tax by about 6%.
Gasoline Tax: 17.3 cents/gallon
Diesel Fuel Tax: 17.3 cents/gallon
Cigarette Tax: 17 cents/pack of 20
Personal Income Taxes
Tax Rate Range: - 1.5%; High - 6%
Income Brackets: Lowest - $1,000; Highest - $9,000 [Tax is imposed at a rate of 1-1/2 percent on the first $1,000 of taxable income and increases at a rate of 1/2 percent for every $1,000 increment up to $9,000. The tax rate is 6 percent on Missouri taxable income exceeding $9,000.]
Number of Brackets: 10
Personal Exemptions: Single - $2,100; Married - $4,200; Dependents - $1,200; Plus $1,000 for dependent 65 or older.
Standard Deduction: Single - $5,450; Married filing jointly - $10,900. Deduction increases for those age 65 and older.
Medical/Dental Deduction: Federal amount. Individuals may subtract from their federal adjusted gross income, qualified health insurance premiums and long-term care premiums, to the extent their premiums paid were not reimbursed by their employer, or excluded from their federal adjusted gross income.
Federal Income Tax Deduction: The state allows a deduction on your individual income tax return for the amount of federal tax you paid. The deduction is for the amount actually paid as indicated on your federal tax form.
Retirement Income Taxes: Missouri resident taxpayers are allowed a state income tax deduction for Social Security benefits received by individuals 62 years of age or older, Social Security disability benefits, and nonprivate retirement system benefits received by individuals 62 years of age or older, to the extent these benefits are included in federal adjusted gross income. To view the Social Security/Social Security Disability deduction chart and the public pension exemption eligibility chart, click here. Generally, the maximum amount of benefits that can be deducted is as follows: 35% for 2008; 50% for 2009; 65% for 2010; 80% for 2011; and 100% for 2012 and thereafter. However, in the case of nonprivate retirement benefits, the deduction is further limited to $6,000, and the amount of benefits for which the deduction may be claimed is limited to the maximum Social Security benefit amount for the tax year. A single taxpayer, head of household, qualifying widow(er), or married taxpayer filing a separate return with an adjusted gross income of $85,000 or less or a married taxpayer filing a combined return with an adjusted gross income of $100,000 or less will qualify for the maximum deduction. If a taxpayer's adjusted gross income exceeds the ceiling amount for the taxpayer's filing status, the deduction will be decreased by $1 for every $1 by which the taxpayer's income exceeds the ceiling amount. If a taxpayer receives both Social security benefits and nonprivate retirement benefits, the maximum deduction for the nonprivate retirement benefits will be decreased by $1 for every $1 of Social Security benefits received by the taxpayer that are not included in Missouri adjusted gross income.
Retired Military Pay: For individuals with a modified state adjusted gross income of less than $25,000 or a married couple with a combined income of $32,000, a government pension exemption of up to $6,000 is allowed. If a husband and wife each receive a government pension, each can qualify for an exemption of up to $6,000. SBP benefits are taxed following federal rules.
Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation: VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
Residential property is assessed at 19% of its fair market value. Personal property is assessed at rates ranging from 5% to 33.3%. The Missouri Property Tax Credit Claim gives credit to certain senior citizens and 100 percent disabled individuals for a portion of the real estate taxes or rent they have paid for the year. The credit is for a maximum of $750 for renters and $1,100 for owners who occupied their home during the period being claimed. The actual credit is based on the amount of real estate taxes or rent paid and total household income.
The Homestead Preservation Credit gives qualified senior citizens and 100 percent disabled individuals a credit on their real estate property tax if those taxes increase 2.5 percent in a non-reassessment year or 5 percent in a reassessment year. The credit would be for the amount that exceeds the 2.5 or 5 percent increase in taxes. The act requires a legislative appropriation to fund the credit. If the funding is less than 100 percent, the credit will be a flat statewide percentage based on the appropriation amount. This credit will be applied against the taxes for the following year. Call 573-751-3505 for details or click here.
Inheritance and Estate Taxes
Since the IRS will no longer allow a state death tax credit for deaths occurring on or after January 1, 2005, no Missouri estate tax is imposed. Therefore, no estate tax return must be filed for deaths occurring on or after January 1, 2005.
For further information about state taxes, visit the Missouri Department of Revenue site.
You are right....Missouri doesn't tax us at all. What a state!