Here comes some relief for Maryland shoppers.
Consumers who purchase clothing and shoes priced $100 or less will be spared the state’s 6 percent sales tax for one week.
No tax will apply to the sale of any items of clothing or footwear, excluding accessory items, if the taxable price of the item of clothing or footwear is $100 or less. Accessory items, which are not exempt from the sales and use tax during the tax-free week include jewelry, watches, watchbands, handbags, handkerchiefs, umbrellas, scarves, ties, headbands, and belt buckles.
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. I wrote about last year’s tax free week here.
Each qualifying article of clothing or footwear is exempt from sales tax, regardless of how many items are purchased at the same time. Two $60 sweaters purchased at the same time, for example, are both exempt, even though the total of the purchase is greater than $100. called for $4 trillion. In the near future, it will be important to watch the other major credit rating agencies, such as Moody’s and Fitch, to see if they follow the lead of S&P’s decision.