A tax holiday is a date range during which a government does not impose taxes or imposes reduced tax rates. Tax holidays are intended to spur economic activity, usually for specific industries or for items needed by taxpayers. They may be applied to individuals or businesses, depending on the intent of the taxing authority. Tax holidays have been applied to multiple types of taxes, including property taxes, income taxes, and sales taxes. Several examples of sales tax holidays are:
No sales tax for a period just prior to the start of the school year on school supplies, to assist low-income parents with their purchases.
No sales tax on hurricane preparedness items, such as portable generators and hurricane shelters, just before the start of the hurricane season.
Purchases of Energy Star products.