Associated Press: Oklahoma Tax Holiday Is Little Relief

By Tim Tally

Figures provided by the commission indicate that in 2008, the first year the sales tax holiday was in effect, shoppers saved $6.4 million in sales taxes on clothing and footwear. Last year, shoppers saved more than $7.2 million, and this year the commission estimates shoppers will save almost $7.3 million in sales taxes.

But the Institute on Taxation and Economic Policy, which works on federal, state, and local tax policy issues to promote tax fairness and sustainability, said the three-day statewide sales tax exemption provides no tax relief for low- and moderate-income taxpayers throughout the remainder of the year.

“It does provide a finite break from paying sales taxes on certain items,” said Meg Wiehe, director of state policy for the institute. “But a sales tax holiday does nothing to change the upside down feature of regressive tax systems.”

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