House OK’s sales tax holiday

By a 102-56 vote, the House approved legislation by Rep. Mike Sutherland (R-Warrenton) creating the Independence Day Sales Tax Holiday.

If the bill passed the Senate, Missouri would see a sales tax holiday from July 4 through the end of the month. The sales tax holiday would sunset in six years.

“I think with the economy being kind of down and people not getting out to shop, retailers are having a hard time so I’m trying to do two things: give people a tax break and hopefully encourage them to go out and shop and get the retail economy going again,” Sutherland said.

The bill was referred to the Senate Ways and Means committee on Tuesday. A fiscal note attached to the bill estimates the holiday would cost the state more than $145,901,836 in FY 2010, more than $145,906,750 in FY 2011 and more than $145,909,954 in FY 2012.