Governor Riley Welcomes New Cities, Counties to Annual Sales Tax Holiday

FROM THE OFFICE OF THE GOVERNOR

July 28, 2008

FULTONDALE - Governor Bob Riley today welcomed more cities and counties to Alabama’s annual Sales Tax Holiday, thanking them for joining the state in providing tax savings for consumers and boosting the economy. During the weekend of August 1-3, Alabama shoppers will pay no state sales tax on certain items and no local sales taxes in participating cities and counties.

Governor Riley signed the Sales Tax Holiday into law in 2006, allowing cities and counties the option of waiving their own sales taxes to enhance savings for consumers and boost their local economies. Since then, the number of participating local governments has increased each year, with the number now at 241 cities and counties.

At Fultondale City Hall, Governor Riley commended Mayor Jim Lowery and the Fultondale City Council for recognizing the benefits of creating a tax-free environment for shoppers just in time for back-to-school shopping. The Jefferson County town is one of 21 cities and counties participating in the Sales Tax Holiday for the first time in 2008.

“This tax-free weekend really does make a difference for Alabama,” said Governor Riley. “With more and more local governments joining in, we’re providing even more savings for our families, more help for our retailers and a greater boost for our economy. It really is a win-win scenario for the government and the taxpayers.”

Mayor Lowery said the growth of retail in Fultondale made joining the Sales Tax Holiday an easy decision for his town of 6,600.

“We are thrilled to be joining the state for the first time in providing this one-of-a-kind tax savings to Fultondale shoppers,” said Lowery. “It gives our retailers a competitive advantage to be able to offer an additional tax savings on top of what the state is doing.”

Although the tax holiday is primarily focused on back-to-school shopping, a number of items will be free of the state sales tax:

clothing priced $100 or less

computers, software and computer supplies priced $750 or less school supplies and textbooks priced $50 or less other non-textbooks priced $30 or less

Also, there is no limit to the number of items that may be purchased tax-free as long as the purchase price of each of those items is below the amounts provided in the law. For a complete list of tax-free items and participating local governments, visit the Alabama Department of Revenue’s Sales Tax Holiday website at http://www.revenue.alabama.gov/salestax/SalesTaxHol.htm.

Cities and counties participating for the first time are:

Brantley (Crenshaw County)

Brilliant, (Marion County)

Coaling (Tuscaloosa County)

Falkville (Morgan County)

Fairfield (Jefferson County)

Clay (Jefferson County)

Fultondale (Jefferson)

Irondale (Jefferson County)

Glencoe (Etowah County)

Lamar County

Lexington (Colbert County)

Livingston (Sumter County)

Margaret (St. Clair County)

Odenville (St. Clair County

Moundville (Hale County) Pike Road (Montgomery County)

Ranburne (Randolph County)

Smiths Station (Lee County)

Sumter County

Thorsby (Chilton County) Woodstock (Bibb County)