Sales tax holiday considered in Colorado

AP News
Posted: Feb 09, 2012 10:19 AM
Sales tax holiday considered in Colorado

Clothing and school supplies would be tax-free during an annual Colorado "sales tax holiday" that cleared its first hurdle in the state House Wednesday.

The House Finance Committee voted 8-5 in favor of waiving sales taxes on back-to-school items for a short period each August. But the committee put a big condition on the idea _ the sales tax holiday would happen only if the state comes up with $6 million or so to pay for it.

That's how much legislative analysts predict consumers would save each year on sales taxes. The measure now heads to the Finance Committee, with no recommended source of funding. That gives the tax holiday long odds of becoming law.

Colorado lawmakers have considered similar proposals in previous sessions.