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The Small Business Sales Tax Holiday Movement

  • Apr 27, 2015 | Gail Cole

 Should small businesses be exempt on Small Business Saturday?

Update 11.30.2016: The Florida and Texas bills, as well as similar legislation in California, died.

Two states may not actually make a movement, but they could mean the start of new trend. Legislation under consideration in Florida and Texas seeks to create a Small Business Saturday Sales Tax Holiday in each state. The idea is to give small local businesses a boost by allowing them to not charge sales tax on one day.

Under the Texas bill (HB 2694), certain Texas businesses that collected and remitted between $50,000 and $312,500 in sales tax during the calendar year ending September 30 would not collect state sales tax on Small Business Saturday (the Saturday after Thanksgiving). Local sales tax would still apply.

Under the Florida bill (SB 384), certain Florida businesses that collected and remitted less than $200,000 in tax during the period October 1, 2014 – September 30, 2015 would not collect sales tax on Small Business Saturday.

Both bills are currently in committee.

Not charging sales tax for one day may boost business, but it will also require participating businesses to reprogram point-of-sale systems and retrain staff. In short, it will create more work.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.