Maryland shoppers won’t have to pay sales tax on most clothing and footwear during the state’s Tax-Free Week beginning Sunday.
The state will waive its 6-percent sales tax rate on all clothing and footwear items costing $100 or less during the event, which runs through Aug. 20.
Shoppers won’t have to pay tax on any of the items, even if their total purchase exceeds $100.
Budget analysts estimate the state will lose about $10 million in potential sales tax revenue through the promotion, which is designed to encourage shopping and help businesses.
Few estimates are available of Tax-Free Week’s business impact, but the Maryland Retailers Association says many of its member businesses reported sales increases of 10 percent or more during last year’s event.
“It got people shopping again,” said MDRA spokesman Patrick Donoho. “Hopefully in today’s volatile world it will have the same impact.”