Retail and Development

NC does not participate in tax-free weekend. What happened to the sales tax holiday?

Back-to-school season can be an expensive time for families needing to stock up on school supplies, clothes and more for their kids.

To help lessen the burden and promote shopping, some states waive their sales tax on certain school-related items for brief periods in late summer.

North Carolina did have a tax-free weekend for many years, but the program was halted in 2013. Still, other states in the region have continued the promotion, with dates set ahead of the start of the school year in many districts.

Here’s what to know about what happened to North Carolina’s tax-free weekend and how the program works in neighboring states:

When did NC get rid of tax-free weekends?

North Carolina’s tax-free weekend program, which began in 2002, ended in 2013, The News & Observer previously reported.

The state legislature ended the program as part of a tax reform package that reportedly lowered personal and corporate income taxes in North Carolina.

Why did NC get rid of tax-free weekends?

State lawmakers who supported ending tax-free weekends said at the time the state was losing out on millions in revenue during the sales tax holidays. N.C. lawmakers said the state had lost more than $13 million in revenue from the tax-free weekend in 2013, the last year it was conducted.

Critics of the move argued that that amounted to millions in savings for consumers. Bills have been introduced to restart the program, but none of them have advanced in the legislature.

South Carolina tax-free weekend

North Carolina may no longer do tax-free weekends, but just south of Charlotte in South Carolina, they’re still an annual occurrence.

In 2023, the state’s tax-free weekend runs from Friday, Aug. 4 through Sunday, Aug. 6. Certain goods “can be purchased online and in-store without paying the state’s 6% Sales Tax and any applicable local taxes” during the 72-hour window.

“Tax-free items include computers, printers, school supplies, clothing and accessories, shoes, and certain bed and bath items,” the South Carolina Department of Revenue says.

You can see the full list of what is and isn’t included in South Carolina’s sales tax holiday at dor.sc.gov/taxfreeweekend.

Virginia and Tennessee also have tax-free weekends, but Georgia does not.

This story was originally published August 2, 2022 at 7:00 AM.

Mary Ramsey
The Charlotte Observer
Mary Ramsey is the local government accountability reporter for The Charlotte Observer. A native of the Carolinas, she studied journalism at the University of South Carolina and has also worked in Phoenix, Arizona and Louisville, Kentucky. Support my work with a digital subscription
Get unlimited digital access
#ReadLocal

Try 1 month for $1

CLAIM OFFER