The holidays that suck... 💩

Hello readers of trash!

Before we begin, I want to extend my heartfelt condolences to the countless individuals who tragically lost their lives in the recent Lahaina fires in Maui. My thoughts are with the thousands of families whose homes were uprooted, and I wish them strength during this challenging period. 🙏 

If you are an individual or a business that was impacted, please reply to this email. I am happy to connect you with resources who can help on any front (not limited to sales tax).

As we reflect on the importance of community support in times of adversity, let’s see what treasure bits have been thrown out this week:

• Sales tax holidays are Lose-Lose 🤡

• September changes, take note 🚨 

• Eat more ice cream, pay less taxes🍦 

• Meme of the week 😂 

• Q from you - “Do we participate in sales tax holidays?” 🙋‍♀️

Tis’ the holiday season 🎁

If you aren’t living under a rock, you’re well aware we are in the midst of sales tax holidays aka tax free weekends (full 2023 list)… unless you’re in one of the 32 states without a sales tax holiday.

Consumers: this is the time to shop till you drop (disclaimer: this isn’t professional advice).

Sales tax holidays were initially implemented to boost the economy, but… as with many government initiatives… the reality is that they don't and here's why:

1. Shifting Sales Timing: They shift the timing of purchases from one weekend to another vs. increasing sales

2. Revenue Loss: Loss of tax revenue from tax-free items > Increase from taxable goods through "impulse buying"

3. Limited Consumer Discounts: Retailers react to the influx of shoppers by raising prices or diluting promotions...resulting in minimal discounts for consumers.

In general, sales tax holidays pose administrative challenges for brands AND state & local governments.

Given these factors, it begs the question... why do we continue to have sales tax holidays?

Sales tax holidays explained → 

🚨 Goin’ around the states 🚨 

Starting September 1, Alabama is reducing the state sales tax on food from 4% to 3% (separate from the local sales tax). The September 2023 returns will have a separate columns where qualified food items must be reported.

Starting September 1, Texas is eliminating sales tax on family-care products like diapers, baby wipes and period products. Massive win. 🏆

New York state authorized 47 counties and a few cities to continue imposing an additional local NY sales tax between 0.125% to 1.5% until November 2025 (previously expired Nov. 2023).

Forget the pint, go for the gallon 🍨   

Next time you scarf down a whole tub of ice cream, don’t feel so guilty! It’s good for your wallet.

In California, Florida and Maryland, a pint of ice cream is considered a SINGLE serving of ice cream, but how does this save you money?

Just like a single scoop, ice cream in containers of a pint or less are taxable.

According to state governments, they are ready to be eaten by a single person.

So next time you're in the grocery store, pass the pint and go grab yourself a quart or gallon… you’ll be saving on sales tax 😋

Learn more ridiculous product taxability rules →

😎 First, the meme of the week 😎

🌟 Partner Spotlight 🌟

Entreprenista is a media company, podcast network and membership community dedicated to celebrating the stories of women founders & leaders, and sharing lessons learned from founders who are paving the way forward.

Interested in joining? Just reply to this email and I can make a direct intro.

🙋‍♀️ You ask, we answer 🙋‍♂️

Q (Ravi): Do I have to participate in all sales tax holiday?

A: In some states, sales tax holidays are mandatory but other states allow retailers to opt-in or out. Most states won’t penalize you for giving them more money. That said, it’s risk to your business.

Also, you could potentially loose customers to competitors who are honoring the sales tax holiday. This can have other long term ramifications for the business.

Struggling with Sales Tax?

This veteran team of sales tax experts will answer all your questions and address any concerns for no charge.

If you need a sales tax assessment, tell them you came from Trash Talk and they’ll throw in a nexus study for free.

Get sales tax off your plate today.

Thank you for reading along. I’ll be back next Sunday with more sales tax shenanigans.

If you enjoyed this one, please share it with your network. 🤝

If you caught a laugh, reply back and let me know. I live for the people.

If you have any feedback, suggestions or questions, please let me know by responding to this email or DM me on Twitter or LinkedIn.

Until next week’s 🗑 …

Rohit