Alabama's seventh annual sales tax holiday for school-related items starts Friday. Items from pencils to computer equipment are exempt from the state's four percent sales tax as well as sales tax in participating counties and cities.
The holiday is expected to help businesses and customers alike but a new report says such holidays are poor tax policy. Joseph Henchman is vice president for legal and state projects for The Tax Foundation. He says when you get down to it, customers aren't really saving that much money.