The 2010 Kentucky General Assembly won’t convene until January 6, but Steele told the Herald that this bill is an important piece of legislation and similar measures approved in other states have been successful, in some cases even drawing Kentuckians in search of better deals.
Rep. Steele’s bill seeks to create a three-day tax holiday in early August that would allow consumers to purchase certain items without having to pay the state’s 6 percent sales tax, or the 6 percent use tax on certain items purchased over the internet.
Steele said the holiday would take place just before the beginning of the new school year in Kentucky and help families with the cost of purchasing school supplies and new clothes each year. The bill will give breaks on clothing that cost less than $100 and a computers that cost less than $1,200. But ultimately the tax relief will be a way to help people save money at a time when they need it most.
“It might not seem like a lot of money to some, but to a lot of my people I work for that’s a whole lot of money and that helps them,” said Steele.
A few states have already implemented similar tax holidays. Tennessee is one such state, and Steele noted that he believes a similar tax break in Kentucky could help to keep business in the Commonwealth.
“People are going to Tennessee for this. North Carolina is very successful in this, too,” Steele said. “If it works in Tennessee and North Carolina . . . why won’t it work in Kentucky? Instead of us always taking from the people, we need to try to help.”
Steele added that he believes if his bill is signed into law it could also help businesses in Kentucky by keeping shoppers who may go to Tennessee for a break on clothing and school supplies stay inside the Commonwealth.
According to the Legislative Research Commission, Steele filed his legislation on September 18, and since that time he has already gained one co-sponsor in Rep. Fred Nesler of Mayfield.