Tax holiday
From Tax Rates Wiki
A tax holiday is a temporary reduction of the sales tax rate, often to zero. This can be applied across the board, or to a very narrow geographic region, product type or time window.
Back-to-school shopping is a popular example of product-type and time-window tax holiday. A historic downtown district would be an example of a narrow geographic region.
A tax authority would typically create a tax holiday to stimulate the local economy, or a particular facet of it. A recent study indicated that tax holidays may actually increase sales tax revenue because they stimulate shopping across a broader section of the economy.
Tax holidays can start and end at any time. Static tax rate tables don't always include tax holidays. On-demand sales tax automation is a more robust solution for companies who are looking to lower the risk of audit exposure.
