The Ashland City Council is following Columbia and Boone County in taking initial steps to opt out of the state sales tax holiday.
“I don’t see why we need a sales tax holiday,” Linda Miller, Second Ward representative, said, noting economic conditions and the Bush administration’s recent tax cuts as reasons Ashland would not want to give up tax income.
The holiday, which would take place on the second weekend of August 2004, temporarily lifts the 4.225 percent state sales tax.
Under the legislation, state taxes would not be charged for some clothing, computers, software and school supplies.
“We don’t see a lot of school clothes sold here in Ashland,” City Administrator Ken Eftink told the Board of Aldermen on Tuesday.
He speculated that the tax holiday would create difficulty for the businesses that would have to synchronize inventories and computers to calculate the tax break.
“The Missouri Municipal League was very concerned about the state legislature tampering with local sales tax,” Eftink said.
Because the Ashland Board of Aldermen plans to opt out, city and county taxes of 2.5 percent will still be charged during the tax holiday.