During Alabama’s recent sales tax holiday, NFIB encouraged shoppers to take advantage of the opportunity to save money while supporting locally owned small businesses.

The tax-free weekend, which ran from Friday, July 18, through Sunday, July 20, exempted certain purchases including clothing, school supplies, books, and computers from state sales tax. The exemption applied in most counties and municipalities, although some jurisdictions continued to collect local sales taxes.

NFIB State Director Rosemary Elebash said the tax holiday was a valuable chance for families to stretch their dollars and support the small businesses that are the backbone of Alabama’s economy.

“Small businesses create jobs, support our schools, and give back to their communities through donations and sponsorships,” Elebash said. “When you shop at a locally owned business, more of your money stays right here in Alabama, helping pay employees, buy supplies, and fuel additional economic activity.”

NFIB noted that for every dollar spent at a small business, an average of 67 cents remains in the local community. An additional 50 cents is generated through employee wages and other local purchases, creating a ripple effect that benefits the broader economy.

This year’s tax holiday came as many small businesses continue to navigate a challenging economic landscape. According to NFIB’s latest Small Business Economic Trends report, the national Small Business Optimism Index edged down slightly in June to 98.6—just above the 51-year average. Top concerns include taxes, inventory levels, and fluctuating consumer demand.

“Events like the sales tax holiday are a good reminder of the power of shopping small,” Elebash said. “They’re not just feel-good moments—they’re real opportunities to make a difference in your local economy.”