A North Dakota state senator wants a new holiday - a sales tax holiday.

A dozen states and the District of Columbia already have short periods when shoppers may buy a variety of goods without paying sales tax, said Sen. Mike Every, D-Minnewaukan.

"For at least some retailers, this previously slow period has become their third-largest sales event of the year, behind only Thanksgiving and Christmas," Every told the Senate Finance and Taxation Committee on Wednesday.

"The Texas retailers' association reports that small-town retailers have said the holiday has re-created the back-to-school shopping period," Every said.

The bill would establish an annual, weeklong sales tax holiday, beginning on the first Friday of August. Sales of clothing and shoes costing less than $100 would not carry sales tax.

North Dakota's Tax Department estimates the measure would save shoppers $2.2 million over two years.

Sen. Dwight Cook, R-Mandan, said the bill could burden retailers. Stores would have to deal with shoppers purchasing taxed and untaxed items at the same time, and small businesses may not have cash-register systems that are sophisticated enough to handle it, he said.

Cities could suffer, too, said Connie Sprynczynatyk, director of the North Dakota League of Cities. Since cities are only allowed to tax items that the state taxes, the law would eliminate local sales taxes during the holiday period as well.

Sprynczynatyk said the loss of revenue would make it more difficult to keep property taxes down and pay for city services.

"It will have an impact. What I cannot tell you, is what that impact will be," she said.

Russ Hanson, director of the North Dakota Retail Association, said the legislation would help North Dakota stores compete with neighboring states. Minnesota already does not tax clothing, and Montana has no sales tax, Hanson said.

Rick Clayburgh, the state tax commissioner, said there was no data that sales tax holidays lead to additional sales. However, it would provide some temporary tax relief, he said.

"Will there be some increased sales and increased activity?" Clayburgh said. "I believe there will be. I don't know to what extent."

Every is also sponsoring legislation that would permanently exempt nonprescription drugs and other items, including acne medication, cough drops and smoking cessation aids, from sales taxes. North Dakota has a 5 percent sales tax, and dozens of cities have local taxes. The most common rate is 1 percent.

The Senate Finance and Taxation Committee changed the proposed nonprescription drug exemption to conform to other sales tax rules, but the panel did not endorse either bill on Wednesday.

"We do not tax necessities like food and prescriptions," Every said. "The state should not be taxing the aspirin a senior citizen may need for their arthritis, or the cold medicine a working mom needs for her sick child."

The sales tax holiday bill is SB2056. The nonprescription drug tax exemption bill is SB2054.