Studies show the average family with school-aged children is expected to spend almost $550 on back-to-school items. That's up more than $100 from last year, but parents get a break in Alabama this year.

Jennifer Wright has two children who go to Northside Methodist Academy in Dothan. She has a lot of back to school shopping to do, but she's waiting until next weekend to cash in her savings.

“I do it on a tax free holiday because every little bit counts,” said Wright

Barbara Cummings is the assistant manager at Dollar General in the Circle City. She has been hard at work the last week stocking shelves with back to school items.

“We have set up everything such as supplies, pencils, paper, dishes, everything,” said Cummings.

This is the first time the city of Dothan and the state of Alabama has ever held a sales tax holiday.

Dothan is not sure how much they will lose but they are guessing somewhere between 80 and $200,000.

City of Dothan Finance Director Angela Palmer said, “Last year we made $41 million in revenue, so that's not really that much.”

But for families like the Wrights it's a big help, especially when you have more than one child.

The Alabama tax-free holiday begins next Friday, August 4 and ends at midnight Sunday August 6.