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Area businesses prepare for state’s fourth sales tax holiday
By Justin Goble
With August comes the annual chore of back-to-school shopping, but the General Assembly aims to help make it easier with the state’s fourth annual state tax holiday, Aug. 5-7.
During the 2001 budget crisis, the General Assembly raised the sales tax to 7 percent. In an effort to lessen the tax burden, the Assembly voted to create a tax-free weekend to assist parents on back-to-school items for their children.
During the tax-free weekend, clothing, shoes and school supplies costing less than $100 per item are exempt from sales tax. Computers under $3,500 also qualify for tax exemption.
Retailers have high expectations about this year’s tax-free weekend. Analysts claim that June’s retail sales were the best in five years, and many are hoping that the sales figures will carry over into August.
“June’s robust sales by the nation’s retailers was a pleasant surprise for those of is in the retail industry,” said Fran Preston, president of the N. C. Retail Merchant’s Association. “We’re especially excited about the sales tax holiday this year as the economy is finally picking up much-needed steam.”
“This weekend’s sales tax holiday will help North Carolina families better prepare their children for the start of school so they’re able to enter the classroom ready to learn,” N.C. Rep. Phil Haire (D-Sylva) said. “Friday through Sunday will be a great opportunity for families to save some money on necessary back-to-school items, while also supporting our local businesses.”
In Sylva, businesses are gearing up to handle the large numbers of back-to-school shoppers.
Pete Newbold of Wal-Mart was enthusiastic about the upcoming tax holiday.
“We’re selling the goods!,” he said. “It’s a pretty big weekend, especially with the school year pressed back.”
Though not running any special sales outside of the tax holiday, Newbold said that the store expected a large influx of customers. In preparation, he said a staff increase is needed to accommodate the influx of shoppers.
“We have to get the right amount of cashiers and sales floor help,” he said.
Connie Sutton, manager of Goody’s, said that the annual event is one of the year’s biggest sales.
“It’s overwhelming each year,” she said. “It’s three of our bigger days, especially in the summer. It’s like a mini-Christmas in August.”
In addition to the tax holiday, Sutton said that Goody’s will run special sales.
Like the holiday shopping season, Sutton said the weekend will bring large crowds. And though management is doing what they can to ease the burden, shopping will be harder than normal.
“We overstaff for the event, and we run extended hours,” she said. “But there will be long lines at the registers.”
Lynda Sossamon, owner of Radio Shack, was also optimistic about the holiday.
“We hope to sell things,” she said. “Of course, we have computers, printers and calculators. We’ve contacted schools to see which calculators they need.”
Like Wal-Mart and Goody’s, Sossamon said Radio Shack is planning to have a larger staff on hand than normal. But, due to the store’s emphasis on computers and technology, she does not expect the same volume of customers as other stores.
“We get more traffic in, but I think more people will buy clothes and notebooks,” she said. “(However), some people do take advantage of the tax holiday to buy a computer, which will save them a bunch.”
Changes occurring this year mainly deal with computer hardware and software. Packaged software will be taxed, as will hardware that is not bought with a central processing unit.
Supplies such as blackboard chalk, cellophane tape, index card boxes, markers, pencil boxes, rulers and writing tablets will not be taxed.
Last year, $40.6 billion was spent on back-to-school items, making them a large percentage of third-quarter sales figures.
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