Sales tax is something that many people are used to. It has been around for years, and it typically is always going up. Whether it is local government increasing their take from sales tax, or it’s the state government boosting their overall take – taxes are a part of life – like it or not. That’s why this weekend, or tax-free weekend as it’s been dubbed, is such a big deal. The tax holiday was created by the government and consists of 12 states, which participate in the event – geared toward creating more opportunity for those who simply don’t have the money to spend otherwise.
Craig Shearman of the National Retail Federation pointed out that, “This is literally about putting clothes on children’s backs.” The NRF spokesman went on to point out that, “We estimate families will spend around $630 on back to school this year. If you take 5% off, that’s over $30, which could be a whole outfit, a school uniform, a backpack, a pair of shoes or winter coat.” According to the experts and retailers, this weekend is about doing more for the people who keep them in business 365 days a year.
However, the retailers also have a big take from this weekend. Without having to contend with sales tax, they are allowed to flawlessly gain shoppers and profits. The increased traffic, and the combination of good deals, which are frequent through back to school season – mean good things for the retail world. The 12 states which will be participating this weekend are, Alabama, Florida, Iowa, Missouri, Louisiana, New Mexico, Ohio, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. The catch is that most of the states are in the south, whereas states in the north will continue to see traditional tax days.
The focus is on the kids, so the items that will be included in tax-free weekend are items that are considered essentials for things like school. Some states have less-stringent requirements while others are very specific about what shoppers can buy. Either way, it’s beneficial as most states include back to school supplies, like paper products, pencils, notebooks, and more. Many have pointed out that things like layaway and online shopping are also eligible for tax-free weekend. That is important since some families will not have the money to put down on items today. However, many states have done a great job of marketing this event long beforehand.
Some stores are even going to be open later this weekend because of the event. That’s worth noting since the typical season for stores to be open late is a lot later in the year – when the snow will be flying in some of those northern states like Ohio.