Columbus retailers are banking on a state sales tax holiday July 31-Aug. 1 to bring a needed boost to their yearly revenues.
Storeowners across the area are optimistic the state”s first sales tax holiday will bring with it a flood of customers looking for back-to-school and work-related bargains.
“I think it will give us a huge increase in customer traffic,” said Perky Richard, general manager of the Belk department store on Highway 45 North in Columbus. “We have actually already had customers calling about the tax holiday. I think interest is definitely high.”
During the holiday, shoppers won”t have to pay the regular 7 percent sales tax on purchases of clothes and shoes that individually cost less than $100. Grown-up merchandise, including shawls, work uniforms, bow ties, religious clothing, golf dresses and support hosiery, also is eligible.
“I think it will definitely give us our fair share of business,” said Gail Culpepper, general manager of Leigh Mall on Old Aberdeen Road in Columbus. “We will actually have a back-to-school special where we give away a package and a $100 gift certificate the week before the tax holiday.
“That way, the winner can use the gift certificate during the tax holiday,” Culpepper added. “With the tax-free weekend, I think business in the mall will increase a tremendous amount.”
The Mississippi State Tax Commission has an A-to-Z list of eligible and non-eligible items but basically the tax savings will be on pants, shirts, blouses, dresses, coats, jackets, belts, hats, undergarments and garments sold as a set. Eligible footwear includes dress shoes, rubber thong flip-flops, sandals, tennis shoes and Jellies. But accessories such as jewelry, handbags and backpacks aren”t included in the savings.
The sales tax holiday, which passed in the 2009 Legislative session, begins at 12:01 a.m. July 31 and ends at midnight Aug. 1. All local state legislators voted in favor of the bill.
Fourteen states and the District of Columbia have sales tax holidays, including the three states surrounding Mississippi — Louisiana, Alabama and Tennessee.
Mike Law, general manager of the J.C. Penney department store in Leigh Mall, said the Mississippi tax holiday will help the state keep millions in profits within its boundaries.
“Judging by what has happened during Alabama”s tax holiday the past few years, I would say this will be a tremendous shopping weekend for us,” Law said. “The Mississippi tax holiday will actually fall about a week before Alabama”s, and I think that will help us out a lot.
“We need people to keep their money in Mississippi rather than going to Alabama,” Law added, noting he believes school uniform sales will skyrocket during the tax holiday. “It should bring us a lot of business.”
The sales tax holiday applies to each eligible item selling for less than $100 regardless of how many items are sold at the same time.
The Tax Commission offers this example: If a customer buys two shirts at $50 each, a pair of slacks at $75 and a pair of shoes at $110, no sales tax is due on the sale of the two shirts and the slacks, even though the combined cost exceeds the $100 threshold. However, sales tax is due on the entire $110 for the shoes.
This story contains reporting from Sun Herald reporter Lisa Monti.
Some rules for the July 31-Aug. 1 retail tax holiday:
A short list of what”s eligible and what”s not eligible for Mississippi”s sales tax holiday.
ELIGIBLE
Athletic socks
Baseball caps
Bowling shirts
Chef uniforms
Fishing vests (non-flotation)
Gym suits
Hunting vests
Jeans
Leg warmers
Panty hose
Scarves
Swimsuits
NOT ELIGIBLE
Aprons
Baby diapers
Fabrics
Jazz and dance shoes
Headbands
Life jackets
Safety shoes
Sports helmets
Wallets
Watches
Work gloves
Source: Mississippi State Tax Commission
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