Published: July 25, 2009 11:04 pm      

Important elusive holiday is coming up this weekend

We should all applaud the Legislature for implementing a sales tax holiday, which will be Friday, July 31 and Saturday, Aug. 1. We also should start hounding the Legislature to make it more progressive.

Articles of clothing and shoes up to $100 will be exempt from sales tax on those dates.

The sales tax holiday is designed to give parents a break as they purchase clothes for their kids for the upcoming school year.

Lt. Gov. Phil Bryant says other states with similar legislation have shown the sales tax holiday to either be revenue neutral or a revenue generator.

That's a little misleading because the only other state that has a sales tax holiday only for clothing and footwear, like ours, is Connecticut. But, their sales tax is exempt for items up to $300, and their sales tax holiday lasts for seven days — Aug. 16-22.

The advantages of the sales tax holiday, as stated by Bryant, are that the consumer saves 7 percent on each qualified purchase, retailers for that weekend compete on a level playing field with internet companies that don't pay sales tax, and it's anticipated additional income will be realized in Mississippi from out-of-state shoppers.

As it stands now, there isn't a lot of incentive for out-of-state shoppers to flock to Mississippi for our first sales tax holiday.

Here's what our neighbors are doing:

• Alabama will have its sales tax holiday, Aug. 7-8, on clothing up to $100, computers up to $750, school supplies up to $50 and books up to $30. This is Alabama's fourth year for the holiday.

• In Louisiana, on those same dates, you won't be charged sales tax on any tangible personal property you purchase up to $2,500, excluding automobiles and equipment for businesses. This is Louisiana's third year for the holiday (last year it also began a sales tax holiday weekend at the end of May for hurricane preparedness items up to $1,500).

• In Tennessee Aug. 7-9, no sales tax will be charged for clothing up to $100, school supplies up to $100 or computers up to $1,500. This is Tennessee's fourth year for its holiday.

Most states that have a sales tax holiday include school supplies as well as clothing as eligible items to be exempt from sales tax. According to the Mississippi State Tax Commission, backpacks aren't even eligible for sales tax exemption during our holiday.

In Mississippi we should at least include school supplies as eligible items for sales tax exemption during our sales tax holiday. It doesn't only help families out, it helps out our teachers and other educational staff who spend a ton of their own money on those items for their students.

A two-day sales tax holiday for clothing and shoes up to $100 is still better than no sales tax holiday at all. Please pass the word around. There hasn't been much information circulated about it from the state. One local retailer told me when he called the state tax commission for information about it, the helpful person on the phone chuckled and referred him to their Web site.

Here at The Meridian Star we have run articles about it and will continue to do so this week. Still, I've run into few people who seem to know about it.

For a guide to Mississippi's sales tax holiday, including a comprehensive list of what is and what isn't exempt, visit the Web site www.mstc.state.ms.us.

And don't be confused by the wording of when the holiday is. It can be misinterpreted to only apply to Friday, but it really is for 48 hours, Friday and Saturday, July 31 and Aug. 1.

After this year municipalities in Mississippi will be able to opt out of the sales tax holiday. Hopefully there will be enough interest in it this first year so that it will continue everywhere in Mississippi next year and hopefully expand.



Steve Gillespie is managing editor of The Meridian Star. Contact him at sgillespie@themeridianstar.com.