| Tax-free holiday returns AIKEN - The estimated $2.3 million shoppers saved during last year's three-day "sales tax holiday" in South Carolina was money that never made into the coffers of a cash-strapped state. But despite an ongoing fiscal crisis and the accompanying reflex to pinch every penny, it doesn't appear the three-day tax moratorium, which kicked in at 12:01 a.m. today and runs through Sunday, is going to disappear anytime soon. Retailers say it increases sales, and shoppers say they appreciate the tax relief. Lawmakers say this is exactly why it was created. "The loss of revenue is something we can deal with," said state Rep. Don Smith, R-North Augusta. "It gives the kids and the families the opportunity to get clothes and school supplies at a reduced rate. I don't see any move afoot to stop that." South Carolina implemented the tax break in 2000 to lessen the back-to-school burden on families. While items such as clothing and computers are exempt from state and local sales taxes, goods such as jewelry and cosmetics aren't. Critics, including Gov. Mark Sanford, have called the tax break a political gimmick. "The problem has been that the sales tax holiday has been portrayed as significant tax reform, when it clearly is not," said Will Folks, the governor's spokesman. "Significant tax reform would be to address our state's underlying business climate so that we're more competitive," he said, adding that the governor's plan to lower South Carolina's income tax would do more significant good. If South Carolina axed the tax break, some people might cross the Savannah River to do their shopping. Georgia implemented its back to school tax break in 2002 and for the past two years provided the relief for four days. Georgia officials estimate that shoppers saved $9.9 million in sales tax during its break last week. South Carolina retailers are welcoming the tax break weekend with open arms. The Wal-Mart Super Center on Whiskey Road is anticipating a 10 to 11 percent jump in sales over the three days, manager Phyllis Smith said. The boost also includes items that aren't tax exempt, she said, which could help balance lost revenues to the state. "When they come in, they're going to buy things their children need for school, but they're going to buy things they need to get, too," she said.
Reach Josh Gelinas at (803) 648-1395, ext. 113, or josh.gelinas@augustachronicle.com.
Pennies on the Dollar South Carolina's three day tax break started at 12:01 a.m. and runs through Sunday. Shoppers don't have to pay tax on back to school items like clothing and computers, but still must pay state and local levies on items like cosmetics.
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