Tax holiday lures parents to save a few bucks

In the back-to-school aisle of the Greer Wal-Mart, Brenda Wright, left, her grandchildren Chasity Irby, 12, and Chelsea Irby, 11, and their mother, Kim Irby, shop for items using lists the girls' schools provided during the first day of the tax holiday Friday afternoon. Staff/Owen Riley Jr. e-mail this story

"It doesn't save us much," she said, "but every penny helps."

She said the family expects to spend about $40 on school supplies for the youngsters, buying the items listed for two different schools in Duncan.

"Those lists are so specific," she said.

Chelsea Irby, 11 and her granddaughter, said she's excited about school starting.

"It's boring at the house, and I just like going to school," she said.

The school supplies aisle at Wal-Mart was choked with shoppers as it was in several other stores.

Patty White, who has children in the 9th and 12th grades at Greer High School, looked down the aisle and said, "I'm thinking maybe we should come back next weekend. It's just 5 percent. I think there are people 5 percent can really help. It's a good idea."

She said when her son goes to college next year, they'll buy a laptop computer on the sales tax-free weekend.

"We talked about it last night," she said.

Rachel Allen, Wal-Mart assistant manager, said the store anticipates a 10 percent increase for the three days over last year's sales. In addition, the weekends before and after the tax-free weekend also tend to hold up well.

"It's good for us," she said. "This is also a good thing for consumers."

The tax-free weekend ends midnight Sunday.

Over the years, the crowds and the tax-free purchases have diminished from the $3.6 million in uncollected taxes the first year. In 2001, uncollected taxes dropped to $2.7 million and in 2002 it climbed again to $3 million. Last year, the taxes not collected fell to $2.3 million.

A likely reason for diminished sales over the weekend is that Georgia and North Carolina also offer a sales tax-free weekend for school-related purchases, said Jim Hatchell, president of the South Carolina Merchants Association. "I think it's leveled off," he said. "We'll probably see the same kind of numbers as last year."

Connie Cabrera, who was shopping for food with April Cunningham, 10, said she'd already done back-to-school shopping.

"I came today because tomorrow will be more crowded," Cabrera said.

Cunningham said she wanted to buy school supplies early because "if we don't buy it now, there might not be anything left."

Ellethia Allen, a Taylors resident shopping with her daughter, Iesha Allen, 9 and a 4th grader, said, "I'm trying to save. Every little bit helps."

She expects to spend at least $25 each on her two school-age children.

"I already shopped for clothing," she said. "I wanted to beat the traffic."

Scarlett Wesley, an assistant professor of retailing at the University of South Carolina, said the tax exemption can be helpful, particularly if large items such as a computer and printer are purchased.

Many families need to save every penny possible, she said.

"Besides, everyone likes a sale and nobody likes to pay taxes," she said.

Although the sales tax holiday isn't as big as it was the first year, it does encourage back-to-school purchases during a specific weekend. By drawing consumers into stores, it also increases sales in non-exempt items.

"Sales tax holidays have proven to be tremendously successful at drawing people into stores and giving a boost to the economy while helping consumers save money," said Rachelle Bernstein, vice president and tax counsel for the national Retail Federation.

"Americans have hated paying taxes all the way back to the Boston Tea Party, and sales tax holidays play to that emotion."

Although generally only school-related items are included in the tax exemption, Hatchell said that "we've seen everybody get in on the act — jewelry, food and cars. The state doesn't lose that tax money. The merchant has to pay it."

Duncan resident Tracy Sprinkle, who was shopping for her two school-age kids, said she probably will spend about $250 on back-to-school items, including clothing.

"I think it's worthwhile" to come out on the sales tax-free weekend, she said. "I think it's a great idea. The older the girls get, the more you have to spend."

With a 2-month-old baby in her arms, she said, "I definitely will buy diapers."

A partial list of tax-exempt items includes clothing of most types, computers and computer parts, computer software, furs, galoshes, handbags, headbands, hosiery, jackets, lingerie, printer supplies, notebooks and paper, pencils, pens, bookbags, lunchboxes, sneakers, sleepwear, sweatshirts and umbrellas. It also includes items such as adult diapers and corsets.

Among the non-exempt items are jewelry, rented clothing, any item used by a business, hiking backpacks, clocks, cosmetics, daily planners, golf clubs, safety clothing, janitorial supplies, sporting equipment, wallets and toys.

"I don't understand the list," said Jason Smythe, a 19-year-old sophomore returning to the University of North Carolina. "If I need anything, it's an alarm clock. Why should I pay tax on that and not on a wet suit. I looked at the list and it didn't make sense."