Experts disagree
about outlook for tax holiday Some are
predicting back-to-school spending will be weak this
year By JESSICA R.
LOPEZ Staff
Writer
Lisa Hauff seems overwhelmed.
As the mother of two girls, one entering Francis Marion
University this fall, Hauff expects to spend about $2,000 more for
school supplies than last year.
As South Carolina’s sixth annual sales tax holiday weekend
approaches, experts disagree whether budget-minded shoppers will
follow Hauff’s lead.
The S.C. Board of Economic Advisors estimates $5.1 million in
taxpayer savings over the three-day weekend, Aug. 5 through 7.
That’s a $300,000 increase from last year’s prediction.
But a report by the National Retail Federation forecasts an 8.2
percent drop in back-to-school spending.
The federal report says spending in the South on back-to-school
shopping will decrease by about 19 percent, from $535.53 per family
with school-age children last year to $434.09 this year.
Robert Martin, an economist for the S.C. Board of Economic
Advisors, said the board’s prediction has gone up based on the added
items to the tax-exempt list and the new 6 percent sales tax in
Richland County, which is up a penny from last year.
Items added to the list include bath mats, bed linens, pillows,
shower curtains and towels.
“This year, bed linens and towels have been added,” Martin said.
“And that was by popular demand — because of all the kids going back
to college.”
College spending has affected the prediction in other ways,
too.
“A lot of the items that are on the list, like computers and
computer software — a lot of colleges and universities are requiring
more and more that the students pick up the tab,” Martin said. “So
we’ve been adjusting for that.”
Hauff, of Columbia, said the only reason she’ll be shopping next
weekend is to buy a computer for her daughter.
“I think (the holiday) is great for big things,” she said. “It’s
not worth going to get notebook paper.”
Many shoppers agreed. They only plan to buy during the holiday if
they need “big ticket” items.
“I have to figure out if what I would purchase is worth the
savings,” said Denise Dunn, of Blythewood.
Last year, shoppers saved $2.7 million, far short of the board’s
predicted $4.8 million. Martin said the shortcoming in spending was
most likely because of the lackluster economy.
“People don’t have as much disposable income to spend,” he
said.
Some shoppers, like Lashawn Shuler of Irmo, said that rather than
buying school supplies during the sales tax break, she purchases
them in advance from the school her children attend.
“It’s crowded,” she said. “Everyone’s in the store.”
Shuler paid $34 for a box offering everything her son, who
attends Dutch Fork Elementary School, will need for the school
year.
Kelly Baine, of Irmo, also purchased the back-to-school kit for
her son, but said she’ll still be shopping during the sales tax
holiday “just to save money.”
Reach Lopez at (803) 771-8597 or jrlopez@thestate.com |