Shoppers, retailers have high hopes for sales-tax holiday weekend
Posted August 1, 2008 4:24 p.m. EDT
Updated October 19, 2011 9:33 a.m. EDT
Raleigh, N.C. — Retailers are hoping for a sales bump while consumers say the three-day tax-free weekend is an extra incentive to shop amid higher gas and food prices.
State officials estimate shoppers will save about $9.2 million, with computers, clothing and many back-to-school supplies exempted from state and local sales tax. The tax-free weekend began at midnight Thursday and will end at midnight Sunday.
Shopper Linda Webb said she is out to make sure that she gets everything her daughter needs to start off the school year.
"This year, with everything going up, inflation, we decided we'd take advantage of it," Webb said.
The manager of a Target store on Capitol Boulevard said sales started to pick up on Friday, with t-shirts and books being popular items.
"The excitement is there, because, obviously, it is tax free," Target manager Lorenzo Smith said. "There is a lot of anticipation for the event."
Items exempt from tax include clothing, footwear and school supplies for $100 or less; textbooks school instructional materials for $300 or less; sports and recreation equipment for $50 or less; computers for $3,500 or less; and computer supplies for $250 or less.
The state sales tax is 4.25 percent, and most counties levy an additional 2.5 percent.
Over the seven-year life span of the annual holiday, the state has not collected as much as $60 million in revenue, according to estimates from the fiscal analysts at the legislature.