Parents, stores prepare for sales-tax holiday

This year's annual back-to-school sales tax holiday also will mark the last weekend of the summer for many area students, so it may be a busy one for shopping in Southeast Missouri.

The 2015-2016 school year begins Aug. 13 in area public school districts such as Cape Girardeau, Jackson and Perryville and during the week of Aug. 10 for many others. A three-day sales tax holiday precedes, from Aug. 7 through Aug. 9, with potential for shoppers making back-to-school related purchases to save some money.

Discounts by way of exempting certain purchases from sales taxes depend on which taxing districts -- including those of counties and cities -- opted to participate in the holiday this year.

Most area cities, including Jackson and Sikeston, Missouri, have chosen to participate in the holiday this year. For those shoppers, the participation will translate to zero sales tax charged on clothing and shoe purchases up to $100; school-supply purchases up to $50; computer-software purchases up to $350; and personal computer and related computer device purchases up to $3,500.

The Department of Revenue describes computer devices as "a disk drive, memory module, compact disk drive, daughterboard, digitalizer, microphone, modem, motherboard, mouse, multimedia speaker, printer, scanner, single-user hardware, single-user operating system, soundcard or video card."

No personal accessories, such as jewelry or belts, are included in the tax break, nor are some items popular for college students, such as headphones, furniture or bedding.

Other items found on many area schools' supply lists for students that also won't be discounted through waiving of sales taxes include tissues, baby wipes, paper towels, plastic zipper bags, disinfectant wipes and hand sanitizer.

The case of zero sales tax applies only in areas where all taxing districts have opted to participate in the holiday. If shopping in Cape Girardeau, for example, the city's 2.75 percent sales tax still will be applied on purchases, but the county sales tax and state sales tax will be waived. The state of Missouri's sales tax is 4.225 percent; Cape Girardeau County's sales tax is 1 percent.

City sales tax also will be applied in the Southeast Missouri cities of Kennett and Poplar Bluff while all other taxes will be waived.

All Southeast Missouri counties apart from Stoddard County, according to the Missouri Department of Revenue, will waive the sales tax during the holiday.

In the interest of preserving some revenue from sales taxes on back-to-school items, Cape Girardeau's city council decided in June to opt out of participation in the sales-tax holiday. City staff reported an estimated loss of $20,550 in each of the previous two years when the city nixed the tax.

Back-to-school shopping can be a boon for retailers and subsequently government taxing entities, with consumer spending in the weeks leading up to a new school year coming in second only behind holiday shopping, the National Retail Federation reported recently in the results of a survey that measured back-to-school spending.

The survey also found the average family with school-age children will spend $630.36 on "electronics, apparel and other school needs," down from $669.28 per family last year but 42 percent more on school items over the past 10 years. Total back-to-school spending on items for students in kindergarten through 12th grades will hit $24.9 billion this year. Total spending that includes items for college students will reach $68 billion, according to the survey.

A separate July consumer survey by the organization reported about 30 percent of shoppers will wait to begin back-to-school shopping until a week to two weeks before school starts -- meaning there still is time for retailers to make efforts to draw people in with targeted sales and the aid of sales-tax holidays.

"We know it is going to be a busy weekend, so we make sure our stores are ready," said Molly Blakeman, a spokeswoman for Wal-Mart.

She said the sales-tax holidays are "really popular with our customers, and for some families, those sales tax holidays can mean enough savings for an extra shirt or a backpack."

Many stores, including large retailers such as Wal-Mart, Target and Kmart, often try to draw shoppers in with special placement of back-to-school items and school-supply lists in stores, online specials and earlier sales every year, sometimes offering deals on school supplies as early as June.

The sales tax holiday begins Aug. 7 and ends at midnight Aug. 9.

eragan@semissourian.com

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