Stores, shoppers await sales-tax holiday

Missouri's sales-tax holiday has store managers anticipating a boost in business this weekend and consumers calculating cost savings on back-to-school purchases.

The sales-tax holiday runs Friday through Sunday. The savings are limited to clothing, school supplies, computer software, personal computers and computer-related devices.

Those who shop in stores in Cape Girardeau, Jackson and elsewhere in Cape Girardeau County won't pay state or local sales taxes on such items within certain dollar limits.

That amounts to a savings of 6.975 percent on each dollar spent on eligible purchases in the city of Cape Girardeau, 6.225 percent in Jackson and 4.725 percent in unincorporated Cape Girardeau County.

An article of clothing or footwear cannot exceed a taxable value of $100, but there's no limit on the amount of clothing that can be purchased. School supplies are limited to $50 per purchase. Computer software can't exceed $3,400 in price and personal computers and computer-related devices can't cost more than $3,500.

In Cape Girardeau, for example, the tax savings could amount to $13.95 on the purchase of $200 worth of clothes.

Shoppers won't pay the state sales tax anywhere in Missouri this weekend for eligible items. The state sales tax alone totals 4.225 percent per dollar spent.

But in some areas ,shoppers still will pay local sales taxes.

Statewide, 173 cities and 52 counties have opted out of the tax holiday, state chamber of commerce officials said. That includes the cities of Bloomfield, Marble Hill, Kennett, Poplar Bluff and Ste. Genevieve and the counties of Bollinger and Ste. Genevieve in Southeast Missouri.

Missouri passed the sales-tax holiday in 2004.

The Cape Girardeau City Council initially voted to opt out of the sales-tax holiday and charge city sales taxes during the August weekend. City officials estimated the city lost about $88,000 in sales tax revenue during the last two years combined because of the holiday.

But local merchants and the Missouri Chamber of Commerce and Industry insist that the state and local economy have benefited from increased consumer spending generated by the tax holiday.

"It is good for families and it is good for teachers," said Jeff Craver, Missouri chamber tax counsel.

Many teachers, he said, buy added school supplies for their classrooms.

It also draws shoppers to Missouri from neighboring states, Craver said.

Many merchants also offer extra discounts during the sales-tax holiday, he said. "They know people are out shopping and looking for good deals," Craver said.

Debra Rau is one of those shoppers. The Cape Girardeau woman plans to buy school backpacks for her two daughters this weekend. "I am for savings," she said, expressing support for the tax holiday.

Jason Harvey, manager at Sears Grand, said the tax holiday should draw a crowd of shoppers including many from Illinois. "It is just going to be a high-traffic weekend," he said.

Target store manager Brett Bratten said he looks forward to the tax holiday. "The timing is perfect. School is opening just around the corner," he said.

"This will be the busiest weekend we will have in August," Bratten said. It also should be one of the store's busiest shopping weekends of the year outside of the Christmas holiday season, he said.

Savings on clothes should be a big draw for shoppers, he said.

But not everyone is jumping on the shopping bandwagon.

Susan McClanahan of Cape Girardeau has already done most of the back-to-school shopping for her two children.

She spent $16 on back-to-school supplies for her son, who is going into seventh grade, and her daughter, who is entering fourth grade.

But she said some additional supplies for her son may be needed after school starts. "We won't get the teacher's supply list until after school starts."

McClanahan said her son has had the same backpack for several years. "I run it through the washing machine and it looks brand new," she said.

Still, she said she probably will buy shoes for her children this weekend to take advantage of the tax savings.

mbliss@semissourian.com

335-6611, extension 123