Sales tax holiday

There may be some good news coming for shoppers and retailers Monday. The Cape Girardeau City Council is considering whether to participate in the state's annual sales tax holiday. The three-day event in August provides shoppers an opportunity to purchase back-to-school items minus the state sales tax.

The history of the Missouri sales tax holiday dates back a decade. Though a push was made to enact the legislation sooner via an emergency clause, the General Assembly ultimately passed legislation in 2003 that would take affect the following year. As is the case now, local governments could choose whether to participate by waiving their sales tax for the weekend.

This newspaper's editorial board, which supported the proposal, made the case for local entities to join the effort. A June 1, 2003, editorial said:

The sales-tax holiday is a good idea. But it won't benefit everyone if counties and cities don't participate. And counties and cities that opt out will be giving consumers a good reason to go elsewhere to shop.

We maintain this position. The state has recognized the benefit of a sales tax holiday. The weekend provides shoppers a break, particularly those who are buying supplies for more than one child. But it's also an opportunity to spur sales for retailers. The back-to-school timing provides an opportune marketing environment for businesses, one that local municipalities should be eager to support.

During the last several years, the city of Cape Girardeau has opted not to participate in the tax-free weekend. The city maintained that the loss of its 2.75 percent sales tax revenue was too deep of a cut. We understand municipalities do not want to give up this revenue, but choosing not to participate, as was noted in 2003, simply encourages shoppers to go elsewhere.

It has also been previously noted by the editorial board that the back-to-school shopping weekend can do more than spur sales for school-specific items. While shopping, local residents, and those from outside the area who choose to shop here, may be more inclined to make additional purchases that do not qualify for the tax-free designation.

We are happy to hear the city council will consider this issue at its next meeting. It's our hope the city chooses to opt in for the 2013 sales tax holiday and make it a more permanent policy going forward.