The Mississippi Department of Revenue held its second Sales Tax Holiday this weekend. From 12:01 a.m. on Friday to midnight on Saturday, shoppers were able to purchase select clothing and footwear up to $100 per article without having to pay the state”s 7-percent sales tax.
The tax holiday was passed by last year”s Legislature as a way to give shoppers a break and jump-start the ailing economy.
The list of non-exempt items is long. Diapers are not eligible. Certain sportswear, including soccer socks, is exempt from tax while other items, such as baseball pants, are not. Fishing and hunting vests are not taxed; bulletproof vests are. The tax exemption also cannot be applied to accessories such as jewelry, bags, wallets, sunglasses and berets. The same goes for school supplies and computers.
However, plenty of items are fair game, and local businesses have noticed a spike in sales over the weekend.
“It”s been great,” said Christine Gray, the manager at Burlington Shoes. She added that customers have been very excited for the opportunity to save some extra cash. The store has been selling a lot of women”s and children”s shoes, and Gray said non-eligible items haven”t caused much of a problem for business. “Other than handbags and the candy, everything else is pretty much applicable.”
Others launched special advertisements let customers know about the potential savings. Homer Beaty, owner of Fashion Barn at Main and Fifth streets downtown, sent out a 3,000-card mailer and advertised on Facebook.
“A lot of people are coming in,” Beaty said. “Girls are buying dresses for school, and if a girl”s going shopping, mom”s coming with them.”
He wished that the holiday had been held back a week so that shoppers would have had more money at the first of the month. He also said the decision to exclude school supplies from the list was strange, noting that they”re eligible in Alabama. Beaty said the Department of Revenue perhaps still has a few kinks to work out.
“It”s just like a marriage,” he said. “You”ve got to keep working at it.”
On the whole, however, Beaty said business was good. Fashion Barn”s normally advertised hours begin at 10 a.m., but Beaty opened at 8:30 a.m. on Saturday, and customers were steady all day. Even from 2 to 4 p.m., when the store usually experiences a lull, there were about 25 to 30 patrons perusing the racks.
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