NC Retail Merchants Association Announces Sales Tax Holiday Aug. 2-4, 2013
NCRMA Reminds Consumers of the 11th Annual Sales Tax Holiday Aug. 2-4 Sales Tax Holiday Provides Multiple Economic Benefits for Consumers, Businesses and the State’s Economy
Raleigh, NC, July 03, 2013 --(PR.com)-- The North Carolina Retail Merchants Association (NCRMA) (http://www.ncrma.org/) has announced that the 11th annual Sales Tax Holiday is scheduled from Friday, Aug. 2 through Sunday, Aug. 4. Due to the success of the previous tax-free weekends, the North Carolina General Assembly has again set aside one weekend free of sales tax on back-to-school related items such as pencils, paper, backpacks, text books, computers, shoes and clothing.
The three-day event is especially popular among North Carolina consumers because it provides a meaningful tax break for families as they make necessary purchases for school. According to a recent survey conducted by BIGinsight, staying on budget is still a concern for parents – 77 percent of families with school-aged children said the economy will impact their spending plans when shopping for necessary back-to-school items.
But this year’s tax holiday could be the last. House Bill 998 as passed by the House would maintain the tax holiday, but the Senate version of this bill eliminates the three-day weekend free of sales tax on certain items after this year. Whether the tax holiday continues is part of the tax reform negotiations between the House and Senate. Part of the reasoning behind eliminating it is that while the tax holiday saves North Carolina consumers $14.7 million in sales tax, the Department of Revenue estimates that it costs the state the same amount in lost sales tax revenue.
However, a study conducted by The Washington Economics Group analyzed the revenues of the State of Florida in 2009 when there was no Sales Tax Holiday and in 2010 when Florida held a Sales Tax Holiday. Contrary to conventional wisdom the study determined that the Sales Tax Holiday resulted in higher tax collections because many consumers plowed the savings into the purchase of other necessary items subject to the tax. Taxable sales of items related to the 2010 tax holiday grew by $115 million.
The Sales Tax Holiday also spurs employment and payroll taxes. On average, retailers added 8,300 payroll hours over the three-day event. NCRMA and state legislators initiated the Sales Tax Holiday to encourage North Carolina residents to buy from in-state retailers rather than in surrounding states or on-line during the second busiest shopping season of the year.
Additionally, the Sales Tax Holiday is the only three days a year that our local retailers are not at a competitive disadvantage with internet-only retailers who are not required to collect sales tax 365 days a year.
For more information on the Sales Tax Holiday, visit http://www.ncrma.org/ or contact NCRMA at (919) 832-0811.
Quotes:
“North Carolina’s annual Sales Tax Holiday is important to the state’s consumers and business owners, the retail market and especially to the overall economy,” said Andy Ellen, NCRMA’s president and general counsel. “It’s a popular tax break on back-to-school necessities for hard-working families during what continue to be difficult economic times. Shoppers enjoy the sales and savings, and retailers get a nice boost from it. It’s a win-win.”
“Without this weekend, the state’s business climate will suffer significantly as our residents will travel across state lines to shop tax-free weekends in surrounding states. The retail business community always sees a significant increase in sales on Sales Tax Holiday weekend due to the savings customers receive on specials offered by retailers, particularly on big-ticket items such as computers. This weekend is a great shot in the arm for retailers – both independents and chains - who are the largest private employers in North Carolina.”
About NCRMA: The North Carolina Retail Merchants Association (NCRMA), a nonprofit trade association, was organized in 1902 to improve the business climate for retailers in North Carolina. Now, more than 100 years later, NCRMA is the voice of the retail industry in North Carolina. NCRMA represents the interests of individual merchants before the General Assembly and serves as a vital link to state government. Its credibility lies in its longevity and commitment to serving the ever-changing needs of its members. The Association’s membership includes more than 25,000 stores from across the state whose businesses represent 75 percent of North Carolina’s retail sales volume. NCRMA serves both large and small retailers from multi-state chains to local “Mom and Pops,” and all types of merchants including antique, apparel, art, automotive, book, carpet, department, drug, electronics, floral, furniture, grocery, hardware, jewelry, paint and variety stores. For more information, visit http://www.ncrma.org/.
The three-day event is especially popular among North Carolina consumers because it provides a meaningful tax break for families as they make necessary purchases for school. According to a recent survey conducted by BIGinsight, staying on budget is still a concern for parents – 77 percent of families with school-aged children said the economy will impact their spending plans when shopping for necessary back-to-school items.
But this year’s tax holiday could be the last. House Bill 998 as passed by the House would maintain the tax holiday, but the Senate version of this bill eliminates the three-day weekend free of sales tax on certain items after this year. Whether the tax holiday continues is part of the tax reform negotiations between the House and Senate. Part of the reasoning behind eliminating it is that while the tax holiday saves North Carolina consumers $14.7 million in sales tax, the Department of Revenue estimates that it costs the state the same amount in lost sales tax revenue.
However, a study conducted by The Washington Economics Group analyzed the revenues of the State of Florida in 2009 when there was no Sales Tax Holiday and in 2010 when Florida held a Sales Tax Holiday. Contrary to conventional wisdom the study determined that the Sales Tax Holiday resulted in higher tax collections because many consumers plowed the savings into the purchase of other necessary items subject to the tax. Taxable sales of items related to the 2010 tax holiday grew by $115 million.
The Sales Tax Holiday also spurs employment and payroll taxes. On average, retailers added 8,300 payroll hours over the three-day event. NCRMA and state legislators initiated the Sales Tax Holiday to encourage North Carolina residents to buy from in-state retailers rather than in surrounding states or on-line during the second busiest shopping season of the year.
Additionally, the Sales Tax Holiday is the only three days a year that our local retailers are not at a competitive disadvantage with internet-only retailers who are not required to collect sales tax 365 days a year.
For more information on the Sales Tax Holiday, visit http://www.ncrma.org/ or contact NCRMA at (919) 832-0811.
Quotes:
“North Carolina’s annual Sales Tax Holiday is important to the state’s consumers and business owners, the retail market and especially to the overall economy,” said Andy Ellen, NCRMA’s president and general counsel. “It’s a popular tax break on back-to-school necessities for hard-working families during what continue to be difficult economic times. Shoppers enjoy the sales and savings, and retailers get a nice boost from it. It’s a win-win.”
“Without this weekend, the state’s business climate will suffer significantly as our residents will travel across state lines to shop tax-free weekends in surrounding states. The retail business community always sees a significant increase in sales on Sales Tax Holiday weekend due to the savings customers receive on specials offered by retailers, particularly on big-ticket items such as computers. This weekend is a great shot in the arm for retailers – both independents and chains - who are the largest private employers in North Carolina.”
About NCRMA: The North Carolina Retail Merchants Association (NCRMA), a nonprofit trade association, was organized in 1902 to improve the business climate for retailers in North Carolina. Now, more than 100 years later, NCRMA is the voice of the retail industry in North Carolina. NCRMA represents the interests of individual merchants before the General Assembly and serves as a vital link to state government. Its credibility lies in its longevity and commitment to serving the ever-changing needs of its members. The Association’s membership includes more than 25,000 stores from across the state whose businesses represent 75 percent of North Carolina’s retail sales volume. NCRMA serves both large and small retailers from multi-state chains to local “Mom and Pops,” and all types of merchants including antique, apparel, art, automotive, book, carpet, department, drug, electronics, floral, furniture, grocery, hardware, jewelry, paint and variety stores. For more information, visit http://www.ncrma.org/.
Contact
NC Retail Merchants Association
Christie Burris
(919) 832-0811
www.ncrma.org
Andy Ellen, President & General Counsel
Christie Burris
(919) 832-0811
www.ncrma.org
Andy Ellen, President & General Counsel
Contact
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