Everyone likes a bargain, and most would agree there’s something especially satisfying to the psyche when that bargain includes freedom from paying sales tax.
Such will be the case this weekend in South Carolina and the following weekend in Georgia as tax holidays go into effect just in time to coincide with back-to-school sales.
For South Carolinians — and those Georgia shoppers heading across the river — the sales-tax-free period kicks off Friday morning and continues through the end of the day Sunday.
Clothing, shoes, handbags, school supplies, book bags, computers, printers, bedspreads and linens are among the tax-free items. But not everything is included. Sales tax will still be charged on such items as jewelry, cosmetics, eyewear, furniture and items on layaway.
The rules will be much the same the following Friday and Saturday in Georgia, although the state department of revenue imposes some price limitations — articles of clothing and footwear cannot be more than $100 for a single item, and tax-free computer purchases are limited to the first $1,000.
There are also a few differences in what is and isn’t exempt. Handbags, for example, are tax free in Carolina, taxed in Georgia. The same goes for hair accessories, such as bows and clips.
This year, 17 states will sanction periods of time when selected goods are exempted from state — and sometimes local — sales taxes, down from a high of 19 states in 2010. Such holidays have become an annual event in many states, with exemptions for targeted products ranging from towels and bedding to firearms and ammunition.
In Georgia, the sales tax holiday took a hiatus from 2008 to 2012, when it was reinstated, much to the delight of merchants and back-to-school shoppers.
This year’s holiday “represents an excellent opportunity for parents to save money on basic necessities when getting their children ready for the upcoming school year in Georgia,” said state revenue commissioner Doug MacGinnitie.
But a report by the nonprofit Tax Foundation, a non-partisan tax research group in Washington, D.C., has raised questions about the long-term benefits of short-term tax holidays.
“The evidence shows that sales tax holidays don’t boost sales,” said Joseph Henchman, vice president of state and legal projects for the organization. “Instead, they mostly shift when people buy things they would have bought anyway.
The big losers are consumers, Henchman said, who are misled about how much they’re saving.
“Some retailers have even raised prices during the period, meaning it might be a better deal to buy before or after the holiday.”
The big winners, he said, are retailers, who get free advertising for what is essentially a modest 7-percent-off sale, and politicians, who get to claim they’re pro-taxpayer even if they oppose permanent, long-term tax relief.
The foundation doesn’t recommend consumers stay away from the special sale weekends, only that they go informed.
“If you’ll save money and you don’t mind the crowds, certainly take part in the holiday,” Henchman said. “But check prices and check the list of eligible items to make sure you’re not getting overcharged.”
IF YOU GO IN S.C.
South Carolina’s three-day sales-tax free weekend begins Friday morning and ends at close of business Sunday. For more information and a list of exempt items, go to www.sctax.org and click on “Sales Tax Holiday Dates” under “What’s New.”
IF YOU GO IN GEORGIA
Georgia’s two-day sales-tax free weekend begins Friday morning, Aug. 9, and ends at close of business Saturday, Aug. 10. More information concerning the 2013 sales tax holiday and tax exempt items can be found under the Sales Tax tab on the state department of revenue website at https://etax.dor.ga.gov/hottopics.aspx.