Money Matters, Simplified.
Bargain hunters flock stores as back-to-school shopping kicks off
by Jamie Anderson - August 15, 2010 - comments
Parents, grandparents, and kids alike hit the stores Friday to take advantage of the first day of Florida's 2010 Sales Tax Holiday.
It's time for the bargain hunting shoppers to make the most of the three-day back-to-school shopping sprint that kicked off in Florida Friday.
Dawn Thompson echoes the voice of the hoi-polloi.
"I need to save as much money as I can," said Thompson. "Times are hard."
Likewise, the merchants would be keeping their fingers crossed and hoping that this weekend’s sales tax holiday gives them a much needed boost.
State loses revenue
It is thus a win-win situation for the merchants and the shoppers. It is only the state that will lose revenue by way of foregone taxes.
Buyers of consumer durables like televisions costing up to $2,500 can save 6.25 percent sales tax on such items.
The tax-holiday does not apply to books, clothes, or school supplies sold in a theme park, entertainment complex, or a public lodging establishment
In the previous years, the event lasted 9-10 days. This year, however, given the tight budget of the state, legislators restricted it to a 3-day event in a bid to curtail the loss in revenue.
Florida Gov. Charlie Crist estimated that the tax holiday would save $26 million for the shoppers. Put differently, the government would lose sales tax collections of the said amount.
The National Retail Federation survey pegs the national average American family expenditure this year on back-to-school items to be $606.40.
What all is available
While the phenomenon of sales tax break is designed and timed to help shoppers save on back-to-school purchases, the concept is not restricted to kids’ items alone.
In fact, clothes, shoes, books, and other accessories that sell for $50 or less fall under the ambit of these back-to-school shopping discounts.
School supplies that cost $10 or less are also covered. Cars, motorboats, meals, and tobacco products are not exempt from the tax though.
But there is something in fine print which must be carefully read and understood by potential shoppers. The tax-holiday does not apply to books, clothes or school supplies sold in a theme park, entertainment complex or a public lodging establishment.
Customers had made a bee line outside JC Penney store at Aventura Mall well before the opening time of 8 a.m.
Tracy Jones, manager of the store, expected a weekend like Christmas. The store has been decked up for the event with sales signs all over the store. There were regular store intercom announcements about the tax-free event.