Tax Holidays Continue as State Budget Deficits Loom

[Shadow]

Although states continue to slash programs to close budget gaps, many still plan to hold sales-tax holidays to lure budget-conscious shoppers to hit the stores.
While these tax-free weekends are intended to increase consumer spending and economic growth, a July 29 report from the Tax Foundation (http://www.taxfoundation.org/publications/show/26533.html) claims that these promotions do not increase growth and instead merely shift the timing of shoppers’ purchases.
Of the 17 states that will hold tax-free weekends this year, 16 faced budget shortfalls for the 2012 fiscal year. Although some states have cancelled their tax holidays due to budget concerns, most have kept them.
“There was discussion about it, but lawmakers continued it because it was a chance for Texas families to continue saving,” said R.J. DeSilva, spokesperson for the Texas comptroller, about possibly canceling Texas' tax-free weekend.


http://www.cnbc.com/id/43840380

I kind of agree with this article. I don't think they actually make the consumer spend more money either. One thing I did notice while I was at the store though. I think they get around the "Tax Free" label and make their money back by charging more for one or two items here and there. Example...last week I went to Target and bought reems of paper for .50 cents each (same for spiral notebooks)...today they were priced up at .75 cents (sneaky sneaky sneaky) :)

[Gunny]

Although states continue to slash programs to close budget gaps, many still plan to hold sales-tax holidays to lure budget-conscious shoppers to hit the stores.
While these tax-free weekends are intended to increase consumer spending and economic growth, a July 29 report from the Tax Foundation (http://www.taxfoundation.org/publications/show/26533.html) claims that these promotions do not increase growth and instead merely shift the timing of shoppers’ purchases.
Of the 17 states that will hold tax-free weekends this year, 16 faced budget shortfalls for the 2012 fiscal year. Although some states have cancelled their tax holidays due to budget concerns, most have kept them.
“There was discussion about it, but lawmakers continued it because it was a chance for Texas families to continue saving,” said R.J. DeSilva, spokesperson for the Texas comptroller, about possibly canceling Texas' tax-free weekend.


http://www.cnbc.com/id/43840380

I kind of agree with this article. I don't think they actually make the consumer spend more money either. One thing I did notice while I was at the store though. I think they get around the "Tax Free" label and make their money back by charging more for one or two items here and there. Example...last week I went to Target and bought reems of paper for .50 cents each (same for spiral notebooks)...today they were priced up at .75 cents (sneaky sneaky sneaky) :)

Not sure about anywhere else, but San Antonio is a shopping madhouse on the tax free weekend. The illegals can't miss an opportunity like this to pay even LESS taxes.

[Shadow]

It's usually a mad house here too. Same kind of reason,people just LOVE to get things when they think they are getting them "cheap" (little do they know). I was out early on friday because I just know the stores are going to be crazy this weekend and I'm NOT going to fight the crowd...I don't like interacting with hoardes people that much ...yuck! ;)

[Gunny]

It's usually a mad house here too. Same kind of reason,people just LOVE to get things when they think they are getting them "cheap" (little do they know). I was out early on friday because I just know the stores are going to be crazy this weekend and I'm NOT going to fight the crowd...I don't like interacting with hoardes people that much ...yuck! ;)

It's usually straight up in San Antonio. At least I know when I used to use the occasion to buy my Levi's for work the price was the same as usual, just no tax. I haven't had to buy school supplies for a "few" years.:laugh:

[Kathianne]

..
I kind of agree with this article. I don't think they actually make the consumer spend more money either. One thing I did notice while I was at the store though. I think they get around the "Tax Free" label and make their money back by charging more for one or two items here and there. Example...last week I went to Target and bought reems of paper for .50 cents each (same for spiral notebooks)...today they were priced up at .75 cents (sneaky sneaky sneaky) :)

If you are buying the school supplies at a chain: Walmart, Target, Walgreens, KMart, etc. the difference in prices has to do with sales dates, not tax holiday. Different states do different dates and they can't print separate circulars for each. Paper on sale this week; folders another; lunch boxes another; etc. They want you in week after week.

[ConHog]

don't people realize that EVERY day is a tax free day if you buy over the internet?

[Gunny]

don't people realize that EVERY day is a tax free day if you buy over the internet?

Not if you buy within the state you live, and I'd think S&H would negate any tax savings.

[Kathianne]

Not if you buy within the state you live, and I'd think S&H would negate any tax savings.

Not with Amazon Prime. No S & H. Actually most major retailers will give free S & H over a specific amount, as long as the company is not in your state, no sales tax collection. ;)

[Shadow]

If you are buying the school supplies at a chain: Walmart, Target, Walgreens, KMart, etc. the difference in prices has to do with sales dates, not tax holiday. Different states do different dates and they can't print separate circulars for each. Paper on sale this week; folders another; lunch boxes another; etc. They want you in week after week.

Maybe that was it. I did notice that Walmart wasn't running the sale prices on shoes that they had been a few days earlier. Didn't matter anyway...we had already done a lot of school shopping the previous couple weeks when other sales were running. So,it was just a few things I noticed while we were there looking for a portable A/C.

[Shadow]

It's usually straight up in San Antonio. At least I know when I used to use the occasion to buy my Levi's for work the price was the same as usual, just no tax. I haven't had to buy school supplies for a "few" years.:laugh:

No Big Chief notebooks...or anything?;)

[Kathianne]

Maybe that was it. I did notice that Walmart wasn't running the sale prices on shoes that they had been a few days earlier. Didn't matter anyway...we had already done a lot of school shopping the previous couple weeks when other sales were running. So,it was just a few things I noticed while we were there looking for a portable A/C.

I always was a 'careful' shopper, never been a spendthrift. The past 18 months I've become a shopping whiz. Now granted, I'm limited to just buying food and paper products, a few cleaning and personal care supplies.

I don't have to buy school supplies, but for those with school aged children, this is probably your biggest cost of the year, with exception of Christmas. While I know what's been up at Walgreen's, I've no doubt the same holds for other national chains.

'Register rewards' are items that are bought where the manufacture gives from $1-10 to next purchase. Check out the flyer for those and you could be buying things you need or would need shortly-usually on sale plus the 'rewards.' Last week there was a $2 reward for purchase of $1.50 barrettes. However, only get one per purchase, regardless of quantity. Cool barrettes for older kids. One lady had me ring up 6 separate transactions, costing her $9 and netting her $12 in rewards. If just done in one transaction her cost would have been the same and should would only have gotten $2 for next purchase. With careful planning, buying what you want/need, could collect quite a bit of rewards. Now she could have bought one, then used the rewards for next purchase, but not in this case, as the coupon was worth more than the purchase!

In the past 3 weeks some of the 'best buys' have been 100 sheets of paper, $.10; 2 pocket, 3 prong folders in 8 colors, $.11. Basic calculator, $.09. Ream of printer paper in box, $5.00. Lots more. Each week there are probably 5 'super buys.' However to get all that are available, need to shop that store each week. Yes, they'll gladly tell you when the 'shipment' comes in, so that you can get the pick, not leftovers.

I didn't do this when my kids were in school, my bad. Seriously, it used to cost me at least $70 per kid in high school, when they didn't need glue, crayons, erasure, sharpeners, etc. If I'd shopped wisely it would have been probably $15 per kid. Really. Trappers, the most expensive item I had to buy back when, was $12. Yes, I remember. Last week they were on sale for $4. and if I used my register rewards from hair coloring? $.0

[ConHog]

Not if you buy within the state you live, and I'd think S&H would negate any tax savings.

Oh well see, one advantage of living in Arkansas. I can't really think of any company from Arkansas that I buy online from.

[Shadow]

I always was a 'careful' shopper, never been a spendthrift. The past 18 months I've become a shopping whiz. Now granted, I'm limited to just buying food and paper products, a few cleaning and personal care supplies.

I don't have to buy school supplies, but for those with school aged children, this is probably your biggest cost of the year, with exception of Christmas. While I know what's been up at Walgreen's, I've no doubt the same holds for other national chains.

'Register rewards' are items that are bought where the manufacture gives from $1-10 to next purchase. Check out the flyer for those and you could be buying things you need or would need shortly-usually on sale plus the 'rewards.' Last week there was a $2 reward for purchase of $1.50 barrettes. However, only get one per purchase, regardless of quantity. Cool barrettes for older kids. One lady had me ring up 6 separate transactions, costing her $9 and netting her $12 in rewards. If just done in one transaction her cost would have been the same and should would only have gotten $2 for next purchase. With careful planning, buying what you want/need, could collect quite a bit of rewards. Now she could have bought one, then used the rewards for next purchase, but not in this case, as the coupon was worth more than the purchase!

In the past 3 weeks some of the 'best buys' have been 100 sheets of paper, $.10; 2 pocket, 3 prong folders in 8 colors, $.11. Basic calculator, $.09. Ream of printer paper in box, $5.00. Lots more. Each week there are probably 5 'super buys.' However to get all that are available, need to shop that store each week. Yes, they'll gladly tell you when the 'shipment' comes in, so that you can get the pick, not leftovers.

I didn't do this when my kids were in school, my bad. Seriously, it used to cost me at least $70 per kid in high school, when they didn't need glue, crayons, erasure, sharpeners, etc. If I'd shopped wisely it would have been probably $15 per kid. Really. Trappers, the most expensive item I had to buy back when, was $12. Yes, I remember. Last week they were on sale for $4. and if I used my register rewards from hair coloring? $.0

I used to pay a lot more attention to sales on school supplies when my kids were younger. Now they don't need as many...thankfully. But, I do remember back when they had lists of stuff they needed,the best place to go was Staples. They would have the kind of sales you mention above. Sometimes Walmart did too (when they first put the supplies out).