Businesses and Consumers Both Benefit from Tax
COLUMBIA - This is the 7th back to school tax holiday weekend, and this year, business owners say that it's been especially successful...Due to a bad economy, and good timing.
This weekend, parking lots and shopping carts have been especially full. Thanks to the state back to school sales tax holiday, customer's wallets are staying full too.
"Those extra couple dollars really helps, it allows you to buy more. It really is a nice break for shoppers," said shopper, Tiffany Coleman-Dade.
The tax holiday eliminates the state sales tax on clothes, computers, and school supplies.
Legislature passed the holiday in 2003, with two goals in mind: saving citizens money in taxes, and bringing out-of-state business to Missouri.
"I think it's definitely not only a benefit to the consumers, but to the companies in general. Anytime you've got a down economy, and you can bring more customers to the business and the community, it's a huge advantage," said Ben Cox of Best Buy
Local governments can opt out of the holiday and keep their local taxes. Most cities, including Columbia, decided to opt out.
The Missouri Department of Revenue says border cities like St. Louis and Hannibal are more likely to cut local taxes, because it's easier to for out of state customers to cross state lines and take advantage of tax free shopping.
But the state tax cut still makes a big difference to local customers and businesses.
"We've had more people this weekend than any other weekend in the year," said Cox.
Businesses said the tax holiday couldn't come at a better time. The back to school tax holiday doesn't just apply to students, so the National Bikers Roundup boosted sales even more.
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