Georgia sales tax holiday began Thursday, goes through Sunday with tax break on approved items

With two growing sons, Kathy Walker usually has to shop a few times during the year to keep her boys in shoes and clothes that fit.

But the Chickamauga, Ga., resident said she tries to buy as much of the boys’ clothing as possible, and school supplies, too, during Georgia’s sales tax holiday.

“I usually benefit by buying supplies during the (tax holiday),” said Ms. Walker, who was shopping Thursday at Office Depot with Dylan, 13, and Sam, 11. “Wal-Mart usually does pretty good. When you start looking at your receipts and adding up the sales taxes, it’s a pretty good benefit.”

Georgia’s seventh annual sales tax holiday began Thursday, a day ahead of similar breaks held in Tennessee and Alabama, and they all go through midnight Sunday.

Shoppers get relief from state and local sales taxes on school supplies, clothing, shoes and some electronic items such as computers and computer-related equipment. There are price limits on what can be tax free, and items that exceed the price limit are taxed at the full retail price.

Office Depot manager Gabe Howard said business was brisk Thursday, but he expects the pace to pick up today and to boom during the weekend. He said a lack of advertising and competition from Tennessee’s tax holiday has dampened the Georgia event.

“In the past, we’ve always had to get extra help from the district, at least 10 additional employees,” Mr. Howard said. “Since Tennessee started its holiday (three years ago), we don’t need to do that anymore.”

Georgia revenue officials declined to predict the impact the four-day event will have on state coffers. State tax collections were down 9.4 percent in June compared with 2007 and are off 1.1 percent for the fiscal year, the Department of Revenue reported.

“The revenue department never tries to make an estimate,” spokesman Charles Willey said. “However, when these bills are passed, they usually have a fiscal note that shows what it will cost or add to the state.”

Such a notation could not be found Thursday, but a spokeswoman at the department of audit said any fiscal note would be outdated.

Catoosa County Tax Commissioner Sandra Self said her office does not estimate how much it loses from the tax break, either.

Georgia’s state sales tax is 4 percent, and most Georgia counties also have 3 percent local sales levies through separate optional sales taxes voters must approve.

Whatever the revenue impact, shoppers were the ones getting the benefits.

Some stores were advertising sales and offering additional coupons on select items. Parking lots along Battlefield Parkway were full Thursday, and families were seen carrying lists and advertising flyers into stores. Others walked to their cars toting bags and boxes of electronic items.

“We are slammed, and it’s going to get worse when (residents) get off work,” said Janet Crabtree, an employee running the register at Rugged Warehouse, a store that sells high-end, brand name clothing at reduced prices.

North Georgia schoolteachers were out shopping on the first day, filling their carts with glue sticks, markers, notebooks, pencils, staplers and other items for their classrooms.

For the third year, Gov. Sonny Perdue has given teachers $100 gift cards to use toward stocking their classrooms or supplying some students.

“Some parents will remember to supply items, but some won’t,” said Linda Thompson, a science teacher at Ringgold Middle School.

Ridgeland High School special education teacher Nannette Brass said inflation has hurt the purchasing power of her “Sonny money,” as educators call the state gift cards.

“But, every penny helps,” Ms. Brass said. “We do cough up a lot of our own money in our classrooms. A lot of students don’t have what they need.”

Some items are not approved for the tax break, but the types of clothing articles considered tax exempt include some one might not normally associate with school. Plaza Uniforms was selling surgical scrubs without collecting the 7 percent local and state sales taxes.

“Our regulars know that these are tax free,” said sales associate Darlene Wagner. “Student nurses have to wear them to work, and other people, like cafeteria workers and people who work in vets’ offices, wear them.”

While a case can be made for scrubs, it’s a little harder to understand how lingerie, garter belts, tuxedos (excluding cuff links), roller skates and hunting vests got on the approved list. These items are listed at the state’s web site www.dor.ga.gov.

State Rep. Jan Jones, who sponsored the latest version of the law, was shocked when she learned the items were tax-exempt, according to The Associated Press.

“No, that can’t be right,” Ms. Jones told AP, adding that she didn’t know how it happened.