With children ages 7, 8 and 11, Melissa Bonifacius isn't happy with a proposal to eliminate Georgia's back-to-school sales tax holiday.
"I don't like the idea because I think it (the tax holiday) helps parents," said Mrs. Bonifacius, a Chickamauga, Ga., parent who home-schools her children.
On Thursday, Gov. Sonny Perdue called for a "government reset" in light of the state's budget shortfall, proposing new cuts that include doing away with the tax-free holiday.
"We're taking away a lot of things that were nice to do," he said.
Georgia stands to lose more than $12 million in sales tax revenue during the annual tax-free event.
Tennessee's tax-free holiday, set Aug. 6-8, remains in place for now.
Mrs. Bonifacius said she spends about $600 a year on her children's school supplies and she'll seek savings where she can if the tax holiday gets nixed.
"It'll make a lot of people go into Tennessee," she said. "I'll go into Tennessee to buy; I don't have a problem with that."
Fort Oglethorpe Mayor Ronnie Cobb said the tax holiday is good for parents, "but it's costly to the state."
But the annual tax holiday also generates a lot of business for the town's retailers, he said, and businesses along the state line will feel the most impact if it is eliminated.
Tim Jones, owner of G&S Office Supply in Dalton, Ga., said he almost certainly would lose business.
"Some of these people from Fort Oglethorpe, Ringgold, Dalton (and) LaFayette are going to go up to Chattanooga and buy at no sales tax if Georgia doesn't offer it," Mr. Jones said.
MIXED RESULTSResearch from the Georgia Budget and Policy Institute shows the sales tax holiday affects the timing of clothing purchases but has little effect on total annual household purchases.
Greg Suits, owner of Preferred Office Supply and Printing in LaFayette, said state officials should seek other ways to make ends meet without hurting parents and business.
"It (the tax holiday) helps everybody with kids," Mr. Suits said.
Bethany Sewell, a Trenton mom who spends $200 to $300 a year on supplies for her 8-year-old, said people will go where they can save money, but she understands the state's dilemma.
"In this day and time, I can see both points," Mrs. Sewell said. "The state needs the money, but parents need the help, too."
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