08/02/04 — Wayne retailers expect boost from tax holiday

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Wayne retailers expect boost from tax holiday

By Sam Atkins
Published in News on August 2, 2004 1:59 PM

Many Wayne County retailers do not believe their profits will be hurt by this year's sales-tax holiday falling on the weekend after school starts.

The state's third annual tax holiday will begin at 12:01 a.m. on Friday and end at 11:59 p.m. on Sunday.

R.J. Allen, manager of Target on Sunburst Drive, said he hopes the later holiday will mean the store will have two good weekends instead of one.

Last weekend the store had huge sales in school supplies, and workers have been restocking those items, he said.

He said there will be more employees working during this weekend's sales-tax holiday, and the store is anticipating even stronger sales than last year.

Boys' and girls' clothing, including socks and shoes, will be popular items, he predicts.

David Graybeal, manager of Staples on Berkeley Boulevard, said that although it is better for the holiday to fall on the weekend before school starts, he hopes that sales will continue to increase.

He said the tax holiday is the biggest time of year for sales besides the day after Thanksgiving. The store will have a full staff on Saturday, and he said the computers have been moved to the front of the store. Workers have also restocked school supplies, because they sold out of many items after last weekend.

He hopes that sales will also be good with printers and digital cameras, even though they are not tax free.

Mike Massengill, manager of Sportsman's World on Ash Street, said the store had a good crowd during last year's tax holiday, and many people bought shoes, backpacks and other back-to-school items.

The store is hoping for another good year and is making sure it has everything out and ready to go.

North Carolina's sales tax holiday has been set as the first weekend of each August. The state modeled the holiday on similar incentives offered by other states. In 1997, New York was the first state to offer limited periods of tax-free shopping.

Items that are tax free include the following:

*Clothing including shoes, belts, shirts and gloves with a sales price of $100 or less per item.

*Sport or recreational equipment with a sales price of $50 or less per item.

*School supplies including pens, pencils, paper, binders, notebooks, textbooks with a sales price of $100 or less per item.

*Computers with a sales price of $3,500 or less per item.

Items that are not tax free include the following:

*Clothing accessories or equipment including briefcases, cosmetics, handbags, jewelry, wallets and watches, and furniture.

*Printers and printer supplies.

*Educational software.

*Protective equipment including face shields, protective gloves and tool belts.

*Items used in a trade or business and rentals.

The N.C. Department of Revenue says that when an eligible item is purchased during the holiday and returned after the holiday and replaced with the same item, no additional tax is due.

Also, if a retailer gives the customer credit for an item purchased during the holiday and the credit is used to purchase a different item after the holiday, the combined state and county rates of tax apply to the sales price of the new item.