With Florida shoppers gearing up for a back-to-school sales tax holiday next weekend, Rick McAllister, the president and CEO of the Florida Retail Federation (FRF) spoke to the media on Thursday about the event.
It is that time of year we talk about back to school and the back-to-school sales tax holiday, McAllister said.
McAllister stressed for the first time the sales tax holiday includes computers and tablets as well as school supplies and clothes for children. During the call, McAllister said these electronic devices are a larger part of school work and noted that they will be free from sales tax for up to $750 per item. Clothes and shoes will be tax-exempt up to $75 per item while school supplies will be tax-exempt to up to $15 per item.
With retailers adding 20 percent additional staff for the sales tax holiday, McAllister said an electronics retailer from his group was preparing for similar sales to Black Friday, the day after Thanksgiving which usually proves a bonanza for retailers kicking off the holiday season. I think thats indicative of what retailers in the past have done, McAllister said.
McAllister noted retailers across Florida brought in around $280-to-$300 million in additional revenue in last years sales tax holiday weekend and expected an even bigger impact this year with the addition of computers to the exemptions. McAllister estimated Florida retailers to bring in an additional $400 million next weekend.
Thats good news for the economy and a great tax break for Floridas families, McAllister said.
First launched in 1998 by veteran state legislator Dan Webster, now a Republican congressman representing parts of Central Florida, Floridas back-to-school sales tax holiday has become something of an annual tradition in the Sunshine State, though there was none in 2002, 2003, 2008 and 2009.
McAllister rejected suggestions the state lost money during the sales tax holiday, insisting shoppers bought additional items during that period. The net impact on the state is positive, not negative. he said.
Back-to-school sales were up about 6 percent in Florida last year, and we are close to that pace right now, McAllister said. Because of the tax holiday, retail stores generally perform a little better in Florida than in states without a sales tax holiday.
Reach Kevin Derby at kderby@sunshinestatenews.com.
