Florida consumers picking up clothing and gearing up for the new school year wont be paying a sales tax this weekend.
The sales tax holiday begins at 12:01 a.m. Friday and runs through 11:59 p.m. Sunday, and applies to most clothing items under $75 and school items under $15. Click here for a list of tax-exempt items.
Retailers in Florida are hoping the holiday will spur activity in their stores, leading consumers to grab other items that arent exempt from the sales tax holiday. The tax break returned in 2010 after a two-year hiatus, and garnered $61.7 million in gross sales, a 3.83 percent increase over the same weekend in 2009. According to a Washington Economics Group study released earlier this year, about 80 percent of that increase was attributable to the effect of the sales tax holiday.
Our retailers overall are expecting some relatively modest growth, said John Fleming, director of communications for the Florida Retail Federation.
The FRF is sticking by earlier estimates of 2 percent to 4 percent sales growth over 2010, despite the recent fluctuations of the stock market and the downgrade of U.S. government credit by rating agency Standard & Poors.
Were cautious about that. Obviously, all that has an effect on consumer confidence, Fleming said. I think it has the potential to depress consumers.
But the sales tax holiday is designed to coincide with the onset of the school year in most districts throughout the state, when many parents and families are shopping for needed items. That need will likely drive consumers to stores, Fleming said, but they may not pick up additional items as retailers are hoping.
The back-to-school season is a time when theyre buying necessities, so consumer confidence is going to be less of a factor because theyre buying things they need, he said.
Republicans who pushed the measure touted the holidays effect on the economy and its benefit to consumers.
The back-to-school sales tax holiday has always been a way to boost retail sales and help customers save on necessities. In these difficult economic times a sales tax holiday to help prepare students for the classroom is a win for both families and our economy, said Sen. Ellyn Bogdanoff, R-Fort Lauderdale, who sponsored the bill in the Senate.
This years three-day sales tax holiday, however, falls short of the 10-day holiday that has been implemented in the past. The first holiday began in 1998, but was not implemented in 2008 or 2009 because of the deep recession and its impact on Floridas revenues. Those holidays spanned 10 days in order to encompass two weekends and cover potential consumers who did not get paychecks on the first weekend.
The Washington Economic Group study showed an even greater impact with the 10-day holiday, and the FRF will push for the longer version in 2012.
We have encouraged the legislators in the past to look at a second weekend, and we will continue to do so, Fleming said.
Reach Gray Rohrer at grohrer@sunshinestatenews.com or at (850) 727-0859.
