Raleigh, NC, July 18, 2012 --(PR.com
)-- The North Carolina Retail Merchants Associations (NCRMA) (http://www.ncrma.org/) has announced that the 10th annual Sales Tax Holiday is scheduled from Friday, Aug. 3 through Sunday, Aug. 5. Due to the success of the previous tax-free weekends, the North Carolina General Assembly has once again set aside one weekend free of sales tax on back-to-school related items such as pencils, paper, backpacks, text books, computers, shoes and clothing.
The three-day event is popular among North Carolina consumers because it provides a tax break as they make necessary purchases for school or college.
Credible studies show that rather than costing states money, the Sales Tax Holiday increases state revenues through sales tax on ancillary purchases, such as trips to the food court and increased hotel bookings in areas around popular shopping centers, as well as increased jobs and payroll taxes that come from this event. For example, one study conducted by The Washington Economics Group, Inc. (WEG) compared the actual 2010 Sales Tax Holiday data in one state with a 2009 study of the predicted impact on that state’s revenues when there was not a holiday (also performed by WEG). The final analysis confirmed that contrary to conventional wisdom the 2010 three-day holiday resulted in an increase in tax revenues of $7 million, based on increased sales of taxable items of $115 million.
Overall, total sales during Aug. 2010 for goods impacted by the tax holiday were $293 million, an amount larger than it would have been without the holiday weekend. On average, major retailers also added 8,300 payroll hours over the three-day event.
NCRMA and state legislators initiated the Sales Tax Holiday to encourage North Carolina residents to buy from in-state retailers during the second busiest shopping season of the year.
For more information on the Sales Tax Holiday, visit http://www.ncrma.org/ or contact NCRMA at (919) 832-0811.
“North Carolina’s annual Sales Tax Holiday is important to the state’s consumers and business owners, the retail market and especially to the overall economy,” said Andy Ellen, NCRMA’s president and general counsel. “It’s a popular tax break on back-to-school necessities for hard-working families. Shoppers enjoy the sales and savings, and retailers get a nice boost from it. It’s a win-win.”
“Without this weekend, the state’s business climate will suffer significantly as our residents will travel across state lines to shop tax-free weekends in other states. The retail business community always sees a significant increase in sales on Sales Tax Holiday weekend due to the the savings customers receive on specials offered by retailers, particularly on big-ticket items such as computers. This weekend is a great shot in the arm for retailers – both independents and chains - who are the largest private employers in North Carolina.”
The North Carolina Retail Merchants Association (NCRMA), a nonprofit trade association, was organized in 1902 to improve the business climate for retailers in North Carolina. Now, more than 100 years later, NCRMA is the voice of the retail industry in North Carolina. NCRMA represents the interests of individual merchants before the General Assembly and serves as a vital link to state government. Its credibility lies in its longevity and commitment to serving the ever-changing needs of its members. The Association’s membership includes more than 25,000 stores from across the state whose businesses represent 75 percent of North Carolina’s retail sales volume. NCRMA serves both large and small retailers from multi-state chains to local “Mom and Pops,” and all types of merchants including antique, apparel, art, automotive, book, carpet, department, drug, electronics, floral, furniture, grocery, hardware, jewelry, paint and variety stores. For more information, visit http://www.ncrma.org/.
MMI Public Relations