Raleigh, NC, July 24, 2013 --(PR.com
)-- In response to the North Carolina House Bill 998 that eliminates North Carolina’s Sales Tax Holiday after this year, the North Carolina Retail Merchants Association (NCRMA) (http://www.ncrma.org/) has announced the launch of a Save the NC Sales Tax Holiday Campaign, ahead of the 11th annual Sales Tax Holiday weekend scheduled for Friday, Aug.2 through Sunday, Aug. 4.
Part of the reasoning behind eliminating Sales Tax Holiday is that while it saves North Carolina consumers $14.7 million in sales tax, the Department of Revenue estimates that it costs the state the same amount in lost sales tax revenue.
However, a study conducted by The Washington Economics Group that analyzed the revenues of the state of Florida in 2009, when there was no Sales Tax Holiday, and in 2010, when Florida held one, determined that the Sales Tax Holiday resulted in higher tax collections for the state. This is because many consumers plowed the savings into the purchase of other necessary items subject to the tax. Taxable sales of items related to the 2010 tax holiday grew by $115 million.
The Sales Tax Holiday spurs employment and payroll taxes as well. On average, retailers add 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 rather than in surrounding states or online, and that has resulted in the period becoming the second busiest shopping season of the year.
Additionally, the Sales Tax Holiday is the only three days a year that local retailers are not at a competitive disadvantage with Internet-only retailers. The latter are not required to collect sales tax 365 days a year, unlike North Carolina-based retailers.
NCRMA has launched a Save Sales Tax Holiday Facebook page as part of its campaign to engage the public about the decision to eliminate the holiday weekend and its potential negative implications for the state’s retailers. To visit the campaign’s Facebook page, visit https://www.facebook.com/SaveNCSalesTaxHoliday.
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 relief on back-to-school necessities for hard-working families during what continue to be difficult economic times. Shoppers enjoy the sales and savings, and retailers get a nice boost from it. It’s a win-win that we need to keep.”
“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 surrounding states or shop online,” said Ellen. “The retail community always sees a significant increase in sales on Sales Tax Holiday weekend due to 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. Preserving the holiday state’s brick-and-mortal retailers stay economically competitive.”
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