NC Tax Holiday Costly For State

North Carolina will lose millions in revenue next weekend when it suspends the sales tax on certain items for back-to-school goods.

The News & Observer of Raleigh reported that last year's tax holiday cost the state an estimated $12.3 million -- money that this year could help fill an $800 million budget deficit.

Democrat Rep. Pryor Gibson from Wadesboro said House budget-writers discussed ending the holiday. But Gibson, who is the House finance committee co-chairman, said it was a short debate that ended with the idea that tax relief for families was important.

Retailers say the weekend is like Christmas in August. Raleigh Mall manager Pat Anderson says shopping traffic increases more than 20 percent during the tax holiday compared with other summer weekends.

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  • by Odd on Aug 2, 2010 at 06:29 PM
    This article says 12.3 million will be lost because of the tax holiday. Well with the tax rate being 8% wouldn't that mean (if my math is right) that they project $153.75 million dollars of untaxed merchandise to be sold this weekend? Sounds a bit high (assuming my math is right).
  • by MR. Y-BOTHER Location: NC on Aug 2, 2010 at 03:56 PM
  • by Big Red Location: Greenville on Aug 2, 2010 at 02:46 PM
    The state is going to lose money because of a tax holiday? Here's a quarter, call someone who cares.
  • by See there on Aug 2, 2010 at 12:03 PM
    Just another reason why they should not have listened to Senator Basnight when he voted to BAN Internet Sweepstakes...Regulate them and make the money for the state deficit!!!
  • by Anonymous on Aug 2, 2010 at 11:20 AM
    Don't worry old Bev will get it back either by RAISING TAXES later or taking it away from the STATE EMPLOYEES!
  • by here Location: here on Aug 2, 2010 at 10:25 AM
    Yeah, where is all the lottery money at??? Anyone
  • by RT Location: Gvegas on Aug 2, 2010 at 10:09 AM
    All our governments need to learn how to budget and stick to it like every hard working American living in this country. It would be nice if our elected officials would all take a pay cut to show they understand. It's not like they scrap by on minimum wage.
  • by Claire Location: Raleigh on Aug 2, 2010 at 09:20 AM
    The mismanagement and fraud in state government is so high that they should focus on cleaning that up. If they did we'd have a budget surplus. For years those involved in the State Health Plan have been getting kickbacks for allowing BCBS to screw subscribers...just one example of an inept state gov.
  • by Rosebud Location: Lagrange on Aug 2, 2010 at 08:18 AM
    WAIT....they will hire a panel to study this and then hire a bunch to study the a cost of??????? like someone said where is the lottery money?
  • by Lynne Location: Ayden on Aug 2, 2010 at 07:54 AM
    On the other hand, how much is gained from people buying non-exempt items as well as how much the stores make from people using the saved sales tax for extra items? 8% doesn't seem like much until it is turned onto a notebook or a pair of pants that might not have been bought if that money had to cover taxes instead.

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