The city of Athens could lose about $32,000 in anticipated sales tax during the upcoming statewide tax-free holiday.
“We don’t know exactly how much it will be,” said Athens City Clerk John Hamilton. “It’s really a wild guess.”
During the holiday — Aug. 4 through Aug. 6 — shoppers throughout the state won’t pay the 8-cent sales tax on back-to-school purchases. Athens receives 2 cents of the 8 cents collected. The city gives half of what it collects to city schools.
Using the same formula as the city of Madison, Hamilton estimated that 40 percent of the population would take part in the tax-free shopping day. They would spend approximately $200 each. The city would forego 2 percent of the sales tax that would have been collected.
So, Hamilton took 20,000 people times 40 percent times $200 times 2 percent and came up with $32,000.
To a city, it is a lot of money to forego. To the individual shopper who spends approximately $200, it’s a savings of $16.
The tax holiday applies to the following purchases:
•Clothing up to $100 per item.
•Computers, software and computer supplies up to $750 per item.
•School supplies and textbooks up to $50 per item.
•Other books up to $30 per item.
State lawmakers approved the holiday to give shoppers a break — and to encourage more shopping. Statewide, the tax holiday would save residents a total of $3.3 million over the three-day weekend, according to a bill signed by the governor.
Twelve other states, including Georgia and Florida, have adopted tax holidays on back-to-school items.
There will be a series of meetings throughout July to explain to businesses how the back-to-school sales tax holiday will work. The nearest meeting is Wednesday from 8 a.m. to 9:30 a.m. at Huntsville/Madison County Chamber of Commerce at 225 Church St. For more information, call Carla Snellgrove at the Alabama Retail Association at (334) 242-1390 or Nancy King Davis at (334) 263-5757, ext. 101.
Local News
Athens could lose $32,000 on back-to-school tax holiday
- Local News
-
-
Ala. House starts session with job creation bills
The House also approved bills offering tax incentives to coal mining businesses and to data processing companies.
-
Judge: Bishop inquest transcript to be made public
Bishop is in prison awaiting trial, charged with opening fire on her co-workers at the University of Alabama in Huntsville in February 2010, killing three and wounding three.
-
Gas prices up; could hit $4 by spring
Gas prices have risen steadily over the past several days to above the $3.30 mark in most locations across the state.
-
Williams reflects on 1st week of session
With the first week of the 2012 Alabama Legislative session in the books, Rep. Dan Williams, R-Athens, is enjoying a victory after the House passed a jobs bill that includes an amendment he sponsored.
-
Cook, eat or bid on goods at upcoming Chili Challenge
The 24th annual Hospice of Limestone County Chili Challenge and Silent Auction will be held from 10 a.m. to 2 p.m. Saturday, Feb. 25, at Athens High School. - AMVETS offer free membership
-
MORE STORIES: Click LOCAL NEWS bar at top left
Click "Local News" bar at top left for more stories
-
Calhoun offers course in solar energy
he Alabama Center for Excellence in Clean Energy Technology at Calhoun Community College is offering a 40-hour course for those interested in learning the basics of solar photovoltaic design and installation.
-
Shot of winter coming this weekend
The cooler weather is in stark contrast to the unseasonably warm and wet winter that has impacted the Tennessee Valley.
-
Sex offender arrested for failing to register
- More Local News Headlines
-
Ala. House starts session with job creation bills
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Expert: Removing LA School's Staff 'Appropriate'
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
