Tax ‘holiday’ approved in time for back-to-school purchases

Published 8:56 pm Tuesday, April 18, 2006

Supporters of a sales tax holiday bill predict that its passage could create a three-day shopping weekend to rival after-Thanksgiving promotions.

The Alabama Senate passed a sales tax holiday bill 33-0 Monday, and the House 103-0, to forfeit state sales taxes on purchases of certain items the first weekend in August. The bill, sponsored by Rep. Mac Gipson, R-Prattville, now goes to Gov. Bob Riley, who said he would sign it into law.

Alabama joins 12 states, including Georgia and Florida, that already have sales tax holidays for back-to-school purchases, and the Tennessee Legislature recently voted to create one the first weekend in August.

Alabama shoppers will hit the stores Aug. 4-6.

The three-day break from the state’s 4-percent sales tax covers:

• Clothing costing up to $100 per item.

• Computers, software or computer supplies costing up to $750 per item.

• School supplies and textbooks up to $50 per item.

• Other books up to $30 each.

The measure will help all Alabamians outfitting youngsters for school. The Legislative Fiscal Office estimates Alabamians will save about $3.3 million annually in state taxes.

But it will be especially beneficial to lower-income parents struggling to provide the essentials for school-age children.

School supply programs

Locally, there are several programs to assist low-income students with getting ready for school. Limestone County has one of the largest programs in the state for providing school-supply assistance, said Jennifer White, community resource specialist for the Department of Human Resources. In 2005, DHR distributed packets to 395 children referred to the department by social workers.

“There are so many church and community groups here who do this as a project,” said White. “We buy for each child who is referred by a case worker.”

White said that new clothing is an excellent contribution to the DHR school program. “We just don’t have enough new clothing donated,” she said. White said that DHR maintains a large bin containing donated used clothing and recipients of the agency’s services may try to find items that fit family members, but for the school program, they want new clothing.

“Children need new clothing to start school,” said White. “We have no sign-ups for this program. All children must be referred by social workers.”

White said that if someone wants to purchase directly for a child, DHR would supply sizes. She said any leftover items after the before-school packets are distributed would be donated to Project Head Start or the Birdie Thornton Center. She also said that DHR notifies area teachers to contact DHR if they have a student who does not have school supplies and the agency would try to outfit them.

Among churches who provide school supplies are First Baptist and First United Methodist. Suzanne Taylor, director of Children’s Ministries at First Methodist, said the church will sponsor a “Giving Tree” through June and July where members can donate school supplies. “If someone needs supplies, they can come by the church and I will fix them up with a bag,” said Taylor.

Boys and Girls Club also provides a school supply program through Staples, according to club spokeswoman Nedra Pride. She said Staples customers may purchase items such as packets of paper, pens, pencils or crayons, which will be turned over to Boys and Girls Club for the clubs school supply program.

Local impact

The state legislation also allows cities and counties to waive their local sales taxes the same weekend, if they would like. Athens Mayor Dan Williams said Tuesday that he hasn’t had time to decide if he will recommend to the City Council to waive the city’s 2-cent tax that weekend.

“I’ve got to talk to the council and look at the budget and see if we can afford to let go of that much money,” said Williams. “It has the potential for being a big weekend. Of the 2 cents, half goes to the city and half goes to the schools. I think if the city gives up that weekend, the schools should too to help the parents out.”

County Commission Chairman David Seibert was not available for comment Tuesday.

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