North Carolina Reconsiders Sales Tax Holiday in 2016
- Sales Tax News
- May 9, 2016 | Gail Cole
The state of North Carolina used to provide two sales tax holidays: An August tax-free period for clothing and school supplies and a November holiday for many Energy Star products. In 2014, both were repealed and North Carolina retailers were prohibited from absorbing sales tax or directly or indirectly advertising the absence of tax. Now there is talk of reenacting one of them.
Last year during South Carolina’s tax-free period, retailers in North Carolina prepared for sales to drop, as they had during South Carolina’s 2014 holiday. Yet they also fought back, coming up with creative ways to keep North Carolinians shoppers north of the border. Many offered “Better than tax free” sales, reducing prices by 10% or even 15%.
This year may see the return of at least one North Carolina sales tax holiday. Senate Bill 753, introduced in late April and currently under review in the Committee on Finance, would “reenact the sales and use tax holiday for school supplies.”
The bill’s primary sponsor Sen. Paul A. Lowe Jr (D) was prompted to restore the tax-free period by struggling constituents: “We’ve got to find a way to help working families.” A number of business owners have also expressed support of the bill, which they hope will boost sales.
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