Taking a Look at Tax Free Weekend

This past weekend shoppers across the state of Tennessee took advantage of tax free weekend incentives. This marks the 7th year that tax free deals have been offered to consumers not only in Tennessee, but across the southeast. The tax holiday is observed by more than 17 states nationwide.

Tax free weekend encourages shoppers to take part in the deals offered by retailers as they make decisions for back to school. Reports indicate that spending for this tax free weekend was projected to increase by 10 percent. This increase would include spending for families of school aged children to reach $673 and $888 for college students. Last year, alone, consumers in Tennessee avoided more than $9 million dollars in sales tax during the holiday.

Locally, the holiday may seem like a mixed bag. Often the tax free holiday does not help those that would initially need it. According to the Tax Foundation, tax free holidays can sometimes be seen as a stumbling block to economic growth, and represent a real cost for businesses without providing substantial benefits. Also, they are potentially inefficient means of helping low-income consumers and an ineffective means of providing savings.

However, some local retailers are reporting an increase in foot traffic over the weekend, especially on Friday and Saturday. Many people were taking advantage of sales that were offered over the weekend, and even took the chance to get gift cards to some of their favorite stores. Retailers especially wanted to focus on the needs of local children, and the necessity of school supplies. Several offered a trade of gift cards or discounts for a backpack full of school supplies.

Experts have claimed that consumers see the tax free holiday as almost another mini-black Friday. Sales offer consumers and students the opportunity to hold off on big purchases such as computers until a later date: tax free weekend. This could be the focus of policy makers changing the date of the holiday in the first place. In changing the date, consumers could now make their bigger purchases in the mindset of “back to school.”

Other areas around the south will be holding their tax free holiday later this weekend from August 5th-7th. If you missed out on the tax free weekend deals, there is always a chance to catch them in one of the surrounding states if you are willing to make the drive. Consumers are also reminded that back to school deals are still available at some retailers.