A bill in the Alabama Senate will try to prevent
consumers in this state from seeking a tax break in other states during
the back-to-school shopping frenzy.
The bill passed unanimously in the House of
Representatives in February and would allow consumers to purchase
“school supply” items without paying the state’s sales tax during the
first weekend in August.
Similar policies have been successful in neighboring
states such as Georgia, Tennessee and Florida, tempting many Alabama
residents to cross state lines in an effort to save money.
“It’s time to give the taxpayers of Alabama a needed
break from our oppressive tax system,” said Cam Ward, a representative
from District 49. “In Alabama, a sales tax break would not only pump
more money into our economy, it would also keep a little more money in
family pocketbooks.”
The bill includes school supplies, including computers
that cost less than $750, and clothing, including school uniforms, that
cost less than $100 per item.
Ward said when former Georgia governor Roy Barnes
signed the bill into law, he said it would draw revenue from neighboring
states.
“He was right,” Ward said. “We should have tax
policies that encourage spending in Alabama as opposed to spending our
monies in other states.”
New York was the first state to implement the program,
and it became an instant success because it not only saved people money
on basic necessities, but it also provided a jumpstart for local
retailers.
Ward, and others, are hoping to see similar results in
Alabama, and also hope this is a step toward more widespread tax reform.
“With a sales tax structure that already proves to be
an undue burden on many of our poorest families in Alabama, a tax break
on back-to-school items would be a welcome relief,” Ward said.
As helpful as the weekend will be for families, it
will be a break for students, as well. Although the tax-free weekend
will fall well before classes begin on Aug. 16, students should still be
able to take advantage of the tax break as long as they begin shopping
early.
“I think it’s a great idea,” said Trey Johnston, of
Johnston & Malone Bookstore. “I’ve heard of other states doing it, and I
think it’s time to have some progressive ideas come forth from our state
legislators.”
To make up for the estimated $3 million the state is
expected to lose during the tax-free weekend, another bill was passed
that requires out-of-state companies with contracts with the state to
make arrangements to collect sales tax on items companies sell to
Alabama.