SALISBURY, Maryland – Now, in mid-August, most kids and families are thinking about back-to-school. Back-to-school also means back-to-school shopping.
Luckily for Marylanders, this is the only week of the year when you can buy your kid a new pair of shoes without having to pay Uncle Sam.
“Tax-free week is always our busiest week of the year during the back-to-school season,” said Joe Wright, president of Vernon Powell Shoe Company.
Through Saturday, August 17, shoppers in Maryland can purchase certain items sales tax-free. Wright said they’re really feeling the increase in customer traffic from the offer. “It’s a great time to save money right now. Everyone’s trying to save because things are more expensive. So I think a lot of customers are trying to save every penny they can.”
Shopper Marissa Landon was not going to miss out on this: “Taxes are something that drives up prices these days. So, yes, I’m going to take advantage of this all week.”
Because Delaware shoppers are used to not paying sales tax on their purchases, Wright said the deal is even attracting some people from out of state. “Not only are we seeing an increase in traffic in Maryland, but I think there are more Delaware customers willing to come to Maryland to shop who would probably try to drive to maybe Dover or Rehoboth. So I think we’re getting more sales here in Salisbury.”
This really concerns Marissa, who was already thinking about what she would do with her savings: “I’m a substitute teacher, so I could buy some school supplies for my students and maybe some new shoes for myself and a few things for my colleagues.”
Bill Chambers, president of the Salisbury Chamber of Commerce, said this is a strong incentive for consumers because back-to-school bills really add up. “The average purchase price for school supplies is almost $900, so it’s an expensive proposition whether you’re sending your child to preschool through high school or you’re a student yourself.”
Chambers noted that many states are moving away from these tax-free holidays for financial and logistical reasons. “Frankly, tax-free holidays may be politically expedient, but they’re really bad policy because they’re expensive for states to administer,” Chambers said, adding, “It’s a logistical problem for the comptroller’s office to keep track of…for a retailer, it’s the same logistical and administrative problems.”
Tax-free purchases of clothing, shoes and accessories valued at less than $100 are exempt from sales tax. For backpacks, the first $40 of the purchase is sales tax-free.
