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NEWS March 20, 2009 FOR MORE INFORMATION CONTACT: Mick Bullock NEW BILL CREATES SALES TAX HOLIDAY IN MISSISSIPPI
“This Sales Tax Holiday is targeted tax relief aimed at spurring economic growth and has been introduced every year since 2000 by Senator Walter Michel,” stated Lt. Governor Phil Bryant. “Senator Michel understands as we continue through these tough economic times how important it is to give back to the hardworking Mississippians.” The tax holiday weekend is planned near the end of the summer to give “back-to-school shoppers” a break on all articles of clothing and shoes priced below $100. The legislation provides for the holiday to be held statewide in 2009, but allows any municipality to opt out of allowing it in their city in subsequent years. According to studies, other states that have enacted similar legislation have shown that this tax holiday can be revenue neutral or even a revenue generator for the state. The consumer saves 7% on each qualified purchase; the retailer for one weekend competes on a level playing field with internet companies which pay no sales tax, thus increasing sales during a traditional slow time of the year. The State benefits as well by providing a small tax break to the taxpayers, and receives additional income from out-of-state shoppers. State Senator Walter Michel who represents Madison and Hinds Counties has fought for this legislation since 2000 upon learning about other states success. “This Sales Tax Holiday legislation will aid Mississippi consumers greatly,” stated Michel. “Retailers will offer extra sales discounts to attract shoppers to their stores, and for one weekend a year, consumers can avoid the state’s 7% markup.” Sales Tax Holiday legislation (HB 348) now heads to Governor Haley Barbour for approval. ### |
