JACKSON, MS – Ron Aldridge, state director of the National Federation of Independent Business, says the July 31-Aug. 1 sales tax holiday should be a big help to small businesses hurt by the recession.
Most clothing and footwear will be exempt from the state’s 7 percent sales tax as long as the item sells for less than $100. While the holiday is timed for back-to-school shoppers, it applies to everyone.
Several establishments in Copiah County stand to reap big benefits from the holiday. One of those is that shoppers will tend to spend more of their dollars locally, rather than drive out of town–sometimes for several hours–to save a few bucks. The extra money put into the local economy will help retain jobs and benefits, and will turn over several times thereby diverting more sales tax dollars into communities for police and fire protection and other services.
“We fought to pass a sales tax holiday in Mississippi because it’s a good way to encourage people to shop and to shop at home instead of driving out of state,” he said. In the past, some Mississippians have taken advantage of sales tax holidays in Alabama and Tennessee.
“This sales tax holiday will be great for individuals and families, but it’s also going to help small businesses hurt by the recession,” Aldridge said.
“Sales tax holidays are like the day after Thanksgiving in some states. They really get people excited and in the mood to shop, and that’s exactly what our economy needs right now,” he said.
“The more we can increase consumer spending at our small businesses, the more jobs we save, and the faster our economy will recover,” Aldridge said.
NFIB/Mississippi is the state’s leading small business association. Small businesses account for about 97 percent of all employers in the state, according to the U.S. Small Business Administration. Small businesses employ half of Mississippi’s private-sector workforce.