Leaders, merchants praise sales tax holiday

Published 11:18 am Friday, July 17, 2009

By Adam Smith

The North Jefferson News



Those shopping for school supplies in north Jefferson County should see some savings at the check-out counter next month.

The cities of Fultondale, Gardendale, Kimberly, Morris and Warrior have all passed resolutions to take part in the state’s tax holiday on Aug. 7-9.

While those cities are taking part in the weekend that offers tax breaks on exempt items, cash-strapped Jefferson County has decided not to participate. The county commission recently voted against taking part in the holiday on the grounds that it would reportedly generate at least $200,000 and save as many as seven county jobs.

Gardendale did not participate in last year’s tax holiday and instead decided to make a $350,000 donation to the Jefferson County Board of Education. That money is being used to build a new field house at Bragg Middle School.

Mayor Othell Phillips said participating in the holiday is a “win-win” situation for both retailers and consumers. He and Gardendale tax collector Jay Brown recently distributed information to Gardendale’s business owners detailing which items are tax exempt.

“The merchants were very pleased that we’re doing this because some of them said it hurt their business last year to not be a part of it,” Phillips said. “It helps the businesses, the citizens and the city.”

Phillips, a father of two, said he and his wife plan to take part in the tax holiday to buy items for their children. “As a parent of school-aged kids, every dime helps,” he said.

Exempt items include some clothing, computers and software and standard items like notebooks, folders and writing instruments.

Derek Freeman, manager of the Gardendale Wal-Mart, said his store was fully prepared for the onslaught of back-to-school shoppers and many items are already available to customers.

He said the store’s revenue would see little change with or without the city’s participation in the holiday because consumers still need school supplies.

“Whether it’s those three days or closer to school opening, there’s an excitability about doing some shopping,” he said. “They have to have those items to begin with, though sometimes it’s last minute. It’s just good to see the excitement.”

Phillips said even though the city will not collect sales tax on exempt items, he believes shoppers will also purchase non-exempt items at retail stores or eat in the city’s restaurants.

Fultondale Mayor Jim Lowery shares Phillips’ philosophy that his city will make money during the holiday weekend.

“You’re helping people buy back-to-school items, but people will buy other things and we’ll make enough money on those items to offset any losses,” he said. “People appreciate the towns and cities that do this.”

Lowery said he wasn’t surprised that the county decided not to participate, given their on going financial crisis.

“How can you let workers go when you’re not accepting the source of their pay?” he asked. “I can understand why they did it, even though it’s a short-term solution.”

For a complete list of exempt and taxable items, visit the Alabama Department of Revenue’s Web site at www.revenue.alabama.gov.