Following the state Legislature's lead, St. Charles Parish officials have waived all local sales taxes for Aug. 5 and 6, forgoing about $55,000 in potential revenue to allow residents to stretch their dollars a bit more during what is expected to be a prime back-to-school shopping weekend. On Monday, the Parish Council approved a resolution to suspend the 2...
Following the state Legislature's lead, St. Charles Parish officials have waived all local sales taxes for Aug. 5 and 6, forgoing about $55,000 in potential revenue to allow residents to stretch their dollars a bit more during what is expected to be a prime back-to-school shopping weekend.
On Monday, the Parish Council approved a resolution to suspend the 2 percent sales tax it levies. Earlier this month the School Board voted to waive its 3 percent sales tax. The state charges an additional 4 percent, for a total tax of 9 percent that will be waived in conjunction with the state sales tax holiday.
Beverly Williams of Ama said she set aside money each year anticipating the annual sales tax hiatus.
"I save a lot, especially on school supplies, about 100 plus, '' Williams said. "I have nieces, granddaughters and nephews that I buy for. I try to buy enough so I don't have to go back during the year."
Beginning at 12:01 a.m. Aug. 5 and ending at midnight Aug. 6, no sales tax will be applied to the first $2,500 of the purchase price of consumer goods, including furniture, clothing and appliances.
The exemption does not apply to vehicles requiring a license and title or most meals. It also does not apply to hotel occupancy, admission to athletic events and laundering services among other things.
Shoppers could save $225 in taxes if they spent $2,500 or $9 if they were to spend $100.
"I would think that people would take as much advantage as possible, 9 percent can add up," said Parish Councilwoman Wendy Benedetto, who sponsored the tax resolution. "Maybe right now is a good time to purchase a generator or school supplies."
The Parish Council and School Board have participated in the sales tax holiday for several years by suspending local tax collections. Last year the school district tax office, which collects sales taxes for the parish, asked retailers to keep an account of revenue for the two-day holiday so that officials would have an idea how much revenue is generated - and lost.
"Most of the major retailers responded to the request and reported the taxes for us to get a good estimate,'' said Nicole Hargis, compliance manager in the school district's sales tax office.
Based on last year, Hargis estimates there will be a total loss in revenue between $45,000 and $55,000 during those two days.
The parish's current revenue budget is $171 million while the School Board recently adopted a budget that includes general fund revenues of nearly $124 million.
Additional information about the sales tax holiday and what purchases are exempt, can be found at the Louisiana Department of Revenue web site at http://www.rev.louisiana.gov/.
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Littice Bacon-Blood can be reached at lbacon-blood@timespicayune.com or 985.652.0951.