WCAX.COM Local Vermont News, Weather and Sports-Tax-Free Shopping Spreads

Tax-Free Shopping Spreads

West Lebanon, New Hampshire - November 27, 2009

Cars pack the Route 12A plazas in West Lebanon. Many of them sport out-of-state license plates. The reason is straightforward.

"It's tax free and we just like to go for the day," said Audria Cleveland of Craftsbury. "This is our day out."

Shoppers seeking the tax-free savings are not just a boon for stores but nearby bars and restaurants, as well.

"I mean just looking at the parking lot, today it's mostly out-of-state people that come in, not just from Vermont but people that are traveling home or just here visiting families," said Valeria Reyett of Seven Barrel Brewery.

But the Green Mountain State also has a tax incentive for shoppers looking to save green backs.

"It was conflicting back when there was a six percent tax differential but that kind of evens the playing field," said Skip Metayer of FarmWay.

As of January 2006, Vermont no longer taxes sales on clothing and footwear. The exemption used to be capped at $110, but that is no longer the case.

"We are still educating people was we go, even though it have been two years now," Metayer said. "We are still getting the misconception from the New Hampshire people that it is taxable just because they have known that forever."

However, some Granite Stater's are aware of the savings and use them as an incentive to make the trip west.

"When you live that close to the border it is just as appealing to have a store to go to that is not all that far away," said Vicki Herzog of Whitefield, N.H.

Others are willing travel hours for goods that are all guaranteed to have a tax-free ticket price.

Asked what she bought, Cleveland replied, "A car full of stuff that we can't fit much more in."

Twice a year, Vermont holds tax-free holidays on all items-- not just footwear and clothing-- in an effort to compete with the tax-free frenzy that happens in the Granite State, not just on Black Friday, but every day of the year.

Vermont's next tax-free holiday will take place March 6. However the tax exemption does not include items costing more than $2,000.

Adam Sullivan - WCAX News