WCAX.COM Local Vermont News, Weather and Sports-Retailers Say Sales Tax Holiday a Success

Retailers Say Sales Tax Holiday a Success

South Burlington, Vermont - July 14, 2008

It was meant to be an economic stimulus and retailers say this sales tax holiday weekend was a success. While many businesses are still crunching weekend sales figures some stores are already reporting sales increases of more than 100 percent.
       
From home appliances to jewelry and even toys, it seems Vermonters were more than ready to shop. The sales tax-free holiday meant shoppers could forgo not only the state's 6% tax, but also local sales taxes. That had them opting to buy "big ticket" items like washing machines and refrigerators.

Sears, in the University Mall in South Burlington, did more than $750,000 dollars in sales.

"We didn't know what to expect and what to anticipate and it was just, it was more than we ever thought," said store manager Lisa Jardine.

It wasn't just home electronics catching the eye of shoppers. After Midnight Jewelers says it saw a 641% increase in sales over the same period last year.

"It's provided a tremendous boost for the business," says store owner Scott Richardson. "You know it kind of replaced what was a normal average weekend with a really strong weekend and our customers responded really well."
 
For a company that depends on traditional holidays like Christmas and Mother's day to keep its revenue up, After Midnight says this tax-free holiday provided a welcome mid-summer boost.
 
The same holds true for other smaller retailers like Vermont Toy and Hobby, which reports a 100% increase in sales on Sunday, and a 50% increase in sales on Saturday

With the numbers coming in strong retailers are looking to the future and hoping the sales tax holiday becomes an annual tradition.

"And if the governor doesn't do it, I'm gonna do it myself," says Richardson. "We're gonna have an After Midnight sales tax-free week."

Some of the critics of this sales-tax holiday have of course pointed out that while it may help retailers the state itself lost out on millions of dollars this weekend. It will be some time before the impact of that can truly be measured.

Some also wonder if big sales this weekend will mean reduced spending over the coming weeks and months. Retailers say they don't think that is the case. They view the holiday weekend as additional discretionary spending, but with no previous experience to compare it to, that is just a prediction.

The sales tax holiday remains in effect through Friday on appliances costing up to $2,000 and carrying the EnergyStar seal of approval.

Bianca Slota - WCAX News