Retailers, Shoppers Say State Tax Break a Help for Back to School

Just in time for back-to-school shopping mania, for one week beginning Sunday, there will be no state sales tax for qualifying apparel and footwear costing $100 or less.

According to the Comptroller of Maryland’s office, the “Shop Maryland” week begins Aug. 14 and runs through Aug. 20.

“This initiative helps consumers and gives retailers a boost in these tough times,” stated Comptroller Peter Franchot in a press release. “While the state will take a slight tax hit, many Marylanders have been devastated by the national recession and deserve this break as they prepare to send their kids back to school.”

According to the release, the 6 percent sales tax break is the result of legislation passed in the 2007 special session of the Maryland General Assembly, which mandated that a tax-free week will occur every year during the second week in August until the legislature decides to revisit the issue.

“I think it’s great from a retailer’s perspective and as a consumer I’m definitely going to take advantage of it,” said Artworks Apparel Boutique owner Nikki Ratti. “It’s a good break. Every little bit helps.”

Ratti said she plans on making her customers aware of the tax break through electronic messaging.

In the meantime, the comptroller’s website states that businesses selling items that are not eligible for inclusion in the tax-free week, like many of those stores on Westminster’s Main Street, can participate in Shop Maryland under regulations dubbed “Sellers Privilege.” However the retailer is responsible for paying the sales tax owed the state on those items.

As a result, many of those small business owners in the area say they are not participating.

“It really doesn’t affect me because I don’t have clothing or anything in my store,” said Debbie Scheller, owner of Sykesville-based bookstore .

However many of the shop owners did say they would participate as consumers.

“I will definitely take advantage of it,” Scheller said, noting that she would probably shop for her three school-aged children during the week. “It comes at a good time of year.”

Consumer Nicky Smelser called the week a good opportunity for both retailers and shoppers.

“I think it’s a good opportunity for people to come in. I a have a lot of teachers who shop here,” said Smelser, who works at Sidetracked Antiques & Design.

Maryland Retailers Association President Patrick Donoho called last year’s Shop Maryland a “great success” in a press release.

“It got consumers out shopping again after suffering hard economic times. This year, we hope more consumers will take advantage of the substantial savings offered by local retailers during this week,” Donobo stated. “Times continue to be tough for families in Maryland as the economy slowly recovers.”

For those parents of private school children, the week doesn’t give as much shopping incentive.

“We already did your shopping,” said Westminster resident Roxanne Gebing, whose two teenage children attend area private schools. “[My daughter] has uniforms…It would be nice if we had a tax break on those…It doesn’t really affect us.”  

According to the comptroller's office, the tax-free week is expected to result in a revenue decline estimated at approximately $10 million this year.

For more information on this week’s tax break, visit the Comptroller of Maryland's website, e-mail the office, or call 410-260-7980 or toll-free at 1-800-MD-TAXES.