| The Georgia Department of Revenue reminds us | | | | over to the mall and purchase the pants for $95, |
| that the annual Sales Tax holiday is coming up | | | | then the pair of pants is an eligible purchase. You'd |
| again, the last week of July. It's been a number of | | | | probably be using ten dollars worth of gas to get |
| years that Georgia and a bunch of other states | | | | there and back, while polluting Georgia's air. Like I |
| have jumped on the Sales Tax holiday | | | | said, "Quirky." |
| bandwagon and I've never been a much of a fan. | | | | Next, the holiday makes bookkeeping difficult for |
| Want to know why? | | | | some of my clients. Most of my clients aren't |
| First, for consumers, the concept is a little bit | | | | affected because they either don't sell any eligible |
| deceptive. The ads tout big savings on items you | | | | products, or they are not in the retail business to |
| buy during the holiday. However, if you think | | | | begin with. For those who are, tracking eligible |
| about it, the savings are minimal. Consider that | | | | products versus non-exempt products and trying |
| purchasing $100 worth of exempt merchandise | | | | to reprogram their point of sale system means |
| saves you only $7 in most of Georgia's counties. | | | | an additional couple hours of work on their part |
| Whoopee. I ventured out last year during the | | | | and a couple hours of extra work on my part to |
| holiday and was frustrated at the crowds and the | | | | get their sales tax return completed. |
| mess. Frankly, I'd rather give the state my $7 | | | | Finally, the impact to the state budget, while not |
| and let them hash it out. | | | | enormous, is, at the very least, significant. It's |
| Don't get me wrong, the savings on an eligible | | | | hard to find an exact total, and those that you |
| computer system (up to $1,500) would save you | | | | can find, don't seem to agree. But, it appears that |
| $105 in Sales Tax. That's worth it. Although you | | | | the annual impact to state and local governments |
| could order a computer online and still qualify for | | | | in Georgia is in a neighborhood just north of $3.5 |
| the sales tax holiday without having to fight the | | | | Million. This is money that has to be replaced in |
| crowds. There are also some quirky "gotchas". | | | | some way, despite the sharp decline in state |
| For example, according to the Dept of Revenue's | | | | revenues and massive cuts in operations |
| FAQ page, if you go online and buy a pair of | | | | statewide. |
| pants that costs $95, but shipping costs an | | | | In a future article, I'll suggest ways to make this |
| additional $10, you'd have to pay tax on $105. | | | | revenue up - not by increasing taxes elsewhere, |
| The pants are no longer eligible because the | | | | but by eliminating some wasteful State programs. |
| TOTAL of the item plus shipping exceeds the | | | | Somebody remind me to tell you about the |
| $100 threshold. On the other hand, if you drive | | | | "Umbrella Guys". OK? |
