Council approves participation in state sales tax holiday
Published 12:00 am Wednesday, June 14, 2006
The Greenville City Council unanimously approved a resolution on Monday night to participate in the state's Sales Tax Holiday in August.
Monday's council approval means shoppers will receive a sales tax break from both the state and the city of Greenville. Gov. Bob Riley signed the bill into law in late April. The holiday allows shoppers to purchase needed supplies and clothing prior to the start of school without the added cost of taxes.
Councilman Jeddo Bell said the sales tax holiday is a good idea.
“This will give parents a needed break for purchasing items for school,” he said.
The three-day sales tax holiday officially starts on Friday, Aug. 4 at 12:01 a.m., and ends at midnight on Sunday, Aug. 6. It applies to the following items:
n Clothing costs up to $100 per item.
n Computers, software and computer supplies costing up to $750 per item.
n School supplies and textbooks up to $50 per item.
n Other books up to $30 each.
“ It will offer tax relief to Alabama families from the burden of the state's sales tax on items their children need for school,” Riley said.
The sales tax holiday is expected to save Alabama consumers $3.3 million annually.
Councilman Tommy Ryan said he generally favors lower taxes and the tax holiday. The tax-off incentive may push more consumers away from the computer and into Greenville stores, he said.
“This will help local businesses compete with Internet sales, at least temporarily,” said Ryan.
Mayor Dexter McLendon said the sales tax holiday could cost the city an estimated $20,000 in revenue.
“That's just a guess,” he said. “This is something we wanted to do and we believe it will help the local businesses.”