Savers get set to shop tax-free

By DAVID KAPLAN
Houston Chronicle
August 4, 2004

Shopping enthusiasts like Christa Hartman and Suzanne Williams consider the tax-free holiday to be the ultimate.

Going to stores the day after Thanksgiving is more of a fun family event, Hartman said, whereas the coming weekend is "Hit 'em early — hit 'em hard."

This weekend is when serious shoppers get down.

Texas will hold its sixth sales tax holiday, a popular consumer event that starts at 12:01 Friday, just after midnight tonight, and runs through Sunday until midnight. The state law exempts most clothing and footwear individually priced under $100 from sales taxes, saving shoppers about 8 percent.

"They are tremendously successful in drawing customers in stores and getting them to buy," said Craig Sherman, a spokesman for the National Retail Federation.

Many stores lure shoppers with big discounts on top of the 8 percent tax break.

"It gives stores a bigger incentive to have bigger sales, " said Hartman who believes in planning ahead. She and Williams wake up early on tax-free days, because, she said, "If you get there late, you're hosed."

The two fashionistas pore over ads and coupons before charting their itinerary. They will hit everything from Tootsie's to Academy Sports & Outdoors.

Pointing to a newspaper ad promoting a big sale, Hartman said, "Fifty to 75 percent off, and you don't pay taxes. It's really amazing."

Plans for next year
The tax-free holiday coincides with the back-to-school shopping season, but items such as school supplies and backpacks are still taxed.

State Comptroller Carole Keeton Strayhorn said that at the next legislative session she will push to make those items exempt as well, along with children's safety gear, such as bicycle helmets.

The tax-free holiday is a "win-win for the state," Strayhorn said. "It keeps money in the pockets of Texas families" and boosts state revenue because of the increase in purchases of taxable items and influx of shoppers from Oklahoma, Arkansas and Louisiana.

Texans have saved $193.5 million over the past five years in state and local taxes, said Strayhorn, who predicted $46 million will be saved by consumers this holiday.

This year, 12 states will hold tax-free holidays. In 2002 there were nine, and in 2001 there were eight. The fluctuations are influenced by the health of state economies, Sherman said.

Looks like Christmas
Over the three days, the Galleria expects to see crowds like the busiest days of the Christmas season, said Galleria director of marketing Connie Hascher. Access will be easier this year because nearby construction is complete and new exits are open, she said.

Foley's Galleria will simultaneously hold a Red Apple sale and extend hours from 7 a.m. to midnight Friday and Saturday, and 10 a.m. to 11 p.m. Sunday. Macy's Galleria and many other stores throughout the city will extend hours.

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