Sales tax holiday a big deal to small business
South Carolina’s upcoming sales tax holiday on back-to-school items such as clothing, school supplies, computers, and bath towels could provide a much-needed lift to many small stores and businesses, said Ben Homeyer, state director of the National Federation of Independent Business. The sales tax holiday is Aug. 5-7.
“It’s been a ho-hum summer for a lot of small businesses,” Homeyer said. “The sales-tax holiday should help people get fired up and in the mood to spend.”
The latest NFIB Small Business Optimism Index, released July 12, shows that small-business confidence improved by only a fraction of one percent in June.
“Small businesses are in maintenance mode,” said NFIB Chief Economist Bill Dunkelberg. “Uncertainty is high, expectations for better business conditions are low, and future business investments look weak.”
That’s where the sales-tax holiday comes in, Homeyer said. Parents would go back-to-school shopping regardless, he said, but the tax holiday could also attract cash-strapped shoppers who have delayed purchases.
“And people need to remember that the tax holiday applies to Main Street as well as the mall,” Homeyer said. “Even if you don’t need school clothes, you can save money shopping during the sales-tax holiday, and you can find some great deals and unique merchandise by shopping small.
“When you shop at locally-owned businesses, you’re supporting the businesses that support our schools and charities and create jobs in our communities,” Homeyer said.
“Combined with the back-to-school sales a lot of stores are having, the sales-tax holiday is going to help people get a bigger bang for their buck,” Homeyer said. “The more we can do to encourage people to shop at small businesses, the more jobs we’ll save, and the faster our economy will grow.”
To learn more about South Carolina’s sales tax holiday, visit the Department of Revenue’s website at dor.sc.gov.
NFIB is the state’s leading small-business association, representing a cross-section of the state’s economy. For more information, visit www.NFIB.com/SC or follow @NFIB_SC on Twitter.