Delayed tax holiday surprises buyers

As the school year approaches, some Missouri consumers have been getting excited about a sales-tax holiday measure signed into law this year that would exempt most school supplies from state and local taxes.

Problem is, the tax break won't be available until next year.

Initially, the legislation was to have taken effect Aug. 8 through Aug. 10 of this year. But lawmakers defeated a provision to do that -- meaning the start date was put off until Aug. 13 to 15 of 2004.

"It seems like a lot of people are excited about buying school supplies without paying sales tax," Jessica Robinson, a spokeswoman for the state Revenue Department, said Thursday.

Both the Department of Revenue and state Department of Elementary and Secondary Education have been receiving calls for Missourians asking about the sales-tax holiday.

The Education Department has put information on its Web site about when the measure takes effect. The Revenue Department issued a news release.

Some Cape Girardeau-area merchants said they've fielded questions about the tax-free holiday. Gary McDowell, store manager of J.C. Penney, said some of his employees asked when it would be.

"The chamber sent out a newsletter with a column on what the governor passed and vetoed," he said. "If you read that over quickly, you'd miss that the sales-tax holiday isn't until next year. My first thought was, 'How did I miss a tax-free weekend in August?'"

A Jackson Wal-Mart manager said several customers asked him about the tax holiday. He said he didn't know what they were talking about.

The sales-tax holiday law lifts most state and local taxes for purchases of back-to-school items -- everything from clothing to pencils to personal computers. The measure is for only one weekend but could be renewed if it proves successful, state officials said.

Accessories such as watches and jewelry would still be taxed, as would radios, headphones and sports equipment.

Dropping the sales tax will cost the state an estimated $5 million a year, but supporters say it will boost economic activity in Missouri.

Local governments could opt out of the sales-tax holiday by approving a local ordinance.

Several states have successfully used the sales tax holiday concept, including Texas, Florida, New York, Georgia and South Carolina.

Senate President Pro Tem Peter Kinder, who sponsored the legislation, said he was at least pleased that people were excited about the idea.

"They're excited, as well they should be," said Kinder, R-Cape Girardeau. "It's a great new deal for Missourians but it's disappointing to me that it didn't take effect this year. I'm just glad we can make a solid promise to Missourians about this next year."

Kinder said he is concerned that there are some groups representing Missouri counties that are trying to convince counties to opt out of the sales tax holiday.

Managing editor Heidi Hall contributed to this report.