Tax Free Shopping Comes to Mississippi

Lt. Governor Phil Bryant, Jackson Senator, Walter Michel and more than a dozen business leaders announce the state's first tax free holiday weekend.

Mississippi retailers and government officials are hoping this weekend’s tax-free holiday will be a real boost to the state’s economy. MPB's Lawayne Childrey reports.

Most clothing and footwear that sells for less than $100 dollars will be exempt from the state's 7% sales tax Friday and Saturday. Senator Walter Michel of Jackson is hoping the two day exemption will help boost the state's coffers.

“From people we hope to come in from other states to spend their money in Mississippi. To those that will buy gasoline which is taxed at 18 and a half cents a gallon. When they’re at a mall they may shop at the food court. You know many of your municipalities in Mississippi have an extra 2% local tax. So hopefully that will overcome the savings for the consumer and the state.”

Ron Aldridge, Director of the National Federation of Independent Business in Mississippi, believes the tax holiday is timed perfectly for small businesses and back to school shoppers.

“So hopefully that will get ‘em in the door. And if we make those sales we’ll keep Mississippi businesses thriving. If we keep those going forward we will save jobs in Mississippi. And that’s really the real reason to me for this thing. Is that we will keep the jobs as well as grow jobs for the future.”

Mississippi's neighbors already have tax free holidays the first weekend in August. In Alabama it includes school supplies. Carla Snellgrove with the Alabama Department of Revenue says this is their fourth year going tax free.

“We firmly believe that it’s a win win for Alabama families because it ah, certainly gives them a benefit of shopping for items that they ah, certainly need in getting ready to go back to school and start school. But it’s also a win win for the state in terms of actual collections and helping the economy.”

During the inaugural tax free weekend all Mississippi municipalities are required to participate. Next year however, they have the opportunity to opt out. For MPB News, I'm Lawayne Childrey.