Georgia Analyzes Results of Tax-Free Holiday

August 4, 2009

For the eighth year, the state of Georgia announced that it would be holding a statewide tax holiday for all retail purchases. The idea is to give relief to parents who are shopping for back-to-school clothes and supplies for their children. In addition, the government has hopes every year that the relief will provide a jump in sales for local businesses and retailers.

This year, the number showed the shoes and computers sold very well. With nearly $1,500 of savings on computers, many retailers actually sold out their entire stock. Also, large ticket items, such as designer jeans and jewelry sold at record levels. However, those items which were expected to sell in mass quantities- clothes and school supplies- really did not see a major increase.

This finding has politicians wondering if the tax exemption is really a smart decision in a time when Georgia is already reeling from a state budget deficit and struggling to cut funding.