Va. Tax Holiday Appears Likely

Bills to Give Back-to-School Shoppers a Break Gain Ground

RICHMOND, Feb. 15 -- Virginians are likely to enjoy the state's first sales tax holiday on clothes and school supplies as students ready for class this August.

A key Senate committee and the House of Delegates have passed bills that would give taxpayers a break from the state's 5 percent sales tax for many purchases made the first weekend of each August, starting this year.

Supporters of the tax break say Virginia businesses lose money to stores across state borders in North Carolina, Maryland and the District, each of which lifts the sales tax for certain days each year.

"It's a win for the consumer, a win for the retailer," said Sen. Ryan T. McDougle (R-Hanover), who sponsored the Senate bill. "You get the sales tax holiday providing cheaper goods for people that are preparing for their kids to go back to school, and it lets the retailers compete with other states that are also having the tax holiday."

Lisa Foley, the mother of two Fairfax County students and a teacher at Hunters Woods Elementary School in Reston, is ready to pencil the tax-free weekend into her summer calendar.

Foley, a self-described frugal shopper, goes to such discount stores as T.J. Maxx and Target to outfit her seventh-grade daughter and fourth-grade son, and searches for sales on school supplies. But even so, the bills add up.

"It's huge," Foley said. "I would bet your average parent easily spends $100 or $200 for the basics, and that's not even counting the shoes and clothes. It's multiple binders and spiral notebooks and special kinds of markers. This would be a welcome, welcome thing."

The exemption also would be welcomed by teachers who stock their classrooms with extra supplies for students. And while most families in Northern Virginia can easily afford school supplies, the once-a-year expense is a significant burden for others.

"Even a free public education does cost some parents some out-of-pocket expenses," said Lynn Terhar, president of the Fairfax County Council of PTAs. "We always talk about living in a rich county, but we have a lot of people who have to scrape up money for paper and crayons. And when you add sneakers, boots and a coat, it can be a stretch."

Kevin Hall, spokesman for Gov. Timothy M. Kaine (D), said Kaine generally is supportive of the effort to provide tax relief, but he will want to make sure the measure that finally emerges from the assembly fits into the state's overall budget plans.

Maryland runs a sales tax holiday Aug. 23 to 27, and the District lifts taxes for 10 days in both August and November.

Pat Wirth, whose son is a junior at Robinson Secondary School in Fairfax County, said she has considered going into the District to take advantage of the exemption but never was able to fit it into her calendar. But if it's offered in Virginia, she'll be there.

"I will definitely target those days," Wirth said.

The bills passed by the House and Senate committee differ slightly. The Senate version was adopted by a unanimous vote of the Finance Committee, in past years the hurdle for such proposals. It would remove the sales tax on shoes and clothes, up to $100 per item, as well as on office supplies, up to $25 an item.

The House bill would forgive the tax on all clothes and school supplies, up to $100 an item, and on computer systems costing up to $1,500. Differences will need to be worked out, but with the concept endorsed by both bodies, lawmakers in each chamber said they assumed residents could look forward to the holiday.

"We won't have any trouble working it out," said Del. Harry J. Parrish (R-Manassas), who sponsored the House version. "We're going to have one."

Both bills also would allow stores to absorb the cost of the sales tax on items other than clothes and supplies -- and advertise they've done so. That would mean consumers could face a bonanza of tax-free shopping on everything from electronics to furniture for the weekend. Retailers favor the idea because it would allow all types of stores to participate in the event, without quibbling over the type of purchases that would give shoppers a break.