By Yolanda Woodlee
Washington Post Staff Writer
Friday, August 3, 2007; B03
Shoppers in the District will get a tax break when they buy school supplies, clothes and accessories under $100 for nine days beginning Saturday, city officials announced yesterday.
D.C. Council member Carol Schwartz (R-At Large) kicked off the tax-free summer savings holiday outside the shoe boutique Wild Women Wear Red on U Street in northwest Washington.
"You can actually spend thousands of dollars, but you don't pay any taxes on items $100 or less," Schwartz said.
She was joined by Mayor Adrian M. Fenty (D) and Council Chairman Vincent C. Gray (D), who applauded Schwartz for promoting the six-year tradition, which allows residents and visitors to stretch their dollars. The city's retail sales tax is 5.75 percent.
"The District's sales tax holiday comes at the perfect time of year as parents around the Washington metropolitan area prepare to send their kids back to school," Fenty said. "Not only does it offer savings for families buying school supplies and clothing, it draws more consumers to the District as a boost to local business."
Added Gray: "You know the idea is good when it continues year after year."
Gray said that Schwartz's tax-free holiday is a win-win: Parents get a break on back-to-school shopping and businesses get a competitive edge over the suburbs.
Schwartz, who pushed through the legislation in 2001, said she grew tired of watching District residents trek to the suburbs to shop. She proposed the tax-free holiday to keep them in the city and to draw suburbanites to support city businesses.
Virginia officials announced its second tax-free holiday, which began yesterday and will continue through Sunday. Tax will not be charged on school supplies priced at $20 or less, or clothing priced at $100 or less.
District officials estimated the tax loss at about $1.1 million, but Schwartz said you can't put a price tag on the advantage of luring patrons to District stores and boutiques. Many shoppers also buy goods that cost more than $100, which are not tax-free.
"Actually, we think we break even," Schwartz said. "We think it's revenue-neutral."
The next tax-free shopping period in the District starts the day after Thanksgiving and continues through Dec. 2.
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