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Shops wish consumers a happy tax holiday with promotions

By Katie Curley
Staff writer
Published: August 15, 2008

Art Bates started to notice the difference earlier this week.

Customers of Tiles Gone Wild were coming in regularly, browsing through the store's vast offerings of tile and plotting their weekend spending spree wisely.

Bates said many will be back this weekend to make the most of the tax free weekend.

"We will have strong sales; we've done quite well in the past (on tax free weekend)," Bates said. "We have a lot of anticipation as customers have been coming in this week making their selections before they come back and make the purchases this weekend."

To make it even more appealing, Bates did what many other retailers are doing this weekend — make a good deal even better. He planned to discount much of the merchandise an additional 10 percent.

Massachusetts shoppers looking to buy a new television, tires for the car or even a leather recliner will get a break this weekend, as the 5 percent sales tax is suspended through Sunday night.

The tax holiday was nearly nixed by the Legislature this year when lawmakers questioned whether the state could afford the loss in revenue. However, Bill Rennie, the vice president of the Massachusetts Retailers Association, said the sales tax holiday is needed more this year than any other, which is why consumers are seeing additional promotions and a flood of advertising tied to the tax break.

As consumer confidence hits new lows and consumers struggle with higher costs from food to gasoline, retailers want an additional boost.

"We expect a lot of traffic," said Bob Carey, owner of Amesbury Furniture Outlet on Clinton Street. "We expect business to double this weekend."

Big-ticket items, such as televisions and couches, offer the biggest savings for those who have been putting their purchases off until this weekend.

"It certainly gives us a little boost during a slow time," Carey said. "Furniture sales typically slow down in the summer."

The tax exemption weekend applies to all purchases up to $2,500, excluding tobacco products, boats, cars and meals. Telecommunications services, gas, steam and electricity utilities are also excluded from the tax exemption.

Still, it's not just big-ticket retailers that are looking to take advantage.

Even though more expensive products will save consumers the most, Deb Pagley, owner of Parke Place on Friend Street in Amesbury, said the tax-free weekend also provides a different mind-set for consumers.

Pagley is holding a sidewalk sale outside her store today and encouraged other downtown retailers to do the same.

"I checked on my sales last year, and it was a good weekend," Pagley said. "Assuming it's the same or better, it should be a good weekend."

Embellishments on Main Street is also joining in on the sidewalk sale today.

"People can come out for the tax free weekend and get a bargain at the sale at the same time," Pagley said.

Pagley was concerned for the economy when she heard earlier this summer that the tax free holiday may be canceled because the struggling government needed the money.

"I was concerned for everyone because a lot of people wait to make major purchases on the tax free weekend. I think with how much people are spending on gas and the cold weather coming in with the high heating costs, people really need this," Pagley said. "It's fun to know you can look forward to this every year and that the politicians are doing something in our favor."

Carey agreed that although the lack of sales tax may not always mean a big discount, the tax free holiday could be more a state of mind than savings.

"Five percent isn't always a big difference," Carey said. "We will be having some things discounted though."

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