SC to lose millions this weekend, so why keep tax free holiday?

South Carolina News
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Shoppers are already out and about saving some money as a part of the sales tax free weekend in South Carolina.

This weekend is considered one of the busiest for retailers in the state. But even with more shoppers in stores, less money is generated for the general fund.

“The state loses between $2 to $3 million during this weekend each year,” explained Bonnie Swingle with the South Carolina Department of Revenue. “It’s not benefiting the state the same way it’s benefiting the retailers and shoppers.”

The goal is to get more shoppers in stores and local businesses.

“It’s important for local businesses to try and get a competitive advantage against online retailers,” said Mark Rosenbaum, Professor of Retailing at the University of South Carolina. “Maybe this is a great opportunity for people to rediscover the retailers in their neighborhood to go to malls they haven’t been in a while.”

Even though the state loses a few million dollars, it’s a small percentage of the state’s $8 billion general fund.

This is the 19th sales tax-free weekend in South Carolina.

Common back to school supplies and most clothing items will be exempt from the 6% state sales tax through Sunday. For more details, visit here.

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