Sales Tax Holiday Begins Today

Thursday, August 2nd 2007, 9:47 am

By: News On 6

OKLAHOMA CITY (AP) -- Since Texas began offering a sales tax holiday in 1999, the owner of a longtime southern Oklahoma department store watched as potential customers headed south to take advantage of the holiday to buy back-to-school clothing.

Craig Mettry, whose family has owned Mettry's Department Store in the Garvin County town of Wynnewood for more than a century, is anxious to see if those people will make their purchases closer to home now that Oklahoma has a similar holiday.

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Oklahoma's sales tax holiday -- approved earlier this year by the state Legislature and signed by Gov. Brad Henry -- will run from Friday through Sunday. Estimates are that the holiday will reduce state revenue by $6.4 million, Oklahoma Tax Commission spokeswoman Paula Ross said.

But merchants like Mettry are hoping the holiday will boost their sales.

"It's a good promotion for this time of year," said Mettry, who has bought advertisements in four newspapers to promote his store's participation. "We've already got back-to-school (sales). This gives us an edge because (shoppers) can stay around here."

With combined state, city and county sales taxes at 9 percent in Garvin County, "when you start buying in increments of hundreds of dollars, that adds up," Mettry said. "It's a good thing for everybody."

The sales tax holiday applies to purchases of clothing and shoes that are priced at less than $100 per item. There is no limit on the overall bill, as long as each of the individual items are $100 or less, Ross said.

Items not exempt from sales tax include specialized athletic equipment, such as football pads or cleats, Ross said. But she said if athletic gear can be worn for other things besides athletics -- such as jerseys or tennis shoes -- those items are tax exempt.

Ross said no cities or counties will lose sales tax money as a result of the holiday. The state will compensate cities and counties for lost sales tax revenue from the state's sales tax fund.

Ross said the Tax Commission sent postcards to each of the about 90,000 tax-permit holders in Oklahoma, informing them of the sales tax holiday and the merchandise that will qualify. Some merchants have said they did not receive those postcards, but that deters only a bit from their enthusiasm about the sales tax holiday.

"They are finally doing this," Mettry said, "and at least (Oklahoma is) becoming proactive about it ... I know too many people who have taken advantage of the one in Texas.

"Fuel prices are on people's minds. If they don't have to drive very far, I think they prefer to start closer to home."

Of Oklahoma's border states, Texas, Missouri and New Mexico also offer sales tax holidays. Missouri and New Mexico's holidays will be during the same time as Oklahoma's, while the one in Texas is scheduled for Aug. 17-19.

For more on the sales tax holiday, as well as tips for back to school, click here.

Watch the video: Tax Free Shopping Hits Oklahoma