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Sales Tax Holiday Savings Could Soar

By Michelle Bliss

08-04-10 – The North Carolina Department of Revenue estimates that consumers across the state will save more than $17 million during the sales tax holiday this weekend.

Last year, shoppers in North Carolina saved $12.5-million in uncollected sales tax revenues. State officials predict a much busier sales tax holiday this year because the state rate jumped from 4.5% to 5.75% last October. North Carolina Department of Revenue representative Beth Stevenson says this event survived during a tough economic time.

"Well, it is money that would have been in the state's budget, but the sales tax holiday has been deemed a popular event among consumers, tax payers, and retailers, so I believe that it something that everyone thinks is important and that's why it continues to be an event here in the state."

South Carolina and Tennessee are hosting similar events this weekend, but Georgia has cancelled the sales tax break this year.