AL Sales Tax Holiday Matters to Small Business

Date: July 26, 2016 Last Edit: August 03, 2016

Alabama’s upcoming sales tax
holiday on clothing, computers, and school supplies could provide a much-needed
lift to many small stores and businesses, said Rosemary Elebash, state director
of the National Federation of Independent Business. The sales tax holiday is
Aug. 5-7.

“It’s been a lackluster summer
for a lot of small businesses,” Elebash said. “The sales-tax holiday should
help people get fired up and in the mood to spend.”

The latest NFIB Small
Business Optimism Index
, released July 12, shows that small-business
confidence improved by only a fraction of one percent in June.

“Small businesses are in
maintenance mode,” said NFIB Chief Economist Bill Dunkelberg. “Uncertainty is
high, expectations for better business conditions are low, and future business
investments look weak.”

That’s where the sales-tax
holiday comes in, Elebash said. Parents would go back-to-school shopping
regardless, she said, but the tax holiday could also attract cash-strapped
shoppers who have delayed buying new clothes and devices.

“And people need to remember
that the tax holiday applies to Main Street as well as the mall,” Elebash said.
“Even if you don’t need school clothes, you can save money shopping during the
sales-tax holiday, and you can find some great deals and unique merchandise by
shopping small.

“When you shop at small,
locally-owned businesses, you’re helping your friends and neighbors,” Elebash
said. “You’re supporting the businesses that support our schools and charities
and create jobs in our communities.

“Combined with the
back-to-school sales a lot of stores are having, the sales-tax holiday is going
to help people get a bigger bang for their buck,” Elebash said. “The more
we can do to encourage people to shop at small businesses, the more jobs we’ll
save, and the faster our economy will grow.”

To learn more about Alabama’s
sales tax holiday, visit the Department of Revenue’s website at

NFIB is the state’s leading
small-business association, representing a cross-section of the state’s
economy. For more information, visit
or follow @NFIB_AL
on Twitter.

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