By Louis Llovio, Richmond Times-Dispatch, Va.
Aug. 5--Retailers and state officials said this past weekend's sales-tax holiday went well, with heavy customer turnout at many stores across Virginia.
The state Department of Taxation estimated that the three-day holiday, from Friday through Sunday, saved shoppers about $4 million in taxes on back-to-school items, including shoes, clothing and supplies, according to a departmental study.
"I think the [state of the] economy brought out more people," department spokesman Joel Davison said.
The state waived the 5 percent sales tax on back-to-school supplies costing up to $25 each and on clothing and shoes selling for up to $100 apiece.
At Children's Wear Digest, sales were up more than 12 percent from last year's tax holiday weekend, said Mary Martha Pender, district manager for company's three Richmond-area stores. The locally based company, also known as CWD, operates an Internet, mail-order and retail business.
To take advantage of the holiday, CWD opened its one retail store and two outlet stores in the Richmond area on Sunday. Pender said the stores remained busy with a steady stream of customers.
She was impressed with how prepared customers were. "It was as if they were on a mission and knew exactly what they wanted," said Pender, who also manages the company's Gayton Crossing Shopping Center store. "They didn't browse. They went straight to what they were looking for."
Gary Weiner, president of Saxon Shoes in the Short Pump Town Center in western Henrico County, said business was extremely good during the three days, especially compared with the past three months. But sales were about even with last year's tax holiday weekend.
Weiner said he brought in twice as many employees during the weekend to handle the traffic. He said he had 17 people working in the children's section and there was still a 20-minute wait Saturday afternoon. The store waived the sales tax on all the items in the store, even for those goods not exempted.
State law allows merchants to pay the sales tax on items not covered, in effect providing a 5 percent discount. The Department of Taxation does not track exactly how much customers save, Davison said.
The state's $4 million estimate on tax savings does not include the amount of business retailers picked up, and many companies took advantage of the tax holiday to spur sales in a sluggish economy.
Henrico County-based Circuit City Stores Inc. paid the sales tax on all merchandise bought during the weekend, and a spokesman said the chain's Virginia stores were busy throughout.
Wal-Mart also covered the sales tax for computers and other electronic items at its stores in Virginia. The chain had prepared for heavy customer turnout, and employees at the 11 area Wal-Mart stores stayed busy keeping merchandise stocked on the shelves during the weekend, a spokeswoman said. Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.
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Story Source: Richmond Times-Dispatch