MD Tax Revenues Take Big Hit - 47 ABC - Delmarva's Choice

MD Tax Revenues Take Big Hit

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MD - For Maryland shoppers, "Tax-Free" week comes with obvious bonuses. 

Maryland is one of 16 states in the nation to participate in tax break holidays. For an entire week, shoppers are free to purchase clothing and footwear with an exemption on taxes. While this stimulates a boosts in sales, the overall tax revenue in Maryland takes a major hit.

Steve Hill has been a financial advisor with Livingston & Hill has 2009. He tells us 47 ABC that although the state of Maryland will see a huge increase in sales this week, it will lose big elsewhere.

"They lose, probably five million dollars in tax revenue during this week." he says.

Last summer, major department stores reported that the number of shoppers in Maryland increased by 10% during Tax Free Week.

Smaller local stores, however, aren't guranteed to see an overwhelming amount of sales regardless of weeks promoting tax exemption. More customers are lured when large discounts are offered which is something that Natalie Chaffin, manager of Bella Grace, says they're not in the position to do on a regular basis. 

She explains, "When you mark something up...that's your overhead, that's included in that. That's my paycheck, that's my lighting in here. That's everything that's involved in this store running."

Consumers like Janice Hess says she's been a happy customer of tax-free weeks since her children were in high school and now shops for her grandchildren.

"I think it's great that they do that for all the consumers and it's good for the state of Maryland. Let's bring us up with everyone else and let's compete out there." says Hess.

"Tax Free Week" in Maryland ends on Friday.

 

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