Tax Free Week in Maryland brings savings, boost for businesses
MARYLAND – If you haven’t already, you might want to get those shopping bags and wallets ready, because it’s Tax Free Week in Maryland. Local businesses say that not only are they expecting a boost in sales. They’re also happy because it allows them to compete with tax-free Delaware. “For us, Tax Free Week is the busiest back to school week of the season. I think people like to save on that sales tax, and with Delaware near us it makes a big difference,” said President of Vernon Powell Shoes Joe Wright.
Until August 14th, shoppers will pay no taxes on clothing and footwear priced under $100. On top of that, taxes are exempted on the first $40 towards backpacks. Wright says the savings could help consumers as summer is buttoned up and school starts. “We’re seeing a big shortage in product. So, we want people to shop early. I think this Tax Free Week will encourage people to get out and shop, and get their shoes before things get a little tight,” said Wright.
Tax Free Week doesn’t just stop at clothing, shoes, and backpacks. It also covers adult and baby diapers, bathrobes, bridal and prom dresses, dry cleaning services, and costumes. And businesses and shoppers aren’t the only ones benefiting. The Comptroller’s Office teamed up with the Maryland Retailers Association to offer scholarships to two Maryland college students. First place will get $1,000, and second place will get $500. Students who want a chance to win will have to take a creative photo or video that promotes Tax Free Week, and showcase their support of Maryland retailers. The deadline for that scholarship is August 15th.
But even with all those incentives, businesses say many shoppers don’t know that Tax Free Week is happening, even if it’s old hat. Owner of Benjamin’s Wear It Again Nancy Benjamin says the tax break is a nice surprise for customers already taking advantage of end of season sales. “Everybody’s happy because we’re doing summer clearance. So, they’re getting 70% plus 6% more off, and with the new arrivals they’re getting a little incentive to shop the new things, because at least they’ll save 6%,” said Benjamin.
Benjamin says Tax Free Week isn’t just a seamless way to save. She tells 47ABC that now more than ever it’s important to support smaller stores, and that shoe certainly fits at her business. “I have been really delighted to see that so many people are shopping local. People really want to keep doors open and lights on in small, local businesses like ourselves,” said Benjamin.
