Tax Free Weeks And Their Effect

[jeffrey]

New York is rolling out the red carpet all over again this week, but it's not for the VIPs from out of town.

The state's sales tax-free week gets underway Tuesday, and the hope is that a little more saving for consumers translates into a little more spending at the retail registers.

But some industry watchers say discount-savvy shoppers may not necessarily take the bait.

The tax-free period, which runs from Aug. 31 through Monday Sept. 6, also covers the important Labor Day holiday shopping weekend -- a nice little bonus for the bargain hungry...

Overall, 12 states held a tax-free shopping week this year, with a majority timing the event to coincide with the back-to-school buying period, which has grown to become the second most important sales period for the industry after Christmas.

"If there were no sales tax-free holidays, would the situation be any different for consumers?" said Michael Niemira, chief economist and director of research with the International Council of Shopping Centers (ICSC). "We asked consumers that question in a survey, and 70 percent said a tax-free week didn't affect their shopping..." [read more at money.cnn.com]