Tax Free! - WSFA.com Montgomery Alabama news.

August 4, 2006

Tax Free!

For Carmen Easterling, the rush is on and she likes the idea of beating the crowd, but more importantly the thought of saving a few dollars thanks to Alabama's first three-day sales tax holiday on back-to-school supplies and clothes.

"School starts on the 23rd, tax free so I just had to come get the supplies," said Easterling who is a college student at Alabama State University.

"We need to find glue, baby," as Rebekah Kinsey instructed her two little ones at the Ann Street Wal-Mart.

"We just moved here from South Carolina and they did tax free, too," said Kinsey.

When it's all said and done Kinsey expects to pocket $30 in savings. Now just imagine if you bought a computer priced at $750. Your savings? About $75.

We take you back to Carmen Easterling who is still wheeling around Wal-Mart, picking up more school stuff. When she arrives at the cash register, it's the moment of truth. Total bill is $39.95. Easterling saved just under $4. Not a whole lot of money but enough to make Carmen smile as she begins a new school year.

State and local governments could lose big bucks by allowing the tax holiday, but Montgomery's finance director isn't so sure. Lloyd Faulkner believes shoppers could use their savings to spend more money on items that aren't tax exempt.  That in theory could neutralize the financial loss to counties and cities across the state.

The tax holiday ends at mid-night Sunday.

Reporter: Bryan Henry

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