Top tips for SC’s tax-free weekend

Each year, South Carolina’s tax-free weekend marks the beginning of back-to-school season and some of the biggest shopping days for Palmetto State merchants aside from Black Friday. But critics say you might save more money by staying home.

“I don’t shop tax-free weekend,” said Naida of Columbia, a self-described “professional thrifter” who goes by one name, scours thrift and discount stores for deals and sells the clothing through her Instagram account styledbynaida.

“I shop at the end of August when everything is 70 percent or more off,” said the single mother of two. “I don’t need to shop this tax-free weekend because I bought everything last year.”

Some retailers will mark down merchandise during the two weeks leading up to the sales tax holiday, then mark items back up to full price for tax-free weekend, Naida and several websites said.

During tax-free weekend “nothing will be marked down,” she said. “You might get a better deal if you shop early.”

Mark Rosenbaum, who chairs the University of South Carolina’s Retail Department, agreed that better deals can be found outside of the tax holiday.

Websites like retailmenot.com and couponcabin.com offer manufacturers coupons often for 15 to 20 percent off just about any time.

“And customers know that,” Rosenbaum said. “So the tax-free holiday has now become diluted.”

This year’s sales tax holiday will run from 12:01 a.m. Friday through midnight Sunday, Aug. 6. Parents and others are expected to flock to malls and stores to buy computers, clothes, book bags and school supplies without having to pay the state’s 6 percent sales tax and any local sales taxes.

Despite the detractors, the weekend is popular. And the crowds might be a little heavier this year because Georgia has eliminated its two sales tax holidays, said Andy Peach, senior general manager at Columbiana Centre, the Midlands’ largest and most active mall.

“I think we’re going to get pretty good crowds from other states,” he said.

Georgia found that its tax-free holidays – one for back-to-school and one for energy-saving appliances – were costing $70 million a year.

South Carolina officials estimate the state loses $2 million to $3 million during the back-to-school holiday, according to the S.C. Department of Revenue.

The advocacy group Tax Foundation noted that with Georgia’s departure, 16 states now hold tax-free weekends, down from a peak of 19 in 2010.

The foundation calls the weekends “political gimmicks that distract policymakers and taxpayers from genuine, permanent tax relief.”

This story was originally published July 29, 2017 at 7:42 PM with the headline "Top tips for SC’s tax-free weekend."