When numerous customers came into Stell Furniture Co. in Luling not knowing it was a sales tax holiday Aug. 7 – 8, owner David Stell couldn’t help but ask why.
“Half the people who came in here had to be told about the tax holiday,” said Stell, although he was pleased with his sales that even included New Orleans buyers who knowingly took advantage of the parish’s rare tax break. “I found they didn’t get the word out enough,”
St. Charles Parish, as with all Louisiana parishes, are supposed to provide and get an economic boost from the Back to School tax holiday for both businesses and consumers, but the parish took it further.
The parish government and Public School System piggybacked on the state tax holiday by also exempting their tax share (5 percent) on certain items purchased.
Paula Haydel-Jeansonne, director of the St. Charles Parish Sales Tax that collects parish taxes, said they advertised the tax holiday, but merchants should advertise it, too.In simple math, the forgiven parish 5 percent sales tax plus the state 4 percent tax equaled the rare opportunity (only in St. Charles and St. John the Baptist parishes) to get a full 9 percent tax break on items purchased during the holiday.
The tax break was capped at up to $2,500.
For Stell, sales went “quite well” – better than last year – so he appreciated the holiday.
But, he also maintained sales might have been better had consumers been informed earlier and with more advertising. “It should be a ‘wow’ factor that you’re giving 9 percent off,” Stell said. “People out of town called and came in to buy more than locals.”
Stell said he didn’t receive the parish notice confirming they didn’t have to charge the parish tax until a week before the holiday, which left little time to advertise it.Charlie Hartman, owner of Hartman’s True Value Hardware in Boutte, agreed.
“Most of the people in the parish don’t understand that St. Charles Parish is tax free on those days,” said Hartman, whose business is approaching its 26th anniversary in October. “A lot of people go out the parish to shop because they think they can make better deals there, but they can save 9 percent here.”
Hartman said the problem is the state and parish don’t inform the public as well as they did when the tax holiday was first implemented and better sales showed it. As a advertising declined, he said, so did sales each year.
“We certainly did bring in additional inventory for that holiday,” Hartman said.
This included $2,500 riding lawnmowers, which he said were discounted $200 on sale and would have qualified for a $207 tax break.
“I have a lot of merchandise I didn’t sell that I have on hand now,” he said. “As far as I’m concerned, this is a lot of lost money because people didn’t understand what was taking place.”
Hartman said the tax holiday can be a boost to all parish businesses if people know about it.
Haydel-Jeansonne said the holiday was announced in letters to merchants and her office visited them to reinforce the message, signs were placed along busy highways and banners placed at Bridge Park. Signs also were given to merchants to advertise the holiday at their stores.
But, she clarified her office is not required to advertise the tax holiday.
Hartman also questioned why he was charged sales tax on cigarettes he bought at two stores during the tax holiday.
Haydel-Jeansonne said that should not have occurred and he can come to her office for a refund.
She said it can be costly for merchants to adjust registers so, when the tax is not forgiven and consumer bring it to her attention, her office provides refunds.
“By law, whatever you collect you have to remit,” she added.If merchants collect sales taxes during the holiday they still have to pay that money to the state and parish, Haydel-Jeansonne said.
Last year’s holiday resulted in an estimated $65,000 to $75,000 “lost” in parish taxes with a state total estimated at $50,000.
Haydel-Jeansonne said her office got calls early in the holiday from consumers who reported stores that still collected sales tax.
“It’s usually the bigger stores that we get the calls on,” she said. Her office immediately contacted them to fix it and offered the callers a refund. “We usually don’t have a lot of problems. After the holiday starts, we have a few phone calls and refunds.”
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