Sales Tax Holiday is a Real Boost

Sales Tax Holiday is a Real Boost

This weekend is the time to go shopping. Starting Friday, West Virginia will hold it’s second annual sales tax holiday, and I encourage everyone to take advantage of the three-day tax break. This year’s holiday, which Gov. Bob Wise proposed and the Legislature adopted during the 2003 session to help families afford back-to-school clothes and supplies, begins 12:01 a.m. on Friday, Aug.1, and ends at midnight on Sunday, August 3. During that time, those items will be exempt from the state’s 6 percent sales tax.

Last year’s holiday, which was applauded by retailers, saved shoppers $1.7 million on $28 million in school-related items. This year’s sales tax holiday has been expanded to include computers, and state tax officials estimate that taxpayers could save about $2.2 million. Shoppers can purchase general school supplies, articles of clothing and footwear valued up to $100. Unlike last year, shoppers will also be able to purchase computers up to $750 and computer accessories up to $100 after credit for a manufacturers rebate.

Gov. Wise has reported that many retailers are planning deep discounts to coincide with the sales tax holiday. I’m hopeful that this event will help parents and their children prepare for the upcoming school year – and help them keep more money in the bank.

* Along the same line, Legislatures across the country are trying to hold on to their states’ money without having to raise taxes, which has been a daunting prospect considering the shape of our economy. The National Conference of State Legislatures reports that 43 of the 49 states that responded to an inquiry have used a variety of means to balance their budgets, first turning to reserves, specific fee increases and cost-cutting measures before resorting to tax increases.

This is only the second time in nine years that states have been forced to raise taxes. Fortunately, the West Virginia Legislature did not have to raise income or other taxes, aside from the tobacco tax.

Because many states had to spend any savings to help balance budgets, the total amount of budget reserves among the states has fallen 48 percent over the past fiscal year, which ended June 30, dropping from $22.4 billion at the end of fiscal year 2002 to $11.6 billion at the end of fiscal year 2003.

But the NCSL report also contained some hope for a turnaround. Many state financial officers predict that states’ revenues will improve during the fiscal year that starts next July 1. None of the reporting states predicted that their budgets would end the current fiscal year with a deficit.

* I learned much of this information from staff and colleagues who attended the annual NCSL conference last week. In addition, I’ve also acquired new information about the nationwide effort to address childhood obesity, an ongoing problem that I’ve mentioned in previous columns.

States across the country are battling to ensure that children have access to proper nutrition during the school day, and that those foods aren’t competing with junk food and sodas sold in vending machines. In a comparison of what various states are doing to that end, West Virginia fared pretty well.

Our state’s school food policy does not permit any foods of minimal nutritional value to be served or sold to students during the instructional day, although county school boards can permit the sale of soft drinks in high schools outside of breakfast and lunch periods. Any money generated from the machines may be used by principals to purchase school supplies or distributed by the schools’ faculty senates. The state’s policy also stipulates nutritional standards for food served during the school day: No food that contains 40 percent or more sugar by weight is permitted; any juice product must contain a minimum of 20 percent real juice; and any other foods must follow the USDA dietary guidelines for fat by limiting it to no more than 8 grams per one ounce serving, or must meet the USDA standard for lunch. Only milk, milkshakes and bottled water may be served as a la carte items during lunch.

I’m pleased that West Virginia school administrators have set those standards, but obviously much more must be done. While childhood obesity is a national problem, our state has a high percentage of overweight adults, and if children follow that path, they will be at risk for numerous ailments such as diabetes and heart disease.

I welcome and appreciate your input on these issues, or any other legislative matter. Please call me at (304)340-3106 or write to Delegate Virginia Mahan, 215-E, Capitol Complex, Charleston, WV 25305.