Sales tax holiday going forward in Picayune

Local News

July 28, 2010

By Jeremy Pittari, Item Staff Writer The Picayune Item Picayune Item Wed Jul 28, 2010, 09:46 AM CDT

PICAYUNE — The state is holding a sales tax holiday on Friday and Saturday, but with sales tax collections close to what the city has projected for the fiscal year, city finances won’t be heavily affected.

The sales tax holiday will apply to all purchases of shoes and clothes less of than $100 in Mississippi.

Mayor Ed Pinero said city officials decided not to opt out of the holiday, an option offered n the law passed by the Mississippi Legislature, to help keep shoppers at home and to promote local merchants.

While sales tax collections in the city have been a bit less than what the city had projected for the fiscal year, City Clerk Priscilla Daniel said that if the collections stay at the rate they have been recently, she expects the city to come up about $25,000 short for the whole year. She said that is a reasonable shortfall, as opposed to $100,000 short.

Daniel attributes part of the city’s fiscal success to the many department heads that have worked to keep overtime and expenses low.

“Another year like this and I think the city will be in great shape,” Daniel said.

While Daniel said the sales tax holiday will affect the city’s sales tax collections, she said to opt out of the sales tax holiday would only hurt the city more. Daniel said if the city had opted out, then that could prompt potential shoppers to go to the Gulf Coast or Hattiesburg to shop for shoes and clothes this coming weekend and maybe purchase other things there that are not exempt from sales taxes. She expects the city will accrue some sales tax income this weekendthorugh the sales of groceries and other items that are not part of the tax holiday.

“I think it (loss of sales tax income) will be less of an impact by allowing the sales tax exemption,” Daniel said.

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