Myrtle Beach area stores brace for tax-free crowds

Mall rats of the Carolinas, watch out; it's about to get crowded.

From Friday through Aug. 8, stores across North and South Carolina will sell many of their wares tax free as part of a sales tax holiday. With sales tax near 10 percent in many spots along the Grand Strand, the tax holiday can mean big savings for shoppers, but also big crowds at area shopping centers.

The tax holiday is targeted at back-to-school items, said Adrienne Fairwell, an S.C. Department of Revenue spokeswoman.

But even childless shoppers can benefit from the holiday, so long as they buy approved items off the list, she said.

The major tax-free categories are clothing, shoes, school supplies and computers, but some unexpected items - such as adult diapers and diving suits - also qualify. For students who want to get a jump on prom season, even prom dresses and tuxedos will be sold sans tax.

This may be the last year the state sees such a broad tax holiday as policy makers move to shore up more revenue. The S.C. Tax Realignment Commission gave preliminary approval to a plan eliminating many tax exemptions, including any exemptions for non-back-to-school items during the tax holiday.

If the commission backs the plan in its final September vote and it goes on to gain legislative approval, shoppers would have to pay tax on items such as wedding dresses and towels during the weekend.

For now, consumers can leave the specifics to the stores and just shop, Fairwell said. Stores must configure their registers to ring up items without taxes and later declare the transactions on their sales tax returns, she said.

Shoppers should expect extra deals at many stores to further sweeten the deal, said Marianne Bickle, director of the Center for Retailing at University of South Carolina.

The tax-free weekend will be a big boost to the retail and the overall economy, she said.

"What it's doing is getting shoppers out to stores, and, once they get out to a store, the probability of them buying something goes up," Bickle said.

"There are consumers who might not even know what they want and they might go to the stores."

Spending will spill over to areas that aren't tax free, she said. For example, once out at the mall, they may decide to eat at the food court or in a restaurant, she said.

The holiday also encourages people to spend now rather than later, Bickle said.

On the Strand, Coastal Grand mall and Inlet Square mall will run extended hours for the weekend. The tax holiday guarantees a crowd at the mall every year, said Steve McGhee, general manager of Coastal Grand.

"Because it falls in August and August is also a big tourism month for us, it's a big, big weekend for us," McGhee said.

August is second only to December for mall revenue, he said. McGhee recommends getting to stores early to ensure that popular items aren't sold out.

The benefits of the tax holiday should extend beyond malls to big-box chain stores as well as small, independently operated shops.

Sales at Target on Seaboard Street in Myrtle Beach will pick up, said Matt Harris, one of the store's managers.

Even without extended hours or major discounts, the store's large back-to-school section - including grade school shopping lists and a back-to-college area - is sure to bring in customers on tax day, Harris said.

T-Rex Computers, which sells new and used computers, will see more sales for the holiday, owner Sam Fattoross said.

Fattoross said he will offer deals on used and refurbished computers, items that have become more popular as shoppers search for deals in the weak economy.

The economy has lead many consumers to be tighter with their money, but don't expect that to stop shoppers from going to the stores, Bickle said. If anything, thrifty consumers are more in search of deals and the holiday is a good day to find them, she said.

Tax holiday shoppers should still be smart about their spending and not buy items simply because they find a deal, Bickle said.

"If it wasn't a tax-free holiday and if it wasn't on sale, would you still buy it? If the answer is yes, then you should buy it," Bickle said. "If the answer is no, then you probably shouldn't buy."