Normally, we pay 5.3% on items like clothes and school supplies. So, not paying taxes for the weekend can really add up.
For many stores, like The Brick in Danville's River District, tax-free weekend feels like a holiday worth celebrating. That's because no taxes means more customers. Owner Adam Jones says last year they saw a 12% increase in sales as compared to a regular weekend. He hopes additional advertising this year will make that number even higher.
"I think it will benefit it greatly. I think if we can get new faces in the door, that will kind of broaden our customer base, get them on an email list, get letters and brochures out, make new customers," says Jones.
Tax-free weekend has strict guidelines. Qualifying school supplies cannot exceed $20 per item. And clothes can't be more than $100 each. But the list of eligible items is extensive including diapers, shoes, and even wedding apparel.
So, how can Virginia afford to lose three days worth of taxes? Department of Taxation Communications Director Joel Davison says they can't afford not to.
"We feel that shoppers could be going across state lines to neighboring states such as North Carolina, DC, Maryland...and spending their shopping dollars over there," says Davison.
Davison says the General Assembly approved the tax holiday unanimously.
"The General Assembly realizes that people could use a little help, especially large families this time of year," says Davison.
Some stores, like The Brick, plan to make everything they have tax-free by absorbing the taxes on non-qualifying items.
For a full list of qualifying items go to http://www.tax.virginia.gov/site.cfm?alias=SchoolSuppliesAndClothingHoliday