Gorilla suits and flapper dresses will be tax-free this weekend, but Kevin Winner doesn’t expect a rush of early Halloween shoppers at Party City in Gastonia.
Starting at midnight on Friday, Gaston County shoppers may buy costumes – but not masks – without paying sales tax, according to the guidelines for North Carolina’s August Sales Tax Holiday.
Hats will also be tax-free but not headbands, book bags but not handbags, raincoats but not umbrellas, and bandannas but not handkerchiefs.
Party City isn’t usually a popular destination for the tax holiday, said Winner, manager of the store at 3686 East Franklin Blvd. But the store sells Halloween costumes that will qualify as tax-free “clothing.”
“People probably don’t even know,” said Winner. “Our register is set up to know what’s taxable and what isn’t, but other than that there really isn’t much preparation for us.”
Erin Foster, manager of Adam & Eve, an adult novelty and lingerie store in Gastonia, did not know that garter belts, girdles, and other lingerie items were eligible. The Gastonia store was not yet open at this time last year, but Foster worked at another location in North Carolina. That store did not offer the holiday exemption to customers.
“No one ever asked about it,” said Foster.
Department of Revenue guidelines state that participation in the tax-free weekend is mandatory for all retailers. But when it comes to shops like Adam & Eve, apparently no one in the forest has heard the trees falling.
When the General Assembly authorized a sales tax holiday nine years ago, legislators specified general categories for eligibility, including school supplies and instructional materials, computers and computer supplies, sport or recreational equipment under $50, and clothing priced less than $100.
But for the definition of “clothing” versus “clothing accessories” – the latter of which are not eligible for tax-free status – the state defers to another organization, according to Department of Revenue spokesman Thomas Beam.
The Streamlined Sales Tax Governing Board is a cooperative effort to “assist states as they administer a simpler and more uniform sales and use tax system” stemming from a U.S. Supreme Court on the application of state sales taxes on Internet purchases, according to the commission’s website.
At some point in its streamlining efforts, the board identified bandanas as an article of clothing and handkerchiefs as a clothing accessory. It apparently also specified costumes, lab coats, diapers, and girdles in its definition of clothing – and “wedding apparel,” a distinction that seems redundant for purposes of the tax holiday.
“I don’t understand what their interpretation of wedding apparel would be for under $100,” said Syble Latta, owner of the Poffie Girls bridal shop on South New Hope Road on Gastonia.
To qualify for the tax exemption, Latta’s customers will be restricted to undergarments, flower girl dresses, and the $99 rack of bridesmaid dresses. Had the General Assembly not included the $100 price limit on clothing, brides could save an average of $1,000 for a gown this weekend, said Latta.
Stores carrying school supplies, moderately-priced apparel, and other merchandise that is more traditionally associated with the exemption are gearing up for a busy weekend.
Questions about the tax-free weekend have been a regular occurrence at the Teacher Box store in Gastonia, said co-owner Libby Stines. But many teachers aren’t waiting for Friday to pick up supplies, anticipating that tax-free items will run out quickly.
Walmart will be another popular tax-free holiday destination, according to Jan Varnadore, manager of the store at 3000 East Franklin Blvd
“We always see a lot of business – and you know what, I don’t blame them!” she said.
Aside from the occasional complaint over handbags and other popular accessories that aren’t eligible for the exemption, “holiday” shoppers generally know what they want.
“Usually it goes pretty smooth,” said Varnadore. “They’re looking for the basics – clothes and the underwear and things.”
For those customers who may need reminding, Walmart staff will call attention to tax-exempt items in a special section of the store known as the “hot spot.” It will not include adult diapers and other lesser-known eligible items, Varnadore said.
The August sales tax weekend ends at 11:59 p.m. on Sunday. For a list of eligible and non-eligible items, see Section 34-24 of the Department of Revenue Technical Bulletin: dornc.com/practitioner/sales/bulletins/section34.pdf#34-24.
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gaston county, instructional materials
