Signs of the Times - At start of hurricane season, a tax break
May 2008
Living in Virginia: At start of hurricane season, a tax break
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"Virginians can save more than $2 million this week, thanks to the state.

With hurricane season beginning next Sunday, Virginia is giving a sales-tax break on certain items to help get residents ready.

Those shopping for batteries, flashlights and about two dozen other items to prepare for hurricanes won't be paying the state's 5 percent sales tax beginning today. The tax-free shopping ends Saturday.

The sales tax will be waived on generators costing up to $1,000 and on items like first-aid kits, bottled water and cell-phone chargers costing up to $60 apiece.

The savings for consumers could be about $2.17 million on an estimated $43 million in purchases, according to a Virginia Department of Taxation study.

The tax break is designed to get people ready for hurricane season.

"As we've seen time and again, including with the several tornadoes hitting the state, weather can be very unpredictable and end up causing a lot of damage and hardship," said Janie E. Bowen, Virginia's tax commissioner.

Many of the eligible products, such as bottled water and batteries, are good for everyday use.

"These items can be used for any natural disasters but are generally good basic products to have around your home," said Chris Ahearn, a spokeswoman at Lowe's Cos. Inc.

Virginia is the third state to offer a tax holiday for hurricane preparedness. Florida was the first, though it stopped offering the tax savings last year because of budget constraints. Louisiana began offering it after Hurricane Katrina hit in 2005.

This is Virginia's first year.

Lowe's and Home Depot stores across Virginia have stocked up by bringing in extra generators and other supplies.

Consumers shopping for hurricane supplies aren't the only ones eligible for a tax break.

Virginia law allows retailers to absorb the 5 percent sales tax on items not covered on the hurricane supply list during these specified periods.

At least a half-dozen local retailers plan take to pick up the tax this week, said William Baxter, president and chief executive officer of the local Retail Merchants Association.

Absorbing the tax on non-exempt merchandise will cost retailers, but many have said they have done so because it helps generate sales.

"It lets people save on something they were going to buy anyway," said Gary Weiner, president and chief executive of Saxon Shoes at Short Pump Town Center, a local retailer absorbing the sales tax beginning Tuesday.

"It gives us a chance to offer a small break," he said. "Plus Uncle Sam already has enough."" (Louis Llovio, Richmond Times-Dispatch, May 25, 2008)


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