Businesses Gear Up for Sales-Tax Holiday

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The Mississippi Department of Revenue is holding a sales tax holiday from 12:01 a.m. on Friday, July 30, to midnight Saturday, July 31.

by Ward Schaefer
July 27, 2010

For the second year in a row, the Mississippi Department of Revenue is holding a sales tax holiday in time for back-to-school shopping. From 12:01 a.m. on Friday, July 30, to midnight Saturday, July 31, the state will waive its 7 percent sales tax on clothing and footwear.

The tax holiday is meant to stimulate spending, helping retailers and buyers while sacrificing some tax revenue. Last year's holidays appears to have been a success, Department of Revenue spokeswoman Kathy Waterbury said.

"It was a good holiday for the retailers," Waterbury said. "That's the bigger picture--it helps them, puts more people to work and gets people out there spending."

The department does not have exact estimates of how much sales tax the state lost over the two-day holiday, however, as state law does not require retailers to report their receipts.

"We asked retailers, last year, to report to us how much their sales were, but they did not; they're not required by law to do so, and they chose not to," Waterbury said. "And comparing last year's numbers with the prior year was just not feasible, since the economy was so bad. (Revenue) was dropping every month anyway, and we didn't know what was the economy and what was the sales tax."

Melissa McDonald, manager at Shoe Choo Train, said that last year's sales tax holiday helped her Flowood boutique, even though many of her customers seemed unaware of it.

"It was great," McDonald said. "There was some good traffic, but half the people didn't even know about it, when they came in."

Dabbs Smith, owner of Celebrity Trends, a women's clothing boutique in Flowood, agreed."It definitely brought a lot more people out to shop," Smith said. "I think it helps boost the economy. We had a lot more sales, and it's a drive for people to get out and shop."

Council Tries Again on Fairview Inn Restaurant

The Jackson City Council approved zoning changes last week aimed at preserving Sophia's, the restaurant operated by the Fairview Inn. Last year the Mississippi Supreme Court agreed with a legal challenge by two couples who live across the street that the city had used preferential "spot zoning" in permitting the Belhaven bed-and-breakfast to operate a public restaurant.

The newest changes establish a new zoning category for historic houses with a bed-and-breakfast and public restaurant, and likely would apply to the Fairview Inn.

New Fondren Restaurant: Market Bites

Jane and Jim Hudson, owners of Bon Ami restaurant in Maywood Mart, have opened a new restaurant in Fondren. Dubbed "Market Bites by Bon Ami," the small cafe is open for lunch inside Interior Market, an interior-design store on Duling Avenue. The private room in Interior Market can accommodate groups of up to 16.

For more information, visit bonamijackson.com or call 601-982-5637.

Entrepreneur Magazine Highlights Jackson

Entrepreneur Magazine is the latest in a number of national publications recognizing Jackson's hospitable business climate. In a feature from its August issue called "Innovation Nation", the magazine cites Jackson in a list of 50 cities capturing different business lifestyles. Jackson appears as one of five cities--along with Pittsburgh, Pa.; Oklahoma City, Okl.; Oakland, Ca.; and New Orleans, La.--offering the opportunity for entrepreneurs to make a difference.

"Few cities make it easier or more inexpensive to launch a business: Expect to pay anywhere from $20 to $150 in licensing fees," author Jason Ankeny stated.

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