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Georgia's sales tax holiday for clothing, computers and school supplies ran July 30-31. Terry marketing professor Julio Sevilla, an expert in consumer behavior and psychology, weighed in on the benefits of the event.
“Tax-free weekends are a great opportunity that families on a budget can take advantage of to buy their children’s back to school supplies," he said. "The idea of this initiative is to provide a tax break for those expenses that are associated to school activities (e.g. books, clothing, backpacks and other school supplies) but that in most cases do not receive special tax treatment despite being related to education. Naturally, many items that are not strictly meant to be used for school or by consumers enrolled in school (e.g. clothing) also qualify for the tax break, which provides a great opportunity for small and large businesses to organize special sales events in which consumers can get a wide array of products at lower prices than usual, as they benefit from the discount offered by the merchant as well as the tax reduction.”
More information about Sevilla's research can be found here.
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