(NECN: Anya Huneke) - For one day this weekend, the state of Vermont will mimic its neighbor to the east and get rid of its sales tax. The aim of the tax free holiday is to give the economy a boost and consumers a break.
Tax savings are on the minds of many Vermont shoppers this week.
As the state prepares to shed its sales tax for a day, hoping to encourage more consumers to consume. This Saturday will mark the third year for the state's sales tax holiday.
Don Mayer, owner of small dog electronics, says for him- it has gotten better every year.
Don Mayer\Small Dog Electronics: "We've done around $800,000 worth of business on a Saturday of tax free day... we'd normally do $20-30,000 in that day."
Mayer says he sees many new faces at his South Burlington store on sale days. They might otherwise shop online.
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But instead are spending their money in the community.
The tax free savings apply to products under $2,000. So businesses like small dog electronics are doing what they can to bring big-ticket items just under that $2,000 mark.
Art Woolf\Assoc. Prof. of Econ, UVM: "It's certainly a benefit to those businesses who otherwise would not have the business."
Art Woolf - Associate Professor of Economics at the University of Vermont - says there are benefits to the holiday. But there are also drawbacks. Each sale day represents a loss in tax revenue- about a million dollars, according to the state.
He adds- shoppers plan their purchases around the holiday-, which merely changes the timing of consumer spending.
John Cardona scheduled his 15-hundred dollar computer purchase for this week.
John Cardona\Shelburne "This is a good incentive for me to buy everything today."
That may mean lost revenue for the state, but Mayer points to the extra staff and advertising he needs for the holiday- which, combined with the increased retail activity, makes this event a win for Vermont.
