Sales Tax Holiday A Bonus For Retailers

They come in waves, people clamoring for tax free clothing and other back to school items. Grabbing everything in sight, saving big bucks and making local retailers very happy.

Duke Dotson, a Wal-Mart Co-Manager said, "we've been very fortunate. Friday was a good day, (Saturday was a) phenomenal day. We were very pleased with the sales that we had Saturday."

Pleased is a nice way of putting it. Employees we spoke with say thousands of extra customers are coming in to save during the sales tax holiday, but they really end up buying more school supplies than anything.

"Back to school has done really well this year. Normally it always does well with the increased traffic but this year more than most we saw a huge increase," said Dotson.

That increase goes straight into the stores pocket. Here's the situation: you save money because your not paying extra for sales tax, so you end up buying more. The store doesn't have to pay the state anything as far as sales tax so they just pocket the profits of your extra purchases, making them extremely happy.

Dotson said, "oh we're gaining significant amount. From our understanding of what they told us because this is just like a holiday day. Tax free weekend, Friday, Saturday, Sunday is just phenomenal sales, it's great for all of us."

All of us but the state, who has to sit and watch the millions of dollars worth of sales tax revenue go away for a weekend holiday. But so what, it was their idea.