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Sunset Hills board to decide on 'sales tax holiday'

Sunset Hills Mayor James Hobbs believes his city should stick with the state-imposed "sales tax holiday" to draw visitors from neighboring towns that have decided not to participate.

The sales tax holiday, designated for the second weekend in August, would help parents get their children ready for school by exempting back-to-school items such as clothes, personal computers and school supplies from sales tax, with some limits.

The issue briefly was discussed during the Jan. 13 Board of Aldermen meeting, and a decision on whether to participate in the holiday or opt out will be made next month. As of Dec. 30, 64 towns and counties had opted out of the holiday.

CompUSA, Old Navy and Marshall's are local businesses Hobbs said are most likely to carry exempt products, but aren't the only ones that might get more business from Aug. 13 to Aug. 15.

"They don't all necessarily have the products that would be affected, but if you bring more people into the city, it will benefit them in the long run,'' Hobbs said.

Even if local jurisdictions decide against the holiday, the state's 4.225 percent share of the taxes will be exempt.

City Clerk Laura Rider estimated that the city could lose about $5,000 in tax revenue that weekend.

Hobbs said the potential visitors from other towns and the people who could spend the saved money on other things outweighs the possible loss in tax revenue.

"I think it will help business overall,'' he said. "Businesses help support this city.''

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