News Summary
Families in North Carolina are missing out on tax-free weekends for back-to-school shopping, unlike many neighboring states that offer such financial relief. Since the elimination of this benefit in 2013, residents are looking across state lines to places like South Carolina and Tennessee to save on essential school supplies. Despite ongoing bipartisan efforts to reinstate this holiday, North Carolina families continue to face higher retail costs and are seeking ways to make shopping more affordable for the upcoming school year.
Charlotte, North Carolina – Families in North Carolina will miss out on sales tax-free weekends this back-to-school shopping season, as many surrounding states offer financial relief with tax-exempt shopping days. At least 25 states have introduced tax-free holidays to help alleviate the burden of school supplies and clothing purchases, making back-to-school shopping more affordable for families.
The decision to eliminate North Carolina’s sales tax holiday was made in 2013 when then-Governor Pat McCrory signed a tax reform law that took effect in July 2014. This law aimed to cut both personal and corporate income tax rates, resulting in the discontinuation of the tax-free weekend. Previously, the sales tax-free weekend allowed families to purchase essential items such as clothing, shoes, notebooks, and pens without incurring sales tax.
Charlotte residents looking to capitalize on tax-free shopping this year can cross into neighboring states, such as South Carolina and Tennessee, both of which will host their tax-free holidays in July and August. South Carolina’s tax-free weekend will run from Friday, August 1, to Sunday, August 3, 2024. Meanwhile, Tennessee’s sales tax holiday occurs from Friday, July 25, to Sunday, July 27, 2024.
In Tennessee, shoppers can save between 7% and 10% on eligible items, including clothing and school supplies valued at $100 or less, as well as computers priced under $1,500. However, it’s important to note that certain items, such as jewelry and sports equipment, are not tax-exempt in Tennessee. South Carolina has a statewide sales tax rate of 6%, with an option for counties to add an additional 1% if approved by local voters. Items that qualify for tax exemption in South Carolina include clothing, accessories, shoes, backpacks, and computers.
The proximity of Charlotte residents to these other states makes it relatively easy to take advantage of these tax holidays. Notable shopping destinations near Charlotte include Rock Hill (28 miles away), Spartanburg (76 miles), Greenville (104 miles), Sevierville (208 miles), and Knoxville (232 miles), all of which boast numerous retail stores where shoppers can explore tax-free options.
Residents of the Triangle area can also look to Virginia, which offers a sales tax holiday for school supplies under $20 and clothing under $100. This additional option expands the potential for in-state shoppers to benefit from tax-free purchases.
Since the termination of the sales tax holiday in North Carolina, state lawmakers have repeatedly proposed the reinstatement of this beneficial shopping period. These proposals have received bipartisan support in recent budget discussions, indicating a continued interest in providing financial relief for families during back-to-school shopping.
Historically, North Carolina’s sales tax holiday took place from 2002 until 2013, but it was eliminated as part of a broader tax reform initiative. The last tax-free weekend in North Carolina was estimated to cost the state over $13 million in lost revenue, a figure that has led many to advocate for its return considering the financial benefits it provided to families.
As families in North Carolina prepare for the upcoming school year, starting on August 12 in most counties, they face the challenge of higher retail costs compared to neighboring states that still offer tax relief. With the absence of a local tax-free holiday, many are likely exploring options across state lines to make their back-to-school purchases more economical.
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Additional Resources
- Charlotte Observer
- Wikipedia: Sales Tax Holiday
- News Observer
- Google Search: Sales Tax Holiday
- Fox 4 Now
- Google Scholar: Sales Tax Holidays Benefits
- WBSM
- Encyclopedia Britannica: Sales Tax Holidays
- News Observer
- Google News: Sales Tax Exemption
Author: HERE Charlotte
The CHARLOTTE STAFF WRITER represents the experienced team at HERECharlotte.com, your go-to source for actionable local news and information in Charlotte, Mecklenburg County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Lovin' Life Music Festival, Charlotte Pride festival, and major sporting tournaments at Bank of America Stadium. Our coverage extends to key organizations like the Charlotte Regional Business Alliance and Foundation for the Carolinas, plus leading businesses in finance and entertainment that power the local economy such as Bank of America and NASCAR. As part of the broader HERE network, including HEREAsheville.com, HEREGreensboro.com, HERERaleigh.com, and HEREOBX.com, we provide comprehensive, credible insights into North Carolina's dynamic landscape.
