New tax holiday would benefit summer season
By JIMMY GALVAN Managing Editor

In an effort to allow Gulf Coast residents to prepare for the hurricane and summer seasons, a Senate Bill was introduced that would form a second sales tax holiday during the first weekend in June.

District 3 State Senator Robert Nichols believes the bill has merit with his East Texas constituents.

"The first time I heard about it, I thought it was great," Nichols said. "It would certainly help residents of District 3."

Senate Bill 1010, authored by Senators Dan Patrick, Rodney Ellis, Kyle Janek, John Whitmire, Eddie Lucio Jr., Juan Hinojosa and Kim Brimer would forgo sales tax collections on items commonly purchased during the summer months and in preparing personal property in advance of a hurricane.

The bill also would allow for the purchase of summer recreation items tax-free as well.

Nichols said he doesn't know fiscally if the bill will work because it includes items such as rakes, water filters, portable grills, charcoal, propane, bathing suits, shorts, swimming pool maintenance supplies and swimming pool toys as well as generators.

"I would have been a lot more excited about it if it had been centered on hurricane disaster items," Nichols said. "Anything we can do to lower the costs of hurricane preparedness, I am thankful for."

Patrick believes the sales tax holiday for hurricane preparedness would give consumers and retailers ample time to get organized without the threat of a looming storm.

"I want all Texans, including those who do not live on the gulf coast, to benefit from this sales tax holiday," Patrick said. "Texas is a destination for summer travel and activities and it is for those reasons that I wanted to include summer items into the sales tax holiday.

"The family from Dallas who vacations on the beach in South Padre should get the same sales tax break as the family from Galveston who has to protect their property in advance of a storm," Patrick said.

The Texas Association of Retailers offered their support of Senator Patrick's bill and is working with Patrick, as well as the other Senate coauthors, to compile a more exhaustive list of items to be covered under the "Summer Sales Tax Holiday."

The National Oceanic and Atmospheric Administration (NOAA) recommend most of the hurricane preparedness items incorporated in the bill.

It is a widely held belief that sales tax holidays do not have an adverse effect on overall sales tax collections. Consumers often spend money on taxable items at a greater rate than they would during non-sales tax holidays.

In Texas, sales tax collections in August (the month of the current sales tax holiday) are second only to the holiday shopping months of November and December. It's no wonder why retailers often refer to the current sales tax holiday as "Christmas in August."

Consumer research data proves that residents from neighboring states often travel to Texas to participate in the August sales tax holiday, and it is widely expected that this would hold true for the "Summer Sales Tax Holiday" as well.

The state of Florida has had a similar sales tax holiday, with great success, for a number of years, said Patrick. Florida's summer sales tax holiday runs for eleven days, while the Texas summer sales tax holiday would be the first weekend in June.