Editorial: Taxed by school shopping

Sunday, Aug. 6, 2006 | 8:53 a.m.

As the start of the school year approaches, Virginia this year joins 14 other states that have a tradition of offering residents a holiday from paying state sales tax on purchases of school supplies and clothing.

Laws in the 15 states that offer parents a small financial respite just before school starts vary as to the types of goods included as back-to-school supplies. The laws also set maximum amounts for the purchases that are exempt from sales tax. But Nevada has no such law at all.

During the 2005 state legislative session, lawmakers considered an Assembly bill that called for suspending all but 2 percent of the sales tax on purchases of school supplies and clothing made Aug. 26-28 this year. The proposal, which could not suspend 2 percent of the state sales tax without placing it before Nevada voters in November's general election, failed in the Senate Finance Committee.

Senators balked at not knowing exactly how much tax revenue would be lost. But states that have the temporary tax exemption have shown that much of the revenue losses are covered by increased sales of taxable items during the exemption period.

The National Retail Federation estimates that the average American family will spend $228 on clothing, $98 on shoes and $86 on pens, notebooks and other supplies for each child going back to school. A savings of $10 here and there can mean another shirt or a backpack. Nevada lawmakers should reconsider this issue during the next session in 2007 - at least for a year, to calculate its impact. Nevada's families can use a little relief.