Cape Girardeau won't participate in tax holiday

CAPE GIRARDEAU, MO (KRCU) - Missouri’s annual Back-to-School Sales Tax Holiday will take place August 5 through August 7. Several local communities will not participate this year, including Cape Girardeau.

The holiday exempts sales tax on many back-to-school items, such as clothing, computers and school supplies.

Chamber of Commerce Director John Mehner says that consumers will be faced with the choice of buying in Cape Girardeau or purchasing items elsewhere.

"Cape is certainly going to have a ton of options and a ton of places to shop within the city, so there are going to be an awful lot of offerings there regionally that you can’t get some other places," Mehner said. "But for those that are strictly trying to look at dollar amounts, it can make a 3 or 4 percent difference, which if you are buying a computer, that can make a difference."

Cape Girardeau City Council voted not to participate in 2009.

City Attorney Eric Cunningham says it comes down to economics.

"Approximately $60,000 would be lost the City of Cape Girardeau if the city decided to participate in the Back-to-School Sales Tax Holiday. And the City Council did not want, in these economic times, to lose that kind of money," Cunningham said.

Even though some communities will not participate, the state’s 4.225% sales tax will still be waived during the Back-to-School Tax Holliday.

Other Southeast Missouri communities chose to opt out, including Farmington, Ironton, Malden, New Madrid and Ste. Genevieve.

Jacob McCleland, KRCU

Posted in: City of Cape Girardeau,sales tax,tax holiday