Regional Report: Cross Country
As School Holidays End, The Tax Holidays Begin</br></br>Retailers are hoping state "sales-tax holidays" will attract droves of customers into stores for back-to-school shopping even though spending is expected to be down slightly nationwide.</br></br>Office Depot Inc., Delray Beach, Fla., is disseminating "tax holiday" fliers in its 85 retail stores in Florida, touting the state-mandated nine-day break from the 6% sales tax that began on Saturday. The South Carolina Merchants Association anticipates more than a $200 million boost in sales, believing customers will flood stores beginning Friday for the latest in a series of weeklong breaks from that state's 5% sales levy.</br></br>Governors and lawmakers pushing sales-tax holidays argue the overall economic stimulus will offset any lost revenue as people turn out to buy exempt as well as nonexempt items. The National Conference of State Legislatures estimates more than a half-dozen states -- including Connecticut, Iowa and Texas -- offer sales-tax breaks for school supplies and clothing. Pennsylvania is offering a weeklong sales-tax holiday for computer purchases only, beginning Sunday.</br></br>For retailers, every little bit may help: Parents and teenagers are expected to spend only an average of $527 on clothing and school supplies, down 4% from last year, according to the American Express Co. retail index.