Hurricane supplies exempt from tax for 7 days

By: Louis Llovio | Richmond Times Dispatch
Published: May 25, 2009

Hurricane Preparedness Sales Tax Holiday FAQs

Starting today, Virginians will not be charged the 5 percent sales tax on the purchase of hurricane-preparedness merchandise, including batteries, flashlights and about two dozen other items.

The savings come thanks to the state, which is waiving the sales tax to encourage people to get ready for hurricane season, which starts next Monday. The Hurricane Preparedness Sales Tax Holiday runs through Sunday.

With the start of the season a week away, "now is a good time to start thinking about what you will need if one of these devastating storms affects Virginia," Gov. Timothy M. Kaine said in a statement.

The sales tax will be waived on generators costing up to $1,000 and on such items as first-aid kits, duct tape, bungee cords and cell-phone chargers costing up to $60 apiece.

This is the second year the state has had a tax holiday for hurricane-preparedness items. The legislation authorizing it expires after next year.

A study by the Virginia Department of Taxation predicts that consumers will save about $2.3 million this year. It estimated last year's savings at $2.2 million.

"I can't speak directly for the consumer, but while the intent might be good, I don't see it really driving consumer purchases," said James T. Hatcher III, president of Pleasants Hardware. Pleasants, which has nine hardware stores in the state, has a limited number of the items that meet the criteria.

Hatcher said the chain will not do anything to promote the holiday but will abide by the rules.

Virginia is the third state to offer a sales-tax break for hurricane preparedness. Florida was the first, but budget problems forced its cancellation two years ago. Louisiana began offering a sales-tax holiday after Hurricane Katrina in 2005.

The state Taxation Department says that since 2003, hurricanes have killed 49 people and caused more than $2 billion in damage in Virginia.

During the tax holiday, retailers also can choose to pay sales tax themselves on nonqualifying items they sell and pass along the 5 percent savings to customers.

Virginia also has tax holidays on back-to-school items in August and on Energy Star products in October.

Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.