Sales tax holiday for guns, ammo this weekend

Guns, ammunition, archery and other hunting or shooting equipment will be exempt from Mississippi’s sales tax this weekend, from midnight Friday through midnight Sunday.

The state’s Second Amendment Sales Tax Holiday is in its second year, providing a sales tax break similar to the one the state has for several years provided for back-to-school clothes.

The exemption applies to guns – including rifles, shotguns, pistols and revolvers – scopes and mounts, most archery equipment, ammunition and slings and gun cases. It does not apply to hunting clothing and shoes, binoculars, gun safes or hunting stands and blinds.

COMPLETE LIST OF EXEMPT/NON EXEMPT ITEMS (story continued below)

Brian Smith, owner of USA Pawn with six locations in central Mississippi, said his stores saw a slight uptick in sales last year but he expects that to grow as more people become aware of the tax break.

“People going dove hunting that need to pick up a case of shells, deer hunters – ammo’s expensive – so this helps,” Smith said. “Once more people know about it I think it will pick up steam.”

The guns and ammo tax break was authored by state Sen. Philip Moran, R-Kiln, and had the support of the National Rifle Association. Moran said it’s aimed at helping “the everyday, working family who wants to get out and enjoy hunting.” Moran said he was disappointed the final version of the bill excluded fishing gear and other items he initially proposed for a break.

Lt. Gov. Tate Reeves, who supported the measure, said hunting is not only a favorite pastime of Mississippians, but is a tourism draw for many rural areas.

“The Second Amendment Sales Tax Holiday is a way to make these sports a little less expensive and encourage more families to enjoy the outdoors,” said Reeves, an avid duck hunter.

Louisiana has a similar hunting tax holiday. Similar proposals have failed in the Alabama and Texas legislatures. Opponents of the Alabama bill said it would drain more than $500,000 from the state’s education trust fund. Opponents in Texas said a proposal would cost the state $11 million in revenue it can’t afford to lose.

Mississippi’s laws for the guns and ammo and school clothes tax holidays don’t include tracking mechanisms to determine the cost in revenue. Kathy Waterbury, spokeswoman for the state Department of Revenue said businesses report only gross sales to the agency, and are not required to report exempt sales.

“We don’t have a way of capturing that information – same thing with clothing – and it’s the same when they talk about (proposals) exempting taxes on groceries,” Waterbury said. “They just report one number to us, including dog food, beer, whatever else they’re selling, so we can’t extract what it would be for milk and bread.”

Sales tax holidays have become popular in many states. Some exempt school supplies, energy-efficient appliances, computers, disaster or severe weather preparation supplies or books. Some states allow cities to decide whether to participate in the tax holidays.

While consumers enjoy the breaks tax holidays give, not everyone agrees they are a good idea.

The national Tax Foundation says sales tax holidays are based on politics, not sound policy. It says sales taxes should be neutral for different products or timing of purchases and that tax holidays introduce damaging distortions to the economy and increase the government’s hand in the market, bestowing “gifts” on politically favored groups.

But proponents say any negative impact on government revenue or the marketplace is minimal and that tax holidays bring in business and tourism from neighboring states.

Contact Geoff Pender at (601) 961-7266 or gpender@jackson.gannett.com. Follow @GeoffPender on Twitter.