“Hartfield provides flourishing academics with Biblical influences.” – Hartfield Academy Parent Hartfield Academy is a Christ-centered, college preparatory school that exists to help families prepare their young people academically, emotionally, and spiritually. They will gain a passion for learning, for putting others ahead of self, and for the living and active Jesus Christ. Contact us to schedule a tour or visit our website to apply online. 601.992.5333 HartfieldAcademy.com 26 • <strong>October</strong>/<strong>November</strong> <strong>2016</strong>
Shopping Local Shari Veazey, Executive Director, Mississippi Municipal League As we approach this year’s holiday season, our thoughts will naturally turn to shopping and the quest to find the perfect gifts for family and friends. Many people now do all or most of their shopping on the internet, while other shoppers will choose to shop at “big box” retailers. But this year, I would urge you to make it a point to shop at home and support your local retailers and businesses. Brick and mortar businesses are extremely important to cities, towns and our state as a whole. When you shop locally, you are supporting “mom and pop” businesses that, in turn, support the cities and towns where they are located. In Mississippi, 18.5% of sales tax paid by local businesses is diverted back to the municipalities where they are located. This revenue supports critical municipal services such as police and fire protection; water and sewer; parks and recreation; libraries; and street infrastructure. For many municipalities in the state, sales tax revenue is a significant contributor to their overall budget. A recent survey of the Mississippi Municipal League revealed that sales tax is often the largest source of revenue for many of the 299 municipalities located in the state. There are many other reasons to shop locally, though. Local retailers and other small businesses are more invested in the overall success of their communities and are more likely to play active roles in the betterment of their city or town. According to the U.S. Small Business Administration, in 2015, Mississippi housed more than 242,000 small businesses making significant contributions to the state’s economy. These locally-owned companies support community events, local schools and sports teams, and often create partnerships with other small businesses, neighbors and residents. Small locally-owned businesses are the largest creator of jobs nationally, according to the Small Business Administration. As a general rule, local retailers can offer better customer service and add a more “personal” touch to the buying experience. Big-box retailers may have a larger physical footprint, but small retailers often have access to the same vendors and are more vested in satisfying your needs as a customer. They can order products that are not currently in stock, and because they are locally owned, they can be more flexible to extend a sale price, or offer a rebate to attract your business. Now, no one can dispute the convenience factor of ordering products online from the comfort of your home or office, but online retailers have an unfair advantage over our “Main Street” businesses that are working hard to grow, or sometimes just sustain, their clientele. These same businesses are contributing to the fiscal health of cities and towns, which ultimately benefits local citizens. Internet based businesses do nothing to contribute to these communities or to the state of Mississippi. The Mississippi Municipal League has been and will continue to be a strong advocate for the implementation of internet sales tax as a mechanism to simply level the playing field. A local retailer in one of our member cities has told me of many instances of “showrooming” where customers come into his store to try on a coat or pair of shoes, and when questioned by a salesperson about making a purchase, they indicate that they are just trying on the item so they could make the purchase online. Determining the mechanism for collecting internet sales tax is not easy, but with all of the technology and software currently available, it can be done. The MML would support a method of taxing the product based on the destination. For example, if someone in a Mississippi city buys online from a company and the product is delivered to their home, then the state of Mississippi would collect the 7% sales tax on the purchase and then divert 18.5% back to the city where the online purchase was delivered–the same method used when purchases are made in a brick and mortar retailer. Closing the online sales tax loophole will give cities and towns in Mississippi more resources to invest in improving the business environment and the quality of life for our citizens. In the meantime, when you choose to shop locally, you are doing much more than helping one small business–you are supporting your entire community. n <strong>Hometown</strong> <strong>Rankin</strong> • 27
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