Tax Free Weekend: Are the savings worth it?

August is the christened month for tax-free savings across several states in the union. If you live in a chosen state, you've either heard about your particular weekend or been brave enough to shop it. The government-won't-take-any-of-my-money incentive offered for back-to-school shoppers may be an attractive one, but will it actually save you more money than any other shopping window?

• Check your state's guidelines on tax-free items and limitations.
  Some states include computers, clothing, school supplies, and even other merchandise in the non-taxed category. My Lone Star State, Texas, only includes clothing under $100, backpacks under $100 for elementary and secondary students, and certain layaway items. Tennessee, on the other hand, includes clothing and school supplies under $100 and computers under $1500. Review your specific location before shopping.
• Only shop if you take a list and stick to it.
  Tax-free weekend is a veritable feeding frenzy and don't assume you won't fall victim to the herd mentality. Unless you have an itemized list of needs, perhaps a few wants, the sales may seem too good to be true. And no kid needs a new backpack every year. Keep backpacks 2-3 years and consider shopping at resale digs for higher end bags at cheaper prices.
• Go early. Never go late.
  Have you been to a Chinese buffet after rush hour? The beef and broccoli somehow leapt into the lo mein, sweet and sour sauce has been drizzled on the crab meat, and your shoes reek of soy sauce...the whole scene looks like a flavored Jackson Pollack. Your poor mall will be pillaged just the same after a few short hours and you'll get zero service. Check ahead for extended hours and only go early in the morning. Any later than lunch and you'll get no service and have to hunt through bonfire clothing piles rather than neat stacks of jeans.
• Seeks out sales first.
  I'd laugh if a retailer dared to advertise an 8.25% discount on tops. You should do the same. The silver lining is that competition for spending will be up during the weekend, so merchants will be offering additional clearance on summer items and select fall gear. Retailer websites will get the word out for tax-free sales--look online before heading out.
  Washington, D.C. had originally approved Aug. 1-9 but has repealed it to save money for the district.

Georgia's sales tax holiday last weekend showed big spending on athletic shoes, denim, and especially computers, but adult clothing didn't sell as hot. While a suspended sales tax may be an attractive option, especially for yearly clothing shopping, it doesn't promise economic relief as some would hope. Bottom line: ignore the tax-free savings and concentrate on the 30-50% off deals to reap the most rewards. Keep your eyes open for sales, but don't hop on the carte blanche spending bandwagon.

Tax Free Weekends:
Alabama Aug. 7-9
Connecticut Aug. 15-22
Florida is not offering tax-free shopping in 2010.
Iowa Aug. 7-8
Louisiana Aug. 7-8
Maryland Aug. 8-14
Missouri Aug. 7-9
New Mexico Aug. 7-9
New York offers state sales tax exemptions (4%) 365 days of the year.
North Carolina Aug. 7-9
Oklahoma Aug. 7-9
South Carolina Aug. 7-9
Tennessee Aug. 7-9
Texas Aug. 21-23
Vermont Aug. 22
Virginia Aug. 7-9