Corey Miller is the state economist for Mississippi. He says holiday shopping has a large impact on the state’s economy.
“For our retail sector, the holiday season is usually one of their most important times of the year,” he said. “Just based on the national retail sales data we saw for November, it came in a little bit above expectations.”
Miller says because sales tax is placed on almost every product in the state, the holiday season generates a lot of revenue for the state.
“We don't have many exemptions in our sales tax,” he said. “So any economic activity that is generated by our holiday spending, not just buying things, but [also] people going out to eat and visiting and all those types of activities, we collect sales tax on that. So that is important in terms of our revenue for the state.”
There are also other revenue drivers happening around the holidays besides shopping.
“I think we have a number of events in different places around the state to help bring in tourists,” Miller said. “Some of the markets are in the Jackson metro area and some of the other holiday events around the state. Parades and other other activities like that do help bring in people to some of our towns and cities.”
Although the prices of many gift items, food and other products have risen due to inflation, Miller says he still expects a healthy amount of shoppers in the state.
“Inflation is still somewhat elevated, but we aren't really seeing it pick up,” he said. “We have seen it come down some over the past year or so. For the past few months, it's kind of been stuck at a level around 3%. So that has some impact on our sales tax revenue.”
According to the Small Business Administration, small businesses make up just over 99% of all businesses in Mississippi. Miller says these companies often provide niche gifts.
“Obviously, the big retailers have an impact,” he said. “But also I think the small businesses, people will shop there who are looking for more customized gifts. I think small businesses have a market at this time of year for those types of products.”
Miller says participating in different holiday activities around the state helps to stimulate local economies.
“Consumer spending is obviously the biggest way,” he said. “But I think going to different events around the state, making visits to family within the state, all of that economic activity will help our economy because a lot of our revenue from sales taxes comes from this time of year.”
