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Holiday for Guns Gives Louisiana Hunters Break on Sales Taxes

By Darrell Preston

Sept. 4 (Bloomberg) -- Louisiana hunters, just in time for dove season tomorrow, can save almost 10 percent on purchases of rifles, shotguns, handguns, ammunition and just about every hunting accessory except dogs.

The savings are courtesy of the state’s first-ever Second Amendment Weekend Sales Tax Holiday. Lawmakers approved the tax break for Louisiana’s 270,000 hunters over three days, starting today. The passage in the U.S. Constitution protects the right to keep and bear arms.

The weekend promises to drive business to big sporting goods retailers such as Sidney, Nebraska-based Cabela’s Inc., Academy Sports & Outdoors Inc., which promotes the holiday on its Web site, and gun shops.

“It’s a way for the state to say this is something we support and is part of our culture,” said Kathy Dycus, 29, a hunter and target shooter who manages Diamond Gun and Outdoor Inc., a retail store in Monroe that sells 3,000 to 4,000 firearms per year. “There are a lot of states that don’t support shooting sports and hunting.”

Across the country, more than 450 municipal leaders, including Ray Nagin of New Orleans, have formed Mayors Against Illegal Guns to stop the spread of weapons. New York Mayor Michael Bloomberg was a founding member of the group, which has supported gun buyback programs.

Nagin couldn’t be reached for comment.

All Sales Taxes

The hunting sales tax holiday includes local school, city and parish taxes, which can add as much as 5 percentage points to the state’s 4 percent sales tax, bringing the total savings to at least 9 percent in most jurisdictions.

Sales-tax holidays have become a tool for states to cut consumers’ costs for back-to-school clothes and supplies, energy efficient appliances and hurricane preparation, according to the Tax Foundation in Washington, which says 16 states are holding such events this year.

“It’s a political gimmick,” said Mark Robyn, an economist with the foundation, which opposes sales-tax holidays. “Some states want to eliminate guns while others want to promote them. The tax code isn’t meant to promote the interests of some taxpayers over the interests of others.”

In an Aug. 26 report, the foundation said the holidays don’t spur economic growth or increase consumer purchasing and “simply shift the timing of purchases.”

South Carolina held a sales-tax holiday for hunters on the weekend after Thanksgiving last November. Lawmakers overrode Governor Mark Sanford’s veto to make the annual event happen.

Hunting Expenditures

Hunters spent $525.5 million in Louisiana in 2006, according to the National Survey of Fishing, Hunting and Wildlife Recreation by the U.S. Fish and Wildlife Service. About $206 million of that was for equipment, according to the report.

Through August, the Federal Bureau of Investigation conducted gun checks for 143,383 firearms purchases in Louisiana, according to data from the National Instant Criminal Background Check System, which reviews firearms purchases. In 2008, 248,355 were examined in the state.

Louisiana officials can’t estimate how much the holiday will cost, said Tara Cunningham, spokeswoman for the Louisiana Department of Revenue. When the law was debated earlier this year, the Legislative Fiscal Office estimated foregone taxes at $120,000.

The discount applies to all purchasers except businesses.

Louisiana faces a budget deficit of $2 billion in fiscal year ending June 30, according the National Conference of State Legislatures, almost 19 percent of general-fund spending.

Buying Accessories

Besides guns, the list of items in the sales-tax holiday include accessories such as binoculars, chairs, hearing protection devices and belts to be used for hunting.

The only exclusion is animals used for hunting, according to the state revenue department.

The Second Amendment sales tax holiday follows a general one in August when the state levy was waived on all purchases, while continuing state and local charges.

“This has everyone excited because it saves on state and local sales tax,” said John Castillo, spokesman for Cabela’s. “For some it will allow them to purchase more gear.”

“It will make a big difference on a $1,600 shotgun,” said Ricky McGuffie, 44, a hunter and owner of Cajun Guns & Tackle in New Iberia, in southern Louisiana. “We’ve already had people come in and place orders to pick up during the holiday. We expect to be very busy.”

Mayor Bloomberg is founder and majority owner of Bloomberg News parent, Bloomberg LP.

To contact the reporter on this story: Darrell Preston in Dallas at dpreston@bloomberg.net.

Last Updated: September 4, 2009 00:01 EDT