ESSEX JUNCTION, Vt. -- The cash registers were humming at Bouchard-Pierce Appliances in Essex and Barre over the weekend, and Bob Bouchard says it's a good thing he had all available staff on duty.

Tax Free Weekend Draws Mixed Response

He said he didn't know what to expect from Vermont's decision to suspend the state's 6 percent sales tax over the weekend. The surge in sales and traffic went "beyond my wildest dreams," he said.

Colchester furniture retailer Wendell Farrell was just as enthusiastic. Farrell estimated his weekend receipts might wind up accounting for 20 percent of his store's annual sales.

Last spring Gov. Jim Douglas got the state Legislature to agree to the sales tax "holiday" on all items priced at $2,000 or less.

The tax waiver led thousands of Vermonters -- and an undetermined number of tourists -- to flood retail outlets last Saturday and Sunday. The University Mall in South Burlington reported three busloads of Canadian visitors arriving to take advantage of the event. Canadians pay a 14 percent sales tax on most items.

The waiver continues through Friday on Energy Star-rated appliances.

The tax holiday "was a big motivator" for customers, Bouchard said, driving sales on a normally sluggish July weekend. He said consumers felt "they can somehow beat the government, which is a very rare thing we can do. People were feeling good about that."

Douglas wants to tap into the feeling.

Though hard data on the economic impact of the tax holiday won't be available for weeks, and may be incomplete even then, Douglas said Tuesday that Vermont ought to repeat the event next year.

"I can't think of a better strategy to provide more enthusiasm to our state, a boost to small business, putting more money into the pockets of the people of Vermont," the governor said.

His rivals were non-plussed.

House Speaker and Democratic candidate for governor Gaye Symington said, "Everybody loves a bargain, especially those with money to spend so they can save. But the fact is we woke up Monday morning with no long-term vision for our state economy." Symington said "the sales tax holiday did not create one job."

Her spokesman suggested many consumers simply timed their purchases around the event, and retailers will now see a corresponding lull in sales.

As House Speaker this spring, Symington questioned the wisdom of forgoing $2 million in sales tax revenue, money that had to be cut from the state's new budget.

In a brief statement Tuesday, Progressive candidate Anthony Pollina said, "We should do more to support working families and businesses every day, with better jobs and lower fuel costs."