BusinessApril 9, 2007

The bills are what get attention first when Andy Bodden receives his tax return.

Bodden, a technical coordinator at ATK CCI/Speer in Lewiston, plans to use the $1,800 to $2,500 refund to pay property taxes and then pay ahead for water, sewer and garbage. The remainder will help him take an every-other-year driving trip to Michigan and Wisconsin to see members of his extended family.

Bodden is among about 60,000 residents of north central Idaho and southeastern Washington who will likely be getting money back from the federal government this year based on IRS data from 2005.

Together they will receive about $100,000. Split among dozens of retailers, it's not much but store employees still say they notice the influx. The $100,000 is an estimate based on average amounts of refunds in each state from 2005.

"It definitely helps,'' says Kevin Behler, a sales associate at Guys Outdoor Equipment in Lewiston. "People get a little jingle in their pockets and it helps them go out and buy some stuff.''

Where the money goes varies widely.

Charmaine VanBuskirk, a Boise teacher, says she will be using a refund of about $3,000 to pay off a credit card bill that grew from purchases of items such as a refrigerator and dishwasher.

VanBuskirk, who was visiting Lewiston last week, says paying off the debt is part of an overall strategy to improve her family's finances.

Her husband is planning to enter a welding program at Boise State University and hopes that education will lead to a better-paying job.

She's already feeling relief. "It's nice. I don't have that payment every month.''

Not everyone is as practical as VanBuskirk and Bodden.

April and March are two of the biggest income-producing months at Clarkston Auto Sales, likely because tax refunds are arriving, says owner Bill Beutler.

The business begins to see the bump in sales as early as November and December when people get a sense of the size of their refunds. Sometimes the dealership does creative financing to help people bridge the gap between the time of the purchase and when the refund arrives, Beutler says.

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The acceleration in sales continues for about four months, Beutler says.

Employees at Guy's Outdoor Equipment also see the impact. Disposable income is critical to the store's sales since most buyers are making purchases for pleasure, not work, says Behler. "We're a toy store.''

Tax refunds go for down payments on boats, motorcycles and all-terrain vehicles, Behler says. They help pay for utility trailers, weed eaters and lawn mowers.

Sales of car and home audio systems climb this time of year too, says Kiel Gibb, sales associate at Deranleau's in Lewiston.

"It's not necessarily a necessity,'' Gibb says. "It's more of a want and people are eager to spend their money on that.''

For the last two years, two particularly popular items have been flat-panel televisions, which retail for between $1,000 and $2,000, and Ipod-ready compact disc players for cars that run between $100 and $200, Gibb says.

DVD players for vehicles that cost as much as $2,000 also are brisk sellers, Gibb says.

Most people, however, don't get refunds. They're likely the smartest ones of all, even though they might not get an early spring shopping spree.

Take Diane Johnson, publisher of the MoneySaver in Lewiston. "I normally have to pay,'' Johnson says.

She carefully tracks what she owes throughout the year, keeping the payment in the bank. She'll send her taxes a day or two before the April 17 deadline to maximize the return of her investments. "That's not a very good savings plan to let the government hold onto your money interest free.''

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Williams may be contacted at ewilliam@ lmtribune.com or (208) 743-9600, ext. 261.

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