Wisconsin lawmakers propose legislation for a back-to-school sales tax exemption period
Wisconsin Joins List of States Offering Back-to-School Tax Holiday
In an effort to help parents manage the rising cost of basic necessities, Senator Brad Pfaff and Representative Jenna Jacobson have introduced legislation for a back-to-school sales tax holiday in Wisconsin. This initiative is part of a broader trend across the United States, with at least 18 states now providing this tax relief.
According to a press release from Senator Pfaff, the cost of preparing a family for the school year can be expensive. He mentioned that a back-to-school tax-free holiday is one way to help parents keep more of their hard-earned money. The aim of the proposed legislation is to alleviate some of the cost burden facing families.
The bill creates an annual back-to-school sales tax holiday for three days in August. During this period, clothing items priced at $150 or less and school supplies priced at $100 or less will be exempt from sales tax. This is similar to the tax holidays offered in states like Florida, West Virginia, Virginia, Maryland, Ohio, South Carolina, Arkansas, Alabama, New Mexico, Tennessee, and others.
Besides these states, Connecticut, Louisiana, Mississippi, and Oklahoma also offer sales tax holidays on clothing, footwear, or school supplies separately from computer exemptions. For instance, West Virginia has a back-to-school sales tax holiday from August 1-4 covering clothing up to $125, laptops up to $500, school supplies, instruction materials, and sports equipment. Florida offers a full month tax holiday (August 1-31) on clothing, school supplies, learning aids, and personal computers up to $1,500.
Parents of children in kindergarten through high school are spending an average of $144 on school supplies alone to prepare for the first day of school. This tax holiday could provide significant relief for many families. The Department of Revenue is required to estimate the amount of sales and use tax receipts that decrease due to the holiday and distribute those amounts to counties and municipalities.
The bill may be referred to the Joint Survey Committee on Tax Exemptions for a report. If passed, Wisconsin will join the ranks of states helping families manage the costs associated with back-to-school shopping.
