Bill > S3458

Introduced Session

This bill establishes two new tax benefits for consumers and educators who purchase school supplies. Sales and Use Tax Exemption. The bill exempts the retail sale of the following products from the sales and use tax if they are sold to an individual purchaser for non-business use: (1) school supplies, such as pens and pencils, notebooks, and binders; (2) school art supplies, such as paints and paintbrushes, clay, and glazers; (3) school instructional materials, such as maps, globes, reference books, and workbooks; (4) computers with a sales price of less than $3,000 per item; and (5) school computer supplies, such as computer storage equipment, printers, and personal digital assistants, with a sales price of less than $1,000. Under current law, retail sales of these products are exempt from sales tax only during the annual "back-to-school" sales tax holiday that begins in late August and ends on Labor Day. Certain retail sales of sport or recreational equipment is also exempt from sales and use tax during the "back-to-school" sales tax holiday. Purchases of these items are not include in the list of goods that would be exempt from sales tax under the bill. All retail sales of items would be subject to sales and use tax. Retail sales of computers with a sales price greater than or equal to $1,000 remain subject to tax. The bill provides that the sales tax exemption takes effect immediately but applies to receipts received from all sales made on or after the first day of the fourth month next following enactment. Deduction from Gross Income. The also allows a gross income tax deduction, not to exceed $500 of unreimbursed expenses incurred by eligible educators for the purchase of classroom supplies. Under the bill, an "eligible educator" is a teacher who is employed in a public or nonpublic elementary or secondary school in the State. The bill defines "classroom supplies" as books, pencils, and other drawing supplies, computers and related equipment, laboratory equipment, and any other equipment and supplementary materials needed for day-to-day classroom activities. This portion of the bill takes effect immediately, but applies to taxable years commencing on or after the January 1 next following the date of enactment.

Committee Categories

Vince Polistina (R)*,  Teresa Ruiz (D)*, 

Introduced in the Senate, Referred to Senate Education Committee (on 01/10/2023)

Official Document