Bill > SB425

This bill creates an annual back-to-school sales tax holiday during a three-day period from the first Friday to the following Sunday in August. During this period, consumers will be exempt from paying sales tax on clothing items priced at $150 or less and school supplies priced at $100 or less. The bill provides detailed definitions for what qualifies as clothing, school supplies, school art supplies, school computer supplies, and school instructional materials, specifically excluding items like belt buckles, costume masks, protective equipment, and sports gear. The bill also establishes complex rules for how the tax exemption will be administered, including guidelines for layaway sales, discounts, exchanges, and delivery charges. Additionally, the bill requires the Department of Revenue to estimate the amount of sales tax revenue lost by counties and municipalities due to this holiday and to reimburse them from a special appropriation, ensuring local governments do not suffer financial loss from the tax holiday. The goal of this legislation is to provide financial relief to families by reducing the cost of back-to-school purchases during a specific three-day period each year.

Budget and Finance

https://docs.legis.wisconsin.gov/2025/proposals/reg/sen/bill/sb425