Bill > AB423

This bill establishes an annual back-to-school sales tax holiday for a three-day period beginning on the first Friday in August, during which certain clothing and school supplies will be exempt from sales tax. Specifically, clothing items priced at $150 or less and school supplies priced at $100 or less will be tax-free. The bill provides detailed definitions for various terms like "clothing," "school supplies," "protective equipment," and "school computer supplies" to clarify exactly what items qualify for the tax exemption. The legislation also includes comprehensive rules for how the tax holiday will be administered, such as how layaway sales, discounts, exchanges, and delivery charges will be handled during this period. Additionally, the bill requires the Department of Revenue to estimate the amount of tax revenue lost by counties and municipalities due to this sales tax holiday and to subsequently reimburse them from a state appropriation, ensuring local governments are not financially disadvantaged by the tax holiday. The goal of this bill is to provide financial relief to families preparing for the school year by reducing the cost of essential back-to-school purchases.

Budget and Finance

https://docs.legis.wisconsin.gov/2025/proposals/reg/asm/bill/ab423