Wisconsin Considers 2016 Sales Tax Holiday
- Mar 14, 2016 | Gail Cole
Legislation seeking to create a 2016 sales tax holiday is currently under consideration by Wisconsin lawmakers. The bill would exempt certain clothing, computers, and school supplies during a two-day period beginning the first Saturday in August and concluding the following Sunday. Wisconsin legislators have not approved proposed sales tax holidays in recent years.
During the tax-free period, the following items would be exempt from Wisconsin state and local sales and use taxes:
- Clothing (not clothing accessories) with a sales price of no more than $75 per item
- Computer (purchased for personal use) with a sales price of no more than $2,000
- School computer supplies with a sales price of no more than $250 per item
- School instructional materials with a sales price of no more than $300 per item
- School supplies with a sales price of no more than $75 per item
In addition to establishing the above criteria, the bill stipulates that “the exemption does not apply in any year in which the Department of Revenue determines, by May 1, that the state’s financial situation would make implementation of the exemption imprudent.”
Pros and cons of the bill are still being weighed but the Joint Committee of Tax Exemptions approved it 7 to 1. The Committee estimates the sales tax holiday would reduce state sales tax revenue by a total of $13.22 million annually; local sales tax revenue would decrease by approximately $952,000 annually.
See the text of AB 781 (or SB 627) for a more complete list of qualifying and non-qualifying products.
More than a dozen states are providing sales tax holidays in 2016. Sales tax software (SaaS) helps businesses comply with them. Learn how it works.
