Back to School Sales Tax Holiday: What You Need to Know

May 18th, 2018

Wisconsin’s August back to school sales tax holiday will keep money in the pockets of hardworking taxpayers.

Wisconsin sales tax will be waived for everyone on purchases of school-related expenses, including clothing under $75, computers under $750, school computer supplies under $250, and school supplies under $75 from August 1-5, 2018 if they’re delivered to and paid for by customers during the exemption period or if customers purchase and pay for the supplies during that time. Retailer discounts reduce the sales price of the item and the discounted sales price is what determines whether the sales price is within the price threshold.

This sales tax holiday doesn’t apply to everything. Some exclude items include protective equipment, sports equipment, phones, clothing and accessories, school art supplies, school instructional materials, and more.

People with children can also claim a rebate of $100 per qualified child for nonbusiness Wisconsin sales or use tax paid in 2017. A qualified child is an individual under the age of 18 for the entirety of 2017, is the claimant’s dependent, is a United States citizen, and was a Wisconsin resident on December 31, 2017.

The Department of Revenue estimates that the one-time, five-day back to school sales tax holiday will provide approximately $14.8 million in tax relief in fiscal year 2019.

It will also benefit businesses, with recent research suggesting that tax rebates and sales tax holidays will lead to an increase in consumer consumption and output.

Retailers don’t have to collect exemption certificates for items that qualify for the sales tax holiday.

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