Today is the 1st day of the Wisconsin State Sales Tax Holiday which runs through August 5th.
During these five days, some clothing and back to school items are exempt from the 5% State Sales Tax. This also includes local sales taxes as well. We've heard from many of our members that they are taking advantage of the buzz and offering additional discounts and sales opportunities for their customers during the tax holiday.
The purpose of the sales tax holiday is to provide families with extra cash heading into the new school year. The WI DOR estimates that this tax holiday will save consumers upwards of $15 million. The Sales Tax Holiday is not, specifically, a yearly reoccurring event. Lawmakers would need to pass more legislation for the event to happen again. The tax holiday applies to some items, and not others. For example, the following should be exclusive of sales tax during the holiday:
- Clothing (up to $75/item)
- Computers (non-commercial, up to $750/item)
- School computer supplies (non-commercial, up to $250/item)
- School supplies (up to $75/item)
Sales tax is still applicable for:
- Clothing accessories or equipment.
- Protective equipment.
- School art supplies.
- School instructional materials.
- Sport or recreational equipment.
A full list of the items exempt is located on the WI Department of Revenue website.
Happy Tax Holiday!