Senate Bill 425 proposes the establishment of an annual back-to-school sales tax holiday in Wisconsin, occurring over a three-day period starting on the first Friday in August. During this holiday, clothing priced at $150 or less and school supplies priced at $100 or less will be exempt from sales and use tax. The bill mandates that the Department of Revenue (DOR) annually estimate the reduction in sales and use tax receipts for counties and municipalities due to this holiday and distribute those amounts accordingly.

The bill also includes amendments to existing statutes, specifically modifying sections 77.52 and 77.53 to include the new exemption category for back-to-school items. Additionally, it creates a new section, 77.54 (76), which defines eligible clothing and school supplies, as well as related terms such as "layaway sale" and "protective equipment." The changes aim to clarify the types of items that qualify for the sales tax exemption and ensure proper administration of the tax laws.

Statutes affected:
Bill Text: 77.52(13), 77.52, 77.53(10), 77.53