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 for clothing and school supplies under section 77.54 (76). Additionally, it creates a new section, 20.835 (4) (a), to provide reimbursement to counties and municipalities for the tax holiday. The amendments clarify the definitions of clothing and related items, as well as the conditions under which sales tax exemptions apply.

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