Wisconsin Legislature Passes Back-to-School Sales Tax Holiday, Rebate

The Wisconsin Legislature has passed a bill that would create:

  • a back-to-school sales tax holiday in August 2018; and
  • a one-time sales and use tax rebate for individuals raising a child or children.

Sales Tax Holiday

The sales tax holiday would take place on Saturday August 4 and Sunday August 5, 2018. During this weekend, retail sales of the following items would not be subject to tax:

  • clothing with a sales price of up to $75 per item;
  • a computer purchased for the consumer’s personal use with a sales price of up to $750;
  • school computer supplies purchased for the consumer’s personal use with a sales price of up to $250 per item; and
  • school supplies with a sales price of up to $75 per item.

The sales tax holiday would not apply to certain back-to-school purchases, including:

  • protective equipment;
  • sports and recreational equipment;
  • clothing accessories or equipment;
  • phones;
  • school art supplies; and
  • school instructional materials.

Sales Tax Rebate

Individuals raising a child or children could claim a rebate of nonbusiness Wisconsin sales or use tax paid in 2017. The amount of the rebate is $100 per qualified child.

Qualified child

A qualified child is an individual who:

  • is under age 18 for the entire year of 2017;
  • is the claimant’s child and dependent;
  • is a United States citizen; and
  • was a Wisconsin resident on December 31, 2017.

Only one claimant may claim a qualified child for the rebate.

Nonresidents and part-year residents

Nonresidents and certain part-year residents would have to verify their nonbusiness Wisconsin sales or use tax paid in 2017. The verified amount must be at least $100 for each qualified child.

Online application

Taxpayers would claim the rebate by filing an online application with the Department of Revenue.

The enrolled bill is available on the Wisconsin Legislature’s website at https://docs.legis.wisconsin.gov/2017/related/enrolled/sb798.pdf.

S.B. 798, as passed by the Senate on March 20, 2018, passed by the Assembly on March 22, 2018, and enrolled on March 29, 2018

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