The future of the state’s tax system is a hot topic this spring. While Lt. Gov. Kleefisch and Dept. of Revenue Sec. Chandler gather new ideas from the public with their series of tax roundtables, the legislature is considering proposals already on the table.
On January 7, 2014 the Assembly Committee on Small Business Development held a public hearing on Assembly Bill 108, which would create sales tax holidays in August and in November for a limited variety of goods.
Under the bill, the first weekend in August would be a sales tax holiday for the following items:
- An item of clothing, not including clothing accessories, if the sales price of any single item is no more than $75.
- A computer purchased by the consumer for the consumer’s personal use, if the sales price of the computer is no more than $2,000.
- School computer supplies, if the sales price of any single item is no more than $250.
- School instructional materials, if than sales price of any single item is no more than $300.
- School supplies, if the sales price of any single item is no more than $75.
The bill would create a second sales tax holiday weekend the first weekend of November for Energy Star products.
Wisconsin’s current sales tax rate is 5 percent, but 62 out of 73 counties also impose a half-cent sales tax. Supporters say eliminating the taxes for two weekends a year would help families save some money and bring people into the state’s retail establishments.
The bill the Dept. of Revenue would be able to cancel either or both holidays depending on the state’s fiscal health that year.