Back-to-School Sales Tax Holiday

Section 1 of the bill creates a time-limited state sales and use tax exemption (tax holiday) for back-to-school items. The tax holiday applies to the last weekend of July 2027 and reoccurs at approximately the same time in 2028 and 2029. A "back-to-school item" means an article of clothing, a school supply, or a learning aid that is purchased primarily for use by an individual who is under 21 years old. The exemption for each item is limited by cost as follows:

• $100 for an article of clothing;
• $50 for a school supply; and
• $30 for a learning aid.

Section 2 permits a town, city, or county to create a tax holiday for back-to-school items that is identical to the state tax holiday.
(Note: This summary applies to this bill as introduced.)