Sales Tax Not Taking A Holiday This Year

Back-to-school shoppers will not be getting a sales tax break this year. The Evers administration will not pursue another sales tax holiday like the one former Gov. Scott Walker implemented in 2018.

The five-day sales tax reprieve on certain items began Aug. 1 last year. At a press conference Monday, Gov. Tony Evers said there was little data to show the tax holiday actually changed buying behavior.

“Parents are going to be out there purchasing their kids’ supplies whether they have an incentive or not,” Evers said. “I don’t think an incentive that actually worked.”

Sales tax holidays are annual events in many states. Last year, 17 states participated. Walker signed a bill in April 2018 creating a one-time $100-per-child tax rebate and the summer sales tax holiday. At the time, Walker said the rebate and holiday would help Wisconsin families with the cost of raising children.

A spokeswoman for Evers’ said the state Legislature would have had to authorize a bill to create a sales tax holiday this year.

Representatives from the Wisconsin GOP did not immediately respond to requests for comment.

Lt. Gov. Mandela Barnes called the sales tax holiday a political game that no longer needed to be played.

“That was also a desperate attempt by the last administration to stay in power, as we saw other attempts to stay in power,” Barnes said.

A report released in 2018 by the non-partisan think tank Tax Foundation found sales tax holidays do not promote economic growth or significantly increase consumer purchases.

The state’s one-time sales tax holiday included clothing that cost less than $75, computers costing less than $750 and school supplies.

When Walker implemented the tax holiday, it was expected to cost the state nearly $15 million in lost revenue.

Editors Note: This story has been updated to reflect the Walker administration’s sales tax holiday was a one-time event.