Published: Sept. 8, 2016
Walker proposing sales tax freeze on school supplies
If passed in state budget, goes into effect next year
ndettmann@conleynet.com 262-306-5043
MENOMONEE FALLS — Gov. Scott Walker ogled a Green Bay Packers jersey
for Hall of Fame quarterback Bart Starr at the Kohl’s department store.
Moments later, he pulled out a Kohl’s gift card from his pants pocket
and wished he brought some Kohl’s cash with him as well. Otherwise, that
jersey might’ve gone home with him.
With his latest proposal, to entice more Wisconsin consumers to do
the same: shop at Kohl’s, Shopko or any other retailer in the state —
big and small — that sells school supplies.
On Wednesday, Walker introduced an idea he hopes will be included in
the 2017-19 biennial budget: a sales tax holiday for taxpayers who buy
school supplies.
It would be a state sales tax freeze on all items related to back-to-school on the first Saturday and Sunday of August.
“The idea is to get families all across the state to save a little bit
more money on top of the great savings they get from places like Kohl’s
and other great retailers across the state,” Walker said. “But then to
take away the sales tax, just like what we do, for example, with grocery
stores with necessities like food, milk, cheese or butter. People don’t
pay a sales tax on that.
“We think for many of our working families across the state, giving
them an additional break on top of the savings they’d get in a store
like (Kohl’s); that opening weekend, we’re hoping to add an extra
incentive for families to go out and save even more money on top of that
by no longer paying a sales tax.”
In addition to school supplies, computers costing less than $750 and
clothing items costing less than $75 each would also apply.
“We want to target it toward clothing that kids would be getting going back to school,” Walker said.
In addition to his stop in Menomonee Falls, Walker was also at Shopko in Green Bay to present the idea.
“We want, particularly in this global economy, to add one more
incentive for people to go out and shop at stores like Kohl’s and other
retailers that have locations right here in the state of Wisconsin,”
Walker said. “We want to support stores that do business in the state of
Wisconsin.”
Last month, the Better Business Bureau said it
expected families to spend more than $670 on school supplies,
including apparel, shoes, electronics and supplies. According to a news
release from Walker’s office, the Department of Revenue estimates the
sales tax holiday proposal will have an estimated fiscal impact of $11
million annually. If passed, the sales tax holiday will be in effect for
two years. Then it will be re-evaluated by Walker, the Legislature and
the public to see if the holiday will continue beyond 2018. Local sales taxes could still apply.
“We think it’s an excellent opportunity for this to get enacted,” Walker said.
He added the proposal was brought up in the last session, but said “there were a lot of different issues up at the time.”
“We believe it will have a long-term benefit,” Walker said.
It was bittersweet thinking about back-to-school time, Walker said, but he also understood the importance after sending his kids through school and having to do the same thing: buy school supplies.
“Those all add up,” Walker said.
Walker added that the budget, if all is on time, will be signed by the beginning of July.
He expects consumers to
go to stores to buy school supplies and clothing with this sales tax
holiday proposal the same way they go to stores on Black Friday.
When asked for comment, Melanie Hochschild from Kohl’s deferred
comments to the corporate office. Attempts to do that were unsuccessful.
❑❑❑
Walker also addressed transportation and its inclusion in the next budget.
“On the 15th of this month, Mark Gottlieb, secretary of
transportation, will present a budget on transportation that will
include significant increases for local governments for roads and
bridges,” Walker said. “It will have a renewed focus on things like
safety and maintenance in the state system.
“I think, in large part, people are going to be very happy. There’s
room to debate and discuss it. But I think people are going to be
pleasantly surprised.
“When I ran for re-election, I said I wasn’t going to raise the gas tax
or the vehicle registration fees unless there was a corresponding drop
in taxes elsewhere in the state budget. That’s a promise I made to the
taxpayers and one that I plan on fulfilling.”
No comments:
Post a Comment