Loading chat...
IN HB1076
Bill
Status
1/3/2019
Primary Sponsor
Charles Moseley
Click for details
AI Summary
-
Creates an annual sales tax holiday from July 15 through August 15 for parents and guardians of public school students (including charter schools) to purchase school-related items tax-free
-
Exempts clothing items priced at $100 or less per item, with a maximum exemption of $250 per student per year
-
Exempts school supplies and instructional materials priced at $15 or less per item, with a maximum exemption of $100 per student per year
-
Imposes a 25% penalty on top of owed sales tax for individuals who improperly claim the exemption (non-eligible purchasers or those exceeding limits), while relieving retailers of tax collection liability for such transactions
-
Defines eligible items using Streamlined Sales and Use Tax Agreement definitions, including specific lists of qualifying clothing (35 categories) and school supplies (27 categories)
Legislative Description
Sales tax holiday. Provides a sales and use tax exemption beginning on July 15 through August 15 of each year (sales tax holiday) for the following items sold to a parent or guardian of a public school student: (1) Clothing, if the sales price of the item does not exceed $100. (2) A school supply or school instructional material, if the sales price of the item does not exceed $15. Incorporates the definitions of these items as set forth in the Streamlined Sales and Use Tax Agreement. Limits the exemption for clothing to $250 per student. Limits the exemption for school supplies and school instructional material to $100 per student. Sets forth tax consequences that apply if a person purchases clothing, a school supply, or school instructional material during the sales tax holiday to which the tax exemption is applied, but that should have been subject to tax because the person is not a parent or guardian of a public school student, or because the person exceeded the limits for the exemption: (1) The person is solely liable for the applicable sales and use tax. (2) The person shall be subject to a penalty equal to the purchase price of the item multiplied by 25% (in addition to the applicable sales and use tax). (3) The retail merchant is relieved of all obligations to collect, pay, or remit the applicable state gross retail tax on the item.
Last Action
First reading: referred to Committee on Ways and Means
1/3/2019