WI SB425

Creates an annual 3-day sales tax holiday beginning the first Friday in August through Sunday, exempting clothing priced at $150 or less per item and school supplies priced at $100 or less per item from state and local sales and use tax

Defines eligible school supplies broadly to include binders, calculators, notebooks, pens, pencils, backpacks, lunch boxes, and similar items commonly used by students

Excludes from the exemption clothing accessories (jewelry, handbags, watches), protective equipment (hard hats, safety glasses), sport/recreational equipment (cleats, ski boots), and sewing materials

Requires the Department of Revenue to annually estimate and reimburse counties and municipalities for lost local sales tax revenue resulting from the holiday

Establishes detailed administrative rules for layaway sales, rain checks, exchanges, delivery charges, and returns to ensure consistent application of the exemption