HB 2018, sponsored by Rep. Dave Paul (D–Oak Harbor), proposes a three-day sales tax holiday in September 2022 for certain items purchased by individuals, such as clothing, school supplies, medical equipment, and computers.

The bill provides a mitigation account to reimburse local governments for losses in sales tax revenues due to the temporary exemption, which would be distributed to local governments in December. However, there are some questions about the accuracy of calculating those losses and how the Department of Revenue would be able to do so.

We would appreciate city feedback on this proposal.

Date to remember

HB 2018 is scheduled for a public hearing in the House Finance Committee on Monday, January 31 at 10 am.