Published on Feb 25, 2022

Sales tax holiday linked to budget negotiations

Contact: Candice Bock, Sheila Gall

HB 2018, which would provide a three-day sales tax holiday, was included in the House-proposed supplemental budget.

The bill was heard in the House Appropriations Committee on February 24 and would provide a one-time sales tax exemption for three days in September 2022 for school supplies, clothing, technology, and similar consumer goods. It also includes a mechanism to reimburse local governments for local sales tax revenue losses.

Given the increases in state revenue projections, there is increasing pressure to provide tax relief without impacting the long-term stability of the state budget. HB 2018 is one proposal under consideration that could help with that objective.

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