Tax Holiday Bill Would Cut Sales Tax For 3 Days In September

OLYMPIA, WA — There are just a few days left before the 2022 legislative session wraps up on Thursday, and state lawmakers are working overtime to get push a few bills past the finish line.

Among the remaining legislation up for debate is House Bill 2018, which passed the state House of Representatives on Friday, and is heading to the Senate for consideration. If it garners the Senate’s approval and gets Gov. Jay Inslee’s signature on time, it would create a “tax holiday” in fall, removing sales tax this year from Sept. 3 to Sept. 5 for certain purchases under $1,000.

According to sponsors, the goal is to make back-to-school shopping more affordable for struggling families, by removing taxes on things like clothing, school supplies, computers, and even some appliances.

“It looks like we may finally be coming out of this pandemic, but our families, neighbors and local shops still need a break,” said sponsor Rep. Dave Paul (D-Oak Harbor). “This is a great opportunity to give them a boost right as school starts in the fall.”

The bill also includes tax breaks on over-the-counter drugs, and health care supplies and places a greater emphasis on shopping at local businesses.

“Shopping local, at your corner store, means money stays in the community and helps your neighbors pay their rent or mortgage, pay for their own back-to-school needs, or take care of loved ones,” Paul said. “Sales at local businesses mean more jobs and stronger communities. It is so important to pass this legislation to support the people and businesses that make our communities great.”

Sales of cars, boats, tobacco, marijuana and alcohol are all specifically exempt, and would still have sales tax during the holiday.

HB 2018 received strong support in the House, passing on a 91-7 vote. It is scheduled to be heard by the Senate Committee on Ways & Means on Wednesday.

Source: Bellevue Patch