Wisconsin Governor Scott Walker and Assembly Speaker Robin Vos (R-Rochester) reached an agreement on the governor’s proposed child tax credit and on a proposed sales tax holiday in August.
The one-time child tax credit would be $100 per child that would be paid in July out of the surplus the state is currently running in the state budget. The sales tax holiday would be August 4-5, 2018.
“As I promised, when we have a surplus, we will give it back to you. It’s your money,” Walker said in a statement released Thursday. “So, if you’ve got three kids at home under the age of 18, that’s $300 more this year for new shoes, coats, activity fees at school, or a co-pay at the doctor or dentist. Plus, we want to provide a sales tax holiday which comes right in time for back-to-school supplies.”
Vos agreed with the governor.
“We know that the hardworking taxpayers in Wisconsin deserve a break,” said Vos. “It’s great to be in a position that we can return the dollars that taxpayers overpaid.”
Under the sales tax holiday, according to the press release:
“Consumers would be exempt from paying state sales tax on all retail “off the shelf” items up to $100. The exemption would not apply to the sale of taxable services, prepared food, motor vehicles, motor vehicle parts, tangible or intangible property used to access telecommunications services, tangible or intangible property provided by a utility, or alcohol and tobacco products.
The total budget impact of the proposed tax credit and sales tax holiday is $122.1 million in fiscal year 2018 and $50 million in fiscal year 2019, according to the Department of Revenue.