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Sales Tax Holiday coming to Michigan in the future? Proposed bill looks to achieve that

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  • House Bill 5805 proposes that during the third Saturday and Sunday of August, our neighbors could buy sales tax-free clothing, school supplies, and other equipment for back-to-school season.
  • Video shows what the possibility of a sales tax holiday weekend could look like and what it could mean for our neighbors and our state budget.

Back-to-school season is right upon us and shelves are stocking up.
Proposed legislation in the state capitol could help our neighbors save a few bucks on supplies in the future.

Colleen Price works with some of our littlest neighbors.

"Yes, about 12 years in kindergarten," Price said.

And each year, she finds that as kids come in, the learning styles need to change too.

"If you want to create an environment where kids want to come, they're going to learn more," Price said.

While the schools provide the necessary items for classrooms to run, helpful things like

  • manipulative toys to help with math and reading help with retention,
  • chairs to help with focus,
  • and we can't forget the "edible" pencils.

All of which takes money.

"It may not seem like it when parents see the list but what is it that we truly really need," Price said.

And State House Republicans understand the costs parents and teachers incur when the back-to-school season comes around, which is why they are proposing a sales tax holiday for school supplies. It is similar to a plan proposed by Governor Gretchen Whitmer back in 2022.

Kathy Schmaltz is a sponsor of House Bill 5805. The bill says that during the third Saturday and Sunday of August, our neighbors could buy sales tax-free clothing, school supplies, and other equipment for back to school.

"By supporting families with children and reducing the tax burden, we can help Michigan families find relief and build a more secure future," Schmaltz said in a statement.

While there is not a current estimate of how much revenue the state can gain or lose, the Institute on Taxation and Economic Policy says states that have participated in the sales tax holiday weekend lost revenue between 3.1 million and 5.1 million dollars that could fund our road projects or public services.

But Price wants people to know that it's about the kids learning the best they can in the best space she can provide.

"Having it 5 cents easier or a dollar easier to support our schools is a step in the right direction," Price said.

According to Nerdwallet, 19 states across the U.S. participate in a sales tax holiday, typically during the months of July and August. Our neighboring state of Ohio expanded its Sales Tax Holiday for 2024 to 10 days from July 30th to August 8th with the state setting aside $750 million dollars to cover the expected lost tax revenue.

The bills have been referred to the House Committee on tax policy for recommendation.

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