LANSING, MI – From pencils to notebooks to clothes, the cost of school supplies can add up.
Michigan could ease this burden for families by suspending sales tax for school supplies. Under a plan proposed by Gov. Gretchen Whitmer Tuesday, Aug. 16, Michigan would join 19 other states that have an annual back-to-school sales tax holiday.
“Getting this done would lower costs for parents, teachers, and students right now, and ensure that they have the resources to succeed. I will work with anyone to lower costs, cut taxes, and help our kids thrive,” Whitmer said in a statement.
School supply costs are reportedly rising for many families.
American parents expect to spend $661 this year compared to $612 last year a report from accountancy firm Deloitte found. And more than half of U.S. families are concerned about inflation impacting back to school products.
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Louis Zemlick, the owner of Zemlick’s, an office and school supply store headquartered in Kalamazoo, estimates a sales tax holiday would provide an average savings of $54 per family.
“This is a big help to Michigan families and small businesses,” he said in a statement from the governor’s office.
Deloitte estimates the $34.4 billion back to school market has increased 24% since 2019.
It’s unlikely the proposed sales tax holiday will go into effect this school year without action from the legislature. The governor however floated the plan as an annual tax suspension.
Michigan Retailers Association President William J. Hallan applauded the effort “to alleviate parents’ challenges with high inflation” but noted it’s too late to have an impact this year.
“Neighboring states have seen boosts in overall sales as shoppers purchase both tax-free and taxable items instead of simply shifting the timing of the purchase, without harming the state’s tax base. Starting the back-to-school tax holiday next year would be a win for parents, students, and Michigan retailers,” he said in a statement.
States like Iowa pause sales tax for a weekend on clothing and footwear whereas states like Florida suspend taxes on clothing, shoes, school supplies under $15 and technology for a week, according to CNBC.
Lawmakers sparred over suspending the state’s gas tax versus the sales tax this spring, but no tax holiday was ultimately implemented. Michigan did however exempt menstrual products from state sales and use taxes in February.
Whitmer recently signed a $19.6 billion education budget that includes the highest amount of per-pupil funding ever, funding to support special education students and support for student teachers. It also allots about $530 million for community colleges and $2 billion for higher education.
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