Sales tax holiday.







This bill creates a sales and use tax holiday on the sale or purchase of clothing (priced at $100 or less per item), computers and computer related equipment (priced at $1,500 or less per item), and school supplies and sports supplies (priced at $50 or less per item) sold or purchased during the first weekend of August each year.


It is estimated that this exemption would result in a total revenue decrease beginning in FY 2010 ranging from $300,000 to $800,000. The low end of the range is estimated based on sales and use tax data taken from the applicable categories in the Department of Revenue’s Total Distribution by Minor Business Class Report for October 2008. The high end of the range is estimated based on information drawn from the State of North Carolina regarding the estimated cost of their sales tax holiday. The duration of the North Carolina holiday is identical to the holiday proposed under this legislation and the items exempted are identical. The caps are also similar. The projected revenue decrease for FY 2008 in North Carolina for their sales tax holiday is estimated at $11.7 million. This amount was then adjusted for the differences in sales tax rates and state populations to arrive at the estimated $800,000 revenue decrease to the State of Wyoming.


The revenue decrease from this exemption is assumed to be split 53% General Fund and 47% local governments.



















Prepared by:   Dean Temte, LSO    Phone: 777-7881

(Information provided by Dan Noble, DOR; 777-5220:

Wenlin Liu, Div. of Econ. Analysis; 777-7702)