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Michigan’s legislature considers tax exemption for back-to-school holidays next year
Idaho

Michigan’s legislature considers tax exemption for back-to-school holidays next year

(CBS) — Michigan state lawmakers are considering a tax exemption that would allow parents and students to purchase back-to-school supplies without paying a 6% sales tax.

“We’re getting notebooks and binders and backpacks and markers and pencils and calculators and, my goodness, lunch boxes and thermals and locker decorations – the list goes on and on,” said Shannon Todd, who was shopping with her nephew in Lansing on Tuesday.

Todd said the cost of starting school includes sports fees, not to mention other fees, so a little help with materials would be appreciated.

“Getting a discount on school supplies? Super convenient,” she told CBS News Detroit.

State lawmakers say the temporary tax relief wouldn’t be huge, but it would certainly help.

“That may not sound like much, but when you take away the sales tax on clothing and various school supplies, erasers, pencils, backpacks and computers up to $1,000, they can get really expensive,” said Rep. Kathy Schmaltz. “So eliminating the sales tax will really help parents and teachers.”

According to Schmaltz, similar back-to-school tax exemptions already exist in 17 other states across the country. For Representative Mark Tisdel, who is co-sponsoring the bill, the tax exemption is a no-brainer.

“If we can’t offer working families relief and clearly defined purchases for such a limited period of time this time of year, when can we give them a break? When can we give them some leeway at the checkout?” Tisdel asked.

Both lawmakers say they have not heard much opposition to the idea so far, a sentiment shared by the Michigan Retailers Association.

“A tax exemption will certainly boost sales and retailers are obviously interested in getting more customers into their stores. But I think the real impact will be on the consumer,” said Thomas Clement, MRA’s chief operating officer and general counsel.

Lawmakers say their bill did not pass in time for this year’s back-to-school season, but are confident it can be passed during the fall session of Parliament.

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