No more tax-free holiday for school supplies in NJ: Here's why
NEW JERSEY - The back-to-school season usually means a long shopping list, but for some, this year it means bringing out a larger wallet.
New Jersey is calling it quits on its "tax holiday" program that once offered tax-free back-to-school shopping for parents and children.
A mouth-and-nose cover lies on a school desk next to a pencil case and school books during a lesson of a fifth grade of the Friedrich-Schiller Gymnasium. (Photo by Marijan Murat/picture alliance via Getty Images)
Now, residents in the Garden State can expect to spend more thanks to a bill that nixed the tax relief program.
The break would have applied to computers up to $3,000, which was a popular deal in previous years.
What is a tax holiday?
A tax holiday is a temporary exemption period – usually a week or so – where sales taxes are cut to encourage spending and help taxpayers save, according to the New Jersey Treasury.
New Jersey introduced a tax holiday for back-to-school shopping in 2022 and then again in 2023, according to the Bergen Record.
What items were eligible for the Sales Tax Holiday?
In New Jersey, the following items were eligible:
- Computers with a sales price of less than $3,000.
- School art supplies.
- School computer supplies with a sales price of less than $1,000.
- School instructional materials.
- Sport or recreational equipment sold to individual purchasers for non-business use.
Connecticut’s tax holiday offers a tax break on clothes and shoes up to $100 each. ax holidays are usually scheduled around popular spending times, like the holidays or back-to-school.
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With a new school year starting soon, teachers like parents are spending more on school supplies ensuring students have what they need in the classroom.
Tax holidays are usually scheduled around popular spending times, such as the holidays or back-to-school.
There is no limit on how many eligible items an individual customer can purchase during the Sales Tax Holiday.
(Photo by Scott Olson/Getty Images)
Without the tax break, New Jersey parents are expected to spend a lot more on school supplies this fall.
For some parents, covering back-to-school expenses means saving extra money or even taking on extra work.
Here's how much parents spend on average on back-to-school supplies
Some 32% of the U.S. parents surveyed said they anticipate spending between $500 and $749 per child on back-to-school expenses, according to a July survey conducted by Coupon Bird.
Another 24% of parents said they budget for between $250 and $499.
Only 3% of those surveyed said they spend between $0 and $99 per child, per year, on school gear.
There are currently 19 states that offer at least one tax-holiday this year.