The House of Delegates voted unanimously Monday to suspend the five percent sales tax on back to school items for three days in August, according to the General Assembly's legislative database. The bill had previously been passed by the Senate and now awaits the approval of Gov. Tim Kaine.
For the first full weekend in August, the sales tax will not apply to school supplies, clothing, footwear and computers, according to House Bill 532. To qualify for the exemption, the bill states supplies and clothing must cost less than $100 per item while computers must be under $1,500.
Del. David Toscano of Charlottesville said he voted for the bill after examining the affects the holiday would have on the state's economy.
"I would've preferred that if you were going to have such a holiday it would only occur in years after the state had a surplus," said Toscano, "but the bill as it was presented, I supported."
Toscano added that the sales tax holiday will help families of low to moderate incomes, as well as merchants.
John Kates, director of the University Bookstore said he does not think the bill will affect business at the bookstore to a great extent because students have yet to return to school when the holiday is in effect.
When asked about possible effects the bill may have on local government revenue, Albemarle Del. Rob Bell said, "We will have to look at the decrease in revenue. We will have to look at the different ways to do that. The state could use other tax money [to compensate for the decrease in revenue for local governments]."
According to the Virginia Constitution, Kaine has seven days to act on the bill.
A spokesman for Kaine said the governor wants to look at the bill as it was passed by the General Assembly before deciding on his course of action.
"He will support it if it can be done in a responsible way," Kaine's press secretary Kevin Hall said.
Similar sales tax holidays are currently in effect in Connecticut, Georgia, Florida, Iowa, Massachusetts, Missouri, New Mexico, North Carolina, South Carolina, Tennessee and the District of Columbia.
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