OLYMPIA, Wash. — A proposal in Olympia would eliminate sales tax for three days in September to help people pay for back-to-school items and other necessities.
House Bill 2018, authored by Rep. Dave Paul (D-Oak Harbor), would create what is being called a "sales tax holiday" for Sept. 3-5 this year. It would include purchases of $1,000 or less on items such as clothing, computers, Energy Star appliances, health care equipment, over-the-counter drugs and school supplies.
There was a hearing for the bill in Olympia on Monday.
The idea behind the legislation would be two-fold: helping cut costs while encouraging people to shop local.
“We all need a break right now, especially our small businesses that have fought to keep their doors open despite the pandemic, staff shortages, and extreme weather,” bill sponsor Rep. Alicia Rule (D-Blaine) said in a statement. “Our neighborhood shoe shops, bookstores, and hardware stores are the backbone of the American economy, and yet they’re left in the lurch when large corporations can easily pivot in emergencies and out-compete them. It’s more important than ever to shop local and support our neighbors.”
Not included under the legislation: tobacco or marijuana products, alcoholic beverages, utilities, travel, meals, motor vehicles, boats, services, or construction goods.
The state, counties and all cities levy retail sales and use taxes. The state sales and use tax rate is 6.5%. Local sales and use tax rates range from 0.5% to 4%, depending on the location.