Since Governor Walker took office, Wisconsin has finished every year with a budget surplus. While many believe this money should remain in Madison to be spent by the government, Governor Walker believes this money should be returned to the taxpayers so that they can spend it on their priorities.
Wisconsin ended the last fiscal year with a more than half-billion-dollar surplus, and the nonpartisan Legislative Fiscal Bureau announced the current state budget is expected to end fiscal year 2018 with a larger than expected surplus.
Because of Governor Walker’s prudent budgeting practices, this money will be returned to Wisconsin families in the form of a $100-per-child tax rebate and an August back-to-school sales tax holiday.
Since 2011, Governor Walker has cumulatively cut more than $8 billion in taxes, which has contributed to Wisconsin’s growing state economy, record high employment, and historically low 2.9% unemployment rate in February 2018.
As a part of his Ambitious Agenda, Governor Walker called on the State Legislature to return the state’s budget surplus to Wisconsin’s hardworking families in the form of a $100-per-child tax rebate and back-to-school sales tax holiday.
Representatives Kevin Petersen, John Macco, and Rob Stafsholt introduced the two tax relief items to the Assembly Floor on February 9, 2018, as 2017 Assembly Bill 944.
On March 22, 2018, both the $100-per-child tax rebate and August sales tax holiday passed the Wisconsin State Legislature with bipartisan support.
On Tax Day, April 17, 2018, Governor Walker signed these tax cuts into law.
$100-Per-Child Tax Rebate
For 2018, Wisconsin families who claim the rebate will receive $100 for each child living at home under the age of 18 as of December 31, 2017.
That’s a significant return for a single mother of two, especially as the new school year approaches. It will provide her with an additional $200 to spend on school supplies and clothes, activities fees, or medical copays that will set her children up for a healthy and successful school year.
Parents know their kids’ needs best. By returning this money, parents can decide how to use it to best help their families.
The Wisconsin Department of Revenue estimates that approximately 671,000 households will receive the rebate, and 1,221,000 children will be eligible for purposes of claiming this rebate.
Eligible taxpayers will have the opportunity to claim the rebate through an online form at the Wisconsin Department of Revenue’s website between May 15, 2018, and June 30, 2018. Direct deposits or mailed checks will be delivered by September 1, 2018.
Back-To-School Sales Tax Holiday
Wisconsin’s August back-to-school sales tax holiday will keep money in the pockets of hardworking taxpayers.
Wisconsin sales tax will be waived for everyone on purchases of school-related expenses, including clothing under $75, computers under $750, school computer supplies under $250, and school supplies under $75 from August 1-5, 2018.
The Department of Revenue estimates that the one-time, five-day sales tax holiday will provide approximately $14.8 million in tax relief in fiscal year 2019.
It will also benefit businesses, with recent research suggesting that tax rebates and sales tax holidays will lead to an increase in consumer consumption and output.
For a printable version of this fact sheet, click here.