New Jersey Tax Holiday Repealed for the 2024-25 School Year
Back-to-school time has arrived, and we’re all familiar with the high price of school supplies and school clothes and uniforms, shoes, and athletic equipment. The New Jersey tax holiday has been very helpful to parents who are stretched financially but need to check off all of the items that teachers want their students to have when the school year begins.
When my kids started school and even now with two in college, the cost of going back to school has always been significant. The New Jersey tax holiday was in effect for the 2022-23 and 2023-24 school years and was very helpful in cutting costs and enabling families to stay within their budget more easily.
According to NJ.gov, the New Jersey tax holiday “established an annual Sales Tax Holiday for certain retail sales of computers, school supplies, and sport or recreational equipment when sold to an individual purchaser for non-business use.”
Now, that relief from the New Jersey tax holiday and the expensive back-to-school costs has been eliminated, and “sellers should charge sales tax on all taxable items.”
What the New Jersey Sales Tax Holiday Included
Some of the items that were included in past years were computers with a price tag of less than three thousand bucks, computer supplies that cost less than one thousand dollars, school art supplies, school instructional materials such as books, “Sports or recreational equipment sold to individual purchasers for non-business use,” and just about any item needed for school.
I remember going on a scavenger hunt of sorts to complete the school supply list that my kids’ teacher would give us. It would have about thirty items and be very specific. For example, they would need “1 pack of 8 number 2 pencils sharpened, pencil box, pencil sharpener, box of 64 Crayola crayons, 4 glue sticks, blunt-tipped scissors, and the list continued.
How Much Did the New Jersey Tax Holiday Save Families
With the New Jersey tax holiday and the New Jersey sales tax at 6.625%, families could save close to one hundred dollars or more if higher ticket items like computers are needed. And that’s for only one child.
Now that the New Jersey tax holiday (N.J.S.A. 54:32B-8.21a) is gone, parents and families need to absorb these costs.
New Jersey Lawmakers sponsored the bill to repeal the New Jersey tax holiday and it was signed into law by the Governor. It saves the state about thirty-five million dollars, passing the cost back onto New Jersey parents and families this year.