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HB 1018

Sales and use tax; exempt sales of clothing and school related supplies during the month of August each year

2025-2026 Regular Session Introduced by Stacey Evans and 5 co-sponsors

Georgia would exempt clothing and school supplies from sales tax during August annually, reducing consumer costs but sacrificing state tax revenue during back-to-school season.

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Bill Summary · HB 1018

Legislative bill overview

HB 1018 would create an annual sales tax exemption for clothing and school-related supplies during the month of August in Georgia. This means purchases of eligible items made in August would not be subject to state and local sales taxes, effectively providing a discount to consumers during back-to-school shopping season.

Why is this important

Back-to-school shopping is a significant household expense, particularly for families with multiple children or limited incomes. This exemption could reduce financial strain on families during a predictable annual expense and potentially stimulate retail sales during August. The policy also addresses equity concerns by providing tax relief during a specific purchasing period.

Potential points of contention

  • Revenue impact: The state will lose sales tax revenue during August, requiring either budget adjustments elsewhere or identification of revenue replacement sources
  • Scope definition: Disagreement may arise over which items qualify as "clothing" and "school-related supplies" (e.g., do shoes count? Electronics? Furniture?), potentially requiring detailed regulations
  • Economic fairness: Non-school-related purchases don't receive similar tax breaks, raising questions about whether selective tax exemptions are equitable policy
  • Implementation complexity: Retailers must be trained to identify qualifying items and apply the exemption correctly, creating compliance costs and potential errors

Compiled from official sources — confirm details with the bill’s official record.

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