Jason Stein, and Bill Glauber

Milwaukee Journal Sentinel

Wisconsinites just might get a little help with back-to-school shopping next year.

During appearances Wednesday in Green Bay and Milwaukee, Gov. Scott Walker will announce a sales tax holiday on school supplies that he will propose in his 2017-'19 budget bill in February. The proposal will need legislative approval, but Assembly Republicans were already set to push for a similar proposal in a separate event earlier scheduled for Wednesday.

"It's part of the budget proposal he'll introduce in February," said Tom Evenson, the governor's spokesman. "It will outline a sales tax holiday for families for back-to-school items."

Among the eligible items are school supplies, including computers, as well as clothing. Evenson said the governor will provide more details.

Walker will make the announcement at Shopko Stores Operating Co. LLC in Green Bay in the morning and Kohl's Corp. in Menomonee Falls in the afternoon.

The idea has been percolating for several years in Madison. A proposal from GOP lawmakers last legislative session would have waived the state sales tax on:

• Clothing if the item is under $75

• Computers under $2,000

• School supplies if the item is under $75

That proposal would have decreased state tax revenues by $13.2 million a year and local government tax revenues by $952,000 a year. That would amount to a cut of just one-quarter of 1% of the $5.06 billion in sales tax revenues last year.

Approved in 1961, the Wisconsin sales tax now stands at 5% of applicable purchases. Another 62 of the 72 counties in Wisconsin impose 0.5% sales tax in addition, with some other local districts such as those for stadiums adding an additional amount.

Walker is proposing his sales tax holiday on the same day that Assembly GOP lawmakers are unveiling their own agenda for the fall campaigns and for next year’s legislative session. As a veteran politician, the governor knows that announcing his proposal on the same day will detract from whatever media attention his fellow Republicans receive on Wednesday.

Assembly Speaker Robin Vos (R-Rochester) said his GOP caucus also backs the idea.

"Assembly Republicans spoke of supporting this proposal in the spring and we're glad that Governor Walker supports it as well," Vos said.

Sales tax holidays are common across the southern United States – 17 states from Texas to Virginia have them, with the majority of them falling around the time students return to school, according to a July report by the Tax Foundation. Only a few states in the northern half of the United States have them – Iowa, Ohio and Connecticut – though six more states have no sales tax at all.

The holidays are popular with many consumers for offering at least the promise of some relief around one of the major seasons for family spending. But the measures are also panned by policy experts for doing little to boost the economy.

The recent Tax Foundation report found that sales tax holidays do not promote jobs growth but instead merely shift the timing of consumer purchases and complicate the process of collecting taxes from stores. Some retailers may also raise prices during the holiday, reducing consumer savings, the report found.