School supplies in New Jersey will cost more this year due to inflation and the death of the NJ back to school tax holiday.
Trenton, NJ – New Jersey Governor Phil Murphy has officially ended the state’s annual back-to-school sales tax holiday, a program that had previously provided significant savings for parents, students, and teachers during the school shopping season.
The decision to discontinue the tax holiday was part of the fiscal adjustments in the Fiscal Year 2025 budget. This repeal is aimed at addressing the state’s financial needs and reallocating funds to other critical areas, including record investments in education, healthcare, and public safety.
According to the New Jersey state website:
P.L. 2024, c. 19. repeals N.J.S.A. 54:32B-8.21a, which 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.
Thus, the annual Sales Tax Holiday will no longer occur and sellers should charge sales tax on all taxable items.
Information on Sales Tax Holidays in prior years is available in the FAQ.
https://www.nj.gov/treasury/taxation//businesses/salestax/salestaxholiday.shtml
Background of the Sales Tax Holiday
New Jersey’s back-to-school sales tax holiday typically spanned ten days, during which essential school supplies and equipment, such as pens, notebooks, art supplies, and even computers up to $3,000, were tax-free. This initiative was highly appreciated by families and educators as it alleviated the financial burden of preparing for the new school year.
Fiscal Year 2025 Budget Allocations
Governor Murphy’s budget for FY2025 includes substantial investments to support various educational programs. Over $15 million is allocated for teacher training and stipends, and an additional $30 million is earmarked for free school meals. These investments aim to improve the quality of education and provide greater support to students and educators across the state.
Community Reaction
The decision to end the tax holiday has been met with mixed reactions. While some residents express concern over losing a valuable financial break, others acknowledge the need for budgetary adjustments to fund critical state programs. The administration has emphasized that the reallocated funds will address long-term educational needs and other essential services.
Moving Forward
Governor Murphy and state officials continue to focus on balancing the state budget while ensuring that necessary services and programs receive adequate funding. Residents are encouraged to stay informed about budget changes and the new initiatives that aim to benefit New Jersey’s communities in various ways.
For more details on the Fiscal Year 2025 budget and its implications, you can visit the official New Jersey government website.