Guam – Senator Judi Guthertz has proposed a “tax-holiday” for parents buying back-to-school supplies for their school children.
In a release, Guthertz says her Bill 470-30(COR) “would temporarily eliminate the Gross Receipt Tax (GRT) on supplies needed by schoolchildren, and on-island college and university students. As well, the Bill is expected to spur a brief economic stimulus of sorts, as savings of any GRT related to back-to school supplies will provide consumers with more spending power to buy a wider variety of goods and consumables during the back-to-school season.”
She says the aim of the measure “is intended to provide relief to hard working families who live, work and call Guam home and must cope with the annual cost of purchasing back-to-school supplies.”
14 states already have such “back-to-school” tax holidays and the Senator says those states “have seen added revenue in areas besides retail as a result.”
Guthertz argues that “The Government of Guam will see spending in other sectors of our island economy stimulated, and we will still capture the GRT as folks buy other goods and consumables during the back-to-school shopping season.”
The annual ‘GRT holiday’ will apply to clothing and school uniforms, classroom and learning supplies, required course textbooks, computers and computer software and instruction aids , and other education related material for our island’s schoolchildren and students in institutions of higher learning, as listed by the Tax Commissioner, and is expected, if passed to be effective prior to the start of the 2011-2012 school year.