What is House Bill 175?

A proposed Kentucky law aiming to establish an annual sales tax holiday during the first weekend in August, starting in 2026, to provide tax-free shopping for back-to-school essentials.

What items would be exempt from sales tax during the holiday?

Most clothing items priced up to $200 and other specific items under $3,000 would be exempt from sales tax.

January 9, 2026

Proposed Kentucky Bill Aims to Establish Annual Sales Tax Holiday

Louisville, Kentucky, January 9, 2026

A new bill, House Bill 175, introduced in Kentucky seeks to establish an annual sales tax holiday during the first weekend of August. The bill provides tax-free shopping for essential back-to-school items, aiming to relieve financial pressure on families. The exemption would cover clothing items priced up to $200 and other essentials under $3,000. If passed, the inaugural tax holiday is set for August 7 to 9, 2026, potentially encouraging local shopping and benefiting the economy.

Louisville, Kentucky

Proposed Kentucky Bill Aims to Establish Annual Sales Tax Holiday for School Shopping

A new bill introduced in the Kentucky House of Representatives seeks to create an annual sales tax holiday during the first weekend in August, providing families with tax-free shopping opportunities for back-to-school essentials.

Details of House Bill 175

House Bill 175, filed by Representative Beverly Chester-Burton, proposes a three-day sales and use tax exemption from 12:01 a.m. on the first Friday of August until midnight on the following Sunday each year. The exemption would apply to most clothing items priced up to $200 and other specific items under $3,000. The inaugural tax holiday is scheduled for August 7 to August 9, 2026.

Objectives and Support

The bill aims to alleviate financial burdens on families during the back-to-school shopping period. Representative Chester-Burton emphasized that the initiative is designed to provide meaningful savings directly to parents, making life a little easier as they prepare for the new school year.

Context and Precedents

Several neighboring states have implemented similar sales tax holidays to support families during back-to-school shopping. For instance, Virginia has established a three-day sales tax holiday in August, exempting qualifying school supplies, clothing, and certain emergency preparedness items from sales tax.

Next Steps

House Bill 175 has been introduced and is currently under review by the Committee on Committees in the Kentucky House of Representatives. If passed, the bill would take effect immediately, with the first sales tax holiday occurring in August 2026.

Conclusion

House Bill 175 represents a proactive step toward supporting Kentucky families as they prepare for the back-to-school season. By establishing an annual sales tax holiday, this bill not only provides financial relief but also encourages local shopping and economic activity. As similar initiatives in neighboring states have proven beneficial, this proposed legislation could enhance Kentucky’s economic growth and support local entrepreneurs, ultimately contributing to a more prosperous community.

Frequently Asked Questions

What is House Bill 175?: A proposed Kentucky law aiming to establish an annual sales tax holiday during the first weekend in August, starting in 2026, to provide tax-free shopping for back-to-school essentials.
When would the first sales tax holiday occur?: The inaugural tax holiday is scheduled for August 7 to August 9, 2026.
What items would be exempt from sales tax during the holiday?: Most clothing items priced up to $200 and other specific items under $3,000 would be exempt from sales tax.
Which states have similar sales tax holidays?: Several neighboring states, including Virginia, have implemented similar sales tax holidays to support families during back-to-school shopping.
What is the current status of House Bill 175?: The bill has been introduced and is under review by the Committee on Committees in the Kentucky House of Representatives.

Feature	Details
Bill Name	House Bill 175
Proposed By	Representative Beverly Chester-Burton
Proposed Exemption Period	First weekend in August each year, starting August 7 to August 9, 2026
Eligible Exempt Items	Clothing items up to $200 and other specific items under $3,000
Current Status	Introduced and under review by the Committee on Committees in the Kentucky House of Representatives