Providing sales and use tax refunds on the sales price of school supplies purchased by home-school parents, providing for the exclusion of such refunds from the individual income tax, and including retroactive applicability provisions

This bill provides for a sales and use tax refund on the sales price of school supplies purchased by a home-school parent, and provides for the exclusion of such refunds from the individual income tax. The bill provides that a home-school parent may apply to the department of revenue (DOR) for such a refund on the purchase of school supplies used to provide instruction under Code chapter 299A (private instruction). Under the bill, the refunds shall be obtained on a form furnished by DOR, and filed within the time specified by DOR by rule. The bill requires the home-school parent to provide any other information deemed necessary by DOR. The bill defines “home-school parent” and “school supplies”. The bill also excludes the amount of any refund received by a home-school parent from the individual income tax. The provision excluding from the individual income tax any sales and use tax refund received under the bill applies retroactively to tax years beginning on or after January 1, 2023.