Relating to: an annual back-to-school sales tax holiday and making an appropriation. (FE)

AB 423 establishes an annual sales tax holiday for qualifying back-to-school items, exempting them from state sales tax during a designated period. The bill defines "eligible property" to include clothing (excluding certain accessories), school supplies (like notebooks and pencils), art supplies, school computer supplies, and instructional materials (such as textbooks), but excludes items like protective gear or sport equipment. It creates a reimbursement mechanism requiring the state to fund counties and municipalities for lost sales tax revenue during the holiday. The policy directly affects consumers purchasing these items and retailers selling them during the tax-free period.