Bill > HB0058

This bill creates a new sales tax holiday period for certain school supplies and clothing from August 2, 2025 through August 11, 2025. During this period, qualifying items will be taxed at a reduced rate of 1.25% instead of the standard 6.25% sales tax rate. Specifically, the holiday applies to clothing items priced under $125 and school supplies, with some detailed definitions and exceptions. For clothing, this includes most general wearing apparel like shirts, shoes, and uniforms, but excludes accessories, protective equipment, and sports gear. School supplies include items like notebooks, pencils, and binders, but exclude electronics, art supplies, and instructional materials. The bill amends several existing tax laws to implement this holiday, including the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. The sales tax holiday is designed to provide consumers with some tax relief when purchasing back-to-school items, following similar holidays in previous years (in 2010 and 2022).

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=58&GAID=18&DocTypeID=HB&SessionID=114&GA=104