Bill > SB1673

This bill amends the Use Tax Act, Retailers' Occupation Tax Act, and State Finance Act to create a sales tax holiday for clothing and school supplies. Specifically, the legislation reduces the state sales tax rate from 6.25% to 1.25% for certain items during two separate periods in August 2025: first from August 6 through August 8, and then again from August 13 through August 15. During these periods, consumers will pay a lower tax rate on qualifying sales tax holiday items, which are typically clothing and school supplies. The bill is designed to provide tax relief for families preparing for the back-to-school season by making these essential items more affordable. The reduced tax rate applies only during the specified dates, and the standard 6.25% tax rate will be reinstated immediately after each holiday period. The legislation affects multiple state tax funds, including the Local Government Tax Fund and the County and Mass Transit District Fund, by adjusting the tax collection rates during these brief periods.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1673&GAID=18&DocTypeID=SB&SessionID=114&GA=104