Bill > HB2989

This bill establishes a permanent sales tax holiday period for school supplies and certain clothing items in Illinois. Specifically, the bill creates an annual 10-day sales tax holiday period beginning on the first Monday in August starting in 2025, during which qualifying clothing items priced under $125 and school supplies will be taxed at a reduced rate of 1.25% instead of the standard 6.25% sales tax rate. Eligible clothing includes most everyday wearing apparel, while school supplies encompass items like notebooks, pencils, binders, and calculators, but exclude electronics and art supplies. The sales tax holiday is designed to provide tax relief to families and students preparing for the school year by making back-to-school shopping more affordable. The bill amends several existing tax laws to implement this annual sales tax holiday, specifying the details of which items qualify and how retailers should handle the reduced tax rate during this period. The tax holiday will apply each year in August, making it a recurring benefit for Illinois consumers.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2989&GAID=18&DocTypeID=HB&SessionID=114&GA=104