Bill > HB3261

This bill creates a sales tax holiday for school supplies, establishing an annual period from August 1 through August 31 starting in 2025, during which school supplies will be taxed at a reduced rate of 1.25% instead of the standard 6.25% sales tax rate. Specifically, the bill amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act to implement this sales tax holiday. School supplies are defined as items typically used by students in a course of study, such as binders, book bags, calculators, pencils, paper, rulers, and similar educational materials, but explicitly excluding items like computers, cell phones, and art supplies. The reduced tax rate applies only to school supplies, and the sales tax holiday is designed to provide tax relief for families purchasing school-related items during a specific timeframe each year. The bill also makes technical adjustments to how the sales tax holiday will be administered, including provisions for how retailers should handle transactions during this period, such as rules about bundled sales, exchanges, and rain checks.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3261&GAID=18&DocTypeID=HB&SessionID=114&GA=104