Bill > HB4101

This bill amends the Use Tax Act and the Retailers' Occupation Tax Act to establish a consistent annual sales tax holiday period from August 5 through August 14 each year, starting in 2026. During this period, certain 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. The bill defines specific categories of clothing and school supplies that qualify for the reduced tax rate, including items like shirts, shoes, notebooks, and pencils, while excluding accessories, protective equipment, and certain technology items. The legislation provides detailed rules for administering the sales tax holiday, such as how bundled sales, coupons, exchanges, and returns will be handled during this period. The sales tax holiday is designed to provide tax relief to consumers, particularly families preparing for the back-to-school season, by making certain essential items more affordable. The bill specifies specific dates for the sales tax holiday, including its inaugural year in 2026 and subsequent years, and takes effect immediately upon becoming law.

Budget and Finance

https://www.ilga.gov/Legislation/BillStatus?DocNum=4101&GAID=18&DocTypeID=HB&SessionID=114&GA=104