Illinois would waive certain taxes on eligible school purchases

Illinois would not impose certain sales taxes on eligible school items purchased during the holiday. It covers tangible items students use for classroom or related educational activities, including clothing priced at $125 or less per item, school supplies, backpacks, and computers or software for noncommercial use priced at $1,000 or less. The purchase must be for personal use. The exemption excludes items bought for resale or business or trade use, and digital goods and services. The holiday would run each year from 12:01 a.m. on the first Friday in August through 11:59 p.m. the following Sunday. The Act would take effect upon becoming law.

The Illinois Department of Revenue would guide retailers and the public and inform them about the holiday. The guidance and information would cover the holiday dates, its scope, and the eligible items.

The Illinois Department of Revenue would report lost tax revenue and assess the holiday’s economic impact. The assessment would cover the state economy, especially retail sales and consumer spending. The report would be due to the Governor and General Assembly no later than 90 days after each holiday ends.