10-day sales tax reduction on clothing, school supplies begins Friday
By JERRY NOWICKI
Capitol News Illinois
jnowicki@capitolnewsillinois.com
SPRINGFIELD – Beginning Friday and lasting through Aug. 14, the state will reduce its sales tax rate from 6.25 percent to 1.25 percent for certain clothing items costing less than $125 and school supplies.
The “tax holiday” was included in Gov. JB Pritzker’s “family relief plan,” one prong of several bills making up the Fiscal Year 2023 operating budget. The tax breaks passed with nearly unanimous support in the General Assembly and provided an estimated $1.8 billion in tax relief for Illinoisans.
“These past two-and-a-half years, for everyone, of managing through the pandemic has been hard,” Pritzker said at a news conference Thursday. “And the last nine months of inflation on top of that has strained the budgets of parents and teachers alike. Prices have risen for everything from gas to groceries to school supplies, and everyone is taking a hit. It’s at moments like these that we need thoughtful and creative solutions that provide financial relief for Illinois families.”
The state estimated the sales tax reduction would amount to $50 million in savings for taxpayers.
Included clothing items
The 10-day tax reduction includes clothing items costing less than $125 individually.
Clothing items, as defined by the law, include the standard items such as shorts, pants, skirts, shirts and underwear. The tax reduction will also apply to aprons, hats, caps and earmuffs, coats and jackets, belts and suspenders, rubber pants, lab coats, hosiery, scarves, bathing suits, school uniforms and neckties.
It also applies to footwear – shoes, shoelaces, slippers, insoles, boots, socks and sandals.
Excluded items
But it does not apply to ballet, tap or athletic shoes, roller or ice skates, ski boots, waders, or fins.
Shoppers also should not expect the reduced sales tax rate on accessory items such as briefcases, hair bows, handbags, jewelry, sunglasses or wigs. The reduction also does not apply to sports gloves, goggles, hand and elbow guards, life preservers, wetsuits, shoulder pads, shin guards or mouth guards.
Also excluded are protective equipment items such as breathing masks, hearing protectors, face shields, hard hats and helmets, respirators, protective gloves, safety goggles or tool belts.
Included school supplies
Binders, book bags, calculators, cellophane tape, blackboard chalk, notebooks, erasers, folders, index cards, legal pads, lunch boxes, pencils and sharpeners, supply boxes, protractors, rulers, compasses, and scissors are all eligible for the reduced tax rate.
So are glue, highlighters, markers, crayons and colored pencils.
Excluded items
Shoppers should not expect other art supplies to be eligible for the reduced rate, however. Clay and glaze, paints and paint brushes, sketch pads and drawing pads will all be taxed at the regular 6.25 percent rate.
Textbooks, reference books, maps and globes are all excluded from the “holiday” as well.
Electronics and computers will also be taxed at the regular rate. That includes computers and related supplies such as flash drives, memory cards, data storage, computer cases, cables, printers and ink.
Shoppers also should not expect any breaks while buying cameras, cellphones or handheld electronics.
The task of adjusting the tax rate for individual items will fall on retailers, who collect sales tax and remit it to the state.
Guidance from the Illinois Department of Revenue on qualifying items can be found here.
Other tax relief
Other tax relief measures approved in the budget include a property tax rebate up to 5 percent of the homeowner’s tax bill up to $300, and a one-time income tax rebate of $50 per individual and $100 per dependent, up to a limit of three children per family. Those would be available to individuals with incomes up to $200,000 and joint filers with incomes up to $400,000.
The package also suspends for one year the 1 percent tax on groceries and puts a six-month pause on the automatic inflationary increase in the state’s motor fuel tax, which was estimated to be 2.2 cents per gallon.
The plan also permanently expands the state earned income tax credit from 18 to 20 percent of the federal credit while also expanding the number of households that can claim the credit.
The measure also set an income tax credit for teachers buying classroom supplies at $250 for the current year and $500 beginning Jan. 1, 2023.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government that is distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Countryside puts dog park on hold, will require leashes in two parks
Spread the loveBy Steve Metsch The city of Countryside has put on hold building a dog park, but canines and their owners are still in store for a treat. The city council has unanimously approved a plan to permit dogs in City Park and Countryside Park this year. Previously, they were not allowed in the…
Bridgeview approves auto repair shop
Spread the loveMoves up time for May 1 village board meeting By Steve Metsch Bridgeview is getting a new automotive repair shop. The village board at its April 17 matinee meeting approved a special use permit that will allow a repair shop at 9010 S. Beloit Ave. There was no discussion among trustees. The board…
Summit Fire Department blood drive draws a crowd
Spread the loveBy Carol McGowan The Summit Fire Department, along with the Village of Summit, and the Argo Summit Lions Club held a blood drive this past Saturday, and it drew a crowd that even impressed the American Red Cross. It took place from 9 a.m. until 2 p.m. with non-stop donors walking through the…
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…
Oak Lawn trustee says village needs state grocery tax
Spread the loveBy Joe Boyle An Oak Lawn trustee said that Gov. J.B. Pritzker’s proposal to eliminate the state’s grocery tax will be costly for the village. Trustee William “Bud” Stalker (5th), accompanied by Mayor Terry Vorderer, recently returned from a fact-finding trip to Springfield where they learned more about the governor’s proposal to eliminate…
Neighbors
Sorry, we couldn't find any posts. Please try a different search.