News
June 25, 2010 :: Business, Community, Legislative
Sales Tax Holiday on Clothing, Footwear and School Supplies
Effective August 6, 2010 through August 15, 2010 a state sales tax holiday will be implemented and certain items purchased during this time period will have a reduced sales tax rate. The sales tax rate you will be required to collect during the holiday period is the rate currently in effect on the date of the holiday minus 5%. For example: If your sales tax rate is 10.25% the rate during the holiday will be 5.25%
A state sales tax holiday is a 10-day period during which consumers can purchase certain items and pay sales tax at a reduced rate. Items include qualifying clothing and footwear with a retail price of less than $100 and certain school supplies.
For Businesses:
You must adjust your method of collecting sales tax so that beginning on August 6 and ending on August 15 you will collect the reduced rate on qualifying items Qualified items bundled with items that do not qualify for the state sales tax holiday rate will be subject to the reduced tax rate only if the value of the qualifying items exceed the value of the non-qualifying items.
Qualifying Purchases
CLOTHING
Bathing suits, aprons, belts, coats, jackets, shorts, uniforms, pants, underwear, scarves, skirts, rainwear, neckties, hats, gloves, rainwear and more.
FOOTWEAR
Shoes, sneakers, shoelaces, slippers, socks, boots, insoles, sandals and more.
SCHOOL SUPPLIES
Binders, backpacks, chalk, crayons, calculators, erasers, pencils, pencil sharpeners, pens, markers, notebook paper, folders, legal pads, lunch boxes, index cards, glue, paste and more.
Non-Qualifying Purchases
CLOTHING
Wallets, briefcases, jewelry, watches, umbrellas, wigs, cosmetics, sporting equipment and more.
FOOTWEAR
Ski boots, ballet shoes, fins, ice skates and rollerblades.
SCHOOL SUPPLIES
Computers, many art supplies, reference books, maps, and computer supplies, etc.
A complete list of items will be available online from the Illinois Retail Merchants Association.