Illinois

10-day sales tax cuts on clothing, school supplies start Friday | Education

SPRINGFIELD — Starting today through August 14, the state will reduce the sales tax rate on clothing and school supplies under $125 from 6.25% to 1.25%.

“Tax Holiday” is included in Gov. JB Pritzker’s “Family Relief Plan” and is one of several bills that will make up the operating budget for fiscal 2023. The tax incentives were passed almost unanimously by the General Assembly, resulting in an estimated $1.8 billion in tax relief for Illinoisans.

“The last two and a half years have been tough for everyone to get through the pandemic,” Pritzker said at a press conference on Thursday. Everything from gas to groceries to school supplies is going up in price, and it’s hurting everyone.It’s time for thoughtful and creative efforts to provide financial relief to families in Illinois. We need a sensible solution.”

The state estimates that the sales tax cut will save taxpayers $50 million.

clothing included

10-day tax relief includes clothing items under $125 each.

Articles of clothing as defined by law include standard items such as shorts, pants, skirts, shirts and underwear. The tax reduction also applies to aprons, hats, caps and earmuffs, coats and jackets, belts and suspenders, rubber pants, lab coats, socks, scarves, swimwear, school uniforms and ties.

It also applies to footwear such as shoes, shoelaces, slippers, insoles, boots, socks and sandals.

Exclusions

However, it does not apply to ballet, tap or athletic shoes, roller or ice skates, ski boots, waders or fins.

Also, shoppers should not expect tax reductions on accessory items such as briefcases, hair bows, handbags, jewelry, sunglasses, and wigs. Also applies to sports gloves, goggles, hand and elbow guards, life preservers, wetsuits, shoulder pads, shin guards and mouthguards.

Also excluded are protective equipment such as respirators, hearing protectors, face shields, helmets, hard hats, respirators, protective gloves, safety goggles and tool belts.

attached 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 tax deductible. masu rate.

So are glue, highlighters, markers, crayons, and colored pencils.

Exclusions

But shoppers shouldn’t expect other art supplies to qualify for discounted rates. Clays and glazes, paints and paintbrushes, sketching and drawing pads are all taxed at his normal 6.25% rate.

Textbooks, reference books, maps, and globes are also excluded from “holidays.”

Electronics and computers are also taxed at normal rates. This includes computers and related supplies such as flash drives, memory cards, data storage, computer cases, cables, printers and ink.

Also, shoppers shouldn’t expect a break while shopping for cameras, cell phones, or handheld electronics.

The task of adjusting tax rates for individual items falls to retailers who collect sales tax and pay it to the state.

Guidance from the Illinois Department of Revenue regarding covered items can be found here.

Other tax relief

Other tax reliefs approved in the budget include a one-time property tax rebate of up to 5% of the homeowner’s tax amount of up to $300, $50 per individual, and $100 per dependent. Includes a limited income tax refund and a limit of three children. per family. They are available to individuals earning up to $200,000 and joint filers earning up to $400,000.

The package also suspends the 1% tax on groceries for one year and suspends, for six months, the auto-inflation increase in the state auto fuel tax, which was estimated at 2.2 cents per gallon.

The plan also permanently expands the state income tax credit from 18% to 20% of the federal deduction, while expanding the number of households that can claim the deduction.

The measure also sets the income tax deduction for teachers who purchase classroom supplies to $250 this year and $500 starting January 1, 2023.



10-day sales tax cuts on clothing, school supplies start Friday | Education

Source link 10-day sales tax cuts on clothing, school supplies start Friday | Education

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