HB4101

USE/OCC TAX-HOLIDAY

Introduced·8/19/25
Introduced Text

Illinois HB4101 establishes a sales tax holiday for specific items from August 5 to August 14 annually starting in 2026.

Illinois HB4101 amends the Use Tax Act and the Retailers' Occupation Tax Act to establish a sales tax holiday period from August 5 to August 14 annually starting in 2026. During this period, certain items such as clothing, school supplies, and medical devices used for cancer treatment are exempt from the general sales tax rate of 6.25% and are instead taxed at a reduced rate of 1.25%. The bill also outlines specific provisions for exchanges, returns, and the handling of bundled sales and discounts during the holiday period.

Included in complete analysis

  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Rules Committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

Calendar

Mar 26

8:00 AM

House Revenue & Finance Committee Hearing

Mar 26

8:01 AM

House Income Tax Subcommittee Committee Hearing

History

Mar 27

House

Rule 19(a) / Re-referred to Rules Committee

Feb 26

House

To Tax Policy: Sales Tax Subcommittee

Feb 17

House

Assigned to Revenue & Finance Committee