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.
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