Budget & Taxes (Sales Tax)

in committee · Illinois · House Mar 27, 2026

HB 3261: USE/OCC TAX-SALES TAX HOLIDAY

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Creates a sales tax holiday period for school supplies from August 1, 2025 through August 31, 2025 and from August 1 through August 31 of each year thereafter. Amends the State Finance Act to make conforming changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary sales tax exemption for school supplies, providing direct tax relief to consumers during back-to-school season.95% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate Jun 1, 2026

SB 1340: MANUFACTURING-ENERGY-EXEMPTION

Amends the Gas Use Tax Law. Exempts certain business enterprises from taxation under the Act. Amends the Gas Revenue Tax Act. Provides that the definition of "gross receipts" does not include consideration received from certain business enterprises. Amends the Electricity Excise Tax Law. Provides that the tax under the Act is not imposed with respect to any use by the purchaser in the process of manufacturing or assembling tangible personal property for wholesale or for retail sale or lease. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesExempts businesses from taxes, reducing state revenue under Gas Use Tax Law and Electricity Excise Tax Law.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Illinois · House Mar 27, 2026

HB 1905: USE/OCC TX-SCHOOL SUPPLIES

Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides temporary sales tax exemption for school supplies, offering direct tax relief to consumers during back-to-school season, aligning with support indicators for tax relief.95% confidence ✓ EducationSupports EducationTax holiday on school supplies reduces costs for families, enhancing access to educational materials during back-to-school season.90% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate Jun 2, 2025

SB 1673: USE/OCC TAX-HOLIDAY

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, from August 6, 2025 through August 8, 2025, and from August 13, 2025 through August 15, 2025, the tax imposed under the Acts on clothing and school supplies shall be at the rate of 1.25% (instead of 6.25%). Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesTemporary tax reduction on clothing/school supplies (6.25% → 1.25%) provides consumer relief, aligning with tax relief indicators for middle/lower income.90% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate Feb 25, 2025

SR 127: 1ST YR BUSINESS FEES-ELIMINATE

Urges the elimination of all first-year business fees relating to any license or registration for any new business or person establishing a new business, including home-based businesses, whose principal place of business is in this State.

Topics ✗ Budget & TaxesOpposes Budget & TaxesEliminates business license/registration fees, reducing state revenue from new businesses, directly weakening fiscal management under Budget & Taxes.95% confidence

Sub-Topics Business Taxes Fees & Licensing Sales Tax

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in committee · Illinois · House Mar 21, 2025

HB 3179: USE/OCC TAX-DIAPERS

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Reduces the rate of tax on diapers and baby wipes to 1% (currently, 6.25%). Makes various formatting changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesReduces sales tax on essential baby items (diapers/wipes) from 6.25% to 1%, providing direct tax relief to lower-income families purchasing these necessities.95% confidence

Sub-Topics Business Taxes Sales Tax

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in committee · Illinois · House Mar 21, 2025

HB 2989: USE/OCC TX-HOLIDAY

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Creates a sales tax holiday period for school supplies each year during the 10-day period that begins on the first Monday in August. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates temporary sales tax holiday for school supplies, providing tax relief to families purchasing essential items, aligning with tax relief indicators for middle/lower income.95% confidence ✓ EducationSupports EducationCreates sales tax holiday for school supplies, reducing costs for families purchasing educational materials, directly enhancing access to K-12 educational resources.85% confidence

Sub-Topics Sales Tax

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in committee · Illinois · House Mar 27, 2026

HB 1228: MEDICAL CANNABIS-TAX

Amends the Retailers' Occupation Tax Act. In a provision concerning the rate of tax, provides that the definition "prescription and nonprescription medicine and drugs" includes cannabis or cannabis-infused products purchased from a dispensing organization under the Cannabis Regulation and Tax Act by a cardholder under the Compassionate Use of Medical Cannabis Act. Amends the Cannabis Regulation and Tax Act. Provides that the tax imposed under the provisions is not imposed on cannabis-infused product that is subject to tax under the Compassionate Use of Medical Cannabis Program Act or cannabis or cannabis-infused product sold to a cardholder under the Compassionate Use of Medical Cannabis Program Act. Effective January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts medical cannabis products from tax under Cannabis Regulation and Tax Act, providing tax relief for compliant purchases.95% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate May 22, 2026

SB 2089: USE/OCC TX-SCHOOLS

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. In provisions concerning organizations that are operated exclusively for educational purposes, provides that the term "tax-supported public school" includes any student organization that meets both of the following: (1) enrollment in the student organization is limited to students from a particular public elementary or secondary school; and (2) the student organization is affiliated with the public elementary or secondary school but is not sponsored by the public elementary or secondary school. Effective immediately.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax exemptions for educational student organizations, providing tax relief to support public schools under existing tax laws.85% confidence

Sub-Topics Sales Tax

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in committee · Illinois · Senate Jun 2, 2025

SB 2028: USE/OCC TX-BROADBAND

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for equipment and materials placed in service on or after January 1, 2026 that are incorporated into or used in the business of providing broadband services. Effective immediately.

Topics ✗ Budget & TaxesOpposes Budget & TaxesCreates tax exemption for broadband equipment, reducing state tax revenue and weakening fiscal collection.90% confidence ✓ TechnologySupports TechnologyExempts broadband infrastructure equipment from taxes, reducing costs for expansion and promoting internet access.90% confidence

Sub-Topics Sales Tax Broadband Access

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