Illinois State Sales Tax Holiday for 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 percent.

Example
If your sales tax rate is: 9.750%
Reduced amount (state portion) – 5.000%
Your sales tax rate during the holiday period is: 4.750%

If your sales tax rate is: 6.250%
Reduced amount (state portion) – 5.000%
Your sales tax rate during the holiday period is: 1.250%

What is a state sales tax holiday?
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 selling price of less than $100 and school supplies used by students in the course of study. School supplies are not subject to the $100 threshold.

Qualifying School Supplies
Must be used by students in the course of study, including:
• binders
• book bags
• calculators
• cellophane tape
• blackboard chalk
• compasses
• composition books
• crayons
• erasers
• expandable pocket, plastic, and manila folders
• glue, paste, and paste sticks
• highlighters
• index cards and index card boxes
• legal pads
• lunch boxes
• markers
• notebook paper, including loose leaf notebook, copy, graph, tracing, manila, colored and construction paper, and poster board
• pencils and pencil leads
• pens, ink, and ink refills for pens
• pencil boxes and other school supply boxes
• pencil sharpeners
• protractors and rulers
• scissors
• writing tablets

Non-qualifying School Supplies
Any item not used by students in the course of study, and
Art supplies
• clay and glazes
• acrylic, tempera, and oil paints
• paintbrushes for artwork
• sketch and drawing pads
• watercolors

Instructional material
• reference books
• reference maps and globes
• textbooks and workbooks

Computer and computer supplies
• computers and related supplies
• flash drives and other computer data storage devices
• data storage media such as diskettes, and compact disks
• boxes and cases for disk storage
• external ports or drives
• computer cases
• computer cables
• computer printers
• printer cartridges, toner, and ink

Read the entire Illinois Department of Revenue Bulletin by clicking here.

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