Tax rollback on school supplies starts Friday: Here’s what you need to know

Soon, students throughout Sangamon County will be packing into school buses as a new year begins this month. Parents looking to purchase school supplies before then can purchase items at a reduced rate due to reduced sales tax rates from Friday to Aug. 14.

Friday marks the beginning of the state tax rollback, where shoppers in Illinois will be able to purchase school supplies for reduced costs through Aug. 14.

Through the tax holiday, retailers will reduce the state sales tax to almost 1 percent, according to the Illinois Department of Revenue. The typical state sales tax is 6.25%, but it will be dropped to 1.25% for these 10 days.

Through passage of Senate Bill 157 in April, which included $1.8 billion in tax relief, the holiday became a possibility. The bill also provided temporary relief in the form of a 12-month removal of the 1% sales tax on groceries and a six-month delay to a planned increase on the motor fuel tax.

More:Illinois lawmakers pass $46.5 billion budget with tax relief and increased spending

What school supplies are covered?

IDR put together a list describing what school supplies qualify, items that “must be used by students in the course of study.”

Those items are as followed:

Are footwear and clothing included in the tax holiday?

Yes, you buy new shoes, school uniforms, scarves, and more during the tax holiday. Other items listed by IDR are as followed:

What supplies are not covered?

Any of the beforementioned items have to be less than $125 per item to qualify. Several clothing accessories, sports and recreational equipment, protective equipment, types of footwear, and school supplies also do not qualify regardless of price.

Among the items not eligible are:

Story continues

For a complete list of qualifying and non-qualifying items, visit the IDR website.

What if the item I want is not available during the tax holiday?

Say you’re looking to purchase a particular shoe for your child. What do you do if the store doesn’t have that pair?

Through a rain check, IDR says the customer can purchase that item at the state tax holiday-listed price since it was out of stock. These rain checks must be issued between Friday and Aug. 14, otherwise it is not eligible for the reduced rate of tax.

I bought an item during the tax holiday, but have to return it after the holiday ends. What do I do?

Continuing with the shoe example, what happens if that shoe is the wrong size and you need to return it for a new pair?

According to IDR, the customer will receive credit on the returned item but the newly purchased item will face the standard 6.25% merchandise sales tax rate.

Contact Patrick Keck: 312-549-9340, pkeck@gannett.com, twitter.com/@pkeckreporter

This article originally appeared on State Journal-Register: Things to know about the Illinois school tax rollback starting Friday