SB1418 Summary

• Establishes a back-to-school tax holiday exempting qualified merchandise from use tax and retailers' occupation tax from 12:01 a.m. on the first Friday in August through midnight of the following Sunday.

• Defines "qualified merchandise" as school supplies (pens, pencils, notebooks, etc.), clothing or footwear priced at $200 or less, and computers priced at $3,000 or less.

• Excludes accessories such as jewelry, handbags, purses, briefcases, luggage, wallets, and watches from the clothing exemption.

• Specifies that purchases qualify for exemption if buyer places an order and pays during the holiday period regardless of delivery date; items in layaway must be delivered during the holiday period to qualify.

• Allows local governments to declare their own tax holidays for the same items, periods, and conditions and encourages them to do so.