SB2848 Summary

• Reduces tax rate on diapers and baby wipes from 6.25% to 1% under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

• Revenue from the 1% tax on diapers and baby wipes is directed to the State and Local Sales Tax Reform Fund along with other reduced-rate items (food for human consumption, prescription medicines, and medical appliances).

• Applies the same 1% tax rate to diapers and baby wipes as already existed for food for human consumption, prescription and nonprescription medicines, and related medical items.

• Makes conforming changes across all four tax acts to maintain consistent treatment of diapers and baby wipes across different transaction types and business structures.