HB2498 Summary

• Reduces the sales tax rate on diapers and baby wipes from 6.25% to 1% across four Illinois tax acts: Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

• Changes the distribution and treatment of proceeds from taxes imposed on diapers and baby wipes.

• Applies the 1% reduced rate to diapers and baby wipes consistently with other essential items already taxed at 1%, including prescription medicines, medical devices for cancer treatment, and diabetic supplies.

• Amends 35 ILCS 105/3-10, 110/3-10, 115/3-10, and 120/2-10 to implement the tax rate reduction.