SB4008 Summary

• Reduces the sales tax rate from 6.25% to 1.25% on clothing and school supplies (defined as "sales tax holiday items") during two specific periods in August 2021: August 6-8 and August 13-15.

• Applies the reduced 1.25% rate to both the Use Tax Act and the Retailers' Occupation Tax Act for qualifying holiday items.

• Amends the State Finance Act sections 6z-18 and 6z-20 to direct revenue distribution from the reduced tax rate to the Local Government Tax Fund and County and Mass Transit District Fund.

• Takes effect immediately upon becoming law.