HB4945 Summary

• Reduces the tax rate on toilet paper, tissues, and towelettes from 6.25% to 1% under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act, effective July 1, 2022.

• Applies the reduced 1% tax rate to sales of these hygiene products across all four Illinois tax statutes to ensure consistent treatment.

• Takes effect immediately upon becoming law, though the actual tax rate reduction applies starting July 1, 2022.