HB3201 Summary

• Establishes an annual sales tax holiday on school supplies during the first 7 days of August of each calendar year, with a reduced tax rate of 1.25% instead of the standard 6.25%.

• Amends the Use Tax Act, Retailers' Occupation Tax Act, and State Finance Act to define "sales tax holiday period" and specify the reduced tax rate application to qualifying school supply items.

• School supplies subject to the reduced rate include items such as binders, calculators, notebooks, pencils, pens, rulers, scissors, folders, and paper, but exclude art supplies, instructional materials, computers, and cell phones.

• References existing sales tax holiday provisions from previous law (August 6-15, 2010 and August 5-14, 2022) and extends the holiday to recurring annual periods beginning in 2023.

• Takes effect immediately upon becoming law.