HB4227 Summary

• Adds a new exemption from state use, occupation, and sales taxes for essential supplies purchased by day care centers starting January 1, 2024, if the center has been granted a certificate of exemption by the Department of Revenue.

• Defines "essential supplies" to include food and beverages for children's meals and snacks, diapers, wipes, first aid kits, smoke detectors, nap mats, and soap and hand sanitizer.

• Allows the Department of Children and Family Services to share information with the Department of Revenue to administer this exemption.

• Applies the exemption across four tax acts: the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act.

• Becomes effective immediately upon enactment.