HB5447 Summary

• Creates an annual sales tax holiday for school supplies during a 10-day period beginning on the first Monday in August, starting in 2024.

• Applies a reduced tax rate of 1.25% (instead of the standard 6.25%) on qualifying school supply items during the holiday period.

• Modifies the Use Tax Act and Retailers' Occupation Tax Act to implement the recurring holiday and adjust revenue distributions to Local Government Tax Fund and County and Mass Transit District Fund accordingly.

• Takes effect immediately upon becoming law.