IL HB1905

Establishes an annual sales tax holiday on school supplies during the first 7 days of August each calendar year, beginning in 2025

Reduces the state sales tax rate from 6.25% to 1.25% on qualifying school supplies and clothing items priced under $125 during the holiday period

School supplies eligible for the reduced rate include binders, calculators, notebooks, pens, pencils, folders, crayons, rulers, and similar items used by students in courses of study

Clothing eligible for the reduced rate includes general apparel such as shoes, coats, hats, and school uniforms, but excludes accessories (jewelry, handbags), protective equipment, and sports equipment

Amends the Use Tax Act, Retailers' Occupation Tax Act, and State Finance Act to make the sales tax holiday permanent and recurring, replacing the previous one-time holiday periods from 2010 and 2022