IL HB2989

Establishes an annual sales tax holiday on school supplies running for 10 days beginning the first Monday in August, starting in 2025 and continuing each year thereafter

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

Qualifying school supplies include binders, calculators, notebooks, pencils, pens, crayons, folders, markers, rulers, scissors, and similar items; excludes computers, cell phones, cameras, and art supplies

Clothing covered includes general apparel like shoes, coats, hats, and school uniforms, but excludes accessories (jewelry, handbags), protective equipment (hard hats, safety glasses), and sport/recreational equipment (cleats, ski boots)

Amends the Use Tax Act and Retailers' Occupation Tax Act to make the previously one-time 2010 and 2022 sales tax holidays a permanent annual event