IL HB3261

Creates an annual sales tax holiday for school supplies during the entire month of August, beginning August 1, 2025 through August 31, 2025 and continuing each August thereafter

Reduces the state sales tax rate on qualifying school supplies from 6.25% to 1.25% during the holiday period

School supplies eligible for the reduced rate include binders, book bags, calculators, notebooks, paper, pencils, pens, scissors, rulers, markers, crayons, erasers, folders, glue, and similar items used by students in courses of study

Excludes from the reduced rate: school art supplies, school instructional materials (textbooks, reference books), computers, cell phones, cameras, and school computer supplies

Amends the Use Tax Act, Retailers' Occupation Tax Act, and State Finance Act to implement the holiday and make conforming changes to revenue distribution provisions