IL HB4037

Exempts short-term sporting goods rentals from Illinois sales and use taxes beginning January 1, 2026, specifically excluding leases of sporting goods for less than 10 days from the definition of "lease" under the tax code

Defines "sporting goods" as tangible personal property used for recreational health, fitness, or sporting activities including golf, tennis, basketball, baseball, softball, football, soccer, fishing, pickleball, ice skating, roller skating, hockey, skiing, paddle boating, kayaking, canoeing, and yoga

Amends four tax acts: the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to implement this exemption

Responds to Public Act 103-592, which extended Illinois sales tax to cover leases of tangible personal property starting January 1, 2025, by carving out an exception for short-term sporting equipment rentals

Takes effect immediately upon becoming law