IL SB1673

Reduces the state sales tax rate on clothing and school supplies from 6.25% to 1.25% during two periods in August 2025: August 6-8 and August 13-15

Amends the Use Tax Act and the Retailers' Occupation Tax Act to establish the temporary "sales tax holiday" for back-to-school shopping

Updates the State Finance Act provisions for the Local Government Tax Fund and County and Mass Transit District Fund to account for the reduced tax rate during the holiday periods

Follows the structure of previous Illinois sales tax holidays held in August 2010 and August 2022

Takes effect immediately upon becoming law