IL SB3773

Counties and municipalities may designate contiguous areas between 0.5 and 12 square miles as Community Revitalization Zones, provided the area has median household income below $45,000 per year based on U.S. Census data.

Retailers located within certified Community Revitalization Zones receive a reduced state sales tax rate of 3.25% instead of the standard 6.25% rate, beginning January 1, 2027.

The Department of Commerce and Economic Opportunity must certify proposed zones and will adopt rules for implementation, with zone designations lasting up to 10 years.

The reduced tax rate applies to tangible personal property purchases from zone retailers under the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act, excluding items already taxed at 1% or 1.25%.