Link to Original Story

State sales tax holiday begins today

By Adam Testa
The Southern

Illinois shoppers will be treated to a special tax break on certain items, particularly those needed to send children back to school, as the state launches its first sales tax holiday today.

From today until Aug. 15, the state’s 5 percent sales tax will be exempted on a number of items, including school supplies and clothes priced at less than $100. Other neighboring states like Missouri and Iowa have hosted these types of special events in the past, and Illinois Department of Revenue spokeswoman Sue Hofer said feedback has been very positive.

Gov. Pat Quinn and members of the General Assembly enacted the temporary tax break to provide even slight relief to Illinois residents who have been affected by a downturned economy and may be struggling to buy the necessary back-to-school supplies, Hofer said. Illinois families traditionally spend between $800 million and $1.2 billion on these items, and this tax holiday could save them an estimated $40 to $60 million.

Neighboring states have traditionally limited their tax holiday to one weekend in early August, but Hofer said it was important to state officials to offer the incentive for an extended period.

“One weekend might not be enough,” she said, noting some families are taking end-of-summer vacations and are otherwise preoccupied. “We wanted to make sure families have ample time to get their shopping done.”

Marion Mayor Bob Butler said the sales tax holiday will be a good thing for the residents of the state, as it will provide a bit of a boost to the economy and their ability to purchase supplies. He also, however, cautioned that the state needs to be careful if choosing to use these types of incentive programs in the future, as it takes away potential sources of revenue for a fiscally-strapped state.