State Sales Tax Holiday in August

By TESA CULLI tesa.culli@register-news.com

SPRINGFIELD — Getting the kids ready to go back to school will be a little easier on the pocketbook, thanks to the State Sales Tax Holiday, but parents should remember to think ahead on the purchases they make, according to the Illinois Department of Revenue.

“This might be a good time for mom and dad, grandma or whoever is doing the shopping to think a little ahead to the upcoming months,” Sue Hofer of the Department of Revenue said. “In August, when the Sales Tax Holiday occurs, you aren’t thinking about boots or mittens and scarves. But, retailers have expressed a desire to make it as easy as possible for their customers and create additional incentives for their customers to shop. ... That means don’t stop thinking about the first day of school, think about the needs they will have in the next few months.”

The State Sales Tax Holiday will be from Aug. 6 through 15 in the state, and qualifying purchases made during that time frame will not be charged the 5 percent state sales tax. Qualifying clothing and footwear with a retail selling price of less than $100 and certain school supplies used by students in the course of study are part of the program, with the school supplies not subject to the $100 limit.

“People need to understand what is eligible,” Hofer said. “A book bag is eligible. If you are looking at a backpack that has a lightweight metal frame with room at the top to store a tent and at the bottom for a bedroll, that’s not considered a book bag.”

According to the Department of Revenue Informational Bulletin for retailers on the Sales Tax Holiday, qualifying clothing items — with a retail price less than $100 — are household and shop aprons, athletic supporters, bathing suits and caps, belts and suspenders, coats and jackets, gloves and mittens, hats, caps, ear muffs, lab coats, neckties, rainwear, rubber pants, scarves, underwear, school uniforms, shorts and pants, skirts and dresses, hosiery and pantyhose and shirts and blouses. Qualifying footwear — also with a retail price less than $100 — are shoes, sneakers and shoe laces, sandals, slippers, socks and stockings, footlets, boots and overshoes, insoles for shoes and steel-toed shoes.

Qualifying school supplies are considered those used by students in the course of study and include binders, book bags, calculators, cellophane tape, blackboard chalk, compasses, composition books, crayons, erasers, expandable pocket, plastic and manila folders, glue, paste and paste sticks, highlighters, index cards and index card boxes, legal pads, lunch boxes, markers, notebook paper including loose leaf notebook, copy, graph, tracing, manila, colored and construction paper and poster board, pencils and pencil leads, pens, ink and ink refills for pens, pencil boxes and other school supply boxes, pencil sharpeners, protractors and rulers, scissors and writing tablets.

Non-qualifying items in the clothing category are any with a retail price more than $100 and briefcases, cosmetics, hair notions, handbags and wallets, handkerchiefs, jewelry and watches, non-prescription sunglasses, umbrellas or wigs and hairpieces. Sports and recreational equipment or protective equipment are not allowed. Footwear not qualifying for the holiday include any more than $100 or ballet, tap, cleated or spiked athletic shoes, ski boots, roller or ice skates or waders and fins. Under supplies that do not qualify for the program are art supplies, instructional materials such as reference books, reference maps and globes or textbooks and workbooks. Computers and computer supplies are not a part of the program, and electronics equipment such as cameras and camera supplies, cell phones or personal digital assistants are excluded.

“Remember that if you are saving 5 percent in sales tax, you may then be able to afford to buy some items that aren’t required for school, but are optional and may help your child in class,” Hofer said. “A dictionary doesn’t qualify, but if you save enough, you may be able to afford that dictionary for your student.”

Customers will also be able to use coupons during the Sales Tax Holiday, and customers who have a rain check for qualifying purchases that was issued prior to the holiday will qualify for the reduced sales tax rate. However, rain checks issued during the holiday but not brought back for redemption prior to the close of the holiday are not eligible for the reduced tax rate.

And what happens if that pair of gym shoes doesn’t fit the student when they try them on at home?

“Keep the receipts,” Hofer said. “The retailer is required to record and send information in.”

The Department of Revenue states retailers may establish their own policy for a time period to accept returns for credit or refund.

“However, if a customer does not provide a receipt, invoice, or other proper documentation that shows a tax rate different from the state sales tax holiday rate, the refund or credit given for any and all returns within the 60 day period immediately following the state sales tax holiday period shall be refunded or credited at the reduced tax rate,” information from the Department of Revenue states.

Additional information about the State Sales Tax Holiday is available at www.tax.illinois.gov.

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