Bill Text: IL HB4101 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the sales tax holiday period under those Acts applies from August 5 through August 14 of 2026 and from August 5 through August 14 of each year thereafter. Effective immediately.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2026-03-27 - Rule 19(a) / Re-referred to Rules Committee [HB4101 Detail]

Download: Illinois-2025-HB4101-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026HB4101 Introduced , by Rep. Maurice A. West, II SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-6
35 ILCS 105/3-10 from Ch. 120, par. 439.33-10
35 ILCS 120/2-8
35 ILCS 120/2-10 from Ch. 120, par. 441-10
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the sales tax holiday period under those Acts applies from August 5 through August 14 of 2026 and from August 5 through August 14 of each year thereafter. Effective immediately.
LRB104 14805 HLH 27948 b
A BILL FOR
HB4101 LRB104 14805 HLH 27948 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Use Tax Act is amended by changing Sections
3-6 and 3-10 as follows:
(35 ILCS 105/3-6)
Sec. 3-6. Sales tax holiday items.
(a) Any tangible personal property described in this
subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax during for the period set forth in
Section 3-10 of this Act (hereinafter referred to as the Sales
Tax Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this
Section. The following items are subject to the reduced rate:
(1) Clothing items that each have a retail selling
price of less than $125.
"Clothing" means, unless otherwise specified in this
Section, all human wearing apparel suitable for general
use. "Clothing" does not include clothing accessories,
protective equipment, or sport or recreational equipment.
"Clothing" includes, but is not limited to: household and
shop aprons; athletic supporters; bathing suits and caps;
belts and suspenders; boots; coats and jackets; ear muffs;

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footlets; gloves and mittens for general use; hats and
caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals;
scarves; shoes and shoelaces; slippers; sneakers; socks
and stockings; steel-toed shoes; underwear; and school
uniforms.
"Clothing accessories" means, but is not limited to:
briefcases; cosmetics; hair notions, including, but not
limited to barrettes, hair bows, and hair nets; handbags;
handkerchiefs; jewelry; non-prescription sunglasses;
umbrellas; wallets; watches; and wigs and hair pieces.
"Protective equipment" means, but is not limited to:
breathing masks; clean room apparel and equipment; ear and
hearing protectors; face shields; hard hats; helmets;
paint or dust respirators; protective gloves; safety
glasses and goggles; safety belts; tool belts; and
welder's gloves and masks.
"Sport or recreational equipment" means, but is not
limited to: ballet and tap shoes; cleated or spiked
athletic shoes; gloves, including, but not limited to,
baseball, bowling, boxing, hockey, and golf gloves;
goggles; hand and elbow guards; life preservers and vests;
mouth guards; roller and ice skates; shin guards; shoulder
pads; ski boots; waders; and wetsuits and fins.
(2) School supplies. "School supplies" means, unless
otherwise specified in this Section, items used by a

HB4101 - 3 - LRB104 14805 HLH 27948 b
student in a course of study. The purchase of school
supplies for use by persons other than students for use in
a course of study are not eligible for the reduced rate of
tax. "School supplies" do not include school art supplies;
school instructional materials; cameras; film and memory
cards; videocameras, tapes, and videotapes; computers;
cell phones; Personal Digital Assistants (PDAs); handheld
electronic schedulers; and school computer supplies.
"School supplies" includes, but is not limited to:
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;
index card boxes; legal pads; lunch boxes; markers;
notebooks; paper, including loose leaf ruled notebook
paper, copy paper, graph paper, tracing paper, manila
paper, colored paper, poster board, and construction
paper; pencils; pencil leads; pens; ink and ink refills
for pens; pencil boxes and other school supply boxes;
pencil sharpeners; protractors; rulers; scissors; and
writing tablets.
"School art supply" means an item commonly used by a
student in a course of study for artwork and includes only
the following items: clay and glazes; acrylic, tempera,
and oil paint; paintbrushes for artwork; sketch and
drawing pads; and watercolors.

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"School instructional material" means written material
commonly used by a student in a course of study as a
reference and to learn the subject being taught and
includes only the following items: reference books;
reference maps and globes; textbooks; and workbooks.
"School computer supply" means an item commonly used
by a student in a course of study in which a computer is
used and applies only to the following items: flashdrives
and other computer data storage devices; data storage
media, such as diskettes and compact disks; boxes and
cases for disk storage; external ports or drives; computer
cases; computer cables; computer printers; and printer
cartridges, toner, and ink.
(b) Administration. Notwithstanding any other provision of
this Act, the reduced rate of tax under Section 3-10 of this
Act for clothing and school supplies shall be administered by
the Department under the provisions of this subsection (b).
(1) Bundled sales. Items that qualify for the reduced
rate of tax that are bundled together with items that do
not qualify for the reduced rate of tax and that are sold
for one itemized price will be subject to the reduced rate
of tax only if the value of the items that qualify for the
reduced rate of tax exceeds the value of the items that do
not qualify for the reduced rate of tax.
(2) Coupons and discounts. An unreimbursed discount by
the seller reduces the sales price of the property so that

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the discounted sales price determines whether the sales
price is within a sales tax holiday price threshold. A
coupon or other reduction in the sales price is treated as
a discount if the seller is not reimbursed for the coupon
or reduction amount by a third party.
(3) Splitting of items normally sold together.
Articles that are normally sold as a single unit must
continue to be sold in that manner. Such articles cannot
be priced separately and sold as individual items in order
to obtain the reduced rate of tax. For example, a pair of
shoes cannot have each shoe sold separately so that the
sales price of each shoe is within a sales tax holiday
price threshold.
(4) Rain checks. A rain check is a procedure that
allows a customer to purchase an item at a certain price at
a later time because the particular item was out of stock.
Eligible property that customers purchase during the Sales
Tax Holiday Period with the use of a rain check will
qualify for the reduced rate of tax regardless of when the
rain check was issued. Issuance of a rain check during the
Sales Tax Holiday Period will not qualify eligible
property for the reduced rate of tax if the property is
actually purchased after the Sales Tax Holiday Period.
(5) Exchanges. The procedure for an exchange in
regards to a sales tax holiday is as follows:
(A) If a customer purchases an item of eligible

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property during the Sales Tax Holiday Period, but
later exchanges the item for a similar eligible item,
even if a different size, different color, or other
feature, no additional tax is due even if the exchange
is made after the Sales Tax Holiday Period.
(B) If a customer purchases an item of eligible
property during the Sales Tax Holiday Period, but
after the Sales Tax Holiday Period has ended, the
customer returns the item and receives credit on the
purchase of a different item, the 6.25% general
merchandise sales tax rate is due on the sale of the
newly purchased item.
(C) If a customer purchases an item of eligible
property before the Sales Tax Holiday Period, but
during the Sales Tax Holiday Period the customer
returns the item and receives credit on the purchase
of a different item of eligible property, the reduced
rate of tax is due on the sale of the new item if the
new item is purchased during the Sales Tax Holiday
Period.
(6) (Blank).
(7) Order date and back orders. For the purpose of a
sales tax holiday, eligible property qualifies for the
reduced rate of tax if: (i) the item is both delivered to
and paid for by the customer during the Sales Tax Holiday
Period or (ii) the customer orders and pays for the item

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and the seller accepts the order during the Sales Tax
Holiday Period for immediate shipment, even if delivery is
made after the Sales Tax Holiday Period. The seller
accepts an order when the seller has taken action to fill
the order for immediate shipment. Actions to fill an order
include placement of an "in date" stamp on an order or
assignment of an "order number" to an order within the
Sales Tax Holiday Period. An order is for immediate
shipment when the customer does not request delayed
shipment. An order is for immediate shipment
notwithstanding that the shipment may be delayed because
of a backlog of orders or because stock is currently
unavailable to, or on back order by, the seller.
(8) Returns. For a 60-day period immediately after the
Sales Tax Holiday Period, if a customer returns an item
that would qualify for the reduced rate of tax, credit for
or refund of sales tax shall be given only at the reduced
rate unless the customer provides a receipt or invoice
that shows tax was paid at the 6.25% general merchandise
rate, or the seller has sufficient documentation to show
that tax was paid at the 6.25% general merchandise rate on
the specific item. This 60-day period is set solely for
the purpose of designating a time period during which the
customer must provide documentation that shows that the
appropriate sales tax rate was paid on returned
merchandise. The 60-day period is not intended to change a

HB4101 - 8 - LRB104 14805 HLH 27948 b
seller's policy on the time period during which the seller
will accept returns.
(c) The Department may implement the provisions of this
Section through the use of emergency rules, along with
permanent rules filed concurrently with such emergency rules,
in accordance with the provisions of Section 5-45 of the
Illinois Administrative Procedure Act. For purposes of the
Illinois Administrative Procedure Act, the adoption of rules
to implement the provisions of this Section shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(d) As used in this Section:
"Sales Tax Holiday Period" means:
(1) August 6, 2010 through August 15, 2010;
(2) August 5, 2022 through August 14, 2022;
(3) August 5, 2026 through August 14, 2026; and
(4) August 5 through August 14 of each year
thereafter.
(e) This Section is exempt from the provisions of Section
3-90.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of

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the tangible personal property, which, on and after January 1,
2025, includes leases of tangible personal property. In all
cases where property functionally used or consumed is the same
as the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling price
of the property purchased at retail. For purposes of this
Section "fair market value" means the price at which property
would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or sell and
both having reasonable knowledge of the relevant facts. The
fair market value shall be established by Illinois sales by
the taxpayer of the same property as that functionally used or
consumed, or if there are no such sales by the taxpayer, then
comparable sales or purchases of property of like kind and
character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
During the Sales Tax Holiday Period, as defined in Section
3-6, Beginning on August 6, 2010 through August 15, 2010, and

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beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, (iii) 100% of the proceeds of sales made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the proceeds of sales made on or after January 1, 2024 and on
or before December 31, 2028, and (v) 100% of the proceeds of
sales made after December 31, 2028. If, at any time, however,
the tax under this Act on sales of gasohol is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, the tax imposed
by this Act applies to (i) 80% of the proceeds of sales made on
or after January 1, 2024 and on or before December 31, 2028 and
(ii) 100% of the proceeds of sales made thereafter. If, at any
time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,

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2028 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than

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alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any

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complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food

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products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a

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list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)

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Section 10. The Retailers' Occupation Tax Act is amended
by changing Sections 2-8 and 2-10 as follows:
(35 ILCS 120/2-8)
Sec. 2-8. Sales tax holiday items.
(a) Any tangible personal property described in this
subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax during for the period set forth in
Section 2-10 of this Act (hereinafter referred to as the Sales
Tax Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this
Section. The following items are subject to the reduced rate:
(1) Clothing items that each have a retail selling
price of less than $125.
"Clothing" means, unless otherwise specified in this
Section, all human wearing apparel suitable for general
use. "Clothing" does not include clothing accessories,
protective equipment, or sport or recreational equipment.
"Clothing" includes, but is not limited to: household and
shop aprons; athletic supporters; bathing suits and caps;
belts and suspenders; boots; coats and jackets; ear muffs;
footlets; gloves and mittens for general use; hats and
caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals;
scarves; shoes and shoelaces; slippers; sneakers; socks
and stockings; steel-toed shoes; underwear; and school

HB4101 - 17 - LRB104 14805 HLH 27948 b
uniforms.
"Clothing accessories" means, but is not limited to:
briefcases; cosmetics; hair notions, including, but not
limited to barrettes, hair bows, and hair nets; handbags;
handkerchiefs; jewelry; non-prescription sunglasses;
umbrellas; wallets; watches; and wigs and hair pieces.
"Protective equipment" means, but is not limited to:
breathing masks; clean room apparel and equipment; ear and
hearing protectors; face shields; hard hats; helmets;
paint or dust respirators; protective gloves; safety
glasses and goggles; safety belts; tool belts; and
welder's gloves and masks.
"Sport or recreational equipment" means, but is not
limited to: ballet and tap shoes; cleated or spiked
athletic shoes; gloves, including, but not limited to,
baseball, bowling, boxing, hockey, and golf gloves;
goggles; hand and elbow guards; life preservers and vests;
mouth guards; roller and ice skates; shin guards; shoulder
pads; ski boots; waders; and wetsuits and fins.
(2) School supplies. "School supplies" means, unless
otherwise specified in this Section, items used by a
student in a course of study. The purchase of school
supplies for use by persons other than students for use in
a course of study are not eligible for the reduced rate of
tax. "School supplies" do not include school art supplies;
school instructional materials; cameras; film and memory

HB4101 - 18 - LRB104 14805 HLH 27948 b
cards; videocameras, tapes, and videotapes; computers;
cell phones; Personal Digital Assistants (PDAs); handheld
electronic schedulers; and school computer supplies.
"School supplies" includes, but is not limited to:
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;
index card boxes; legal pads; lunch boxes; markers;
notebooks; paper, including loose leaf ruled notebook
paper, copy paper, graph paper, tracing paper, manila
paper, colored paper, poster board, and construction
paper; pencils; pencil leads; pens; ink and ink refills
for pens; pencil boxes and other school supply boxes;
pencil sharpeners; protractors; rulers; scissors; and
writing tablets.
"School art supply" means an item commonly used by a
student in a course of study for artwork and includes only
the following items: clay and glazes; acrylic, tempera,
and oil paint; paintbrushes for artwork; sketch and
drawing pads; and watercolors.
"School instructional material" means written material
commonly used by a student in a course of study as a
reference and to learn the subject being taught and
includes only the following items: reference books;
reference maps and globes; textbooks; and workbooks.

HB4101 - 19 - LRB104 14805 HLH 27948 b
"School computer supply" means an item commonly used
by a student in a course of study in which a computer is
used and applies only to the following items: flashdrives
and other computer data storage devices; data storage
media, such as diskettes and compact disks; boxes and
cases for disk storage; external ports or drives; computer
cases; computer cables; computer printers; and printer
cartridges, toner, and ink.
(b) Administration. Notwithstanding any other provision of
this Act, the reduced rate of tax under Section 3-10 of this
Act for clothing and school supplies shall be administered by
the Department under the provisions of this subsection (b).
(1) Bundled sales. Items that qualify for the reduced
rate of tax that are bundled together with items that do
not qualify for the reduced rate of tax and that are sold
for one itemized price will be subject to the reduced rate
of tax only if the value of the items that qualify for the
reduced rate of tax exceeds the value of the items that do
not qualify for the reduced rate of tax.
(2) Coupons and discounts. An unreimbursed discount by
the seller reduces the sales price of the property so that
the discounted sales price determines whether the sales
price is within a sales tax holiday price threshold. A
coupon or other reduction in the sales price is treated as
a discount if the seller is not reimbursed for the coupon
or reduction amount by a third party.

HB4101 - 20 - LRB104 14805 HLH 27948 b
(3) Splitting of items normally sold together.
Articles that are normally sold as a single unit must
continue to be sold in that manner. Such articles cannot
be priced separately and sold as individual items in order
to obtain the reduced rate of tax. For example, a pair of
shoes cannot have each shoe sold separately so that the
sales price of each shoe is within a sales tax holiday
price threshold.
(4) Rain checks. A rain check is a procedure that
allows a customer to purchase an item at a certain price at
a later time because the particular item was out of stock.
Eligible property that customers purchase during the Sales
Tax Holiday Period with the use of a rain check will
qualify for the reduced rate of tax regardless of when the
rain check was issued. Issuance of a rain check during the
Sales Tax Holiday Period will not qualify eligible
property for the reduced rate of tax if the property is
actually purchased after the Sales Tax Holiday Period.
(5) Exchanges. The procedure for an exchange in
regards to a sales tax holiday is as follows:
(A) If a customer purchases an item of eligible
property during the Sales Tax Holiday Period, but
later exchanges the item for a similar eligible item,
even if a different size, different color, or other
feature, no additional tax is due even if the exchange
is made after the Sales Tax Holiday Period.

HB4101 - 21 - LRB104 14805 HLH 27948 b
(B) If a customer purchases an item of eligible
property during the Sales Tax Holiday Period, but
after the Sales Tax Holiday Period has ended, the
customer returns the item and receives credit on the
purchase of a different item, the 6.25% general
merchandise sales tax rate is due on the sale of the
newly purchased item.
(C) If a customer purchases an item of eligible
property before the Sales Tax Holiday Period, but
during the Sales Tax Holiday Period the customer
returns the item and receives credit on the purchase
of a different item of eligible property, the reduced
rate of tax is due on the sale of the new item if the
new item is purchased during the Sales Tax Holiday
Period.
(6) (Blank).
(7) Order date and back orders. For the purpose of a
sales tax holiday, eligible property qualifies for the
reduced rate of tax if: (i) the item is both delivered to
and paid for by the customer during the Sales Tax Holiday
Period or (ii) the customer orders and pays for the item
and the seller accepts the order during the Sales Tax
Holiday Period for immediate shipment, even if delivery is
made after the Sales Tax Holiday Period. The seller
accepts an order when the seller has taken action to fill
the order for immediate shipment. Actions to fill an order

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include placement of an "in date" stamp on an order or
assignment of an "order number" to an order within the
Sales Tax Holiday Period. An order is for immediate
shipment when the customer does not request delayed
shipment. An order is for immediate shipment
notwithstanding that the shipment may be delayed because
of a backlog of orders or because stock is currently
unavailable to, or on back order by, the seller.
(8) Returns. For a 60-day period immediately after the
Sales Tax Holiday Period, if a customer returns an item
that would qualify for the reduced rate of tax, credit for
or refund of sales tax shall be given only at the reduced
rate unless the customer provides a receipt or invoice
that shows tax was paid at the 6.25% general merchandise
rate, or the seller has sufficient documentation to show
that tax was paid at the 6.25% general merchandise rate on
the specific item. This 60-day period is set solely for
the purpose of designating a time period during which the
customer must provide documentation that shows that the
appropriate sales tax rate was paid on returned
merchandise. The 60-day period is not intended to change a
seller's policy on the time period during which the seller
will accept returns.
(c) The Department may implement the provisions of this
Section through the use of emergency rules, along with
permanent rules filed concurrently with such emergency rules,

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in accordance with the provisions of Section 5-45 of the
Illinois Administrative Procedure Act. For purposes of the
Illinois Administrative Procedure Act, the adoption of rules
to implement the provisions of this Section shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(d) As used in this Section:
"Sales Tax Holiday Period" means:
(1) August 6, 2010 through August 15, 2010;
(2) August 5, 2022 through August 14, 2022;
(3) August 5, 2026 through August 14, 2026; and
(4) August 5 through August 14 of each year
thereafter.
(e) This Section is exempt from the provisions of Section
2-70.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 120/2-10) from Ch. 120, par. 441-10
Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales, which, on and after January 1,
2025, includes leases, of tangible personal property made in
the course of business.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

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the Use Tax Act, the tax is imposed at the rate of 1.25%.
During the Sales Tax Holiday Period, as defined in Section
2-8, Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
2-8 of this Act, the tax is imposed at the rate of 1.25%.
Within 14 days after July 1, 2000 (the effective date of
Public Act 91-872), each retailer of motor fuel and gasohol
shall cause the following notice to be posted in a prominently
visible place on each retail dispensing device that is used to
dispense motor fuel or gasohol in the State of Illinois: "As of
July 1, 2000, the State of Illinois has eliminated the State's
share of sales tax on motor fuel and gasohol through December
31, 2000. The price on this pump should reflect the
elimination of the tax." The notice shall be printed in bold
print on a sign that is no smaller than 4 inches by 8 inches.
The sign shall be clearly visible to customers. Any retailer
who fails to post or maintain a required sign through December
31, 2000 is guilty of a petty offense for which the fine shall
be $500 per day per each retail premises where a violation
occurs.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, (iii) 100% of the

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proceeds of sales made after July 1, 2017 and prior to January
1, 2024, (iv) 90% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028, and (v)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
mid-range ethanol blends is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2028 but applies to 100% of the proceeds
of sales made thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before

HB4101 - 26 - LRB104 14805 HLH 27948 b
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning July 1, 2022 and until July 1, 2023, with respect to

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food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever

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kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that

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is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and

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drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
Section 99. Effective date. This Act takes effect upon
becoming law.