Illinoisans who are waiting to buy certain items during a sales tax holiday will be disappointed this year.
Officials confirmed to NBC Chicago that the measure that brought a lot of relief last August was only in effect for 2022.
The sales tax exemption has only been approved for 2022 and will not return this year, according to a spokesperson for the Illinois Department of Revenue.
“Last year’s sales tax holiday was always designed to be a one-time measure to help fight inflation because the state had a surplus to work with,” a spokesman for Governor JB Pritzker’s office said in a statement. release. “Thanks to the actions taken by President Biden, the Inflation Reduction Act is working as planned and we are seeing inflation decrease across the country. Governor Pritzker has been clear about his desire to cut taxes for working families, but has also made it clear that since all grocery tax revenue goes to local governments, that revenue would need to be replaced if this tax cut were to become permanent.The Governor is committed to ensuring that the been living within her means while using surplus income to help working families like she did when she implemented temporary tax cuts last year.
Illinois parents saw some financial relief during the back-to-school season last summer thanks to a state law that lowered tax rates on qualified school supplies, clothing and shoes.
Included in the $46.5 budget approved by Governor JB Pritzker months earlier, the 2022 sales tax holiday reduced the state sales tax on clothing and school supplies by 5% for 10 days last August.
Last year’s sales tax exemption, which lowered the tax rate from 6.25% to 1.25%, began on August 5 and ended on August 14. Qualifying purchases included certain clothing and footwear with a retail price of less than $125 per item. Eligible school supply items were not subject to the $125 limit.
While different from the sales tax exemption, Illinois has long offered a credit for education expenses on tax returns. Parents can receive a 25% tax credit on eligible back-to-school expenses that exceed $250 on their individual tax returns. The total credit cannot exceed $750, regardless of the number of qualifying children.
As in past years, back-to-school shopping costs will rise again.
Spending is likely to hit a record $41.5 billion this year, up from $36.9 billion last year and a previous high of $37.1 billion in 2021, according to the National Retail Federation, according to trade associations representing a wide variety of retailers. retailers.
Families with children in elementary through high school will spend an average of $890.07, about $25 more than last year’s record of $864.35 and a new high, according to the association.
2023-07-28 06:21:45
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