A new Illinois law is expected to ease some of the financial stress of back-to-school shopping by lowering the tax rate on certain school-related items for a limited time before children return to class.
Senate Bill 157 lowers the tax rate on school clothing and supplies from 6.25% to 1.25% for 10 days from August 5 to 14, according to State Senator Rachelle Crowe.
“As a nod to our working parents, guardians and teachers in Illinois, the reduction in the school supply tax rate removes a burden when preparing for the school year,” Crowe said. “I hope that by instituting a tax holiday, we can help relieve families and educators of some of the financial costs to prepare students for the upcoming school year.”
The new law takes effect immediately.
On Tuesday morning, Gov. JB Pritzker signed a $46.5 billion budget that includes $1.8 billion in election-year tax relief and a $1 billion deposit into the state fund. for rainy days.
“The budget I am enacting today brings real improvements to the lives of working families and prepares us for a stronger financial future,” Pritzker said in a statement. “Investments in stronger schools, modernized airports and newly paved highways, hundreds of thousands of well-paying infrastructure jobs and a better-funded pension system…these are the kinds of priorities we can invest in. when our state is governed responsibly.”
The budget plan goes into effect on July 1, the start of the state’s fiscal year.
Illinois lawmakers approved the budget, which also injects $1 billion into a state “rainy day” fund, earlier this month. The Illinois Senate approved the budget plan by 34 votes to 19, while the House gave its approval by 72 votes to 42.
“We are continuing our practice of responsible budgeting while helping those who need it most,” Illinois Senate President Don Harmon said in a statement. “Families are struggling, and I hope this budget will bring them some relief.”
The budget builds on a robust post-pandemic economy and health tax revenues to include $1.8 billion in mostly temporary tax cuts that closely follow Pritzker’s election-year proposal l last winter.
The plan includes direct payment to Illinois residents earning less than $200,000 per year or $400,000 per year for couples filing jointly. Each taxpayer would receive $50, plus $100 for each dependent child, capped at three.
It also includes Democratic legislative leaders’ response to soaring prices with temporary tax relief on gas, groceries and property taxes, and also includes a permanent expansion of a tax credit for income tax payers. low and medium.
The budget also includes more than $200 million for new public safety initiatives that address Republican criticism that Democrats weren’t doing enough to tackle rising crime.