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91_HB3187
LRB9110646SMdv
1 AN ACT regarding taxation, amending named Acts.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by adding Section
5 3b as follows:
6 (35 ILCS 105/3b new)
7 Sec. 3b. Tax holiday for clothing and footwear.
8 (a) Notwithstanding any other provision to the contrary,
9 no tax shall be imposed under this Act upon the privilege of
10 using in this State an individual item of clothing or
11 footwear designed to be worn about the human body purchased
12 at retail from a retailer if that item or clothing or that
13 footwear (i) is purchased for a selling price of $200 or less
14 and (ii) is purchased from 12:01 a.m. on the first Friday in
15 August through midnight of the Sunday that follows 9 days
16 later. Any discount, coupon, or other credit offered either
17 by the retailer or by a vendor of the retailer to reduce the
18 final price to the customer shall be taken into account in
19 determining the selling price of the item for purposes of
20 this holiday.
21 (b) A unit of local government may, by ordinance adopted
22 by that unit of local government, opt out of the tax holiday
23 imposed by this Section and continue to collect and remit the
24 tax imposed under this Act during the tax holiday period.
25 (c) Articles that are normally sold as a unit must
26 continue to be sold in that manner; they cannot be priced
27 separately and sold as individual items in order to be
28 subject to the holiday. For example, if a pair of shoes
29 sells for $250, the pair cannot be split in order to sell
30 each shoe for $125 to qualify for the holiday. If a suit is
31 normally priced at $250 on a single price tag, the suit
-2- LRB9110646SMdv
1 cannot be split into separate articles so that any of the
2 components may be sold for less than $200 in order to qualify
3 for the holiday. However, components that are normally
4 priced as separate articles may continue to be sold as
5 separate articles and qualify for the holiday if the price of
6 an article is less than $200.
7 Section 10. The Retailers' Occupation Tax Act is amended
8 by adding Section 2-75 as follows:
9 (35 ILCS 120/2-75 new)
10 Sec. 2-75. Tax holiday for clothing and footwear.
11 (a) Notwithstanding any other provision to the contrary,
12 no tax shall be imposed under this Act upon persons engaged
13 in the business of selling at retail an individual item of
14 clothing or footwear designed to be worn about the human body
15 if that item of clothing or that footwear (i) is purchased
16 for a selling price of $200 or less and (ii) is purchased
17 from 12:01 a.m. on the first Friday in August through
18 midnight of the Sunday that follows 9 days later. Any
19 discount, coupon, or other credit offered either by the
20 retailer or by a vendor of the retailer to reduce the final
21 price to the customer shall be taken into account in
22 determining the selling price of the item for purposes of
23 this holiday.
24 (b) A unit of local government may, by ordinance adopted
25 by that unit of local government, opt out of the tax holiday
26 imposed by this Section and continue to collect and remit the
27 tax imposed under this Act during the tax holiday period.
28 (c) Articles that are normally sold as a unit must
29 continue to be sold in that manner; they cannot be priced
30 separately and sold as individual items in order to be
31 subject to the holiday. For example, if a pair of shoes
32 sells for $250, the pair cannot be split in order to sell
-3- LRB9110646SMdv
1 each shoe for $125 to qualify for the holiday. If a suit is
2 normally priced at $250 on a single price tag, the suit
3 cannot be split into separate articles so that any of the
4 components may be sold for less than $200 in order to qualify
5 for the holiday. However, components that are normally
6 priced as separate articles may continue to be sold as
7 separate articles and qualify for the holiday if the price of
8 an article is less than $200.
9 Section 90. The State Mandates Act is amended by adding
10 Section 8.24 as follows:
11 (30 ILCS 805/8.24 new)
12 Sec. 8.24. Exempt mandate. Notwithstanding Sections 6
13 and 8 of this Act, no reimbursement by the State is required
14 for the implementation of any mandate created by this
15 amendatory Act of the 91st General Assembly.
16 Section 99. Effective date. This Act takes effect upon
17 becoming law.