Illinois Department of Revenue                                FY 2022-24
                                                                                                             May 2022

                                              nformational
                                             i

                                               Bulletin
David Harris, Director

                                              Back-to-School State Sales 

                                              Tax Holiday August 5, 2022, 

                                              through August 14, 2022

                                              To: All Retailers Registered in Illinois
This bulletin is written to inform you 
of recent changes; it does not replace        Public Act (P.A.) 102-0700 creates a state sales tax holiday on qualifying 
statutes, rules and regulations, or 
court decisions.                              items effective August 5, 2022, through August 14, 2022.

                                              What is the state sales tax holiday?
                                              The state sales tax holiday is a ten-day period during which consumers 
                                              can purchase certain clothing and school-related items and pay sales 
For information
Visit our website at:                         tax at a reduced rate. The reduced state portion of sales tax due during 
tax.illinois.gov                              this period is 1.25 percent (1.25%), the state rate of 6.25 percent (6.25%) 
                                              minus 5.00 percent (5.00%). 
Call us at:
1 800 732-8866 or                             Items include qualifying clothing and footwear with a retail selling price of 
217 782-3336                                  less than $125 per item and certain school supplies used by students in 
                                              the course of study. School supplies are not subject to the $125 threshold. 
Call our TDD
(telecommunications device                    For a list of qualifying and nonqualifying items, see Page 3.
for the deaf) at:
1 800 544-5304                                What action must the retailer take?
                                              Retailers must adjust their method of collecting sales tax so that 
Email us at:
REV.TA-Sales@illinois.gov                     beginning on August 5, 2022, and ending at the close of business 
                                              August 14, 2022, they will collect the reduced tax rate on qualifying items.
                                              The sales tax rate that retailers must use during the holiday period is the 
                                              rate currently in effect on the date of the holiday minus 5.00 percent (5.00%).

                                               For example:
                                               If your sales tax rate is:                   9.75%
                                               Reduced amount (state portion):              5.00%
                                               Sales tax rate during the holiday period:    4.75%

                                               If your sales tax rate is:                   6.50%
                                               Reduced amount (state portion):              5.00%
                                               Sales tax rate during the holiday period:    1.50%

Printed by authority of the state of Illinois
FY 2022-24 (N-05/22) Web only, One copy                                                     Continued on Page 2 

Informational Bulletin - Back-to-School State Sales Tax Holiday August 5, 2022, through August 14, 2022FY 2022-24

How do I handle special sales during                       Back orders
                                                           Regardless of when an item is delivered to a 
the sales tax holiday?
                                                           customer, retailers must collect the reduced rate of 
Coupons and discounts                                      tax on any qualifying item for which a customer has 
To determine whether the eligible clothing item’s          paid in full during the state sales tax holiday period.
retail selling price is below $125, retailers must look 
                                                           Returns
at the price after the unreimbursed coupon or store 
                                                           Retailers may establish their own policies for time 
markdown but before a reimbursed coupon.
                                                           periods within which to accept returns of qualifying 
Bundled sales                                              items. However, for a 60-day period immediately after 
Qualifying items bundled with items that do not qualify    the Sales Tax Holiday Period, if a customer returns a 
for the state sales tax holiday rate will be subject to    qualifying item, the retailer must only credit or refund 
the reduced tax rate only if the value of the qualifying   sales tax at the reduced rate unless the customer 
items exceed the value of the non-qualifying items.        provides a receipt or invoice showing tax was paid 
Bundled sales are limited to $125 for one bundled          at the usual general merchandise rate, or the retailer 
sale that includes qualifying clothing/shoes.              has documentation to show tax was paid at the usual 
Splitting items                                            general merchandise rate on the item. Retailers must 
Articles normally sold as a single unit must continue to   file Form ST-1-X, Amended Sales and Use Tax Return 
be sold as such to determine whether the selling price     (and, if applicable, Form ST-2-X, Amended Multiple 
is within the state sales tax holiday price threshold. For Site Form), and Schedule GT-X, Amended Sales 
example, a pair of shoes with a selling price of $125      and Use Tax Holiday and Grocery Tax Suspension 
cannot be sold separately so the sales price of each       Schedule, to make a claim for credit for tax paid to 
shoe is within the sales tax holiday price threshold.      IDOR that was subsequently refunded to a customer. 
Rain checks
                                                           How do I report qualifying sales made 
Qualifying items purchased during the holiday with a 
rain check issued prior to the state sales tax holiday     during the state sales tax holiday?
will qualify for the reduced sales tax rate. Qualifying    Schedule GT, Sales and Use Tax Holiday and Grocery 
items purchased after the state sales tax holiday with     Tax Suspension Schedule, was created for retailers to 
rain checks issued during the holiday are not eligible     report sales of qualifying items sold during the sales 
for the reduced tax rate.                                  tax holiday. This schedule should be filed with your 
Exchanges                                                  From ST-1, Sales and Use Tax and E911 Surcharge 
Retailers do not need to collect any additional tax if a   Return (and, when applicable, Form ST-2, Multiple 
customer purchases a qualifying item during the state      Site Form). Form ST-1 has not changed. Retailers 
sales tax holiday, but after the holiday exchanges it for  should continue to report their normal taxable sales, 
a different size, color, or other feature at the same or   including sales of qualifying items, on Lines 4a and 
lower price.                                               4b, Lines 6a and 6b, or Lines 12a and 12b, of Form 
                                                           ST-1 (and, when applicable, Form ST-2) and will then 
If a customer purchases a qualifying item during the 
                                                           use Lines 2a and 2b, Lines 3a and 3b, or Lines 4a 
state sales tax holiday, but after the holiday returns 
                                                           and 4b on Schedule GT to calculate a credit against 
the item and receives credit on the purchase of a 
                                                           the tax reported on those lines for the tax they are 
different item, they will receive credit for the holiday 
                                                           not collecting during the state sales tax holiday. 
tax paid. The customer is charged the full sales tax 
                                                           When determining the discount allowed for a timely 
rate on the purchase of a new item. If a customer 
                                                           filed return, retailers are authorized to include the 
purchases a qualifying item before the state sales 
                                                           amount of tax on receipts that would have been 
tax holiday period, but returns it during the sales tax 
                                                           due at the rate in effect for their location(s) but for 
holiday period and receives credit on the purchase 
                                                           the 1.25 percent (1.25%) rate imposed on sales tax 
of a different item that is eligible, the reduced rate of 
                                                           holiday items.
sales tax is due if the replacement item is purchased 
during the holiday.
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Informational Bulletin - Back-to-School State Sales Tax Holiday August 5, 2022, through August 14, 2022FY 2022-24

                            Sales Tax Holiday - Qualifying Items

Clothing                            Footwear                              • erasers
Retail selling price must be less   Retail selling price must be less     • expandable pocket, plastic, and
than $125 per item, including       than $125 per item, including           manila folders
• household and shop aprons         • shoes, sneakers, and shoe laces     • glue, paste, and paste sticks
• athletic supporters               • sandals                             • highlighters
• bathing suits and caps            • slippers                            • index cards and index card boxes
• belts and suspenders              • socks and stockings                 • legal pads
• coats and jackets                 • footlets                            • lunch boxes
• gloves and mittens                • boots and overshoes                 • markers
• hats, caps, and ear muffs         • insoles for shoes                   • notebooks and notebook paper, 
• lab coats                         • steel-toed shoes                    including loose leaf notebook, 
• neckties                                                                copy, graph, tracing, manila, 
                                    School supplies
• rainwear                                                                colored and construction paper, 
                                    Must be used by students in the
• rubber pants (covers for cloth                                          and poster board
                                    course of study, including
diapers)                                                                  • pencils and pencil leads
                                    • binders
• scarves                                                                 • pens, ink, and ink refills for pens
                                    • book bags
• underwear                                                               • pencil boxes and other school
                                    • calculators
• school uniforms                                                           supply boxes
                                    • cellophane tape
• shorts and pants                                                        • pencil sharpeners
                                    • blackboard chalk
• skirts and dresses                                                      • protractors, rulers, and compasses
                                    • composition books
• hosiery and pantyhose                                                   • scissors
                                    • crayons
• shirts and blouses                                                      • writing tablets
                                    • colored pencils

                          Sales Tax Holiday - Non-qualifying Items

Clothing accessories                Protective equipment                  Instructional material
Any clothing item with a retail     • breathing masks                     • reference books
selling price of $125 or more, and  • clean room apparel and equipment • reference maps and globes
• briefcases                        • ear and hearing protectors          • textbooks and workbooks
• cosmetics                         • face shields                        Computer and computer 
• hair notions including, but not   • hard hats and helmets
                                                                          supplies
  limited to barrettes, hair bows,  • paint or dust respirators
                                                                          • computers and related supplies
  and hair nets                     • protective gloves
                                                                          • flashdrives and other computer
• handbags and wallets              • safety glasses and goggles
                                                                            data storage devices
• handkerchiefs                     • safety and tool belts
                                                                          • data storage media such as
• jewelry and watches               • welder’s gloves and masks
                                                                            diskettes, and compact disks
• non-prescription sunglasses
                                    Footwear                              • boxes and cases for disk storage
• umbrellas
                                    • ballet, tap, cleated or spiked      • external ports or drives
• wigs and hair pieces 
                                      athletic shoes                      • computer cases
Sports or recreational              • roller and ice skates               • computer cables
equipment                           • ski boots                           • computer printers
• gloves, including but not limited • waders and fins                     • printer cartridges, toner, and ink
  to baseball, bowling, boxing,     School supplies                       Electronics
  hockey, and golf gloves           Any item not used by students in      • cameras and related supplies
• goggles                           the course of study, and                such as film and memory cards,
• hand and elbow guards                                                     video cameras, tapes and
                                    Art supplies
• life preservers and vests                                                 videotapes
                                    • clay and glazes
• mouth guards                                                            • cell phones
                                    • acrylic, tempera, and oil paints
• shin guards                                                             • Personal Digital Assistants
                                    • paintbrushes for artwork
• shoulder pads                                                             (PDA’s) and handheld electronic
                                    • sketch and drawing pads
• wetsuits                                                                  schedulers
                                    • watercolors 

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