In the lack of stimulus cheques from the federal government, states are making various efforts to assist inhabitants in some manner to assist them in offsetting the growing cost of living.
To provide people with some form of assistance, several states, for example, are disbursing tax rebates, tax credits for children, direct stimulus cheques, or some mix of these.
The state of Illinois, on the other hand, is offering a sales tax holiday on school supplies, which parents may take advantage of right now. This respite is highly needed and can be immediately utilised.
Having said that, this check for stimulus from the state of Illinois is only accessible for the next ten days.
On Thursday, the leaders of Illinois’ state government announced a reduction in the sales tax on school supplies for ten days.
In contrast to the standard rate of 6.25%, the state sales tax that applies to educational supplies will be reduced to 1.25 per cent under the legislation that the Democrats have proposed (Senate Bill 157).
The state sales tax on school supplies will be reduced to only 1.25 per cent beginning the day after tomorrow for a period of ten consecutive tax-free days. On Thursday, Governor J.B. Pritzker announced that the state’s standard sales tax would be cut by 80 per cent.
This kind of stimulus cheque from Illinois has been made possible thanks to the fact that Governor Pritzker has presided over four consecutive years of balanced budgets.
The reduction in the sales tax will take effect on Friday, which is the 5th of August, and will only be accessible for the next 10 days (until August 14).
Pritzker stated on Thursday that “these past two and a half years, which include everyone, of dealing through the pandemic has been difficult.”
“And on top of that, inflation over the last nine months has really put a strain on people’s budgets, whether they be parents or teachers.”
A cut of 5% in the sales tax that applies to school supplies means that parents will only have to pay $3.13 in sales taxes on $250 worth of school supplies, instead of the typical $15.63 that applies to this amount.
Lunch boxes, notebooks, calculators, writing utensils, scissors, book bags, glue, and manila folders are some examples of qualifying school supplies for the sales tax holiday.
Other eligible products include footwear and clothing priced at less than $125 per piece. Follow this link for more information on the products that qualify for the discount.
One thing to keep in mind is that although the sales tax rate is going down, this won’t necessarily result in a lower overall sales tax payment because many towns and counties also have their own sales taxes.
For instance, the municipal sales tax in Aurora is 3.25 per cent, whereas in Belleville it is 4.11 per cent, and in Springfield, it is 4.75 per cent.
Teachers in Illinois will receive a tax rebate on school supplies, in addition to the Illinois sales tax holiday that applies to school supplies, which will help to lower the amount of state taxes that they are responsible for paying.
A tax credit of $250 will be given to teachers in 2022, and that benefit will increase to $500 the following year. When it comes to preparing their classrooms, instructors spend an average of $750 on supplies and materials each year.
The Mayor of Maywood, Nathaniel George Booker, stated that the majority of the time, the goods are distributed to pupils who need assistance.
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The Governor of Illinois, J.B. Pritzker, approved a $46.5 billion budget in April, which included a tax break on the purchase of school supplies.
A rebate on property and income taxes in addition to the suspension of the state’s grocery tax and a temporary pause on an increase in the gas tax are some of the additional tax perks that are included in the budget.
