State of Illinois
92nd General Assembly
Legislation

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92_HB3800

 
                                               LRB9213200SMdv

 1        AN ACT regarding taxation.

 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 of  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-                LRB9213200SMdv
 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-                LRB9213200SMdv
 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 8.26 as follows:

11        (30 ILCS 805/8.26 new)
12        Sec.  8.26.  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 92nd General Assembly.

16        Section  99.  Effective date.  This Act takes effect upon
17    becoming law.

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