Tuesday, August 03, 2010

8/6—8/15 Sales Tax Holiday

10 day Sales Tax Holiday in Chicago & Illinois

During this 10-day period consumers can purchase certain items and pay sales tax at a reduced rate. Items include qualifying clothing and footwear with a retail selling price of less than $100 and certain school supplies used by students in the course of study. School supplies are not subject to the $100 threshold. The State tax of 5% will be eliminated on all qualified products.

For businesses:
The sales tax rate required for collection during the holiday period is the rate currently in effect on the date of the holiday minus 5 percent.

For example:
The sales tax rate in Chicago is: 9.750%; Reduced amount (state portion) - 5.000%; Your sales tax rate during the holiday period is: 4.750%

Retailers must adjust their method of collecting sales tax so that beginning on August 6, 2010, and ending at the close of business August 15, 2010, they will collect the reduced tax rate on qualifying items.

Taxable receipts from the sale of qualifying items made during the state sales tax holiday must be reported on Lines 8a and 8b on the Sales and Use Tax Return.

To determine whether the eligible clothing item’s retail selling price is below $100, look at the price after the un-reimbursed coupon or store markdown but before a reimbursed coupon.

Qualifying items bundled with items that do not qualify for the state sales tax holiday rate will be subject to the reduced tax rate only if the value of the qualifying items exceed the value of the non-qualifying items.

Qualifying items purchased during the holiday with a rain check issued prior to the state sales tax holiday will qualify for the reduced sales tax rate. Qualifying items purchased after the state sales tax holiday with rain checks issued during the holiday are not eligible for the reduced tax rate.

Consumers who think they were overcharged, should bring it to the attention of the manager, if issues are not resolved they should call 311 to file a consumer complaint.

More information including a list of qualifying and non-qualifying school supplies, clothing and accessories are available online.

The Sales Tax Holiday is Illinois Senate Bill 3658, Signed into law on July 7, 2010 as Illinois Public Act 96-1012.

Learn more.

1 Comments:

At 5:28 AM, Blogger littleChild said...

Tax is really important in any business. It's one of the sources of government income.

Right now, that it's tax holiday during for 10days we can now celebrate and purchase what we want.
business opportunities

 

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