Illinois gives parents a break on school supplies sales tax
CHICAGO (CBS) – With the start of school around the corner, parents have everything from binders to notebooks, pencils, pens and paper on the shopping list as kids prepare to return to the classroom.
But for the next 10 days, you can skip the sales tax and save some money on those school supplies. CBS 2's Tim McNicholas broke down what exactly qualifies for the savings.
A big day is coming up for 3-year-old Olivia and her dad Mike Smith. McNicholas hopped on a Zoom call to talk about her first day of pre-K.
Smith, a Chicago Public Schools teacher, for the last eight years, is buying supplies for his own daughter, another cost to add to high gas prices and groceries.
"I'm not gonna buy a lot," he said. "I'm just gonna buy what I feel is necessary because of everything else."
Starting Friday through Aug. 14, the state is dropping the sales tax on school supplies from 6.25% to 1.25%, a 5 percentage point drop.
In other words, a family that spends $500 will save $25.
Smith said it's helpful.
"But will it actually impact my spending, my overall budget, and how I manage things?" he said. "Not to the degree I think some politicians kind of advertise as."
And it's not just notebooks, backpacks and crayons. The state said clothing can also qualify as long as the clothing is under $125.
Items that don't qualify include computers, electronics, textbooks and some art supplies.
"It would have been cooler if it was like a month where it'd be easier to budget for it," Smith said.
But for Smith and his daughter, that doesn't detract from the excitement of her first school year.
The state estimates this will cost its coffers about $50 million in tax revenue. Pritzker said balanced budgets have created a surplus to fund programs like this.