Illinois Sales Tax Holiday Maximizes Back-to-School Savings

Mattoon, Illinois -- The first ever Illinois state sales tax holiday began Friday, Aug. 6, 2010, and will continue until Aug. 15. Families were out shopping, taking advantage of the five percent tax-free savings on approved clothing, shoes and school supplies. Qualifying clothing and footwear items had to retail under $100, but not school supplies.

What is Included in Illinois' Sales Tax Holiday?

I thought figuring out the rules to what was and wasn't covered by the tax-free holiday would make shopping confusing. For example: Most clothing and outerwear qualified. However, accessories, make-up and jewelry are not part of the exemption. Some class-specific items, like shop aprons and lab coats, are subject to the tax break. Others, like hard hats and safety glasses, do not.

Footwear and school supplies are also subject to qualifying rules. For example, the Illinois tax holiday does not include any computer items. Calculators and pencil sharpeners appear to be the only electronic items that made the list.

Luckily, every store I went to in Mattoon (Catholic Charities, the Cross County Mall and Big Lots) either had the full list of qualifying and non-qualifying items displayed, or placed "tax-free" signs on approved merchandise. If I had any doubt about a purchase, I just asked a sales associate.

Tax-Free Holiday Savings Not Too Small to be Bothered By

The five-percent savings on back-to-school items may seem insignificant at first glance, as it is only a five-cent savings on every dollar spent. Thinking in terms of larger or cash-strapped families, the savings add up.

I was only shopping for my nephew, who will be entering the second grade, and myself. I saw a small savings with the tax-break. But, without the discount, the back-to-school sales alone would not have been enough motivation to go shopping this past weekend.

I spent a total of $70.47. For this, I purchased five shirts and a pair of jeans at Catholic Charities. At JC Penny's, I bought two pairs of jeans and a corduroy jacket. At the Shoe Department, I picked up a pair of slippers. At Big Lots, I purchased socks and a Transformers backpack.

That only equaled a $3.52 savings from the tax-free holiday, but you can see how the savings would start to add up for larger families who need more items per child. New school clothing, shoes and supplies could easily cost $200 per child, even with shopping sales and discount racks. Multiply this cost by a family with four children, and the tax break alone could save $40.

Combining Tax Holiday with Sales Brings Huge Savings

The Illinois state tax holiday offers the most bang for your buck when combined with back-to-school sales. I saved an additional $71.50 by purchasing some sale and discount items.

Everything at Catholic Charities was 50 percent off, saving me $6.50. I saved $9 off the slipper sandals at the Shoe Department.

The boy's jeans purchased at JC Penny's were buy one-get one for a dollar, saving $25.99. The jacket was discounted $20.01. Since I spent $50, I was also able to utilize the $10 off my total purchase coupon.

None of the school items I purchased at Big Lots were on sale, but they had the all-important Transformers backpack.

My total overall savings came to $75.02 - more than the total I spent. A minuscule amount was saved by the Illinois state tax-free holiday, but it was the reason I went shopping this weekend to begin with and the catalyst for the rest of my savings.

Source:

Illinois Department of Revenue Informational Bulletin: State Sales Tax Holiday