Grocery Tax Suspension and Back-to-School State Sales Tax Holiday
Under the Illinois Family Relief Plan (Public Act 102-700) passed by the Illinois House and Senate, temporary reductions in taxes were enacted with regard to groceries (effective July 1, 2022, – June 30, 2023) and back-to-school items (effective August 5, 2022, – August 14, 2022). Resources pertaining to these temporary tax reductions may be found below.
- CA 2023-01, Improper Reporting of Grocery Tax Suspension Sales on Form ST-1
- PIO-118, Examples of Correct Filing on Form ST-1 and Schedule GT for Grocery Tax Suspension and Back-to-School State Sales Tax Holiday Returns
- FY 2022-23, Grocery Tax Suspension from July 1, 2022, through June 30, 2023
- PIO-115, Illinois Grocery Tax Suspension Information
- Grocery Tax Suspension Required Statement/Sign - Public Act 102-700 requires retailers to notify customers of the suspension of the state one-percent (1%) low rate of sales and use tax on retail sales of groceries. The Department has provided a printable image of a sign with this required language that must posted in a clearly visible position if a retailer is unable to include the statement, “From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on groceries is 0%,” on its cash register tape, receipts, invoices, or sales tickets issued to customers.
- FY 2022-24, Back-to-School State Sales Tax Holiday August 5, 2022, through August 14, 2022
- Frequently Asked Questions for Grocery Tax Suspension and Back-to-School State Sales Tax Holiday Returns
Leveling the Playing Field
Public Acts 101-31 and 101-604 amended the Retailers’ Occupation Tax and enacted the Leveling the Playing Field for Illinois Retail Act to implement a series of structural changes to Illinois’s sales tax laws. The changes are designed to level the playing field between Illinois-based retailers and remote retailers by imposing state and local retailers’ occupation taxes on Illinois retailers and remote retailers alike.
For more information, visit our Leveling the Playing Field resource page.