The State of Illinois has approved a “sales tax holiday” for purchase of back-to-school materials. The holiday applies to the state’s 5% sales tax and will be in effect from Friday, August 6 through Sunday, August 15, 2010. The Illinois Department of Revenue provided this information regarding the holiday.

Items eligible for the sales tax holiday include apparel and footwear with a purchase price not to exceed $100. A wide variety of school supplies are also eligible and those items are not subject to the $100 limit. For a list of qualifying items, please see the page 3 of this bulletin.

The normal sales tax rate in St. Charles is 8.0%. Following is the breakdown of the beneficiaries of this tax:

• 5% – State of Illinois
• 1% – City of St. Charles (state share)
• 1% – City of St. Charles (locally imposed home rule tax)
• .25 - Kane County (transportation and public safety tax)
• .75% – Regional Transportation Authority (public transit tax)

For the sales tax holiday, only the State of Illinois tax of 5% is waived.

It makes economic sense for consumers to buy any qualifying items during the sales tax holiday period. And, to maximize the benefit of your purchases, please make sure to shop at St. Charles establishments. The tax revenue that is applied to these purchases will come back to your community to help fund City programs and services.