Illinois has enacted a sales tax holiday effective August 6 through August 15, 2010 applying to qualifying school supplies, clothing and footwear. The state retailer’s sales and use tax rate will be reduced from 6.25% to 1.25% on qualifying items. The sales tax that retailers will collect will be the current rate minus 5%. Clothing items and footwear must have a retail value of less than $100. There is no ceiling on school supplies. (P.A. 96-1012 (S.B. 3658), Laws 2010, effective July 7, 2010) or (Informational Bulletin FY 2010-17, Illinois State Tax Reporter) (7/10)