Waukegan News-Sun

Aug. 3, 2010

By JUDY MASTERSON

With four kids in school, Monica Jansen welcomes Illinois’ first-ever state sales tax holiday on school supplies and clothing, which runs Friday through Aug. 15.

Jansen, a resident of Gurnee, has already purchased pre-packaged supplies for her youngest three children through their schools, but she’s still shopping for odds and ends — book covers, backpacks — and she plans to outfit her high schooler during the sales tax holiday. While the 5 percent tax savings on the estimated $200 she plans to spend will result in a modest $10 discount, Jansen is mindful of those who have to watch every penny.

“There’s a lot of low-income families who can’t afford new school clothes,” she said. “I hope this helps close the gap.”

When Gov. Pat Quinn signed the new law on July 7, he said the goal was two-fold: to help struggling families purchase what their students need for school and to entice Illinois consumers back into stores.

“A strong, confident consumer demand, that’s what it’s all about,” Quinn said.

Illinois families spend between $800 million and $1.2 billion every year on back-to-school supplies. The state has published two long lists of qualifying and non-qualifying items for school supplies and clothing and accessories under $100.

Under clothing, for instance, shoes, boots, dresses, pants, shirts, skirts and socks are tax-exempt. Ice skates, umbrellas and watches are not. Shoppers can expect to save on the usual classroom necessities — paper, pens, pencils, crayons, rulers, erasers, tape, glue. But they will still have to pay state sales tax on items like computers and related equipment, art supplies and on dictionaries and other reference books.

The waiver does not apply to local and home rule sales taxes.

State Rep. JoAnn Osmond, R-Antioch, who voted against the bill, said the tax holiday will hurt both the state’s economy and retailers.

“I feel very strongly that our state is in a serious financial situation and any type of tax holiday right now does not help our situation,” Osmond said. “We need to focus on getting our bills paid, on bringing jobs to Illinois. It’s nice to do these things, but we can’t afford them.”

Osmond called the holiday “a nightmare for retailers,” arguing it will increase their overhead.

Terry Phillips, owner of TNT’s Dollar Plus, 821 W. Rollins Road, Round Lake Heights, said the new law is “absolutely ridiculous.”

“If they spend $100, they’re going to save $5,” he said, referring to shoppers. “It’s not like people are going to rush out to the store to save $5 on stuff they have to buy anyway.”

Because he carries a smaller inventory of back-to-school items, Phillips plans to deal with the sales tax suspension through point-of-sale, by hitting an “exception” button on his cash register for exempt items.

“I’ll do it manually for every purchase,” he said.

At the big chains, exempt items will be programmed through some corporate magic wand.

“We’ll scan it and that’s that, thank God,” said Roger Agustin, manager of Walgreens, 4830 Grand Ave., Gurnee.

Agustin, who noted already brisk sales for school supplies, said customers inquired about the sales tax holiday last week.

“They’re watching their money, for sure,” he said.”