The State of Illinois will suspend sales tax on groceries beginning July 1 and continue for a year through June 30, 2023.
The state has paused its 1% sales and use tax on qualifying items, which applies to food items meant to be consumed off the premises of the location where it is sold, with certain exceptions.
Food sold for consumption off the premises includes grocery items and packaged foods but does not include candy, soft drinks, cannabis-infused foods, and alcohol, the Illinois Department of Revenue said in a bulletin.
The state released a chart listing what items will not be taxed and what will continue to be taxed.
Sandwiches prepared and placed in a deli case or other storage area will not be taxed, but sandwiches individually made to order will be taxed. Cheese, fruit, vegetable or meat trays will not be taxed, even if they are made to order.
Deli counter items like prepared salads will not be taxed if sold by weight or volume and set out in containers.
Candy is generally not covered by the suspension unless the listed ingredients include any kind of flour, in which case it is not considered candy. Some types of licorice, cookies, snack mixes, or even bags of assorted candy bars that are individually wrapped, as long as they contain flour, are some of the examples listed by the state.
Those items that do not qualify include medicines and drugs, as well as mouthwash and other hygiene products.
The tax holiday comes at a time when high inflation is plaguing the nation. Illinois is not the only measure that Illinois is taking, as the state previously announced it is suspending the inflation adjustment to its motor fuel tax for six months.