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HB 3179

USE/OCC TAX-DIAPERS

104th Regular Session Introduced by Ryan Spain

HB 3179 lowers Illinois and related taxes on diapers and baby wipes from 6.25% to 1% across use, service use, service occupation, and sales taxes.

Rule 19(a) / Re-referred to Rules Committee
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Bill Summary · HB 3179

Summary — HB 3179 (2025) — USE/OCC TAX‑DIAPERS

Status: Rule 19(a) / Re‑referred to Rules Committee
Introduced: February 18–21, 2025 (Rep. Ryan Spain)
Companion: SB 1087

Main purpose

HB 3179 reduces the state tax rate applied to diapers and baby wipes and makes conforming amendments across Illinois’ major sales/use tax statutes. The bill amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act to change the tax treatment of these consumer items.

Key provisions

  • Lowers the tax rate on diapers and baby wipes to 1%. Current statutory general rate is 6.25%; HB 3179 places diapers and baby wipes into the list of items taxed at 1% under the Use Tax Act.
  • Makes parallel amendments to the Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act so the reduced rate applies consistently across:
    • Use tax (consumer purchases from out‑of‑state sellers/remote sellers),
    • Service use tax,
    • Service occupation tax, and
    • Retailers' occupation (sales) tax.
  • Includes non‑substantive/formatting changes noted in the bill text.
  • The bill places diapers and baby wipes alongside other items already statutorily set at 1% (e.g., certain food items, prescription medicines, diabetes supplies, vehicle modifications for disability) in the Use Tax Act.

Who or what would be affected

  • Consumers: Families purchasing diapers and baby wipes would pay a lower state tax rate (from 6.25% to 1%), reducing the after‑tax price of those goods.
  • Retailers and remote sellers: Collection and remittance obligations would change to reflect the lower rate; point‑of‑sale systems and tax tables may need updating.
  • State and local finances: The change would reduce state (and potentially local, depending on local rate rules) tax revenues relative to current law; the bill text does not include an estimated fiscal impact.
  • Illinois Department of Revenue: Administrative updates (guidance, forms, rate tables) would be required to implement the change.

Procedural / timeline highlights (selected)

  • Filed: Feb 6, 2025 (with Clerk); First Reading: Feb 18, 2025
  • Referred to: Rules Committee; later assigned to Revenue & Finance and its subcommittees
  • Committee activity: Public hearing (Apr 14, 2025); reported favorably (May 1, 2025)
  • Floor actions: Read 2nd & 3rd times, amended, passed (House actions recorded May 13–14, 2025); reported engrossed and received from the House (May 14, 2025)
  • Current status shown: Rule 19(a) / Re‑referred to Rules Committee

Note: The excerpt provided does not include an explicit effective date or a fiscal note. For enactment, final passage by both chambers and the Governor’s signature (or veto override) would be required.

Compiled from official sources — confirm details with the bill’s official record.

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