Bill
SB 3869
Diapers for infants, children, or adults become exempt from Illinois sales/use taxes starting January 1, 2027 across four tax acts.
Proposed effective date: Immediately upon enactment for the tax exemption provisions (as noted in the text).
Jurisdiction: Illinois, taxes administered under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act.
Main purpose and intent
- Create a broad exemption from multiple Illinois state tax collection schemes for diapers used by infants, children, or adults. The diaper exemption appears as item (47) in the Use Tax Act and (39) in the Retailers' Occupation Tax Act and corresponding provisions in the other Acts.
- In short: diapers would be exempt from these taxes, reducing the cost of diapers for consumers.
Key provisions and changes (highlights)
- Acts amended:
- Use Tax Act (35 ILCS 105/3-5)
- Service Use Tax Act (35 ILCS 110/3-5)
- Service Occupation Tax Act (35 ILCS 115/3-5)
- Retailers' Occupation Tax Act (35 ILCS 120/2-5)
- New exemption:
- Beginning on January 1, 2027, diapers for use by infants, children, or adults are exempt from the taxes imposed under the above Acts.
- The bill documents the diaper exemption as item (47) in the Use Tax Act and corresponding equivalents in the other Acts.
- Scope of coverage (implicit in broader exemption structure):
- Diapers used for infants, children, or adults are specifically named and exempt from sales/use taxes under the four Acts.
- The exemption is described as “on and after January 1, 2027,” suggesting a delayed effective date for the diaper exemption, with the text for the Use Tax Act stating the exemption becomes effective on that date; similar phrasing appears in the companion sections of the other Acts.
- Related language shows Illinois’ broader framework for exemptions remains intact, but this bill adds a targeted new exemption rather than broadening existing exemption categories beyond diapers.
Who is affected
- Consumers who purchase diapers for any of the covered groups (infants, children, or adults) in Illinois would benefit from the tax exemption starting in 2027.
- Retailers and suppliers would implement the exemption at point of sale after the effective date, adjusting pricing or tax collection accordingly.
- State revenue impact would be the primary policy consideration, as the exemption reduces tax receipts from diaper sales/use, though the bill does not specify a revenue offset mechanism within the text provided.
Procedural and timeline aspects
- Introduction date: February 6, 2026.
- Effective date for the diaper exemption: January 1, 2027 (as stated in the diaper exemption provision).
- The bill targets four major tax acts, aligning the diaper exemption across Use Tax, Service Use Tax, Service Occupation Tax, and Retailers’ Occupation Tax.
Notes
- The text provided lists a large catalog of exemptions and provisions that exist in Illinois tax law, with this bill adding a single, specific new exemption for diapers.
- The bill’s economic impact would depend on how Illinois administers and budgets for loss of tax revenue from this exemption, and whether any offsetting measures are enacted.
If you’d like, I can provide a side-by-side comparison of the current exemptions (pre SB3869) with the post-enactment structure to illustrate how the diaper exemption integrates with existing provisions.
Compiled from official sources — confirm details with the bill’s official record.
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