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HB 4210

USE/OCC TX-EXEMPT DAY CARE

104th Regular Session Introduced by Amy Grant

HB 4210 exempts Illinois day care facilities from use and occupancy taxes, reducing provider costs but also state revenue with unclear consumer benefit.

Referred to Rules Committee
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WeVote Research Nonpartisan
Bill Summary · HB 4210

Legislative bill overview

HB 4210 proposes to exempt day care facilities from use and occupancy (sales) taxes in Illinois. The bill would allow day care providers to operate without collecting or paying the state's standard use and occupancy tax on their services, effectively reducing operational costs for these facilities.

Why is this important

Day care costs represent a significant expense for Illinois families, and tax exemptions for providers could theoretically lower fees or improve service quality. Conversely, the exemption would reduce state revenue that funds education, infrastructure, and other public services, raising questions about fiscal trade-offs and whether subsidies should be targeted directly to families rather than providers.

Potential points of contention

  • Revenue impact: Removing use and occupancy tax from day care services reduces state funding without identifying offsetting revenue sources or spending cuts
  • Equity questions: Tax breaks for businesses don't guarantee lower consumer prices; funds may benefit operators rather than families struggling with child care affordability
  • Scope ambiguity: Unclear whether exemption applies to all day care types (in-home, centers, preschools) and whether it includes related services like meals or transportation
  • Precedent concerns: May encourage similar exemption requests from other service sectors, potentially eroding the tax base

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

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