Illinois Opts Out of Back to School Sales Tax Holiday

Shoppers in neighboring states like Missouri and Iowa will enjoy a back-to-school sales tax holiday, but it won't be offered to those in Illinois.

Illinois had its last summer sales tax holiday in 2010. It won't be among the nearly 20 states offering them this season.

The head of the Illinois Retail Merchants Association says the state's consumers took advantage of the last sales tax holiday and retailers saw an increase in sales. But opponents of the practice say it causes state governments to lose tax revenue.

The Chicago Tribunereports that one study determined the effect of a sales tax holiday on a state's tax revenue is likely to be largely neutral.