SPRINGFIELD – Illinois residents are on track to receive much-needed financial relief, thanks to the efforts of State Senator Celina Villanueva, whose responsible revenue package that will bolster new revenue sources without placing taxes on everyday people was signed into law today.
“My colleagues and I have been forced to watch as the everyday struggles for our residents become harder and harder all while the wealth gap between the top 1% and working-class families becomes wider and wider – and we’re saying enough is enough,” said State Senator Celina Villanueva (D-Chicago). “When we have Illinoisans having to decide between paying the electric bill and putting food on the table, or buying their medication and making their car payment on time, we have a duty to implement responsible revenue solutions that place working families back in our economy’s driver’s seat.”
Senate Bill 3019 – the revenue package – implements a stream of equitable revenue enhancements that uplift working families across Illinois, including making corporations pay their fair share and reinstating the back-to-school tax holiday.
Among the initiatives included in the package is a new social media fee that is expected to generate $200 million for K-12 public education and for the state to use as a safety net in light of federal funding decisions. The package will implement a fee on social media platforms based on their average number of monthly users located in Illinois, materializing as a three-tier structure that would cap fees at $165,000 annually plus $0.50 per month per user for platforms with over one million users. To protect Illinois users, platforms will not be allowed to charge residents higher prices, reduce features or otherwise treat them differently in order to recover costs.
To hold the booming advertising empire accountable and supplement funding for education, health care and other essential services, the package also creates the Targeted Advertising Services Tax Act. It imposes a 10% tax on targeted advertising revenue that exceeds $1 million in a 12-month period – affecting only the largest corporations that profit off selling consumers’ personal data to digital advertisers.
Recognizing families’ needs for assistance affording everyday necessities, Villanueva’s package also reinstates the back-to-school tax holiday, which will temporarily reduce the Illinois sales tax rate on certain school-related purchases from 6.25% to 1.25%. Implementing the tax holiday for a third time will ensure families across the state can purchase much-needed items, like clothing, shoes and school supplies before the 2026-27 academic year.
“We cannot ‘cut’ our way out of budget challenges, we cannot raze the service infrastructure our residents depend on to survive and we cannot sit idly watching Illinoisans struggle to make ends meet when we know the wealth to fund essential programs exists,” added Villanueva. “This revenue package will directly reduce the wealth inequity in our state while also supporting the critical services and programs families depend on every day.”
Senate Bill 3019 was signed into law Tuesday.
