Is there local use tax in Illinois?
Is there local use tax in Illinois?
Use tax on general merchandise transactions is 6.25 percent. It can be paid by registered Illinois retailers, registered out-of-state retailers, or, in certain situations, by individuals on Form ST-44, Illinois Use Tax Return. Use tax on qualifying food, drugs, and medical appliances* is 1 percent.
What purchases are subject to Illinois use tax?
The Illinois Use Tax rate is 6.25 percent of the selling price of purchases of general merchandise, including automobiles and other items that must be titled or registered. The use tax rate is 1 percent on purchases of qualifying food, drugs, and medical appliances.
What is subject to sales and use tax in Illinois?
“Sales tax” is the combination of all state, local, mass transit, home rule occupation and use, non-home rule occupation and use, park district, county public safety and facilities, county school facility tax, and business district taxes.
What is the difference between retail and use tax?
Use tax applies to purchases made outside the taxing jurisdiction but used within the state. Vendor or Retailer Use Tax applies to sales made by a vendor to a customer located outside the vendor’s state or sales in interstate commerce if the vendor is registered in the state of delivery.
Do you pay use tax in Illinois?
If you use goods in Illinois that were purchased tax free or at lower rates outside Illinois, you owe use tax to the department. Illinois must make up these lost revenues or curtail state services provided to consumers and taxpayers.
Do distributors pay sales tax?
Type of Sale For example, a soap manufacturer may sell bars to a distributor, who sells them to a retailer, who sells them to customers. The customers pay sales tax, but the distributor and the retail store do not.
What items are sales tax exempt in Illinois?
What purchases are exempt from the Illinois sales tax?
- Clothing. 6.25%
- Groceries. 1%
- Prepared Food. 8%
- Prescription Drugs. 1%
- OTC Drugs. 1%
Do you have to pay tax for used items?
The rule of thumb is that if you used the items and then sold them for less than you bought them for, then you owe no taxes on the sale. However, if you sold an antique or collectible that had appreciated since you first acquired it, you likely would be on the hook for taxes on the profit.
Does Illinois participate in tax free shopping?
Many states have annual sales tax holidays, during which certain items the state wants to promote the purchase of (like school supplies, emergency preparedness supplies, or energy efficient appliances) can be purchased sales tax free. Illinois, however, does not currently have any scheduled sales tax holidays.
Who pays sales tax buyer or seller?
For the most part, sales taxes must be paid or collected by the seller. In contrast, the responsibility for reporting and paying use taxes generally falls on the purchaser.
Where is the Illinois non-retailer use tax collected?
As of July 1, 2015, the Use Tax on Non-Retailer Transfers of Motor Vehicles is collected by the State of Illinois on behalf of the Cook County Department of Revenue at the time of registration.
What are the use tax rates in Illinois?
Use Tax. Use Tax rates are 6.25% of the purchase price of general merchandise and 1% of the purchase price of qualifying food, drugs, and medical appliances.
Is there a non retail tax in Cook County Illinois?
An ordinance imposing a tax on the non-retail sale or transfer of tangible property titled or registered, with an agency of the State of Illinois, at an address or location inside Cook County. In November 2011, the Cook County Board of Commissioners passed the County’s fiscal year 2012 budget.
What is exempt from the Illinois use tax?
It does not include sale of property, use of property for demonstration purposes, interim use by a retailer before sold, physical incorporation of tangible personal property, as an ingredient into other tangible personal property transported out of the City. Also everything that is stated in the Illinois Use Tax Act as exempt is also exempted.
