New Illinois Sales Tax Rate Increases Effective 7-1-2016

As Illinois lawmakers face a growing state deficit and a budget deadline, talk of tax hikes loom in Springfield. An income tax increase and an expansion of the sales tax onto more purchases are under consideration.

In the meantime, effective July 1, 2016, certain taxing jurisdictions have imposed a local sales tax or changed their local sales tax rate on general merchandise sales. Increases range from none to 1%+.

The following taxes are affected:

• business district sales tax
• county public facilities tax
• county school facilities tax
• home rule sales tax
• non-home rule sales tax

ACTIONS TO TAKE NOW

If your business collects Illinois sales tax, you must adjust your cash register and any computer program so that beginning on July 1, 2016, you will collect and pay the correct sales tax. You need to contact your software vendor if you use software to create your forms.

HOW DO I DETERMINE NEW SALES TAX RATES?

To verify your new combined sales tax rate (i.e., state and local sales taxes), go to the Tax Rate Database on The Illinois Department of Revenue website at tax.illinois.gov and select rates for July 2016.

If you have questions regarding the new Illinois sales tax rates and how they may impact your business or organization, please contact Warady & Davis LLP at (847) 267-9600.

 

Legal Notice: The materials communicated in this transmission are for informational purposes only and not for the purpose of providing accounting, legal or investment advice. You should contact your accountant or advisor to obtain advice with respect to any particular issue or problem. Use of and access to this Web site or any of the e-mail links contained within the site do not create an accountant-client relationship between Warady & Davis and the user or browser. You should not act upon any such information without first seeking qualified professional counsel on your specific matter. Any accounting, business or tax advice contained in this communication is not a substitute for a formal opinion, nor is it sufficient to avoid tax-related penalties. If desired, Warady & Davis would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired consultation services. ©2017