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.