Important Changes to Illinois Sales Tax Rate 1/1/19

We wanted to let you know that effective January 1, 2019 certain taxing jurisdictions in Illinois have imposed a local sales tax or changed their local sales tax rate on general merchandise sales.

To be in compliance with the new tax rates, you must adjust your point of sale and/or accounting system to collect the correct sales tax effective January 1, 2019. You may need to contact your software vendor to confirm that they will correct their systems to the appropriate tax rate. Remember that even if you under-collect tax, the tax is still due. That means it will be your responsibility to pay the difference.

To verify your new combined sales tax rate (state and local tax), click here.

Who is impacted?

The sales tax rate change does not affect anyone collecting sales tax in the city of Chicago. However, it does affect Henry County and Stark County in addition to other jurisdictions. To see a full list of all the cities impacted and the new rates, please click here.

What is taxed?

These rate changes do not impact what is and is not subject to sales tax. As a reminder, most sales are subject to the state sales tax and to the locally imposed sales tax. Locally imposed sales tax does not apply to the sale of qualifying food, drugs and medical appliances that are reported on Line 5a of Forms ST-1 and ST-2 or items that must be titled or registered by an agency of Illinois state government and reported on dealer-filed transaction returns.

Note that some jurisdictions may impose and administer taxes not collected by the Illinois Department of Revenue. Contact your municipal or county clerk’s office for more information.

If you have any questions regarding the sales tax rate change, please don’t hesitate to contact Cray Kaiser today.