1 min read

Illinois Local Tax Changes for Out of State Remote Sellers

Illinois Local Tax Changes for Out of State Remote Sellers

Editor's note: This piece was originally published in 2020 and has been updated to reference new changes in Illinois state law.

Illinois has passed bill SB 3362, amending the Leveling the Playing Field for Illinois Retail Act and now requiring remote sellers to collect sales and use taxes based on destination rates. 

Under the existing law, enacted on January 1, 2021, remote sellers with some sort of physical presence in the state were only required to collect tax at 6.25% and were not required to collect any applicable local taxes.

Effective January 1, 2025, remote sellers, with some sort of physical presence, will need to collect state and local sales tax based on the sales destination rate. In-state retailers will still collect sales tax based on the rate that the sale originated from. 

If you have any questions, contact Teri Grahn at 651-407-5889 or tgrahn@redpathcpas.com.

Take Control of Your Financial Operations and Download the Guide to Modern Accounting

Standard Costing and Variance Analysis: Driving Profitability Through Cost Control

Standard Costing and Variance Analysis: Driving Profitability Through Cost Control

Profitable, efficient businesses run on accurate cost predictions and price alignment.

Read More
Solving the Inventory Costing Puzzle: How Manufacturers Can Cut Unprofitable Product Lines to Boost Overall Margins

Solving the Inventory Costing Puzzle: How Manufacturers Can Cut Unprofitable Product Lines to Boost Overall Margins

This scene might sound familiar for manufacturers: your shop floor hums with activity, order books are full, and revenue charts show a steady upward...

Read More