Illinois State and Local Tax Updates October 2020

Simplified municipal telecommunications tax rate changes have been announced

The Illinois Dept. of Revenue has issued an informational bulletin detailing the municipalities that are imposing a telecommunications tax, or changing their rates, effective Jan. 1, 2021. The four specific municipalities are: Alsip, Bloomingdale, Fairview Heights, and Stockton.

IL releases registration examples for remote retailers and marketplace facilitators

The Illinois Dept. of Revenue has released seven registration examples for marketplace facilitators and remote retailers on when they’re obligated to collect and remit state and local retailers’ occupation tax. The examples are effective Jan. 1, 2021.

IL releases resource for marketplace facilitators and remote retailers

The Illinois Dept. of Revenue has released a filing, payment, and registration resource for marketplace facilitators and remote retailers, effective Jan. 1, 2021. The matrix provides information on: registration, temporary registration, filing returns, due dates, payments, retailers’ discounts, penalties, tax paid in error, filing a claim for a credit or refund, credit memorandum, converting credits to accelerated payments, and the rounding rule.

IL issues guidance regarding Level the Playing Field for Illinois Retail Act

The Illinois Dept. of Revenue issued guidance regarding the Level the Playing Field for Illinois Retail Act to out-of-state retailers and marketplace facilitators who make sales to Illinois purchasers. Beginning Jan. 1, 2021, remote retailers must remit state and local Retailers’ Occupation Tax to “level the playing field” between remote retailers and Illinois-based retailers. Remote retailers are out-of-state retailers that sell tangible personal property to Illinois purchasers and don’t have a physical presence in Illinois.

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