Sales Tax Rate Change Summary

              Effective January 1, 2005, certain units
of local government have either im-posed
home rule sales tax or non-home
rule sales tax on sales of general
merchandise, and some that have
previously imposed these taxes have
changed their rates.
The rates for these local taxes are part
of the combined rate that is preprinted
on your Form ST-1, Sales and Use Tax
Return, or, for multiple site filers, your
Form ST-2, Multiple Site Form.
The new combined rate is reflected in
Line 4a of Form ST-1 or Form ST-2 as
a total general merchandise rate. To
figure the appropriate combined rate,
please see the table on the reverse
side of this bulletin.
It may be necessary to adjust your
cash registers and any computer
programs you use so that, beginning
on January 1, you will collect and pay
the correct amount of tax.
For a complete listing of statewide
sales tax rates, see the January 1,
2005, version of our Publication ST-25,
Illinois Sales Tax Rate Reference
Manual.
What is taxed?
You must collect home rule sales tax
and non-home rule sales tax on sales
of general merchandise (reported on
Line 4a of Form ST-1 and Form ST-2).
The same items of general merchan-dise
reported on Form ST-1 and Form
ST-2 that are subject to state sales tax
are also subject to home rule sales tax
and non-home rule sales tax.
Home rule sales tax and non-home rule
sales tax do not apply to sales of quali-fying
food, drugs, and medical appli-ances*
(reported on Line 5a of Form
ST-1 and Form ST-2).
Also, home rule sales tax and non-home
rule sales tax do not apply to items that
must be titled or registered by an agency
of Illinois state government (reported on
Form ST-556, Sales Tax Transaction
Return).
Please note that units of local govern-ment
may impose and administer other
taxes. If these taxes are imposed, they
are not collected by the Illinois Depart-ment
of Revenue. Please contact your
municipal or county clerk’s office for
more information.
What do I do when a customer
pays me on or after January 1
for a purchase that was
delivered earlier and taxed at a
different rate?
If the original purchase was subject to a
tax rate that is different from the rate in
Line 4a of Form ST-1 or Form ST-2, you
must report these receipts on Line 8a.
Note: Line 8a is to be used only to report
receivables subject to a previous tax
rate. No other use of this line is permit-ted.
* 86 Ill. Adm. Code 130.310
Sales Tax Rate Change Summary
FY 2005-09
November 2004
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To:
All Retailers and Servicepersons Conducting Business in Units
of Local Government That Have Imposed a Sales Tax Rate
Change Beginning January 1, 2005
Printed by authority of the State of Illinois
11,920 copies - 11/04 - P.O. Number 2050577
Brian A. Hamer
Director of Revenue
This bulletin is written to
inform you of recent
changes; it does not replace
statutes, rules and regula-tions,
or court decisions.
Call us at:
1 800 732-8866 or
217 782-3336
Call our TDD
(telecommunications device
for the deaf) at:
1 800 544-5304
Write us at:
Illinois Department of Revenue
P.O. Box 19044
Springfield, IL 62794-9044
Visit our Web site at:
www.ILtax.com
Call
our 24-hour
Forms Order Line at:
1 800 356-6302