Home Rule Sales Tax in Freeport

              Effective January 1, 2004, Freeport
has imposed home rule sales tax on
general merchandise at the rate of 0.25
percent.
The home rule sales tax rate is 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 of 7.0
percent.
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.
What is taxed?
You must collect 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
merchandise reported on Form ST-1
and Form ST-2 that are subject to state
sales tax are also subject to home rule
sales tax.
Home rule sales tax does not apply to
sales of qualifying food, drugs, and
medical appliances* (reported on Line
5a of Form ST-1 and Form ST-2).
Also, home rule sales tax does 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
Home Rule Sales Tax in Freeport
FY 2004-20
December 2003
Illinois Department of Revenue
Informational Bulletin
For information
or forms...
To:
All Retailers and Servicepersons Conducting Business
in Freeport
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
“Illinois Tax Fax,” our
fax-on-demand service, at:
217 785-3400
Call
our 24-hour
Forms Order Line at:
1 800 356-6302
Printed by authority of the State of Illinois
868 copies - 12/03 - P.O. Number 2040702
Brian A. Hamer
Director of Revenue