Many Illinois taxpayers are unaware that a Use Tax exists in Illinois. Do you know about Use Tax?
In 1955, the General Assembly passed the Use Tax Act. Use Tax is a sales tax that you, as the purchaser, owe on items that you buy for use in Illinois. If the seller does not collect at least 6.25 percent sales tax, you must pay the difference to the Illinois Department of Revenue. The most common purchases on which the seller does not collect Illinois Use Tax are those made via the internet, from a mail order catalog, or made when traveling outside Illinois. You must keep your receipts when you make these types of purchases.
In 2010, the General Assembly passed a law making it easier for individuals to pay their Use Tax by putting a line on Form IL-1040. It also created an Illinois Use Tax Amnesty which means individuals can pay Use Tax owed for prior years without penalty and interest on Form ST-44. Click here for more Use Tax information.
Use Tax Questions and Answers
- The Department of Revenue was required by law (Public Act 96-1388) to put a Use Tax line on Form IL-1040.
- The legislators wanted to make citizens more aware of their Use Tax obligation by putting the Use Tax line on the return. There is an explanation of Use Tax and individual's responsibility in the IL-1040 instructions.
- Other states have put a Use Tax line on their income tax returns.
- Putting a Use Tax line on the return will assist you in complying with the law and reporting your Use Tax obligation.