- Illinois implemented destination sourcing rules for sales tax starting January 1, 2021.
- This change aligns with the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair, Inc.
- Pre-2021, Illinois used origin-based sourcing for intrastate transactions.
- From January 1, 2021, remote sellers and marketplace facilitators must collect tax based on the delivery address if they meet economic nexus thresholds.
- Retailers delivering goods within Illinois must collect local taxes based on the customer’s delivery address.
- Updates effective January 1, 2025, clarify tax obligations based on delivery or consumption location.
- Remote retailers and marketplaces must collect tax based on customer location if they meet economic nexus thresholds.
- Out-of-state sellers with a physical presence must determine tax collection based on selling activity location.
- Recent guidance clarifies situations like shipping to Illinois buyers and local tax implications.
- Businesses must determine precise local tax rates due to Illinois’ complex local tax jurisdictions.
Source: thompsontax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
