- Changes the economic nexus thresholds for emote retailers and marketplace facilitators for retailers’ occupation tax (ROT), use tax, service occupation tax (SOT), and service use tax;
- Removes several types of business activities from the list of those that create nexus;
- Expands the election for service providers who transfer tangible personal property (TPP) incident to services to remit tax based on the property’s price;
- Sets a 15% tax rate for transactions where the seller does not provide information on the location where taxable items were delivered;
- Requires an out-of-state service provider to collect and remit state and local SOT on sales of service to Illinois purchasers from a location outside Illinois, and;
- Clarifies marketplace sales of service definitions.
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Why This Matters to You
The legislation also creates an amnesty program that would waive penalties and interest for remote retailers that did not collect or remit state or local sales taxes on certain eligible transactions from January 1, 2021, through June 30, 2026. Eligible remote retailers would be required to report sales and remit past due state and local retailers’ occupation tax (ROT) on TPP shipped into Illinois using a “simplified ROT rate.”


Separate amnesty programs will be available for sellers who had franchise tax or license fee liability for any tax period ending after June 30, 2019 and on or before June 30, 2024, or who pay “all taxes due” to the State of Illinois for any taxable period ending after June 30, 2018, and before July 1, 2024.

