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What sales tax rules apply in Illinois for dog supplies

Resolved Question:

Illinois sales tax rules for a small business selling dog supplies.

Submitted: 7 years ago.
Category: Tax
Expert:  Lev replied 7 years ago.

IL sales tax is imposed on a seller's receipts from sales of tangible personal property for use or consumption. Tangible personal property does not include real estate, stocks, bonds, or other "paper" assets representing an interest.

The fundamental sales tax rate for:
-- Qualifying food, drugs, and medical appliances is 1%.
-- Items required to be titled or registered is 6.25%.
-- Other general merchandise is 6.25%.
Units of local government may impose additional taxes or fees,

You also might need to be familiar with Pub 104, Common Sales Tax Exemptions

The following examples of sales of tangible personal property are exempt from tax:

  • Sales to state, local, and federal governments
  • Sales to not-for-profit organizations that are exclusively charitable, religious, or educational
  • Sales of newspapers and magazines
  • Sales of tangible personal property to interstate carriers for hire used as rolling stock (e.g., semitractor trailers, railroad cars)
  • Sales of machinery and equipment that will be used primarily in manufacturing or assembling of tangible personal property for Wholesale or retail sale or lease and production agriculture
  • Qualified sales of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued by the enterprise zone administrator
  • Qualifying purchases of tangible personal property used in a manufacturing or assembling process by businesses located in an enterprise zone and certified by the Department of Commerce and Community Affairs as qualifying to make these purchases because jobs will be created or retained
  • Sales of legal tender, medallions, and gold bullion issued by qualifying governments
  • Fuel used for international flights
  • Certain second division motor vehicles and trailers if the Commercial Distribution Fee administered by the Secretary of State is paid.

You must register with the Illinois Department of Revenue if you conduct business in Illinois, or with Illinois customers. To register your business and receive your Certificate of Registration and Illinois Business Tax number - you have these options:

  • Register electronically with on-line Business Registration application (1-2 days)
  • Complete and mail Form REG-1, Illinois Business Registration Application (6-8 weeks)
  • Visit a Regional Office where your application will be processed in 1 to 2 business days.

See also - Pub-113 Retailer's Overview of Sales and Use Tax.

Let me know if you need any help.

Lev and other Tax Specialists are ready to help you

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