Illinois DOR Issues General Information Letter Providing Sales Tax Economic Nexus Information for Annual Survey

The Illinois Department of Revenue (DOR) July 29 issued a general information letter concerning sales and use tax information for an annual survey. A firm was surveying states on whether destination sales of drop shipments were included in the state’s sales tax economic presence nexus threshold and requested taxability guidance from the DOR on the survey. The DOR responded: 1) the company, as a seller required to collect Illinois tax, must either charge and collect taxes or document appropriate exemptions when making deliveries in Illinois; 2) sales properly documented as sales for resale wouldn’t count toward the thresholds establishing tax ...