Illinois DOR Issues Guidance on Destination-Based Sales Tax for Out-of-State Sellers

The Illinois Department of Revenue (DOR) issued a publication clarifying destination-based sales tax collection requirements for retailers and servicepersons who maintain a place of business in Illinois but make sales from outside Illinois to Illinois customers. The guidance explains that businesses must collect destination-based Retailers’ Occupation Tax or Service Occupation Tax if they meet either the $100,000 tax remittance threshold based on cumulative Illinois gross receipts during the preceding 12 months or maintain physical presence in Illinois through offices, warehouses, employees, agents, or affiliates. The publication outlines mandatory registration through MyTax Illinois, monthly filing on Form ST-1, electronic filing requirements ...