As of January 1, 2020, a tax is imposed on parking spaces, areas, and garages throughout state. The rate is 6% for parking spaces paid on an hourly, daily, or weekly basis and 9% for parking spaces paid on a monthly or annual basis. All proceeds from the tax go to the Capital Projects Fund.
Beginning July 1, 2019, the tax on cigarettes increased by $1, making the tax $2.98 per pack. All proceeds from the increase go to the Capital Projects Fund.
TRADE-IN PROPERTY TAX EXEMPTION
As of January 1, 2020, vehicles that are being traded-in are charged sales tax on the value above $10,000. Previously, a sales tax exemption existed for all vehicle trade-ins.
SALES TAX ON OUT-OF-STATE RETAILERS
Out-of-state retailers were already required to collect the 6.25% state sales tax for purchasers in Illinois, as enacted by a 2018 law. This only applied to “remote retailers,” which is defined as an out-of-state retailer that has cumulative gross receipts from sales in Illinois totaling $100,000 or more or enters into 200 or more separate transactions in Illinois. Under Rebuild Illinois, this law was expanded to require remote retailers to charge all state and local retailers occupation taxes, beginning July 1, 2020. This is made possible by the availability of Certified Service Providers.
Certified Service Providers: the state will make Certified Service Providers available to remote retailers at no charge. The providers are agents contracted and certified by the state that will perform the remote retailer’s use and occupation tax functions. Certified Service Providers are required to go through a certification process by the Illinois Department of Revenue.