Illinois Wants Web Shoppers to Report, Pay Online Sales Tax

March 9, 2011  |  

(Chicago Sun Times) — If you think making purchases online means you don’t have to worry about paying the state sales tax, think again.  As the state continues to grapple with a big deficit the Illinois Department of Revenue this year has begun targeting those purchases on state tax forms and is seeking to collect.  This year, for the first time, taxpayers are being asked how much they owe in so-called “use taxes” on the Illinois 1040 tax form. The law already required taxpayers to pay the “use” tax, but it wasn’t listed on the basic form.  A use tax is a form of sales tax that applies to purchases made outside Illinois, but used in the state. The tax, which is 6.25 percent of the purchase price, applies to online purchases made from businesses that don’t have brick and mortar locations in the state and that don’t charge Illinois sales taxes, according to the Illinois Department of Revenue.

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