Illinois Sales Thresholds for Remote Sellers Addressed in Emergency Rules

Emergency rules on nexus for remote sellers making sales in Illinois have been issued by the Illinois Department of Revenue.

Legislation enacted earlier this year requires remote retailers to collect use and service use tax when they meet certain sales thresholds in Illinois.

Emergency Guidance on Economic Presence

As of October 1, 2018, remote retailers making sales into Illinois must collect Illinois tax if:

  • their gross sales into Illinois are $100,000 or more; or
  • they enter 200 or more sales transactions in Illinois.

The sales thresholds only apply to sellers that do not have a physical presence in Illinois. And the rules do not apply to remote retailers that make only exempt sales into Illinois.

Examples on How Thresholds are Met

The emergency rules contain examples on how to calculate whether a sales threshold has been met. In addition, they give guidance on how to determine if a seller must collect tax beginning October 1.

Emergency Rule 86 Ill. Admin. Code 150.803, Illinois Department of Revenue, effective September 11, 2018

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CCHTaxGroup

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