Sales Tax in Arlington Heights, IL
Food & Drug Tax
Download Illinois Sales Tax Rate Table
Compare Arlington Heights, IL Sales Tax Rate With Another City
Select a municipality to compare...
What Is Sales Tax?
Sale tax is a compulsory contribution to state and local revenue, imposed by those governments on retail sales (sale of tangible personal property for use or consumption). Sales tax is actually a combination of occupation tax and use tax. Occupation tax is imposed on a seller’s receipts, and use tax is imposed on a the amounts paid by customers. Sellers owe the occupation tax to the state’s department or revenue, and reimburse themselves by collecting the use tax from their customers.
Do You Need to Collect Sales Tax?
Most likely, yes, if you sell tangible goods. In general, you must collect sales tax on all retail sales unless there is a specific exemption.
How Do I Know What Rate to Charge for Sales Tax?
It depends on the rules of your state. In general, there are “origin” states and “destination” states. In Illinois, we are an “origin” state. This means that for most transactions, the sales tax rate is determined by the location where the sale occurs, not where the goods are delivered.
This distinction seems to be increasingly important, because of internet sales, where the purchase and delivery are often occurring in two different locations.
Arlington Heights, Illinois Sales Tax Filing Information:
What Forms Do I Need to Submit to File the Sales Tax in Illinois?
In Illinois, use Form ST-1 for sales tax on food, drugs, medical appliances, general merchandise, and prepaid wireless service.
Specialized forms exist for other types of transactions, such as motor vehicle sales.
Who Must File Form RUT-25 (Vehicle Use Tax Transaction Return)?
If you own a motor vehicle, watercraft, aircraft, trailer, mobile home, snowmobile, or all-terrain vehicle (ATV) and you purchased it from an unregistered out-of-state dealer, lending institution, leasing company selling at retail, or retailer, and you will title or register the item in Illinois; or are a leasing company leasing the item to an Illinois resident.
Who Must File Form ST-556 (Sales Tax Transaction Return)?
If you sell items that must be titled or registered by an agency of Illinois state government — vehicles, watercraft, aircraft, trailers, and mobile homes — at retail in Illinois.