Taxed Items

• The state of Illinois permits sales tax on general merchandise (clothes, books, music and other items for personal use), groceries, prescription and nonprescription drugs and vehicles. Food and drugs tax rate is one percent while general merchandise and vehicles have a tax of 6.25 percent.
  
  

Local Tax

• While the state has set the above amounts regarding sales tax, certain communities or businesses can apply for authorization to charge additional taxes to recoup expenses resulting from higher cost of operation or a variety of other factors. Any entity interested in increasing its tax rate should contact the department for information on qualifications and how to do so.
  
  

Exemptions

• Certain items are exempt from tax or fall under a different tax rate than similar items. Examples of exempt items include manufacturing equipment, computers , farm machinery and devices to treat or prevent pollution. Consumables that do not qualify for the one percent tax include alcoholic beverages, soft drinks and prepared, ready-to-eat foods from restaurants, fast food establishments and other stores. These fall under the 6.25 percent tax category.
  
  

Out of State Non-Registered Retailers

• Illinois residents must pay taxes directly to the Department of Revenue on any taxable purchases made from out-of-state retailers who have not registered with the state. This might include Internet transactions and catalog purchases. If the tax amount equals less than $600, the purchaser can file an ST-44 Illinois Use Tax Return at the same time he files his regular return---due by April 15th of the following year. Taxes exceeding $600 must be filed by the end of month following the month of purchase. Anyone with questions about this rule or who seek more information should contact the department as unpaid taxes are a serious offense.
  
  

Groups Exempt from Sales Tax

• Certain groups of people do not need to pay sales tax on purchased items. Examples include but are not limited to certain day care centers, offices of all levels of government, nonprofit organizations that focus solely on charitable, religious or educational endeavors, certain senior citizen organizations and county fair associations.