Is TaxCloud collecting Illinois Retailer's Occupation Tax (ROT)?
Effective January 1, 2021, remote sellers operating within Illinois engaged in the occupation of selling tangible personal property (TPP) at retail in Illinois are subject to state and local ROT if they meet either of the state’s economic nexus thresholds. Read on for how TaxCloud can help you remain compliant.
What is IL ROT?
Sales Tax (Retailers' Occupation Tax [ROT]) is a tax imposed on retailers selling tangible personal property to purchasers in Illinois. It includes the taxes levied under the Retailers' Occupation Tax Act (35 ILCS 120) and all applicable local retailers' occupation taxes administered by IDOR.
What are the thresholds?
A remote retailer selling tangible personal property at retail in Illinois is subject to state and local sales tax if either of the following thresholds is met:
- $100,000 or more in cumulative gross receipts from sales of tangible personal property to purchasers in Illinois; or
- 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois.
A marketplace facilitator selling tangible personal property at retail in Illinois is subject to Illinois sales tax if either of the following thresholds is met:
- $100,000 or more in cumulative gross receipts from sales of tangible personal property to purchasers in Illinois made through the marketplace by the marketplace facilitator and by marketplace sellers; or
- 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois by the marketplace facilitator and marketplace sellers selling through the marketplace.
How do I know if I have to collect IL ROT?
Out-of-state sellers, remote retailers, and marketplace facilitators can review the Leveling the Playing Field for Illinois Retail Act Flowchart to determine which tax you are to collect. There is no authority for remote retailers to voluntarily collect sales tax.
Does TaxCloud collect and report IL ROT?
Yes! TaxCloud collects the local taxes per the law, and our Direct Filing team submits the ROT amounts with your returns.
I am a TaxCloud merchant, and I am enrolled in Direct Filing for IL, do I need to take any steps?
Yes! You'll need to ensure that your IL state account is set up to report the IL ROT. Please reach out to the Illinois Revenue for assistance:
- Phone: 1 800 732-8866 or 217 782-3336 (1 800 544-5304 TTY).
- Representatives are available Monday through Friday, 8 am - 5 pm.