The Illinois Department of Revenue (DOR) released proposed revisions to the administrative rules governing the collection of sales and use taxes in Illinois.

The rulemaking would amend the administrative rules for the Retailers’ Occupation Tax, the Leveling the Playing Field for Illinois Retail Act, the Use Tax, and the Service Use Tax.

The proposed rulemaking was announced in the Flinn Report and published in the May 29, 26 issue of the Illinois Register.

Below is the summary of the rulemaking from the Flinn Report.

“The DEPARTMENT OF REVENUE proposed amendments to Retailers’ Occupation Tax (86 IAC 130; 50 Ill Reg 7448), Leveling the Playing Field for Illinois Retail Act (86 IAC 131; 50 Ill Reg 7482), Use Tax (86 IAC 150; 50 Ill Reg 7558) and Service Use Tax (86 IAC 160; 50 Ill Reg 7578).

“The Part 130 rulemaking implements statutory provisions for “destination sourced” sales to an Illinois location for which the taxpayer failed to provide DOR with the documentation necessary to determine the location and the applicable tax rate.

“Instead of imposing a penalty for an unprocessable return in these instances, DOR will impose a 15% tax on such sales. A taxpayer who receives a Notice of Tax Liability for the 15% tax has 60 days to either provide documentation of the sales location so that DOR can adjust the tax rate, or file a protest and request a hearing. If the taxpayer does not act within 60 days, the 15% assessment will become final.

“This rulemaking also removes obsolete text.

“Amendments to Part 131 extend the rules applicable to sales of merchandise handled by marketplace facilitators (e.g., Amazon, eBay) to servicepersons who maintain a place of business in Illinois and to marketplace facilitators who handle these sales. Examples of when service taxes apply are included.

“Amendments to Parts 150 and 160 update the definition of “maintaining a place of business in this State” by removing the 200-transaction threshold and reflecting PA 103-592 by extending use taxes and service use taxes to cover leases of tangible personal property, including leases incident to a sale of service.

“Businesses subject to Illinois sales and use taxes are affected.”

Questions and/or comments can be submitted to the department through July 13, 2026. The department’s point of contact for the rulemaking is:

Alexis K. Overstreet

DOR

101 W. Jefferson St.

Springfield IL 62702

217-782 7055

REV.GCO@illinois.gov