Originally Posted by ThayerRags
In some states, all sales are subject to Sales Tax, including yard sales and selling to a neighbor or a family member....
Illinois is hurting for money. They have now made it easy to collect sales tax by adding a line on the income tax form. This last year we were offered an amnesty back to 2004 - pay voluntarily or pay penalties if & when the state caught up with you. Any kind of purchase is subject to some kind of tax here including out of state.
Why? Because in 1955, the Illinois General Assembly passed the Use Tax Act. Use Tax is a sales tax that you, as the purchaser, owe on items that you buy for
use in Illinois.
Did you buy goods outside Illinois to use or consume in Illinois?
Would they have been taxable in Illinois?
If you bought goods within the United States, did you pay less sales tax than you would have paid in Illinois? If less pay the difference.
If you answered yes to these questions, you may owe Illinois Use Tax.
So anybody doing business should be prepared to collect whatever taxes are collected locally. It's not difficult - just write every sale down in some fashion. Keep records to prove you are being a good little business person.