Illinois – Guidance on Common Sales Tax and E911 Surcharge Exemptions

The SALT Report 1199 – Illinois has revised a publication that provides information regarding sales tax exemptions, such as the collection and remittance of the new E911 surcharge.

Prepaid Wireless E911 Surcharge:

  • Retailers who sell prepaid wireless services are required to collect and remit the Prepaid Wireless E911 Surcharge.
  • During the first year of collection, retailers may deduct and keep a discount of 5% of all E911 surcharges that are collected from consumers and timely filed and remitted with the department.
  • Retailers must complete Schedule B on Form ST-1, the Sales and Use Tax and E911 Surcharge Return
  • Chicago retailers must charge 7% on each retail transaction of prepaid wireless telecommunications service and non-Chicago retailers must charge 1.5% for each retail transaction.
Additionally, the publication addresses how retailers and servicepersons must document tax-exempt sales to enterprise zones, high impact businesses, exempt organizations, interstate commerce, and river edge redevelopment zones.
For Further Information: