Illinois – Expanded Temporary Storage Exemption Due To Sunset June 30, 2016

SALT Report 3836 –The sales tax exemption for expanded temporary storage expires June 30, 2016. On or after July 1, 2016, holders of expanded temporary storage permits issued by the Illinois Department of Revenue no longer can make tax-free purchases of tangible personal property using their expanded temporary storage permits, and retailers should no longer allow a sales tax exemption for purchases made by expanded temporary storage permit holders.

Expanded temporary storage permit holders must pay any applicable sales tax (including local sales taxes) for purchases of tangible personal property made tax-free on or before June 30, 2016, when the tangible personal property ultimately is used in Illinois. To pay the sales tax due, they must continue to file Form ST-1, Sales and Use Tax and E911 Surcharge Return, including Form ST-2-TS, Expanded Temporary Storage Multiple Site Form, until such time as their tax liabilities are paid on tangible personal property used in Illinois.

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