This year has brought change to the Illinois sales tax nexus rules. In addition to the South Dakota v. Wayfair, Inc. decision, collection obligations changed for marketplace and remote sellers on January 1, 2020. Two new laws expanded nexus in Illinois to include marketplace facilitators, which “are required to register to collect and remit Illinois Use Tax for sales made through their marketplace. Marketplace sellers selling through the marketplace are not responsible for collecting and remitting Illinois Use Tax on these sales.”
Enforcement date: 
October 1, 2018; January 1, 2020 for marketplace facilitators.
Sales/transactions threshold:
$100,000 or 200 transactions.
Measurement period:
Preceding 12 months calculated on the last day of March, June, September, and December.
Included transactions/sales:
Sales of tangible personal property.
When You Need to Register Once You Exceed the Threshold:
The end of the quarter in which the threshold is met.
Summary: Remote sellers with no physical presence in Illinois that meet either of the above thresholds must register with the Illinois Department of Revenue to begin collecting and remitting Illinois Use Tax for sales made to Illinois purchasers. Marketplace facilitators must collect Retailer’s Occupation Tax when they facilitate gross sales of $100,000 or more or when they facilitate 200 or more separate transactions for the sale of tangible personal property to purchasers in Illinois during the previous 12 months.
Remote sellers that make sales to Illinois purchasers from locations outside must register with the Illinois Department of Revenue (IDOR) to collect and remit Illinois Use Tax on those sales if they fall within the definition of a “retailer maintaining a place of business in this State.” Businesses with sales “outside the marketplace or if the marketplace facilitator is not required to collect Illinois Use Tax because it does not meet either of the marketplace thresholds, sellers must collect and remit Illinois Use Tax on those sales if they are a ‘retailer maintaining a place of business’ in Illinois (i.e., they have nexus, including, but not limited to, Wayfair [economic] nexus),” the IDOR states.
Illinois Sales Tax Resources: Reach out to our team of experts for more information on how Illinois sales tax nexus rules potentially apply to your business. Additionally, check out our interactive sales tax nexus map to see how other states were impacted by Wayfair.
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Check out our workshop on how to file your Illinois state sales tax return.
