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Illinois exemption for temporary storage expires July 2016

  • Jul 7, 2016 | Gail Cole

 The Illinois sales tax exemption for temporary storage has expired.

The Illinois sales tax exemption for expanded temporary storage expired on June 30, 2016. As a result, charges for expanded temporary storage services are subject to Illinois sales and use tax beginning July 1, 2016. Tax is now due on items purchased tax-free prior to July 1 but stored in Illinois on or after that date.

Retailers are no longer permitted to allow a sales tax exemption for purchases made by expanded temporary storage permit holders. Retailers who continue to allow the exemption will be held liable to the tax, plus penalties and interest, if the Illinois Department of Revenue determines the sales to have been taxable.

Reporting the tax

To pay sales tax on purchases made tax-free prior to July 1, 2016 (but stored in Illinois on or after July 1), expanded temporary storage permit holders should continue to file the following forms:

  • Form ST-1, Sales and Use Tax and E911 Surcharge Return
  • Form ST-2-TS, Expanded Temporary Storage Multiple Site Form

According to Information Bulletin FY 2016-12, “Once a permit holder has shipped all previously purchased tangible personal property out of Illinois and has satisfied its sales tax liability on any tangible personal property used by the permit holder in Illinois, then the permit holder should contact the Department to discontinue the expanded temporary storage tax account.”

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photo credit: Jeremy Brooks via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.