Illinois exemption for temporary storage expires July 2016
- Jul 7, 2016 | Gail Cole
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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