Two different tax acts specify how sales tax is collected and on what types of sales or transactions sales tax is due. The Retailers’ Occupation Tax Act governs retail sales in Illinois. The Service Occupation Tax Act governs the sales tax that service persons collect when they sell an item as a part of their service. (Other tax acts govern sales taxes imposed by units of local government.) See Illinois Administrative Code, Section
130 and
140. Illinois also imposes a “use tax”. See “What is use tax?” for more information.
