Illinois retailers must pay use tax when they purchase items that they will use in Illinois and on which they did not pay tax to the seller. Tax is reported on Form ST-1.
- Illinois retailers who purchase items tax-free that they will use in Illinois should pay the tax on the Form ST-1 for the liability period during which the purchase was made.
- Illinois retailers who originally purchased items tax-free for resale and later remove these items from their inventory for their own use should pay tax on the Form ST-1 for the liability period during which the item was removed from inventory.
See Illinois Administrative Code, Section 150.730 and 150.801.
