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What units of local government receive a portion of the state’s 6.25 percent use tax rate and 100 percent of the state’s 1 percent use tax rate on food, drugs, and medical appliances?

Answer #214 -- ( Published 08/12/2005 02:49 PM | Updated 07/12/2017 10:41 AM )

What units of local government receive a portion of the state’s 6.25 percent use tax rate and 100 percent of the state’s 1 percent use tax rate on food, drugs, and medical appliances?

  • Titled or registered items 
    • Municipalities receive the equivalent of 16 percent of the 6.25 percent use tax on out-of-state purchases of titled or registered general merchandise for which the title or registration address of record is within their boundaries. 
    • Counties receive the equivalent of 16 percent of the 6.25 percent use tax on out-of-state purchases of titled or registered general merchandise for which the title or registration address of record is within their unincorporated areas.
    • All counties but Cook county receive the equivalent of 4 percent of the 6.25 percent use tax on out-of-state purchases of titled or registered general merchandise for which the title or registration address of record is within their boundaries. The Regional Transportation Authority (RTA) receives the equivalent of 4 percent of the 6.25 percent use tax on out-of-state purchases of titled or registered general merchandise for which the title or registration address of record is within Cook County.
  • Other general merchandise and qualifying food, drugs, and medical appliances — Monthly distributions from the local governments’ 20 percent share of the 6.25 percent use tax rate on other general merchandise (i.e., not including titled and registered items, above) and 100 percent of the 1 percent use tax rate from sales of qualifying food, drugs, and medical appliances are made in the following order:
    • 20 percent to Chicago,
    • 10 percent to the Regional Transportation Authority (RTA),
    • 0.6 percent to the Madison County Mass Transit District,
    • $3.15 million to the Build Illinois Fund, and
    • The remainder to municipal and county governments (except Chicago) based on each local government’s population (referred to as “local” use tax).

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