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Why should I voluntarily pay Use Tax?

Answer #419 -- ( Published 12/09/2005 09:59 AM | Updated 07/12/2017 10:39 AM )

Why should I voluntarily pay Use Tax?

  • It is the law. Payment is not voluntary, it is required.
  • Using goods purchased tax free or at lower rates outside Illinois is unfair to retailers, consumers, and taxpayers in the following ways:
    • Illinois retailers, who must charge sales tax, must compete with out-of-state retailers, who may charge no sales tax or charge tax at rates less than Illinois rates.
    • Illinois must make up lost revenues or curtail state services provided to consumers and taxpayers.
  • Illinois is aggressively focusing upon collecting this tax.
    • Illinois shares sales information with other states and bills Illinois residents for unpaid tax, penalty, and interest.
    • Illinois gathers information on overseas purchases from the U.S. Customs Service.
  • By paying, on time, all of the Illinois Use Tax you owe, you will avoid being billed for unpaid tax and additional penalty and interest charges.

The Illinois Department of Revenue can assess use tax owed by taxpayers who do not pay this tax. For taxpayers who do not have records to document their use tax liability, the Department will estimate liability. Taxpayers have the right to refute the Department's estimates.

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