Breeders who sell animals as pets need to be registered with the Department of Revenue

Are breeders who sell animals as pets required to register with the Department of Revenue?

Breeders who sell animals as pets must register with the Department of Revenue.  Those that are required must collect tax on the sale of the animals and remit the tax to the department.  Pet breeders who sell animals for resale must register as a reseller with the Department of Revenue.  There is no charge to register.  Register online at tax.illinois.gov or complete the Form REG-1.

To help breeders comply with the law the department offers the following guidance:

• Tax is due when the animal is sold to a purchaser who will keep it as a pet.
• Tax is due if an animal is picked up at the breeder's Illinois facility, even if it will be immediately taken out of state.  However, tax is not due if the seller is obligated, under the terms of an agreement with the purchaser, to make physical delivery of the animal from a point in Illinois to a point outside Illinois, not to be returned to Illinois, provided that the delivery is actually made.
• Tax is not due when the sale is to a pet store because the transaction is considered a sale for resale (tax is due from the pet store on the sale to the final purchaser).  However, the breeder must document this tax-free transaction by obtaining a properly completed Certificate of Resale from the pet store.  For an example of a resale certificate, visit our web site at tax.illinois.gov and review Form CRT-61.

Tax is not due if the sale is to another pet breeder who is in the business of breeding animals that he will sell because the transaction is considered a sale for resale.  However, the breeder, must document this tax-free transaction by obtaining a properly completed Certificate of Resale from the pet breeder who purchases the animal.  For an example of a resale certificate, visit our web site at tax.illinois.gov and review Form CRT-61.

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