Bill > SB0137

This bill amends several state tax acts (Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act) to modify the vendor's discount that businesses receive when collecting and remitting sales taxes. Specifically, starting January 1, 2026, the bill creates a tiered vendor's discount system based on a business's monthly sales. For retailers, servicemen, and businesses that report $50,000 or more in monthly sales, the vendor's discount will remain at 1.75% of the amount collected or $5 per calendar year (whichever is greater). However, for businesses reporting less than $50,000 in monthly sales, the vendor's discount will increase to 3.5% of the amount collected or $5 per calendar year. Additionally, beginning January 1, 2025, the total vendor's discount across these tax acts will be capped at $1,000 per month for returns. The bill aims to provide a more graduated vendor's discount that offers greater financial relief to smaller businesses while maintaining a consistent system for larger businesses. The changes are part of ongoing efforts to support small businesses and manage state tax collection processes.

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=137&GAID=18&DocTypeID=SB&SessionID=114&GA=104