The state of Illinois has revised its manufacturing and remote-selling rules, so changes may immediately affect both manufacturers and out-of-state retailers.
Tax firm Ryan has issued a notice informing the public about changes to the rules.
The code that addresses the applicability of sales and use tax to manufacturing machinery and equipment has been revised to stipulate that the manufacturing exemption does not apply to machinery and equipment used in generation of electricity, the creation or treatment of gases delivered via pipes, or the treatment of water delivered via pipes.
As for remote sellers, out-of-state retailers are required to collect taxes on sales to Illinois customers if promotional codes are shared and tracked and under circumstances, if gross receipts from referrals exceed $10,000 in the past four quarters.
Ryan is an award-winning global tax services firm, headquartered in Dallas.
For more information about the changes to the Illinois rules and how they impact business, please visit ryan.com.