Chicago Candy Sales Tax
Tax Rules for Candy In Chicago, how candy is taxed depends on its ingredients: Note: A similar distinction applies to soft drinks.The level of soy, milk, or fruit juice in a beverage can determine whether it is taxed at the food rate or with an added 5.25% merchandise tax Bakery Exceptions Clarification from the Illinois […]
Chicago Sales Tax on Meals Audit
Overview of Chicago Sales Tax on Meals Chicago has a combined sales tax rate of 10.25%. When broken down, this includes: Meals taxes generally apply to purchases of prepared food that are: In contrast, sales of groceries (or “non-prepared food”) are: Meals taxes are usually locally imposed, though sometimes they are applied at the state […]
Illinois Sales Tax on Grocery Items
Overview of Grocery Sales Tax in Illinois Although grocery items are tax exempt in most states, this does not apply to you if you live in Illinois.Grocery items are not tax exempt, but they are taxable at a reduced rate of 1%. Note: Candy, soft drinks, alcoholic beverages, and food prepared for immediate consumption do […]
Delivery Charges Illinois Sales Tax on Gross Receipts
Taxation of Transportation and Delivery Charges Operating a small business involves understanding how different taxes apply to you based on the products or services you sell. If you charge your customers sales tax, your income is not affected by passing the amount to the state. The gross receipts tax, on the other hand, is based […]
Illinois Tampon Sales Tax Feminine Products
Lawmakers Addressing the Tax State lawmakers are considering getting rid of a controversial tax on feminine hygiene products. Critics say the so-called tampon taxes are unfair to women. In Illinois, feminine hygiene products are taxed 6.25 percent because the state classifies tampons, pads and menstrual cups as “luxury items”. Legislative Developments State lawmakers on Thursday […]
Airbnb Sales Tax In Illinois
Airbnb Rentals in Illinois to Get More Expensive Airbnb rentals in Illinois will be getting more expensive starting Jan. 15. The home-rental platform will collect and remit on behalf of its hosts the same hotel taxes paid by its hotel counterparts, the company announced today. Aligning Airbnb with Hotel Regulations It’s the latest step by […]
Filing Bankruptcy on Sales Tax
Sales Tax Debt: A Permanent Responsibility Filing Bankruptcy on Sales Tax,This is like a girl that you got pregnant when you were bored or on vacation. You will be connected to them forever. You can’t discharge the debt, but you can file a Chapter 13 or 11 reorganization to pay it back over time, like […]
What is a Sales Tax “Nexus”?
What Does the Word “Nexus” Mean? A nexus is simply a connection. Pre-2017: Physical Presence Nexus Before 2017, you had to have a physical presence, however slight, to establish a nexus. This meant: Your sales agent visited another state You had a building in another state Your company delivered into another state using one of […]
Contractor Creates a Nexus
Do Contractors Create a Sales Tax Nexus? “Do contractors create a nexus?” If your business requires contractors that get paid on a 1099 to work for you in another state, then you might have created a sales tax nexus. When Contractors Create a Sales Tax Nexus Contractor participation in building or creating new marketsIf the […]
How to Set Up an Invoice
Importance of Proper Invoicing in a Sales Tax Audit During a sales tax audit, presenting the correct invoices in the correct form is of utmost importance. You need to break out the sales tax and other non-taxable charges on the invoice. If you lump everything together, you will be charged taxes on the gross receipt. […]