Tax on Firearms in Cook County
Cook County’s New Firearm Tax
The Cook County Board of Commissioners voted 9-7 to impose a $25 tax on each firearm sold. The tax is expected to raise $600,000 in revenue in 2013.
The public policy behind this legislation is to offset the cost of healthcare provided by the County to gunshot victims.
Nevertheless, it begs the question—whether this is another punitive measure levied by the government. In a previous blog post, I wrote about a strip club tax levied on Chicago area strip clubs – its purpose: To generate funding for violence against women.
Conclusions About the Illinois Sales Tax
In this last year, we can make two conclusions about the new Illinois sales tax:
- Violence against women is a function of strip clubs, and
- Violent gun-related crimes are a function of firearm owners
Legal Perspective for Business Owners
Although our views differ from those of Illinois sales tax legislators, our law firm can assist your business in:
- Preparing for audits
- Structuring your business to accommodate new sales taxes
As a business owner, it is now your duty to collect the proper sales tax from your customers.
If you do not collect this tax, you will still be liable to remit these amounts to the government.
What Happens if You Don’t Collect the Tax?
The answer is simple:
You owe it as if you collected it!
This means the Illinois Department of Revenue can and will send you a bill of deficiency based on what they determine you should have collected.
At that point, you will have two choices:
- Pay the bill, or
- Call your customers and ask them to pay your bill
Need Legal Help?
If you or your establishment are:
- Under a sales tax audit, or
- Under investigation by the Illinois Department of Revenue for sales tax fraud in the Chicago area
Call our firm to discuss your options: (888) 577-1482
Frequently Asked Questions
What is the purpose of Cook County’s firearm tax?
The Cook County firearm tax was introduced to help offset the public healthcare costs incurred by the County in treating gunshot victims. The tax aims to generate revenue to support these healthcare expenses.
How much is the firearm tax in Cook County?
Cook County imposes a $25 tax on each firearm sold. This measure was projected to raise approximately $600,000 in revenue in 2013.
Does this firearm tax affect business owners?
Yes, business owners are responsible for collecting this tax from customers at the point of sale. If they fail to collect it, they are still legally obligated to remit the tax to the government as if it had been collected.
What happens if a business doesn’t collect the firearm tax?
If a business fails to collect the tax, the Illinois Department of Revenue can issue a bill of deficiency for the unpaid tax. Business owners must either pay this bill themselves or attempt to collect the tax retrospectively from their customers.
Can your law firm help with sales tax issues related to firearms?
Yes, Mansoor Ansari’s law firm assists businesses in preparing for audits, structuring their operations to comply with new taxes, and defending against investigations or allegations of sales tax fraud related to firearm sales in Illinois.