State of Illinois Sales and Use Tax Guide

1. SALES AND USE TAX 
   1. The retailers' occupation tax is based upon gross receipts, the use tax on the selling price; the service occupation tax and the service use tax on the cost price of property transferred by servicemen.  The retailers' occupation tax and use tax are imposed according to (35 Ill. Comp. Stat. Ann. § 120/2-10).
   2. Home rule municipalities may impose local retailers' occupation taxes in 0.25% increments (65 Ill. Comp. Stat. Ann. § 5/8-3-1).
   3. The service occupation tax and the service use tax are imposed according to (35 Ill. Comp. Stat. Ann. § 120/3-10).
   4. The service use tax law provides that the tax herein imposed does not apply to the use of tangible personal property in the state when the use of the property which is acquired outside the state (and brought into the state by a person who has already paid a tax in another state with respect to the sale, purchase or use of such property) (35 Ill. Comp. Stat. Ann. § 105/3-55(d)).
   5. Every person is required to file a return for the preceding month (35 Ill. Comp. Stat. Ann. § 120/3).
   6. Appeal procedures for contesting assessments (35 Ill. Comp. Stat. Ann. § 120/6 through 120/11) for the retailers' occupation tax, and (35 Ill. Comp. Stat. Ann. § 115/11 through 115/112) for the service occupation tax.
2. EXEMPTIONS
   
   See sales tax exemption matrix