Idaho, Illinois, Indiana, Iowa Sales And Use Tax Rules

Aaron Giles

Idaho State Sales And Use Tax

The state of Idaho levies a 6% state sales tax on the retail sale, lease or rental of most goods and some services. Several local jurisdictions impose additional sales taxes up to an additional 3%.

Use tax is also collected on the consumption, use or storage of goods in Idaho if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Idaho on or before February 20th.

Idaho State Tax Commission
Idaho Sales And Use Tax Forms

Illinois State Sales And Use Tax

The state of Illinois levies a 6.25% state sales tax on the retail sale, lease or rental of most goods and some services. Local jurisdictions impose additional sales taxes ranging between 0.25% and 4.75%. The range of total sales tax rates within the state of Illinois is between 6.25% and 11%.

Use tax is also collected on the consumption, use or storage of goods in Illinois if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Illinois on or before February 20th.

Illinois Department Of Revenue
Illinois Sales And Use Tax Forms

Indiana State Sales And Use Tax  

As of April 2008, the state of Indiana levies a 7% state sales tax on the retail sale, lease or rental of most goods and some services. No additional local taxes are collected within the state of Indiana.

Use tax is also collected on the consumption, use or storage of goods in Indiana if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Indiana on or before February 20th.

Indiana Department of Revenue
Indiana Sales And Use Tax Forms

Iowa State Sales And Use Tax

The state of Iowa’s state sales tax rate increased to 6% beginning July 1, 2008. Sales tax is due on the retail sale, lease or rental of most goods and some services. Local jurisdictions may impose an additional local option tax of 1%.

Use tax is also collected on the consumption, use or storage of goods in Iowa if sales tax was not paid on the purchase of the goods. The use tax rate is the same as the general sales tax rate. Returns are to be filed on or before the 20th day of the month following the month in which the purchases were made. For example, purchases made in the month of January should be reported to the state of Iowa on or before February 20th.


Iowa Department of Revenue

Iowa State Sales And Use Tax Forms

(This is part of a series by Aaron Giles)

 

Aaron C. Giles is the Founder and President of Agile Consulting Group. Aaron spent five years working within the specialty niche of Sales & Use Tax at Brown & Associates before forming his own firm in 2005. He has worked hundreds of audits in states all across the U.S. during that time and has delivered savings of over $75M in the form of refunds and credits to his clients. Today, he leads a group of talented, detail-oriented colleagues who focus exclusively on Sales & Use Tax.

Some of our firms’ greatest achievements have come in successfully arguing new and unique perspectives to existing tax law in various states enabling our clients to claim exemptions on categories of purchases previously held to be taxable. Included in these victories are: communication services taxes for religious nonprofit hospitals in FL, bulk purchases of drugs in VA, specific surgical tools and instruments for healthcare providers in TX, printing plates in GA, railroad utilities in KY, and most recently software in AL.

Subscribe to TaxConnections Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.