SB2502 Summary

• Requires retailers and servicemen that do not collect use tax to notify Illinois purchasers at the time of purchase that use tax is due and that the State requires filing a use tax return.

• Mandates non-collecting retailers and servicemen send annual notifications by January 31 to all Illinois purchasers showing total purchase amounts and transaction details from the previous calendar year.

• Exempts retailers and servicemen with less than $100,000 in total gross Illinois sales in the previous calendar year and reasonably expected to remain under that threshold from notification requirements.

• Imposes penalties of $5 per failure to send point-of-purchase notices and $10 per failure to send annual notifications, unless reasonable cause is shown.

• Requires purchasers who receive notifications and have failed to file required use tax returns to file and pay taxes by April 15 of the year notification is received, including applicable late fees.