SB2577 Summary: Marketplace Fairness Act

• Adds new criteria for determining when out-of-state retailers must collect and remit Illinois use tax, effective January 1, 2019, based on either $100,000 in cumulative Illinois sales or 200+ separate transactions in Illinois during a 12-month period.

• Extends the same nexus standards to servicemen (those selling services with tangible property transfers), requiring tax collection and remittance under identical sales thresholds beginning January 1, 2019.

• Retailers and servicemen meeting the new thresholds must determine compliance on a quarterly basis and file returns electronically with the Department of Revenue.

• Clarifies that once a retailer or serviceman meets the threshold criteria for a 12-month period, they remain a "retailer maintaining a place of business in this State" and must continue collecting and remitting tax for the subsequent year.

• Makes conforming amendments to the Use Tax Act and Service Use Tax Act definitions to apply the new economic nexus provisions uniformly across tax types.