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Illinois Department of Revenue

Local Government

Local Tax Allocation Division (LTAD)

LOCAL GOVERNMENT (LTAD) Newsletter - April 2026

April 2026

This newsletter is written to inform you of recent updates or news provided by the Local Tax Allocation Division.

For information:

Visit our website at:
 tax.illinois.gov

Contact us at:
Local Tax Allocation Division 3-500
Illinois Department of Revenue
101 W. Jefferson Street
Springfield, IL 62702

Phone: 217 785-6518

Email: Rev.LocalTax@illinois.gov

Workshop Information

The Local Tax Allocation Division (LTAD) will hold its annual Local Government Workshop virtually on Tuesday, June 9, 2026, from 9:00 a.m. to 12:00 p.m.

During the workshop, LTAD will explain its main functions and review the requirements that apply to local government officials. The session will also cover legislative changes that affect local governments and highlight resources available to local government officials.

To register, email REV.LocalTax@illinois.gov with your name, title, email address, and phone number. If you have a topic you would like us to cover, please include that in your message as well.

Grocery Tax Disbursements

Local governments that implemented a local grocery tax effective January 1, 2026, will receive their first disbursement this month. This disbursement will be issued separately, but at the same time and through the same method as your regular sales tax allocations. When ordering remittance reports through MyLocalTax (MLT), you will receive a separate report for the Municipal Grocery Tax (MGT) or County Grocery Tax (CGT). For confidentiality, grocery tax amounts will be combined with Municipal Tax (MT) or County Tax (CT) totals in our online reports.

The Illinois Department of Revenue (IDOR) has learned that some retailers are not correctly collecting the local grocery tax. LTAD has contacted these retailers to resolve the issues and will continue to review monthly filings for inconsistencies. As additional months of returns are filed, LTAD will have additional data to analyze. We expect retailer compliance to improve, but correcting early errors may take several months. Please monitor your receipts and notify IDOR if you see possible misapplication of the tax. Local governments should not contact retailers directly because DOR administers and enforces this tax.

IDOR issued the following guidance to retailers about the Municipal and County Grocery Occupation Tax:

IDOR will continue using all available tools to ensure local governments receive the revenue they are owed.

Please contact LTAD if you identify discrepancies.

Allocation Remittance Report Issues

Two issues are currently affecting allocation remittance reports.

First, as noted in LTAD’s April 2025 quarterly newsletter, tax revenue from car dealerships (specifically from Form ST‑556 Sales Tax Transaction Return) is not appearing correctly on remittance reports. This is a reporting issue only; your disbursements remain accurate and complete.

Second, requests for 12‑month reports are disrupting our nightly processing. These requests have caused system failures and incomplete report generation. IDOR initially kept the 12‑month option available, but the problem became frequent enough that we had to disable it temporarily. We understand this is inconvenient, but the one and three‑month report options remain available.

LTAD does not yet have a timeline for resolving these issues. We will notify you through an IDOR News & Updates message as soon as each issue is fixed.

Tax Rate Changes That Require Voter Approval

For jurisdictions that passed either of the following referendums:

  • County School Facility Tax1
  • Special County Retailers’ Occupation Tax for Public Safety, Public Facilities, Mental Health, Substance Abuse, or Transportation2

the tax will take effect July 1, 2026, only if the required documentation is submitted to LTAD on or before May 1, 2026.

County School Facility Tax

County Clerk or Regional Superintendent of Schools must submit the following documents to LTAD:

  • Certified election results
  • Abstract of votes
  • A copy of the exact ballot question presented to voters

Special County Retailers’ Occupation Tax

The county clerk must submit the following documents to LTAD:

  • Certified election results
  • A certified copy of the ordinance imposing the tax

How to Submit Documentation:

  • By mail, or
  • Through a confidential MLT account using the “Submit Certified Copy of Ordinance or Resolution” function

Note: Regional Superintendents do not have MLT accounts.

Important Reminders

Passing a referendum does not, by itself, make the tax take effect. All required documents must be submitted on or before May 1, 2026.

If LTAD receives complete documentation after May 1 but on or before October 1, the tax will take effect January 1 of the following year.

Note: Regional Superintendents do not have MLT accounts.

Important Reminders

Passing a referendum does not, by itself, make the tax take effect. All required documents must be submitted on or before May 1, 2026.

If LTAD receives complete documentation after May 1 but on or before October 1, the tax will take effect January 1 of the following year.

Speaker Requests

Representatives from IDOR and LTAD are available to speak at your events about topics related to state and local taxes. To request a speaker, complete our speaker request form and include detailed information about your event.

Important Dates
Date Description
May 1, 2026   Ordinance filing deadline for tax rate changes needing voter approval, effective July 1, 2026 (includes County Public Safety and County School Facility) (see details above)
June 9, 2026 Annual Local Government Workshop (see details above)
September 20, 2026 Simplified Municipal Telecommunication Tax3 ordinance filing deadline for rate changes effective January 1, 2026
October 1, 2026 Ordinance deadline for all other tax rate changes, including grocery tax ordinances, effective January 1, 2026

IDOR News & Updates

IDOR offers an email and SMS text subscription service to keep local governments informed of the latest news, updates, and important deadlines. LTAD Newsletters will only be sent through MLT messages and IDOR’s News & Updates.

155 ILCS 5/5-1006.7
255 ILCS 5/5-1006.5
335 ILCS 636/5-20(a)(2)