Why are taxes frequently collected at fairs, festivals, flea markets, or craft shows? What are the responsibilities of retailers at these events? How should these retailers file Form ST-1 for the tax period during which such events took place?

Page Content

Special events are a unique kind of business in which vendors sell items to the public at fairs, festivals, flea markets, or craft shows. Many times, the only fair and efficient way to collect the proper taxes is to have the Illinois Department of Revenue’s (IDOR) collection agents personally register each vendor and collect taxes at the event. IDOR’s agents may collect taxes daily or at the end of an event to ensure that tax due from out-of-state or transient merchants has been collected before an event has closed.

In addition, collecting tax at an event ensures that the tax is paid at the correct rate and that any local tax is returned to the correct unit of local government. The amount of tax due is based on the location of the event. The state sales tax, a portion of which is distributed to the municipality or county in which the event is located, is always due. In certain locations, other locally imposed taxes (e.g., mass transit and home rule tax) are also due. IDOR collects both the state and local taxes and then returns the local portions to the unit of local government where the sale was made. See 35 ILCS 120/3.

Retailers at these events are responsible for collecting Illinois sales tax at the proper rate, paying the tax collected to IDOR, and reporting the tax for the correct location. 

Registered retailers that paid tax to a collection agent at a special event, should follow the below listed steps when filing Form ST-1 for the tax period during which the special event took place.

• Include the receipts from the special event in your total receipts reported on Line 1.
• Enter the total amount of the receipts, including tax, from the special event on Line 16 (other) of Schedule A. Identify this figure as "special event collections." Enter the sum of total deductions, including tax, on Line 2.
• Calculate the tax due based on the resulting amount of receipts on Line 3.
• If you are required to file Form ST-2, do not report the receipts from the special event on the ST-2.
• Do not show any tax paid at the event as a credit on the front of the return.

See 86 Ill. Adm. Code 130.1990 and PIO-28 - Taxes at Fairs, Festivals, Flea Markets, and Craft Shows, for more details.

Answers others found helpful

If you have additional inquiries, you may submit them to the Questions, Comments, or Request form.