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As a retailer, am I allowed a discount from the sales tax I report on my Form ST-1, Sales and Use Tax and E911 Surcharge Return?
Yes. The Retailers’ Occupation Tax Act and the Use Tax Act allow a retailer to claim a discount, provided the retailer properly and timely files its Form ST-1, Sales and Use Tax and E911 Surcharge Return, and pays the applicable tax by the due date. 35 ILCS 120/3; 35 ILCS 105/9; 86 Ill. Adm. Code 130.501-510; 86 Ill. Adm. Code 150.905.
Form ST-1 filers reporting the Prepaid Wireless E911 Surcharge and the Illinois Telecommunications Access Corporation (ITAC) Assessment on Schedule B also are entitled to a separate discount of the E911 Surcharge and ITAC Assessment reported provided the return is electronically filed by the due date, and the surcharge and assessment due are paid by the due date. 50 ILCS 753/20(b); 220 ILCS 5/13-703(f).
For sales and use tax and other related returns due on or after January 1, 2025, the retailers’ discount amount is limited to $1,000 per month. See Public Act 103-592.
For more information on the applicable discount rate, see Form ST-1 Instructions and FY Bulletin 2025-04, Retailers' Discount for Certain Tax Returns Capped at $1,000 Per Month.