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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 of 1.75% (.0175) of the retailers’ occupation tax and use tax collected or $5 per calendar year, whichever amount is greater, 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.
NOTE: If a taxpayer files a claim for credit and the credit is approved with the 1.75% discount allowed for the approved amount, but the Illinois Department of Revenue subsequently determines that all or any part of the credit taken was not actually due to the taxpayer, the taxpayer’s 1.75% discount will be reduced by 1.75% of the difference between the credit taken and credit due, and that taxpayer will be liable for penalties and interest on the difference. 35 ILCS 120/3; 35 ILCS 105/9.
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 3% (.03) 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).
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