Agencies
Services
Informational
Bulletin
FY 2023-22
July 2023
This bulletin is written to inform you of recent changes; it does not replace statutes, rules and regulations, or court decisions.
For information:
Visit our website at:
tax.illinois.gov
Call us at:
1 800 732-8866 or
1 217 782-3336
Call our TTY at:
1 800 544-5304
Email us at:
REV.TA-Sales@illinois.gov
Grocery Tax Suspension Period Concludes June 30, 2023
To: All Retailers Registered in Illinois
Effective July 1, 2023, retailers should resume collection of the state one-percent (1%) low rate on sales of groceries normally taxed at this rate. Public Act 102-0700 suspended the state one-percent (1%) low rate of sales and use tax on retail sales of groceries normally taxed at this rate from July 1, 2022, through June 30, 2023.
What do I need to do?
You must adjust your cash register and any computer program so that beginning on July 1, 2023, you will collect and remit the state one-percent (1%) low rate on sales of groceries normally taxed at this rate.
Groceries taxed at the low rate include food for human consumption that is to be consumed off the premises where it is sold (other than alcoholic beverages, food consisting of or infused with adult use cannabis, soft drinks, candy, and food that has been prepared for immediate consumption). See 86 Ill. Admin. Code Section 130.310 for more information on grocery items that are taxed at the low rate.
For example:
During the 1% grocery tax suspension:
| Retail sale of groceries subject to 1% tax: | $145.29 |
| Tax at 0%: | ------ |
| Total: | $145.29 |
Groceries normally taxed at the 1% low rate:
| Retail sale of groceries subject to 1% tax: | $145.29 |
| Tax at 1%: | $1.45 |
| Total: | $146.74 |
Are there any sales and use tax notification requirements for retailers?
Beginning July 1, 2023, retailers should remove the statement placed on any cash register tape, receipt, invoice, or sales ticket issued to customers, or posted on a sign that states “From July 1, 2022, through June 30, 2023, the State of Illinois sales tax on groceries is 0%.”
What is the last period I can file Schedule GT?
For retailers filing on a monthly or quarterly basis, the last reporting period a Schedule GT, Sales and Use Tax Holiday and Grocery Tax Suspension Schedule can be filed with your Form ST-1, Sales and Use Tax and E911 Surcharge Return is the June 30, 2023 reporting period. Do not file Schedule GT for any reporting period after June 30, 2023.
For annual filers, if you made sales that qualified for the suspension (groceries sold January – June 30, 2023), you will still need to include Schedule GT with your Form ST-1 for the 2023 reporting period.
What if I forgot to file Schedule GT or need to amend a return for a period included in the grocery tax suspension?
You must complete and attach Schedule GT-X, Amended Sales and Use Tax Holiday and Grocery Tax Suspension Schedule, to your Form ST-1-X, Amended Sales and Use Tax and E911 Surcharge Return, to calculate credit against your Retailers’ Occupation Tax liability for sales made from July 1, 2022, through June 30, 2023, that qualify for the suspension of the Illinois state sales tax.
For more information, see the Retailer Resources webpage.