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Local Government (LTAD) Newsletter - April 2025
April 2025
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 17, 2025, from 9:00 a.m. to 12:00 p.m.
With municipal elections taking place this year, we will be discussing LTAD’s basic functions and the requirements for local government officials in the workshop. We will also cover any legislative changes that will impact local governments and discuss the resources available to local government officials.
To register, interested individuals should email REV.LocalTax@illinois.gov with their name, title, email address, and phone number.
Speaker Requests
The Illinois Department of Revenue (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 provide detailed information about your event.
Important Dates
| Date | Description |
|---|---|
| April 23, 2025 | LTAD presentation at PMA Financial Network’s Muni Finance Seminar in Aurora |
| May 1, 2025 | Ordinance filing deadline for tax rate changes needing voter approval, effective July 1, 2025 (includes County Public Safety and County School Facility) |
| June 17, 2025 | Local Government Workshop (see above) |
| July 24, 2025 | Municipal Clerks of Illinois (MCI) Summer Seminar presentation |
| September 20, 2025 | Simplified Municipal Telecommunication Tax ordinance filing deadline for rate changes effective January 1, 2026 |
| October 1, 2025 | Ordinance deadline for all other tax rate changes, including grocery tax ordinances, effective January 1, 2026 |
Changes in Use Tax & ROT Allocations
Beginning January 1, 2025, Public Act 103-0983 mandated that all retail sales originating from outside of Illinois and made to Illinois customers by retailers with physical presence nexus with Illinois are now subject to destination-based Retailers’ Occupation Tax (ROT) rather than Use Tax (UT).
It is important to note that each unit of local government will be affected differently by this change in the law. Previously, Use Tax was collected statewide and allocated to local governments based on population, regardless of the shopping habits of residents. Now, ROT (sales tax) collections and allocations are determined by the jurisdiction where the item is shipped or delivered or at which possession is taken by the purchaser. As a result, local governments may experience fluctuations in allocations.
Information on the first allocation affected by this law change was received this month. The table below illustrates the impact on Use Tax, along with the corresponding increases in ROT (sales tax).
Statewide Totals
| April 2024 | April 2025 | |
|---|---|---|
| MT | $184,413,134.58 | $209,702,900.15 |
| CT | $6,443,917.24 | $8,983,942.17 |
| CST | $23,039,087.71 | $26,123,718.46 |
| HMR | $107,890,988.49 | $123,048,602.08 |
| NHMR | $16,588,251.98 | $19,888,407,.62 |
| USE | $24,978,107.02 | $4,993,221.16 |
MT: Municipal Sales Tax
CT: County Sales Tax
CST: Countywide Sales Tax
HMR: Municipal Home Rule Sales Tax
NHMR: Municipal Non-Home Rule Sales Tax
USE: Local Use Tax
Update on Allocation Remittance Report Discrepancies
We would like to inform you about an issue regarding the total amount reflected in your remittance report for Municipal Tax (MT). You may have noticed that the amounts reported by your car dealerships have decreased and do not align with the allocations you received.
We have identified the cause of this discrepancy and are currently working on correcting the programming for these reports. Please note that if you ordered remittance reports from April 4 through April 10, 2025, they would contain this issue.
To ensure you have accurate data, we recommend reordering your report. We apologize for any inconvenience this may cause and appreciate your understanding.
IDOR News & Updates
Sign up for IDOR’s email and SMS text subscription service to receive the latest news and updates specific to municipalities, counties, and local taxing districts. You can sign up by visiting tax.illinois.gov. Our LTAD Newsletters will be sent exclusively through MyLocalTax messages and IDOR’s News & Updates.
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