Dry-Cleaning License Tax & Fee

 Legal Reference

• Statutory - 415 ILCS 135/60 to 135/85
  

• MyTax Illinois

The tax is imposed on the use of dry-cleaning solvent by persons who operate dry-cleaning facilities in Illinois. License fees are imposed on those who operate dry-cleaning facilities. The Illinois Environmental Protection Agency (IEPA) issues the licenses.

Sales of dry-cleaning solvent to the following facilities are exempt from the tax:

• A facility located on a United States military base
• An industrial laundry, a commercial laundry, or a linen supply facility
• A prison or other penal institution that dry-cleans only as part of a correctional industries program to provide dry-cleaning to persons who are incarcerated in a prison or a penal institution or to resident patients of a state-operated mental health facility
• A not-for-profit hospital or other health care facility
• A facility presently or formerly located on federal or state government property
• A facility that will not use the dry-cleaning solvent in a dry-cleaning operation

Use the Tax Rate Database to find the tax rates for chlorine-based solvents, petroleum based solvents, and green solvents.

License fees are due annually on or before December 31 for the following license year. The fee is based on the amount and type of dry-cleaning solvent used annually by a dry-cleaning facility operator. The amount of the fee varies from $1,500 to $5,000 depending on type and gallons of solvents used. See DS-3 Fee Schedule for specific information. 

Proof of license fee payment is required to receive a dry-cleaning license from the IEPA. Form DS-3, Dry-Cleaning Operators' License Fee Payment Form, is issued to license holders to indicate the amount of license fee due. License holders can make a credit card payment for the license fee using Illinois e-Pay. License holders can use Form DS-3 to mail the license fee payment or visit the Springfield or Chicago office of the Illinois Department of Revenue. Note: License holders making license fee payments using Illinois E-Pay do not need to submit Form DS-3 to the Illinois Department of Revenue.

Form DS-1, Dry-Cleaning Solvent Tax Return, is due quarterly on or before April 25, July 25, October 25, and January 25. Form DS-1 can be filed electronically using MyTax Illinois. MyTax Illinois also allows you to electronically pay your solvent tax due.

• Call us at: 1 217 782-7517
• TDD-telecommunications device for the deaf 1 800 544-5304
• Mail Form DS-1 and Form DS-1-X to:

• Call IEPA at: 217 524-3300
  
• Email IEPA at:  EPA.DryCleanerFund@illinois.gov 
• Mail questions to: