Chicago Sales Tax Exemption
The following rules or sales tax exemptions apply to Out of State Sales / Commerce. The current Sales Tax for Chicago is 10.25%.
For Out of State purchases, The Classic Gem is not liable to collect the sales tax for the city of Chicago, however, the purchaser/receiver is accountable for filing and paying a "Use Tax" in the state the item was shipped to.
Interstate Commerce Guidelines as defined by the Internal Revenue Services (IRS):
The interstate commerce exemption applies to sales made from Illinois businesses that are delivered outside Illinois and are not returned to Illinois for use. To document the exemption, you must keep in your records one of the following:
- a waybill or bill of lading in the name of the seller and showing the delivery address outside Illinois if the item is shipped by common carrier, with proof of delivery and signature.
- a receipt from the U.S. Postal Service showing the name of the addressee, the delivery address outside Illinois, and the date the item was mailed if the item is sent by mail, or
- a trip sheet containing the name, address, and signature of the out-of-state purchaser and the signature of the person making the delivery if you will use your own transportation equipment.
This exemption does not apply to sales to out-of-state purchasers when the purchaser takes physical possession of the item in Illinois, except in the case of items that must be titled or registered with an agency of state government for which either the seller issued a drive-away permit or the purchaser transferred current out-of-state license plates, provided the state where the item will be titled or registered offers Illinois resident purchasers a reciprocal exemption.
For more information, please visit the IRS website at http://www.revenue.state.il.us/publications/pubs/pub-104.pdf