Sales Tax Moratorium is Over – Collection Must Resume
The sales tax moratorium on groceries and gasoline, including the exemption for nutritional supplements, has come to an end. Effective July 1, 2023, you are now required to collect the full sales tax amount, which varies depending on your location. Watch the video to obtain further information on this crucial update!
Referenced Links:
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Illinois Department of Revenue Form
Transcription:
I want to make sure that everyone who sells nutritional supplements out of their practice remembers that the sales tax moratorium that was in place for groceries and gasoline and all of those different moratoriums that were in place. The one that impacts us is the food because it relates directly to nutritional supplements that ended at the end of June 2023. So the year ended June 30, 2023, beginning July 1, 2023, you should be collecting the full amount of that sales tax.
Now for some of you, the cities that you practice in don’t have any additional sales tax attached to that. So it’s just the 1% from the state. And so you should be collecting that for others, it very well could be impacting you, but maybe a little bit differently. So if you were in Chicago, even during the moratorium, you still would have been collecting the Chicago portion of that sales tax, which would have been 1.25%. But now you’ll be collecting as of July 1 of 2023, you’ll be collecting the full 2.25% Boiling Brooke for example, also theirs is 1.75%. And for Decatur, Springfield, and other downstate towns and cities, those are the standard state rate at 1%. But here’s the important thing to remember that moratorium ended. And you should be collecting your state sales tax for your nutritional supplements. Now also remember, it’s not just nutritional supplements, but any product that you sell out of your practice. That includes orthotics and other medical devices that you sell out of your practice, all of those should be taxed. The medical portion of the state is 1%. The food portion which applies to nutritional supplements based on the definitions by the state, so nutritional supplements and medical those are all at 1% by the state but you have to check your individual municipality to ensure that you are collecting the appropriate amount of sales tax.
We’re gonna include links down below one to an article that kind of explains this in more detail explains the sales tax in more detail. And the other one is directly to the state. If you can key in your specific city and determine your exact specific amounts that you should be collecting from your patients. But please don’t set it aside and ignore it. You want to make sure that you are collecting the appropriate amount of sales tax. So the Department of Revenue in Illinois doesn’t come knocking and ask you to pay back a large sum that you should have been collecting from the beginning. We’ll catch you next week.
