Local Sales Tax Fee Generating More Than Expected | WGLT

Local Sales Tax Fee Generating More Than Expected

Mar 29, 2018

The Illinois Department of Revenue's new administrative fee is outpacing budget expectations and has generated almost $50 million during its first eight months of collection.

The Daily Herald reports that municipalities, counties and regional government agencies must pay a 2 percent fee to have their local sales taxes processed. The funds go toward maintaining the revenue department's computer system, processing collections, coordinating refunds and distributing taxes.

The state originally predicted the fee would generate about $5.3 million a month, but a department report shows that it's generated a monthly average of almost $6.2 million.

The report says an overall increase in sales taxes across the state has contributed nearly $2 million more revenue than expected. The bump in revenue may be due to an increase in tax rates rather than increased spending on goods.

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