Illinois Taxes

Summary of Illinois Taxes

Tax
City add-on tax	$0.01
Sales	5% state/1.25-2% local
Electricity	State utility tax is based on kilowatt hours used. Rates are $.00330 declining to $.00202; large users can opt to self-assess tax at 5.1% of cost; in addition, Rock Island, East Moline & Silvis tax all residential electric use, and any non-residential use where the electricity is purchased from a non-local supplier, on a kWh basis using the state's kWh bands above. All use is taxed on a kWh basis regardless of supplier. Per kWh rates are: RI $.004561 to $.002243.
Natural Gas	State utility tax is lower of 5.1% or $.024/therm; in addition, East Moline & Silvis impose a muni-tax 5.15%; Rock Island imposes a muni-tax of 3.2%; Rock Island taxes any gas not subject to regular muni-tax @ $.015/therm.
Telecommunications	State Telecommunications Excise Tax of 7% applies to all services which originate or terminate in IL & are billed in IL; State Additional Charge of .1% applies for revenue derived from calls and services within IL; State Infrastructure Maintenance Fee of .5% applies to gross charges; Municipal Infrastructure Maintenance Fee of 1% applies to gross charges; in addition, Rock Island, East Moline and Silvis impose a tax of 5.15% on intrastate calls and services within Illinois. 3% Federal Tax applies to local service.
Property per $1,000 of market value (IL QC Average)	$29.00
Unemployment Compensation	4.70%
(New employer rate)	First $10,500 paid each employee
Average Workers Compensation (per $100 of payroll)	Overall - $2.62 National Average - $3.50

Property Tax

Property tax rates vary by area. They are affected by the tax levy in the several taxing districts including municipal, county and school. Illinois figures property tax on assessed value that is 1/3 of the market value. Then a tax rate, stated in dollars per $100 of assessed valuation, is multiplied times the assessed value of the property. However, for an equal comparison of both Iowa and Illinois an assessment per $1,000 of market value was calculated and appears in the property tax table below. Within the state of Illinois, machinery and equipment used in the manufacturing process is not subject to local property tax. The table below illustrates current rates in the three key Illinois Quad Cities communities. An industrial property (including land and building) assessed at $500,000 would pay an estimated $14,500 in annual real estate taxes in the Illinois Quad Cities.

Illinois Property Tax Rates

Basic tax rate for latest year (per $1000 Market Value)

City	Rock Island	Moline	East Moline
Total	$27.96	$28.71	$30.32

Personal Property Tax

The State of Illinois does not levy a personal property tax.

Sales/Use Tax

Sales and Use taxes apply to the purchase of selected personal and business products and services but certain products and services are exempt.

Applies to:

Sales/Use Tax Applications

Tangible personal property	Yes
Services	No
Manufacturing machinery	No
Pollution controls	No
Materials in product	No
Materials consumed	Yes

Representative Workers' Compensate Rates in Illinois

Job Classification	Job Description	Rate (per $100 of payroll)
4299	Printing, Assembly & Stapling	$4.70
8810	Clerical	$0.30
6504	Food Sundries manufacturing Not Otherwise Classified	$4.72
3632	Machine Shop Not Otherwise Classified	$4.06
4484	Plastic Manufacturing and Molding	$4.00

Workers' Compensation

Workers' compensation costs in Illinois are, on average, 13% below the national average. Illinois' rates have gone down nearly 45% over the past five years. Quad Cities First will research the actual current rate for any of the standard job classifications in your company. For your reference, the table below shows the current rate (per $100 of payroll) for representative job classifications.

Unemployment Compensation

A new employer's standard rate is 4.7% of the first $10,500 of each employee's wages or $493.50 per employee, per year.
Wage base ..................................................$10,500
Minimum rate ...................................................1.2%
Maximum rate ...............................................9.8%
New employer's rate .........................................4.7%

Small employers (who pay less than $50,000 in wages in a calendar quarter) have a maximum rate for that quarter of 5.4%. New employers in Illinois pay $493.50 annually per employee in unemployment insurance for the first three years. After the initial 36-month period, a company's rate is based on their experience only. Source

Corporate Income Tax

Illinois Corporate Income Tax is levied only on net income derived from sales conducted within the state-single factor formula. If the trade or business is conducted entirely within Illinois, the tax is imposed on the entire net income. If the business activity is conducted partly outside Illinois, the tax is imposed only on the portion of net income conducted within Illinois, based on Federal Income return. The Flat Rate for Illinois is 7.3%

Personal Income Tax

The basis of Illinois taxable income is the adjusted gross income as reported on the federal income tax return.

Allows a 5% credit for Illinois property tax paid on your principal residence. In addition, elderly and disabled tax payers may receive a grant when property taxes exceed a certain percentage of income.
Allows a personal exemption or credit of $2,000. An additional $2,000 exemption is allowed for elderly and disabled.
Current tax rate is 3% of taxable income.