Illinois lawmakers have passed Senate Bill 2111, amending tax obligations by clarifying the relationship between sales and use tax if a retailer fails to remit taxes. Buyers who paid the correct amount can still register their property as long as they remit directly to the Illinois Department of Revenue. This measure ensures customers receive proper credit to the retailer’s account, without allowing the vendor’s discount to apply.
Effective January 1, 2025, lease transactions for trailers (excluding semitrailers) registered in Illinois will be subject to sales tax. Lessors are required to file separate monthly returns and remit taxes electronically by the 20th of the month following the reporting period.
The bill also empowers the Regional Transportation Authority (RTA) in Cook, DuPage, Kane, Lake, McHenry, and Will Counties to increase sales tax rates by 0.25 percentage points. This rate hike would affect general merchandise and low-rate items such as groceries and medicine. While the effective date is June 1 2026, the RTA Board has a 60‑day window to adopt the rate change. It is estimated that this increase could generate approximately $478 million annually for transit funding.
This legislation reflects a dual focus. First, it promotes tax compliance and clarity by addressing retailer and lessor responsibilities under use and sales tax laws. Second, it supports critical mass transit and infrastructure investment in the Chicago metropolitan region by enabling the RTA to secure additional revenue.
Governor Pritzker signed the bill on December 16, 2025, so Illinois businesses and residents should prepare for these changes and monitor further guidance from the Department of Revenue. (Illinois S.B. 2111, Dec. 16, 2025).