Sales Tax Attorney Naperville

Sales Tax Attorney Naperville

Note: Your income tax does not change no matter which county in which you live in Illinois.

Whenever you live in a bordering county, you are effected as both a taxpayer and tax collector. Taxpayer meaning the consumer of goods and a tax collector meaning a business owner that must collect the correct sales tax from their tax paying customers. How does this all play out? How is this even a big deal?

To answer both of those questions, think about every time you go to make a big purchase. You have the choice of buying furniture from Dupage County at a sales tax rate of 7.25% or the same furniture at a sales tax rate of 7.0% in Will County. Easily enough, you can get your .25% discount simply by making your purchase in Joliet versus Naperville. If you are a smoker, you can easily save .25% on every pack of cigarettes when you buy in Will County.

As a business owner, you are in somewhat of a bind. The gas station 1 mile away can be in Will County selling the same pack of cigarettes for less. The furniture store in Will County is also selling goods for less simply based on the sales tax discount. This is where the problem starts for business owners. It is impossible to have a competitive edge simply based on price when you have tax rates cheaper down the street. Nonethless, you have to take a hit on the profits to stay compliant with the Illinois Department of Revenue.

This all changes when you are buying a car, so there is no need to go to Will County for a discount. Sales taxes are paid on a car based on where you live. So, if you by your Jeep Wrangler from Joliet, you will still pay the state taxes as if you bought it from a dealer in Dupage County.

What about property tax? Yes, your property tax will definitely be higher in Dupage County. If you are selling a property, that makes no difference, since property values in Dupage County usually fair better than Will County.

In summary, always put your business decision before your tax consequences. Look at your clientelle and think as to whether they need to save money on cigarettes, or whether they are looking for convenience and willing to spend.

Sales Tax Attorney Naperville