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Local Taxes
| 2008 PROPERTY TAX BREAKDOWN |
| School District | 4.2124% |
| Granite City | 1.4036% |
| Madison County | 0.6534% |
| Metro East Sanitary | 0.3955% |
| Park District | 0.4258% |
| SWIC | 0.3497% |
| Library District | 0.2856% |
| GC Township | 0.2464% |
| Total 2008 Property Tax Rate | 7.9724% |
The overall property tax rate decreased by 0.1537% from 2005 to 2008, going from 8.1261% to 7.9724%.
| 2009 SALES TAX RATES |
| Location | General Merchandise Rate | Qualifying Food/Drugs/Medical Appliances Rate | **Vehicle Rate |
| Outside Business District | 8.35% | 1.25% | 6.50% |
| Inside Nameoki Village Business District | 9.10% | 1.25% | 6.50% |
SALES TAX BREAKDOWN
| GENERAL MERCHANDISE RATE |
| State of Illinois | 5.00% |
| Local | 1.00% |
| Madison County | 0.25% |
| Metro East Parks | 0.10% |
| Home Rule Tax | 1.50% |
| Mad Co. Transit | 0.25% |
| County Flood Prevention | 0.25% |
| Total Sales Tax Rate | 8.35% |
| QUALIFYING FOOD/DRUGS/MEDICAL APPLIANCES RATE |
| Local | 1.00% |
| Mad Co. Transit | 0.25% |
| Total Sales Tax Rate | 1.25% |
** Vehicle Rate – purchasers may be billed for additional use tax by their municipality or county.
Additional Tax Information
- Telecommunications Tax: Equal to 5% of gross charges
- Charter Communications Franchise Fee: 5% of gross charges
Use the Tax Questions form to ask questions about local taxes.
Illinois Tax Information
The Tax Foundation ranks Illinois as the 24th best state in terms of corporate income tax and 25th overall in terms of business tax climate.
According to the Tax Foundation, Illinois’ per capita state and local tax burden averaged 9.3% of income in 2008, which is less than the US average of 9.7%. The Tax Foundation also reports that Illinois’ state and local tax burden is $4,346 per capita annually.
Illinois corporations are also subject to a franchise tax. The tax is based on the share of a corporation’s paid-in capital in the state of Illinois. The initial franchise tax is imposed at the beginning of the corporation’s first year doing business in the state. The initial franchise tax rate is 0.15% of the share of paid-in capital in Illinois. The franchise tax must be no less than $25.00 and no more than $2 million. After a corporation’s first year, the franchise tax is due annually at a rate of .10%, again with a minimum of $25.00 and a maximum of $2 million.
According to the Illinois Tax Code, every corporation receiving income in Illinois is subject to tax on net income. The tax rate is 7.3%, 4.8% of which is the income tax and 2.5% of which is the property replacement tax (there is no tax on personal property in Illinois).
Illinois does not have a statewide property tax. Property is taxed on the local level only, and includes only real property such as land, buildings or permanent facilities. Real property is assessed at 33 1/3% of market value. Illinois does not tax personal property such as automobiles, trucks, or boats. The property tax is the largest single tax in Illinois, and is a major source of tax revenue for local government taxing districts.
The state sales tax in Illinois is assessed on three categories: - Food and prescription and non-prescription drugs
- Vehicles, and
- Other general merchandise
Qualifying food, drug and medical appliance purchases are taxed at a base rate of 1%. Vehicles, or items that require a title and registration, are taxed at a base rate of 6.25%. Other general merchandise is taxed at 6.25% and include sales of most tangible personal property including sales of soft drinks, prepared food including food purchased at restaurants, photo processing, prewritten or “canned” computer software, prepaid telephone calling cards and other prepaid telephone arrangements, and repair parts and other items transferred or sold in conjunction with providing a service.
Sales tax exemptions include:
- Manufacturing machinery, as well as replacement parts and computers, used to control manufacturing machinery are exempt. Purchases of manufacturing machinery receive a credit equal to 50 percent of what the taxes would have been if the manufacturing machinery was taxable making it possible for the manufacturers to use this credit to offset any other sales tax liability they incur.
- Purchase of farm machinery is exempt.
- Pollution control facilities; any system device, or appliance sold to prevent or reduce air and water pollution or pre-treat a potential pollutant are exempt.
- Food (food sales for consumption off the premises) and prescriptions are taxed at the special rate of 1%. Alcoholic beverages, soft drinks, and food prepared for immediate consumption are subject to the 6.25% tax.
- The Illinois Income Tax is imposed on every individual, corporation, trust, and estate earning or receiving income in Illinois. The tax is calculated by multiplying net income by a flat rate. The Illinois Income Tax is based, to a large extent, on the Federal Internal Revenue Code (IRC).
Tax Rate
The rate is 3 percent of net income, which is the lowest rate amongst states which assess an income tax according to The Tax Foundation.
Tax Base
The starting point for the Illinois Individual Income Tax is federal adjusted gross income. Federal adjusted gross income is “income” minus various deductions (not including itemized deductions, the standard deduction, or any exemptions). Next, the federal adjusted gross income is changed by adding back certain items (e.g., federally tax-exempt interest income) and subtracting others (e.g., federally taxed retirement and Social Security income). The result is “base income.”
The base income earned in Illinois or while a resident of Illinois is then reduced by the number of federally claimed exemptions plus any additional exemptions. The amount of each exemption is $2,000.
Additional exemptions are provided for any taxpayer or spouse who was either 65 years of age or older, legally blind, or both ($1,000 each). The total exemption amount is deducted from base income to arrive at “net income.” The tax rate is then applied against net income.
| TAX | SUMMARY |
| Corporate Income Tax | 7.3%, which includes 4.8% state income tax and 2.5% personal property replacement tax |
| Taxable Income | In-state sales only |
| Franchise Tax | Initial franchise tax of 0.15% of paid-in capital, thereafter annual franchise tax of 0.10% of paid-in capital, maximum of $2 million |
| Property Tax | Real Property is assessed at 33 1/3% of market value. Tax rates approximate 8.86% of actual value statewide. Personal property is not taxed. Business inventories are not taxed. |
| Sales & Use Tax | 6.25% of purchase price of tangible personal property and selected services. 1% tax on qualifying food, drugs, and medical appliances. Local sales taxes also apply and vary by jurisdiction.
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| Personal Income Tax | 3% of federal adjusted gross income |
| Local Income Tax | No local earnings taxes |
Source: St. Louis Regional Chamber & Growth Association
Illinois Tax Links
♦ The Illinois Department of Revenue
♦ Corporate Income Tax Page
♦ Illinois Income Tax Code
♦ Illinois Corporate Income Tax Statute
♦ Individual Income Tax Information
♦ Illinois Property Tax Information
Last Updated On: Jun 26th, 2009 at 10:48 AM
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