TAX AND LICENSE / STATE TAX SYSTEM
ILLINOIS TAX SYSTEM
Illinois Income Tax
Illinois imposes a flat 3 percent individual income tax rate with a filing deadline of April 15 for most calendar years. Certain exemptions and credits apply. Illinois taxpayers have the option to file electronically or mail in the traditional Form IL-1040. For further information or answers to specific questions about state income tax, contact:
Illinois Department of Revenue
General Information
217-782-3336
800-732-8866
https://www2.illinois.gov/rev/Pages/default.aspx
Forms Order Line
800-356-6302
https://www2.illinois.gov/rev/Pages/default.aspx
Illinois Sales Tax
Sales taxes in Illinois are combined rates that include a state tax of 6.25 percent on general merchandise and 1 percent on qualifying food, drugs, and medical appliances. Also, depending upon the sales location, the rates may include combinations of such taxes as mass transit, water, municipal home rule, county home rule, or county public safety. Consult your county and municipal offices for the exact rate in your community. For more information, contact:
Illinois Department of Revenue
217-782-3336
800-732-8866
https://www2.illinois.gov/rev/Pages/default.aspx
Illinois Property Tax
The largest single tax in Illinois is also the major source of tax revenue for local governments, creating more than 75 percent of the total tax revenue. The property tax is a local tax imposed by local governments and districts including school systems, cities, villages, and township. The state does not impose a property tax. Second year taxes are paid as a percentage of the property value from the previous year. For complete information on property taxes, contact your county tax assessor:
Cook County Assessor
312-443-5100
www.cookcountyassessor.com
Kankakee County Assessor
815-937-2945
www.co.kankakee.il.us/assessor.html
Will County Supervisor of Assessments
815-740-4648
www.willcountysoa.com
Illinois Estate Tax
In general, the Federal Taxable Estate plus adjusted gifts must exceed the exemption equivalent before any Illinois tax is due. The exemption equivalent is increasing each year to reach $3.5 million by 2009. For questions or more information, contact:
Office of the Attorney General
Estate Tax Section
312-814-3000
800-964-3013
www.illinoisattorneygeneral.gov
INDIANA TAX STRUCTURE
Indiana Income Tax
Indiana imposes a flat rate of 3.4 percent on the federal adjusted gross income, although counties can add an additional rate. The state allows numerous “add-backs” or credits for individual residents, partners, and nonresidents with Indiana income sources. Many residents use the Internet to file their tax forms electronically. For further information or answers to specific questions about state income tax, contact:
Indiana Department of Revenue
Headquarters Office
317-232-2240
www.in.gov/dor
Indiana Sales Tax
The state imposes a 6 percent tax on purchases of tangible personal property, public utility service, and some renter transactions collected at the retail level. Additional taxes can be imposed and collected locally on food and beverages. For answers to specific questions, contact:
Department of Revenue
317-233-4015
www.in.gov/dor
Indiana Property Tax
Property taxes are the primary source of revenue for local governments in Indiana. The taxpayer owes the government the tax rate multiplied by the assessed value of the property. The state government collects a very small part of the property tax, at a rate of one cent per $100 assessed value. The property tax is administered on state and county/township levels. For answers to specific questions on property taxes, contact:
Jasper County Assessor
219-866-4914
www.jaspercountyin.gov
Lake County Assessor
219-755-3000
www.lakecountyin.org
LaPorte County Assessor
219-325-5582
www.laportecounty.org/Finance/Assessor
Porter County Assessor
219-465-3460
www.portercountyassessor.com
Estate & Inheritance Tax
Estate taxes are based on the difference between the state death tax credit allowed at the federal level and the amount paid in state inheritance tax. For more information, contact:
Indiana Department of Revenue
317-232-2154
www.in.gov/dor
MICHIGAN TAX STRUCTURE
State Income Tax
Michigan imposes a flat income tax rate that was gradually decreased over a period of several years beginning in 2001 and is currently 3.95 percent. This rate is assessed on the federal adjusted gross income less a $3,100 personal exemption for the taxpayer and the same amount for each dependent. Special credits and other exemptions vary with the taxpayer.
Michigan residents have a number of options in filing their state income tax forms. E-file enables taxpayers to file individual income tax returns—refund and tax due—via computer rather than sending the returns through the mail. Telefiling completes the process via touch-tone telephone dialing for eligible taxpayers. Certain restrictions apply. Using the direct deposit options allows your tax return to be automatically deposited into the account of your choice rather than waiting for a mailed check.
Michigan Sales/Use Tax
Michigan state sales and use taxes are both 6.0 percent. Michigan has no city, local, or county sales tax. The sales tax applies to retail sales of tangible personal property such as clothing, automobiles, furniture, appliances, utilities, transient hotel and motel rooms and other sales at retail. Food, prescription drugs, and services are not subject to this tax.
Residents are required to pay a 6.0 percent use tax on mail order and Internet purchases from out-of-state companies that do not collect Michigan sales or use tax. This includes purchases made while on vacation or while visiting foreign countries. A special entry for calculating and paying Use Tax is included on the Michigan state income tax forms.
Property Taxes
Property taxes are levied at the state and local levels by the state, school districts, cities, counties, townships, and other special jurisdictions. Rates range from $13 to more than $60 per $1,000 valuation depending upon the municipality. Michigan real estate is assessed at 50 percent of the market value. In general, county treasurers handle only delinquent property tax issues. For information or answers to specific questions, contact the assessor in your township or city.
Berrien County Treasurer
269-983-7111
www.berriencounty.org/819/Treasurer
