Bloomington / Normal Use Tax
Q. Why is there a Bloomington/Normal Use Tax?
A. Effective September 1, 1990, the State of Illinois changed the
law as it applied to local sales taxes. From this point forward,
the State began collecting the ½% sales tax on all purchases, with
the exception of the sales tax applied to all titled transactions.
This tax, according to State law, was to be collected locally and
would apply only to the residents of cities that had previously
applied the local sales tax.
Q. Is the Use Tax new?
A. No, however, the name and method of collection are new. The cities
of Normal and Bloomington have, at separate Council meetings, decided
to proceed with the local collection of the Use Tax. Since the tax
only applies to all titled items, it is called a "use tax".
Q. How is the tax paid?
A. Local dealers collect the tax at the time of purchase of any
item requiring a title. Collection for out-of-town dealers is discretionary.
Q. Do out-of-town dealers know about the tax?
A. The Bloomington/Normal Use Tax Division notified most new car
dealers within a 60-mile radius of Bloomington/Normal. Their cooperation
in collection of the tax is request ed. It was also suggested that
the dealers who chose not to collect the tax notify the purchaser
that they would receive an assessment from the Bloomington/Normal
use Tax Division.
Q. What is the Bloomington/Normal Use Tax Division?
A. It is a cooperative effort to economize. Bloomington and Normal
have designed one local system to collect the tax for both cities.
Q. Who gets the revenue generated by the tax?
A. The ½% tax collected from the resident of Bloomington is paid
to the City of Bloomington. The ½ % tax collected from the resident
of Normal is paid to the Town of Normal.
Q. What is the money used for?
A. These revenues go into the General Fund to provide basic services
to residents of the two cities.
Q. What is the State of Illinois ST-556 form?
A. The ST-556 form is completed by the dealer to submit your 6.25%
sales tax to the State. The dealer should give you the blue copy
of this form. If you do not have the form, please call your dealer
to get a copy.
Q. Where do I send the form, copy of the sales invoice or
ST-556 form, and the amount due?
A. The mailing address is:
Bloomington/Normal Use Tax
100 E. Phoenix Avenue, P.O. Box 589
Normal, IL 61761-0589