Illinois Department of Revenue Invites Public Review and Comment on Draft Proposed Rules for Targeted Advertising Services Tax

SPRINGFIELD - The Illinois Department of Revenue (IDOR) has posted to its website draft proposed rules implementing the Targeted Advertising Services Tax Act. Interested parties are encouraged to review and comment before the formal rulemaking process begins. The Act imposes a tax on providers' gross receipts derived from targeted advertising services provided in Illinois. It was enacted by Article 1 of Public Act 104-0468, and the tax is effective beginning January 1, 2027.

"Given the complexity of the targeted advertising industry and the possibly large number of entities subject to the tax we want to ensure the rules provide clear direction and notice for those affected by the new law," explained IDOR Director David Harris. "We encourage industry stakeholders to review the draft proposed rules and share their expertise to help identify areas that may need clarification before formal rulemaking begins."

The draft proposed rules will affect parties acting as targeted advertising services providers in Illinois. IDOR is particularly interested in feedback regarding:

"The goal is to make the rules as clear and useful as possible for those responsible for complying with the new law," Harris said. "We encourage those with experience in the targeted advertising industry to share their feedback."