Illinois Department of Revenue seeks public comment on targeted advertising tax rules

FOX23 News at 9 p.m.

SPRINGFIELD, Ill. (KBSI) – The Illinois Department of Revenue is seeking public feedback on proposed rules for a new tax on targeted advertising services set to take effect Jan. 1, 2027.

The department has posted draft rules implementing the Targeted Advertising Services Tax Act, which imposes a tax on providers’ gross receipts from targeted advertising services provided in Illinois.

The tax was established under Public Act 104-0468.

IDOR Director David Harris said the department is seeking industry input to help clarify the rules before the formal rulemaking process begins.

“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,” Harris said.

The department is particularly interested in identifying issues not addressed in the draft rules and gathering additional examples to help businesses understand how the tax applies to specific situations.

The draft rules are available for public review on the Illinois Department of Revenue website.