The tax is imposed on the use of dry-cleaning solvent by persons who operate dry-cleaning facilities in Illinois. License fees are imposed on those who operate dry-cleaning facilities. The Dry-Cleaner Environmental Response Trust Fund Council issues the licenses.
Sales of dry-cleaning solvent to the following facilities are exempt from the tax:
- A facility located on a United States military base
- An industrial laundry, a commercial laundry, or a linen supply facility
- A prison or other penal institution that dry-cleans only as part of a correctional industries program to provide dry-cleaning to persons who are incarcerated in a prison or a penal institution or to resident patients of a state-operated mental health facility
- A not-for-profit hospital or other health care facility
- A facility presently or formerly located on federal or state government property
- A facility that will not use the dry-cleaning solvent in a dry-cleaning operation
Tax Rate Database to find the tax rates for chlorine-based solvents, petroleum based solvents, and green solvents.
NOTE: The Dry-Cleaner Environmental Response Trust Fund Council determines the tax rate annually.
License fees are due annually on or before December 31 for the following license year. The fee is based on the amount and type of dry-cleaning solvent used annually by a dry-cleaning facility operator. The amount of the fee is determined annually by the Dry-cleaner Environmental Response Trust Fund Council and varies from $1,500 to $5,000 depending on type and gallons of solvents used. Proof of license fee payment is required to receive a dry-cleaning license from the Dry cleaning Trust Fund Council. The Council issues Form DS-3, Dry-Cleaning Operators' License Fee Payment Form, to license holders to indicate the amount of license fee due. License holders can make a credit card payment for the license fee using Illinois E-Pay. License holders also can use Form DS-3 to make the license fee payment. Note that license holders making license fee payments using Illinois E-Pay do not need to submit Form DS-3 to the Illinois Department of Revenue.
Form/Filing & Payment Requirements
DS-1, Dry-Cleaning Solvent Tax Return, is due quarterly on or before April 25, July 25, October 25, and January 25. Form DS-1 can be filed electronically using MyTax Illinois. MyTax Illinois also allows you to electronically pay your solvent tax due.