Retailers’ Occupation Tax

The City of Rock Island is a home rule unit of local government and is therefore authorized to impose a home rule sales tax to be collected by the Illinois Department of Revenue. This tax, known locally as the retailers’ occupation tax, is imposed on the same general merchandise base as the state sales tax. The retailers’ occupation tax rate is 1.25% and is set by city ordinance.

Exclusions


The following are exempt from the retailers’ occupation tax:
  • Titled or registered tangible personal property:
    • Vehicles
    • Watercraft
    • Aircraft
    • Trailers
    • Mobile homes
  • Qualifying food, drugs, and medical appliances