Double-Digit Chicago Sales Tax Raises Tax Evasion Questions March 14, 2008 TF Staff TF Staff As shoppers leave Illinois to avoid Chicago’s new 10.25% sales tax, Tax Foundation chief economist Patrick Fleenor was asked by the Chicago Tribune about the so-called use tax. Aren’t shoppers legally required to file a tax form and submit the 10.25% payment even on out-of-state purchases? “Technically, yes,” said Fleenor. “It’s basically tax evasion, and that’s what officials should be concerned about. By definition, border shopping is about distance, but the Internet takes that all away. Now anyone can be a border shopper and avoid paying tax.” Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Illinois Sales Taxes Tags State Tax and Spending Policy