General Information Letter ST-21-0027, Ill. Dept. of Rev. (7/29/21). Responding to an inquiry on whether destination sales of drop shipments are included in Illinois’ economic presence nexus threshold calculation, the Illinois Department of Revenue explains that if a sale is properly documented as a sale for resale under Illinois law, it generally would not count toward the economic nexus thresholds establishing Illinois sales and use tax remittance obligations. However, if there is not proper documentation that a transaction is a sale for resale in a drop shipment scenario, it may be considered a taxable retail sale by an out-of-state drop shipper when delivered to a purchaser in Illinois and would then count toward Illinois’ economic nexus threshold computation. Please contact us with any questions.