Illinois Department of Revenue
 
 
Legal Information
 
 
 
 
 

2009 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling
Date
Subject Synopsis
ST 09-0167-GIL 12/23/2009 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0166-GIL 12/23/2009 Invested Capital Tax This letter concerns the payment of the invested capital tax by alternative gas suppliers. See 35 ILCS 615/2a.1. (This is a GIL.)
ST 09-0165-GIL 12/23/2009 Delivery Charges Charges designated as delivery or transportation charges are not taxable if it can be shown that they are both agreed to separately from the selling price of the tangible personal property which is sold and that such charges are actually reflective of the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 09-0164-GIL 12/23/2009 Construction Contractors This letter discusses the tax liability of construction contractors. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 09-0163-GIL 12/23/2009 Delivery Charges Charges designated as delivery or transportation charges are not taxable if it can be shown that they are both agreed to separately from the selling price of the tangible personal property which is sold and that such charges are actually reflective of the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 09-0162-GIL 12/21/2009 Sale For Resale This letter discusses the requirements for Certificates of Resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 09-0161-GIL 12/21/2009 Hotel Operators’ Tax
This letter explains the application of the Hotel Operators’ Occupation Tax when rentals are
made to persons holding “E” numbers. (This is a GIL.)
ST 09-0160-GIL 12/21/2009 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0159-GIL 12/21/2009 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0158-GIL 12/21/2009 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0157-GIL 12/09/2009 Motor Fuel Tax The International Fuel Tax Agreement governs the taxation and reporting of fuel tax liabilities for “commercial motor vehicles” as that term is defined in Section 1.16 of the Motor Fuel Tax Law. (This is a GIL.)
ST 09-0156-GIL 12/08/2009 Miscellaneous This letter concerns the Department’s obligations regarding liens under the Retailers’ Occupation Tax Act. 35 ILCS 120/5a & 5b. (This is a GIL.)
ST 09-0155-GIL 12/08/2009 Motor Vehicles This letter responds to a survey concerning taxation of vehicles and updates answers to a previous survey. See 86 Ill. Adm. Code 130.605(b)(1), 150.310(a)(7), 150.315, 151.101 et seq., and 180.101 et seq. (This is a GIL.
ST 09-0154-GIL 12/08/2009 Local Taxes This letter concerns the tax bases for Municipal Retailers' Occupation Taxes that are administered by the Department. See Public Act 85-1135 and 86 Ill. Adm. Code 693.120. (This is a GIL.)
ST 09-0153-GIL 12/08/2009 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 09-0150-GIL 11/13/2009 Delivery Charges The Department’s regulation on the treatment of transportation and delivery charges under the Retailers’ Occupation Tax Act may be found at 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 09-0149-GIL 11/09/2009 Manufacturing Machinery & Equipment This letter discusses application of the manufacturing machinery and equipment explosives and related exemption to blasting equipment used for quarry blasting. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 09-0148-GIL 11/09/2009 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0147-GIL 11/09/2009 Interstate Commerce This letter concerns sales in interstate commerce. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 09-0146-GIL 11/09/2009 Gross Receipts
This letter concerns whether the gross receipts from a sale of kerosene included the tax
imposed on the producer under 26 USCA §4081. See 86 Ill. Adm. Code 130.445(b). (This is a
GIL.)
ST 09-0145-GIL 11/03/2009 Construction Contractors
Persons who permanently affix tangible personal property to real estate act as construction
contractors and incur Use Tax liability on their cost price of tangible personal property they
physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 09-0144-GIL 10/30/2009 Medical Appliances Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0143-GIL 10/28/2009 Gross Receipts Illinois Retailers' Occupation Tax is imposed upon gross receipts from the sale of tangible personal property to end-users and no deductions shall be taken by a taxpayer from gross receipts on account of the cost of the property sold, the cost of materials used, labor costs, or any other expense whatsoever. See 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 09-0142-GIL 10/26/2009 Sale For Resale This letter describes the standard drop-shipment scenario and certificates of resale. 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 09-0141-GIL 10/26/2009 Exempt Organizations Please be advised retail sales made directly to Medicare and Medicaid are exempt from tax as sales to a government body so long as the
ST 09-0140-GIL 10/23/2009 Leasing This letter describes the standard drop-shipment scenario and certificates of resale. 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 09-0139-GIL 10/16/2009 Food, Drugs & Medical Appliances This letter discusses tax on soft drinks. See Public Acts 96-34, 96-37, and 96-38 and 35 ILCS 120/2-10. (This is a GIL.)
ST 09-0138-GIL 10/16/2009 Food This letter provides a brief summary of when the high rate of tax for food and the low rate of tax for food apply. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0137-GIL 10/16/2009 Leasing Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL.)
ST 09-0136-GIL 10/16/2009 Manufacturing Machinery & Equipment Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption extends to machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 09-0135-GIL 10/09/2009 Use Tax A person who purchases tangible personal property for the purpose of giving it away makes a taxable use of the property and incurs Use Tax upon such purchase. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.)
ST 09-0133-GIL 10/02/2009 Sale For Resale This letter discusses the requirements for Certificates of Resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 09-0132-GIL 09/30/2009 Medical Appliances A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 09-0131-GIL 09/29/2009 Manufacturing Machinery & Equipment Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption extends to machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 09-0130-GIL 09/29/2009 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0129-GIL 09/29/2009 Service Occupation Tax If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.)
ST 09-0128-GIL 09/28/2009 Motor Vehicles With regard to modifications to a motor vehicle for the purpose of rendering it usable by a disabled person, the tax is imposed at the rate of 1%. See 86 Ill. Adm. Code 130.310(e). (This is a GIL.)
ST 09-0127-GIL 09/28/2009 Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0126-GIL 09/28/2009 Farm Machinery And Equipment A helicopter used primarily in production agriculture may qualify for the farm machinery and equipment exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 09-0125-GIL 09/28/2009 Sale At Retail A funeral director is engaged in the business of selling tangible personal property to purchasers for use or consumption when he sells such items of tangible personal property as caskets, grave vaults, grave clothing and flowers to purchasers for use or consumption, and he is required to remit Retailers' Occupation Tax to the Department on his gross receipts from such sales. See, 86 Ill. Adm. Code 130.2130 (This is a GIL.)
ST 09-0124-GIL 09/09/2009 Construction Contractors Construction contractors who physically incorporate tangible personal property into real estate owned by exempt organizations or governmental entities that hold tax exempt “E” numbers can purchase such property tax free by providing their suppliers with the certification described in 86 Ill. Adm. Code 130.2075(d). See 86 Ill. Adm. Code Section 130.2075. (This is a GIL.)
ST 09-0123-GIL 09/09/2009 Service Occupation Tax Under the Service Occupation Tax Act, businesses providing services (i.e. servicemen) are taxed on tangible personal property transferred as an incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 09-0122-GIL 09/08/2009 Medical Appliances A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 09-0121-GIL 09/07/2009 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0120-GIL 09/03/2009 Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0119-GIL 09/03/2009 Leasing For Retailers' Occupation Tax and Use Tax liability purposes, there are two types of leasing situations: conditional sales and true leases. See 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 09-0118-GIL 09/03/2009 Use Tax By giving away tangible personal property in Illinois, the donor makes a taxable use of the property and is subject to Use Tax on the cost price of the property purchased to be given away. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.)
ST 09-0117-GIL 09/03/2009 Use Tax In order to prevent actual or likely multi-state taxation, the Use Tax does not apply to the use of tangible personal property in this State that is acquired outside this State and caused to be brought into this State by a person who has already paid a tax in another state in respect to the sale, purchase, or use of that property, to the extent of the amount of the tax properly due and paid in the other state. See 86 Ill. Adm. Code 150.310. (This is a GIL.)
ST 09-0116-GIL 09/02/2009 Food The new definition of “soft drinks” that is effective September 1, 2009 does not include beverage powders or fruit flavored soft drink mix concentrates. See 35 ILCS 120/2-10. (This is a GIL.)
ST 09-0115-GIL 08/31/2009 Food, Drugs & Medical Appliances This letter discusses tax on food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0114-GIL 08/31/2009 Miscellaneous The Department will not approve the accuracy of private legal publications. (This is a GIL.)
ST 09-0113-GIL 08/31/2009 Service Occupation Tax If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his or her activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 09-0112-GIL 08/31/2009 Manufacturing Machinery & Equipment Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption extends to machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 09-0111-GIL 08/31/2009 Miscellaneous Fuel and petroleum products sold to or used by an air common carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.321. (This is a GIL.)
ST 09-0110-GIL 08/26/2009 Food, Drugs & Medical Appliances This letter concerns the low 1% State rate of tax applicable to food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0109-GIL 08/24/2009 Leasing Except as provided in 86 Ill. Adm. Code 130.2011 and 130.2012, lessors incur Use Tax even if the tangible personal property is leased to an exempt entity that has been issued an exemption identification number. See 86 Ill. Adm. Code 130.2011 and 130.2012. (This is a GIL.)
ST 09-0108-GIL 08/21/2009 Medical Appliances Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0107-GIL 08/20/2009 Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL).
ST 09-0106-GIL 08/10/2009 Leasing Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL.)
ST 09-0105-GIL 08/03/2009 Miscellaneous This letter provides general information on sales taxes. See 86 Ill. Adm. Code 130.101, 150.101, and 140.101 through 140-109. (This is a GIL.)
ST 09-0104-GIL 08/03/2009 Computer Software Canned computer software is considered taxable tangible personal property regardless of the form in which it is transferred or transmitted, including tape, disc, card, electronic means or other media. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0103-GIL 08/03/2009 Computer Software Canned computer software is considered taxable tangible personal property regardless of the form in which it is transferred or transmitted, including tape, disc, card, electronic means or other media. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0102-GIL 07/31/2009 Leasing For Retailers' Occupation Tax and Use Tax liability purposes, there are two types of leasing situations: conditional sales and true leases. See 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 09-0101-GIL 07/31/2009 Manufacturing Machinery & Equipment Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption extends to machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 09-0100-GIL 07/31/2009 Delivery Charges The Department’s regulation on the treatment of transportation and delivery charges under the Retailers’ Occupation Tax Act may be found at 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 09-0099-GIL 07/30/3009 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 09-0098-GIL 07/30/2009 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code Parts 130, 140, 150 and 271. (This is a GIL.)
ST 09-0097-GIL 07/23/2009 Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0096-GIL 07/10/2009 Sale At Retail Persons selling tangible personal property at retail are required to register with the Department prior to making sales at retail. See 86 Ill. Adm. Code 130.701. (This is a GIL.)
ST 09-0095-GIL 07/08/2009 Exempt Organizations Organizations possessing “E” numbers issued by the Department are exempt on purchases used in furtherance of organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 09-0094-GIL 07/07/2009 Sale For Resale Purchases of packaging materials may be purchased tax free for resale as long as they are transferred along with the products contained in them to customers. See 86 Ill. Adm. Code 130.2070(b). (This is a GIL.)
ST 09-0093-GIL 07/07/2009 Sale of Service Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 09-0092-GIL 07/06/2009 Manufacturing Machinery & Equipment Tangible personal property that merely “stores/houses” items until they are needed in a manufacturing process does not qualify for the manufacturing Machinery and Equipment Exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
06/26/2009
Sale At Retail Persons who engage in the business of selling monuments, grave markers and the like to purchasers for use or consumption and not for resale incur Retailers' Occupation Tax liability on their receipts from such sales. See 86 Ill. Adm. Code 130.2130. (This is a GIL).
06/18/2009
Farm Machinery & Equipment The Farm Machinery and Equipment exemption is not available to sales of ordinary building
materials. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
06/16/2009
Miscellaneous Natural gas is taxed under the Gas Revenue Tax Act or Gas Use Tax Law. See 86 Ill. Adm.
Code Parts 470 and 471. (This is a GIL.)
06/16/2009
Construction Contractors When a construction contractor permanently affixes tangible personal property to real property,
the contractor is deemed the end user of that tangible personal property. As the end user, the
contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm.
Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
06/09/2009
Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is
a GIL.)
06/05/2009
Computer Software If all the criteria listed in subsection (a)(1)(A)-(E) of Section 130.1935 are met, then neither a
transaction involving the licensing of computer software nor the subsequent software updates
will be considered a taxable retail sale subject to Retailers’ Occupation and Use Tax. See 86
Ill. Adm. Code 130.1935. (This is a GIL.)
06/05/2009
Computer Software This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code
130.1935. (This is a GIL.)
06/04/2009
Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property
transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
06/04/2009
Delivery Charges Charges designated as delivery or transportation charges are not taxable if it can be shown
that they are both agreed to separately from the selling price of the tangible personal property
which is sold and that such charges are actually reflective of the costs of shipping. See 86 Ill.
Adm. Code 130.415. (This is a GIL).
06/03/2009
Computer Software This letter discusses the taxation of software maintenance agreements. See 86 Ill. Adm. Code
130.1935. (This is a GIL.)
06/03/2009
Rolling Stock This letter discusses the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340.
(This is a GIL.)
06/02/2009
Computer Software If transactions for the licensing of computer software meet all of the criteria provided in
subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent
software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code
130.1935. (This is a GIL.)
ST 09-0079-GIL 05/28/2009 Use Tax This letter concerns advertising materials mailed from out-of-State to persons in Illinois. See 86 Ill. Adm. Code 150.201(a). (This is a GIL.)
ST 09-0078-GIL 05/28/2009 Drugs A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0077-GIL 05/28/2009 Use Tax This letter concerns advertising materials mailed from out-of-State to persons in Illinois. See 86 Ill. Adm. Code 150.201(a). (This is a GIL.)
ST 09-0076-GIL 05/28/2009 Sale For Resale This letter concerns sales of tangible personal property for resale. (This is a GIL.)
ST 09-0075-GIL 05/28/2009 Exempt Organizations This letter concerns sales to exempt organizations holding an E-number. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 09-0074-GIL 05/27/2009 Sale At Retail The Retailers' Occupation Tax Act, 35 ILCS 120/1 et seq. imposes a tax upon persons engaged in this State in the business of selling tangible personal property to purchasers for use or consumption. (This is a GIL.)
ST 09-0073-GIL 05/22/2009 Miscellaneous Exemptions from tax are strictly construed. See United Air Lines, Inc. v. Johnson, 84 Ill. 2d. 446, 456, 419 N.E.2d 899, 904 (1981). (This is a GIL.)
ST 09-0072-GIL 05/15/2009 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0071-GIL 05/15/2009 Food Items such as vitamins or dietary supplements are considered foods and may qualify for the low State rate of tax. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0070-GIL 05/13/2009 Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0069-GIL 05/12/2009 Service Occupation Tax If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his or her activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 09-0068-GIL 04/30/2009 Telecommunications Excise Tax Under the Telecommunications Excise Tax Act, gross charges do not include charges for customer equipment, including such equipment that is leased or rented by the customer from any source, wherein such charges are disaggregated and separately identified from other charges. See 86 Ill. Adm. Code 495.100. (This is a GIL.)
ST 09-0067-GIL 04/30/2009 Gross Receipts In computing Retailers' Occupation Tax liability, no deductions shall be taken by a taxpayer from gross receipts on account of the cost of the property sold, or any other cost of doing business. See 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST 09-0066-GIL 04/29/2009 Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/1 et seq. (This is a GIL.)
ST 09-0065-GIL 04/29/2009 Telecommunications Excise Tax Telecommunications purchased, used, or sold by a provider of Internet access to provide
Internet access are subject to the federal moratorium on state-imposed telecommunications
taxes. See 47 USC § 151 note. (This is a GIL.)
ST 09-0064-GIL 04/29/2009 Gas Revenue Tax If a person or an entity purchasing gas falls within the scope of Public Law 105-220, the person or entity distributing, supplying, furnishing or selling the gas is not subject to the Gas Revenue Tax on such sales See 35 ILCS 615/2. (This is a GIL.)
ST 09-0063-GIL 04/27/2009 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0062-GIL 04/27/2009 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0061-GIL 04/27/2009 Leasing Information regarding the tax liabilities involved in a lease transaction may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 09-0060-GIL 04/27/2009 Use Tax The Illinois Department of Revenue offers a Direct Payment Program. See 86 Ill. Adm. Code 130.2500 through 130.2535. (This is a GIL.)
ST 09-0059-GIL 04/16/2009 Computer Software This letter discusses sales of software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0058-GIL 04/02/2009 Construction Contractors
Construction contractors who physically incorporate tangible personal property into real estate
owned by exempt organizations or governmental entities that hold tax exempt “E” numbers can
purchase such property tax free by providing their suppliers with the certification described in
86 Ill. Adm. Code 130.2075(d). See 86 Ill. Adm. Code Section 130.2075. (This is a GIL.)
ST 09-0057-GIL 04/02/2009 Computer Software A license of canned software is subject to Retailers' Occupation Tax liability if all of the criteria
for an exempt license of canned software set out in 86 Ill. Adm. Code 130.1935(a)(1) are not
met. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0056-GIL 04/02/2009 Returns Every retailer required or authorized to collect Use Tax must file a return each month, except when they have been authorized to file on an annual or quarterly basis. See 86 Ill. Adm. Code 150.901. (This is a GIL.)
ST 09-0055-GIL 04/01/2009 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0054-GIL 04/01/2009 Service Occupation Tax The Service Occupation Tax is a tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0053-GIL 04/01/2009 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0052-GIL 04/01/2009 Service Occupation Tax This letter discusses Service Occupation Tax liability involving multi-service situations. See 86 Ill. Adm. Code 140.106, 140.109, and 140.145. (This is a GIL.)
ST 09-0051-GIL 04/01/2009 Service Occupation Tax This letter concerns the taxation of tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.01. (This is a GIL.)
ST 09-0050-GIL
03/31/2009
Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0049-GIL
03/27/2009
Computer Software This letter discusses sales of software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0048-GIL
03/26/2009
Exempt Organizations Organizations that the Department of Revenue has determined to be exclusively religious, educational, or charitable and have been issued an exemption identification number (an "E" number) are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 09-0047-GIL
03/24/2009
Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a GIL).
ST 09-0046-GIL
03/24/2009
Computer Software The transfer of any canned software (or update of canned software) is considered the transfer of tangible personal property and will be subject to Retailers' Occupation Tax and Use Tax liability. Sales of canned software are taxable regardless of the means of delivery. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0045-GIL
03/23/2009
Miscellaneous This letter discusses Nexus, Retailers’ Occupation Tax, Use Tax, Service Occupation Tax, Exempt Organizations, Local Taxes, Construction Contractors. See 86 Ill. Adm. Code 130.1940, 86 Ill. Adm. Code 130.2075, 86 Ill. Adm. Code 140.101, and 86 Ill. Adm. Code 270.115. (This is a GIL.)
ST 09-0044-GIL
03/23/2009
Miscellaneous This letter discusses Nexus, Retailers’ Occupation Tax, Use Tax, Service Occupation Tax, Exempt Organizations, Local Taxes, Construction Contractors, and Shipping. See, 86 Ill. Adm. Code 130.101 et seq. (This is a GIL.)
ST 09-0043-GIL
03/23/2009
Gross Receipts Cook County liquor tax is a tax on the consumer and is therefore deductible from a retailers gross receipts in calculating Retailers' Occupation Tax liability. 86 Ill. Adm. Code 130.435. (This is a GIL.)
ST 09-0042-GIL
03/20/2009
Medical Appliances Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0041-GIL
03/20/2009
Medical Appliances This letter provides a reference to the Department’s rules regarding the State tax rate applicable to food, drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0040-GIL
03/20/2009
Leasing Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL.)
ST 09-0039-GIL
03/20/2009
Medical Appliances A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 09-0038-GIL
03/20/2009
Use Tax This letter provides a reference to the Interim Use and Demonstration Exemption. See, 86 Ill. Adm. Code 150.306. (This is a GIL.)
ST 09-0037-GIL
03/19/2009
Telecommunications Excise Tax Charges for data processing and information retrieval are not taxable. See 86 Ill. Adm. Code 495.100(c). If retailers provide both transmission (such as telephone line charges) and data processing services, the charges for each must be separately stated and identified in the books and records of the retailers. See 86 Ill. Adm. Code 495. (This is a GIL.)
ST 09-0036-GIL
03/19/2009
Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0035-GIL
03/17/2009
Repairs The taxability of maintenance agreements depends upon whether charges for the agreements are included in the selling price of the tangible personal property. See 86 Ill. Adm. Code 140.141 and 140.301. (This is a GIL.)
ST 09-0034-GIL
03/17/2009
Miscellaneous Sales of memberships generally are not subject to Retailers” Occupation Tax. See 86 Ill. Adm. Code Part 130.101. (This is a GIL.)
ST 09-0033-GIL
03/16/2009
Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0032-GIL
03/16/2009
Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0031-GIL
03/16/2009
Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0030-GIL
03/05/2009
Aircraft Use Tax This letter concerns the tax liabilities involving the purchase of a homebuilt aircraft kit. See 86 Ill. Adm. Code 152.101. (This is a GIL).
ST 09-0029-GIL
01/27/2009
Newsprint & Ink Gross receipts from the sale of newspapers and magazines in Illinois are not subject to sales tax. See 86 Ill. Adm. Code Section 130.2015. (This is a GIL.)
ST 09-0028-GIL
01/26/2009
Medical Appliances A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL).
ST 09-0027-GIL
01/23/2009
Prepaid Sales Tax This letter explains that prepaid sales tax is not required to be collected by a distributor when it makes sales to a person who does not incur Retailers' Occupation Tax liability on any of its sales of motor fuel. (This is a GIL.)
ST 09-0026-GIL
01/23/2009
Gross Receipts This letter concerns discount coupons. See 86 Ill. Adm. Code 130.2125(b). This is a GIL.)
ST 09-0024-GIL
01/16/2009
Computer Software This letter rescinds GIL ST 08-0168-GIL. Charges for updates of canned software are fully taxable as sales of software under Section 130.1935(b) of the Department’s rules. If a maintenance agreement provides for updates of canned software (other than "patches" or "bug fixes"), and the charges for those updates are not separately stated and taxed, then the whole agreement is taxable as a sale of canned software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0023-GIL
01/16/2009
Computer Software Charges for updates of canned software are fully taxable as sales of software under Section 130.1935(b) of the Department’s rules. If a maintenance agreement provides for updates of canned software (other than "patches" or "bug fixes"), and the charges for those updates are not separately stated and taxed, then the whole agreement is taxable as a sale of canned software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0022-GIL
01/14/2009
Temporary Storage A temporary storage exemption from the imposition of use tax is available where tangible personal property is “acquired outside this State and which, subsequent to being brought into this State and stored here temporarily, is used solely outside this State or is physically attached to or incorporated into other tangible personal property that is used solely outside this State, or is altered by converting, fabricating, manufacturing, printing, processing or shaping, and, as altered, is used solely outside this State.” See 86 Ill. Adm. Code 150.310(a)(4). (This is a GIL).
ST 09-0021-GIL
01/12/2009
Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0020-GIL
01/12/2009
Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0019-GIL
01/12/2009
Food This letter discusses the appropriate State tax for sales of beverages including soft drinks. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0018-GIL
01/12/2009
Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0016-GIL
01/08/2009
Manufacturer's Purchase Credit Manufacturer's Purchase Credit may be used to satisfy Use Tax or Service Use Tax liability that is incurred on the purchase of production related tangible personal property that does not qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Admin. Code 130.331. (This is a GIL.)
ST 09-0015-GIL
01/08/2009
Food This letter discusses how sales of food can be subject to either low (1%) or general merchandise (6.25%) State tax rates under the Retailers’ Occupation Tax Act. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 09-0014-GIL
01/08/2009
Agricultural Producers & Products LP gas used to dry grain prior to being sold does not qualify as a farm chemical for purposes of the farm chemical exemption. See 86 Ill. Adm. Code 130.305(f). (This is a GIL.)
ST 09-0013-GIL
01/08/2009
Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 09-0012-GIL
01/08/2009
Use Tax Section 3 of the Illinois Use Tax Act, 35 ILCS 105/3, imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL).
ST 09-0011-GIL
01/08/2009
Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0010-GIL
01/06/2009
Hotel Operators’ Tax Gross receipts from the rentals of rooms to "permanent residents" are not subject to Hotel Operators' Occupation Tax liability. A "permanent resident" is any person who has occupied or has the right to occupy any room or rooms in a hotel for at least 30 consecutive days. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 09-0009-GIL
01/06/2009
Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 09-0008-GIL
01/05/2009
Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 09-0007-GIL
01/05/2009
Miscellaneous The Department does not consider the viewing and downloading of video, text and similar data over the Internet to be the transfer of tangible personal property. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 09-0006-GIL
01/05/2009
Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 09-0005-GIL
01/05/2009
Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL).
ST 09-0004-GIL
01/05/2009
C.O.A.D. In general, machines that allow players to accumulate credits that may be redeemed for gift cards that the players can use to receive property do not meet the definition of a coin-operated amusement device subject to tax under the Coin-Operated Amusement Device and Redemption Machine Tax Act. See 35 ILCS 510/1 et seq. and the corresponding regulations at 86 Ill. Adm. Code 460.101 et seq. (This is a GIL.)
ST 09-0003-GIL
01/05/2009
Sale For Resale This letter discusses the requirements for Certificates of Resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 09-0002-GIL
01/05/2009
Medical Appliances A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 09-0001-GIL
01/05/2009
Farm Machinery & Equipment Supplies used in production agriculture do not qualify for the Farm Machinery & Equipment exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)

Private Letter Rulings

Ruling
Date
Subject Synopsis
ST-09-0011-PLR 12/07/2009 Food Where an establishment sells both food which has been prepared for immediate consumption and grocery-type items and also provides facilities for on-premises consumption, the lower rate of tax can be charged on the grocery-type items if the selling areas are separated and served by separate means of collection. See 86 Ill. Adm. Code 130.310 and 130.ILLUSTRATION C. (This is a PLR.)
ST 09-0010-PLR 11/02/2009 Rolling Stock Exemption This letter concerns the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (This is a PLR.)
ST 09-0009-PLR 10/08/2009 Exempt Organizations This letter concerns the documentation to be retained by retailers making sales to exempt organizations holding an E-number. See 86 Ill. Adm. Code 130.2005. (This is a PLR.)
ST 09-0008-PLR 10/06/2009 Service Occupation Tax This letter concerns a sale of service when no tangible personal property is transferred incident to that sale of service. See 86 Ill. Adm. Code Part 140. (This is a PLR).
ST 09-0007-PLR 10/06/2009 Telecommunications Excise Tax The COMPANY is exempt from the Telecommunications Excise Tax Act, the Telecommunications Infrastructure Maintenance Fee Act, and the Simplified Municipal Telecommunications Tax Act. See STATUTE. (This is a PLR.)
ST 09-0006-PLR 06/25/2009 Agents When a person acts as an agent for a known or disclosed principal and sells tangible personal
property for the disclosed principal, the agent does not incur Retailers' Occupation Tax liability.
See 86 Ill. Adm. Code 130.1915. (This is a PLR).
ST 09-0004-PLR
04/16/2009
Manufacturing Machinery & Equipment Machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.330. (This is a PLR.)
ST 09-0003-PLR
03/31/2009
Manufacturing Machinery & Equipment Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a PLR).
ST 09-0002-PLR
03/11/2009
Tobacco Products Tax Act This letter provides guidance on the manner in which to calculate the wholesale price for promotional tobacco products which are sold in larger, pre-packaged units. See 35 ILCS 143/10-5. (This is a PLR).
ST 09-0001-PLR
01/06/2009
Newsprint & Ink This letter informs the taxpayer that the publication described qualifies for the newsprint and ink exemption under the Retailers' Occupation Tax Act. See 86 Ill. Adm. Code 130.2105. (This is a PLR.)
 
 
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