Illinois Department of Revenue
 
 
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2012 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling
Date
Subject Synopsis
ST 12-0065-GIL 12/27/2012 Use Tax The Illinois Use Tax Act imposes a tax on the purchaser by taxing the use of tangible
personal property purchased from a retailer. See 35 ILCS 105/3. (This is a GIL.)
ST 12-0064-GIL 12/27/2012 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
130.311. (This is a GIL.)
ST 12-0063-GIL 12/21/2012 Food This letter concerns the sale of gift baskets. See 86 Ill. Adm. Code 130.310. (This is a
GIL.)
ST 12-0062-GIL 12/20/2012 Aircraft Use Tax Aircraft Use Tax liability is incurred on aircraft acquired by gift, transfer, or non-retail
purchase. See 86 Ill. Adm. Code 152.101. (This is a GIL.)
ST 12-0061-GIL 12/07/2012 Vehicle Use Tax Article X of the Illinois Vehicle code imposes a tax on the privilege of using a motor
vehicle in this State that is acquired by gift, transfer, or purchase. This letter rescinds
ST 12-0054-GIL. (This is a GIL.)
ST 12-0060-GIL 11/30/2012 Hotel Operators' Tax The Hotel Operators' Occupation Tax Act is imposed upon hotel operators engaged in
the business of renting, leasing or letting rooms in a hotel. See 86 Ill. Adm. Code
480.101. (This is a GIL.)
ST 12-0059-GIL 11/29/2012 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 12-0058-GIL 11/02/2012 Miscellaneous The sale of airline tickets is not a sale of tangible personal property and is not subject to
the Retailers Occupation Tax or Use Tax. See 86 Ill. Adm. Code 130.101 and 150.101.
(This is a GIL.)
ST 12-0057-GIL 11/02/2012 Miscellaneous The Department will not approve the accuracy of private legal publications. (This is a
GIL.)
ST 12-0056-GIL 10/24/2012 Manufacturing Machinery & Equipment This letter describes the Manufacturing Machinery and Equipment Exemption and the
Manufacturer’s Purchase Credit. See 86 Ill. Adm. Code 130.330 and 130.331. (This is a GIL.)
ST 12-0055-GIL 10/03/2012 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 12-0054-GIL 09/27/2012 Vehicle Use Tax

Article X of the Illinois Vehicle Code imposes a tax on the privilege of using a motor vehicle in this State that is acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001. See also 86 Ill. Adm. Code 151.101. (This is a GIL.)

Note: This letter was rescinded by ST-12-0061-GIL

ST 12-0053-GIL 09/27/2012 Food This letter discusses the State tax rates applicable to sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 12-0052-GIL 09/20/2012 Miscellaneous This letter responds to a general information request regarding sales and excise taxes. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 12-0051-GIL 09/20/2012 Sale For Resale This letter describes the standard drop-shipment scenario and certificates of resale. See 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 12-0050-GIL 09/04/2012 Food This letter discusses the State tax rates applicable to sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 12-0049-GIL 09/01/2012 Miscellaneous This letter discusses the sales of cellular telephones. 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 12-0048-GIL 08/20/2012 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 12-0047-GIL 08/20/2012 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 12-0046-GIL 08/09/2012 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 130.311. (This is a GIL.)
ST 12-0045-GIL 08/02/2012 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 12-0044-GIL 07/30/2012 Exempt Organizations Organizations possessing “E” numbers issued by the Department are exempt on purchases used in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 12-0043-GIL 07/30/2012 Miscellaneous This letter discusses the Prepaid Wireless 9-1-1 Surcharge Act. 50 ILCS 753.(This is a GIL.)
ST 12-0042-GIL 07/27/2012 Exempt Organizations Sales by exclusively charitable, religious or educational organizations are not subject to the Retailers' Occupation Tax when it can be said that such selling is noncompetitive with business establishments. 86 Ill. Adm. Code 130.2005(a)(3). (This is a GIL.)
ST 12-0041-GIL 07/27/2012 Telecommunications Excise Tax 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 12-0040-GIL 07/24/2012 Vehicle Use Tax Article X of the Illinois Vehicle Code imposes a tax on the privilege of using a motor vehicle in this State that is acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001. (This is a GIL.)
ST 12-0039-GIL 07/24/2012 Miscellaneous This letter discusses “prepaid telephone calling arrangements” and the Prepaid Wireless 9-1-1 Surcharge Act. See 35 ILCS 120/2-7 and 50 ILCS 753. (This is a GIL.)
ST 12-0038-GIL 07/24/2012 Leasing The question of whether a lessor’s sale of tangible personal property coming off lease that is no longer needed for the lessor’s rental inventory is subject to Retailers' Occupation Tax liability depends on whether the seller is strictly a lessor, or whether the seller is otherwise engaged in the business of selling like-kind property. See 86 Ill. Adm. Code 130.2013. (This is a GIL).
ST 12-0037-GIL 07/24/2012 Returns Every person engaged in the business of selling tangible personal property at retail must file a Form ST-1 on a monthly basis on or before the 20th day of each month. A taxpayer can be authorized by the Department to file a quarterly return. See 86 Ill. Adm. Code 130.501 and 86 Ill. Adm. Code 130.502. (This is a GIL.)
ST 12-0036-GIL 07/23/2012 Cigarette Tax Act This letter discusses the taxation of “little cigars” under the Cigarette Tax Act. See P.A 97-0688. (This is a GIL.)
ST 12-0035-GIL 07/20/2012 Leasing Information regarding the tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 12-0034-GIL 07/20/2012 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 12-0033-GIL 07/20/2012 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code, Parts 120, 130, 140, and 160. (This is a GIL.)
ST 12-0032-GIL 07/18/2012 Motor Fuel Tax This letter discusses sales of motor fuel to an exempt organization. See 86 Ill. Adm. Code 500.235 and 500.265. (This is a GIL.)
ST 12-0031-GIL 06/29/2012 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 12-0030-GIL 06/15/2012 Cigarette Tax Stamped or unstamped cigarette packages may be sold or transferred between licensed cigarette distributors. See FY 2012-09. (This is a GIL.)
ST 12-0029-GIL 06/15/2012 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 12-0028-GIL 06/15/2012 Claims For Credit This letter discusses claims for credit. See 86 Ill. Adm. Code Sections 130.1501. (This is a GIL.)
ST 12-0027-GIL 06/15/2012 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 12-0026-GIL 06/15/2012 Telecommunications Excise Tax This letter concerns the very limited exemptions from Telecommunications Excise Tax. See 35 ILCS 630/2. (This is a GIL.)
ST 12-0025-GIL 06/14/2012 Leasing Information regarding the tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 12-0024-GIL 05/18/2012 Sale At Retail This letter concerns purchases of food and drinks by exempt organizations or their members. 86 Ill. Adm. Code 130.2145(b). (This is a GIL.)
ST 12-0023-GIL 05/16/2012 Miscellaneous This letter discusses the Prepaid Wireless 9-1-1 Surcharge Act. 50 ILCS 753/. (This is a GIL.)
ST 12-0022-GIL 04/27/2012 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 12-0021-GIL 04/04/2012 Motor Vehicles An out-of-state leasing company that sells a vehicle located in Illinois at the end of a lease to an Illinois purchaser must report the sale on Form ST-556, Sales Tax Transaction Return. See Illinois Department of Revenue Compliance Alert 2011-09 (April 2011). (This is a GIL.)
ST 12-0020-GIL 04/02/2012 Hotel Operators' Tax The Hotel Operators' Occupation Tax Act is imposed upon hotel operators engaged in the business. Hotel operators are permitted to reimburse themselves for this tax liability by stating such amount as an additional charge to persons renting rooms. 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 12-0019-GIL 03/30/2012 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 12-0018-GIL 03/27/2012 Sale For Resale This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 12-0017-GIL 03/23/2012 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 130.311. (This is a GIL.)
ST 12-0016-GIL 03/14/2012 Telecommunications Excise Tax “Prepaid telephone calling arrangements” are taxable under the Retailers’ Occupation Tax Act. See 35 ILCS 120/2-7. (This is a GIL.)
ST 12-0015-GIL 03/16/2012 Gross Receipts This letter discusses sales of prescription drugs by servicemen. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 12-0014-GIL 03/14/2012 Telecommunications Excise Tax “Prepaid telephone calling arrangements” are taxable under the Retailers’ Occupation Tax Act. See 35 ILCS 120/2-7. (This is a GIL.)
ST 12-0013-GIL 03/05/2012 Exempt Organizations Organizations possessing “E” numbers issued by the Department are exempt on purchases used in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 12-0012-GIL 03/05/2012 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 12-0011-GIL 02/29/2012 Computer Software This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 12-0010-GIL 02/29/2012 Miscellaneous This letter discusses taxation of purchases of printing paper by Illinois printer customers. See 86 Ill. Adm. Code Sections 130.1405 and 130.2105. (This is a GIL.)
ST 12-0009-GIL 02/28/2012 Sale At Retail This letter discusses deal-of-the-day transactions. 35 ILCS 120/1. (This is a GIL.)
ST 12-0008-GIL 02/24/2012 Service Occupation Tax The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based on the tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST-12-0007- GIL 01/31/2012 Gross Receipts This letter discusses layaway service charges and cancellation fees. See 86 Ill. Adm. Code 130.430. (This is a GIL.)
ST-12-0006- GIL 01/27/2012 Miscellaneous Municipal gas taxes imposed under the authority provided in Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8-11-2) are not administered by the Department of Revenue. (This is a GIL.)
ST-12-0005- GIL 01/20/2012 Leasing Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST-12-0004- GIL 01/20/2012 Sale For Resale This letter is a response to a survey regarding drop shipments. For information regarding drop
shipments, see the Department’s regulation entitled “Drop Shipments,” found at 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST-12-0003- GIL 01/11/2012 Governmental Bodies Governmental bodies incur Retailers Occupation Tax liability when selling tangible personal property to the public for use or consumption. The only exception is the sale of an item by a governmental body in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL.)
ST-12-0002- GIL 01/06/2012 Computer Software This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-12-0001- GIL 01/06/2012 Miscellaneous This letter responds to a questionnaire. See 86 Ill. Adm. Code, Parts 130, 150, and 270. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 12-0013-PLR 11/30/2012 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 130.311. (This is a PLR.)
ST 12-0012-PLR 11/30/2012 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 130.311. (This is a PLR.)
ST 12-0011-PLR 11/21/2012 Use Tax This letter concerns the use of carbon excavated from property owned by an electric generating facility and used by that facility as fuel to generate electricity. See 86 Ill. Adm. Code 150.101. (This is a PLR.)
ST 12-0010-PLR 10/12/2012 Rolling Stock This letter concerns the rolling stock exemption for aircraft. See 86 Ill. Adm. Code
130.340. (This is a PLR).
ST 12-0009-PLR 10/03/2012 Trade-Ins This letter revokes Private Letter Ruling ST 12-0005-PLR. This letter concerns advance
trade-in transactions by a lessor of motor vehicles. See 86 Ill. Adm. Code 130.455.
(This is a PLR).
ST 12-0008-PLR 09/28/2012 Sale For Resale This letter concerns sales for resale. See 86 Ill. Adm. Code 130.1401, et seq. and Dearborn Wholesale Grocers, Inc. v. Whitler, 82 Ill.2d 471 (1980). (This is a PLR.)
ST 12-0007-PLR 08/17/2012 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 the purchase price of that tangible personal property. See 86 Ill. Adm. Code 150.305. (This is a PLR).
ST 12-0006-PLR 06/15/2012 Gross Receipts When a retailer allows a purchaser a discount from the selling price on the basis of a coupon for which the retailer receives no reimbursement from any source, the amount of such discount is not include in gross receipts for calculating Retailers’ Occupation Tax liability. See 86 Ill. Adm. Code 130.2125. (This is a PLR).
ST 12-0005-PLR 06/14/2012 Trade-Ins Note: This letter was revoked by Private Letter Ruling ST 12-0009-PLR.
This letter concerns advance trade-in transactions by a lessor of motor vehicles. See
86 Ill. Adm. Code 130.455. (This is a PLR).
ST 12-0004-PLR 06/14/2012 Trade-ins This letter discusses advance trade-ins of motor vehicles. See 86 Ill. Adm. Code 130.455. (This is a PLR.)
ST-12-0003-PLR 04/02/2012 Enterprise Zones Sales of tangible personal property to be used or consumed in the operation of pollution control facilities located in an enterprise zone and certified by the Department of Commerce and Economic Opportunity are exempt from the tax imposed by the Retailers’ Occupation Tax Act. See 35 ILCS 120/1e; 86 Ill. Admin. Code 130.1951(i). (This is a PLR.)
ST-12-0002-PLR 03/30/2012 Manufacturing Machinery & Equipment Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment 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 PLR).
ST-12-0001-PLR 01/26/2012 Gas Revenue Tax This letter concerns purchases for resale of natural gas that is converted into Compressed Natural Gas (CNG) for sale as a motor fuel. See 86 Ill. Adm. Code 470.145. (This is a PLR).

 
 
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