Illinois Department of Revenue
 
 
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2013 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST-13-0077-GIL 11/26/2013 Hotel Operators' Occupation Tax Gross receipts received from representatives of Taipei Economic and Cultural Representative Office in the United States possessing cards issued by American Institute of Taiwan that state the holder of the card is exempt from state and local sales taxes, restaurant and similar taxes are exempt from the Hotel Operators' Occupation Tax.  35 ILCS 145/3.  (This is a GIL.)
ST-13-0076-GIL 11/26/2013 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-13-0075-GIL 11/26/2013 Computer Software This letter discusses the taxability of computer software licenses.  See 86 Ill. Adm. Code 130.1935.  (This is a GIL.)
ST-13-0074-GIL 11/26/2013 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-13-0073-GIL 11/26/2013 Telecommunications Excise Tax Generally, one-time account set-up fees are necessary for, and are directly related to, the retailer’s provision of telecommunications to customers and are included in the gross charges subject to Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.100(a).
ST-13-0072-GIL 11/13/2013 Miscellaneous The exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft applies only to the sale of qualifying tangible personal property to persons who modify, refurbish, complete, repair, replace, or maintain aircraft and who (i) hold an Air Agency Certificate and are empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. See 86 Ill. Adm. Code 130.120(aaa). (This is a GIL.)
ST-13-0071-GIL 11/13/2013 Service Occupation Tax Prior to Public Act 98-583, water service utilities generally acted as de minimis unregistered servicemen with respect to chemicals used in providing water service. As such, they would pay Use Tax to their suppliers for the chemicals. Public Act 98-583 provides that water that is delivered to customers through pipes, pipelines, or mains is not subject to tax under the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, or the Retailers’ Occupation Tax Act. Therefore, chemicals transferred as a component part of the water are not subject to these taxes. See 86 Ill. Adm. Code 140.108 and Public Act 98-583. (This is a GIL.)
ST-13-0070-GIL 11/26/2013 Interstate Commerce This letter discusses sales in interstate and foreign commerce that originate in Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST-13-0069-GIL 11/26/2013 Nexus

This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)

ST-13-0068-GIL 11/27/2013 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-13-0067-GIL 11/27/2013 Returns This letter discusses the rules regarding when a retailer must file a monthly return. See 86 Ill. Adm. Code 130.501. (This is a GIL.)
ST-13-0066-GIL 10/07/2013 Contractors Construction contractors are deemed end users of tangible personal property purchased for incorporation into real property, and they incur Use Tax liability based upon their cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075 (This is a GIL.)
ST-13-0065-GIL 10/22/2013 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-13-0064-GIL 10/22/2013 Rolling Stock Exemption This letter concerns the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (This is a GIL.)
ST-13-0063-GIL 10/22/2013 Use Tax This letter discusses the obligations of registered out-of-state sellers to collect Use Tax. See 86 Ill. Adm. Code 150.801. (This is a GIL.)
ST-13-0062-GIL 10/22/2013 Certificates Of Resale This letter discusses the standard drop-shipment scenario and certificates of resale. See 86 Ill. Adm. Code 130.225 and 86 Ill. Adm. Code 130.1405. (This is a GIL.) ;
ST-13-0061-GIL 10/22/2013 Food This letter discusses the applicable sales tax rates for food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST-13-0060-GIL 10/22/2013 Certificates Of Resale This letter discusses requirements for certificates of resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST-13-0059-GIL 10/18/2013 Community Water Supply This letter concerns the community water supply exemption.  See 35 ILCS 105/3-5(34) and 35 ILCS 120/2-5(39). (This is a GIL.)
ST-13-0058-GIL 10/18/2013 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-13-0057-GIL 10/16/2013 Miscellaneous The Department will not approve the accuracy of private legal publications. (This is a GIL.)
ST-13-0056-GIL 10/08/2013 Sale For Resale This letter addresses the resale of “Motor Fuel”. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST-13-0055-GIL 09/19/2013 Municipalities This letter discusses the taxes a retailer must collect in municipalities that have created business districts. See 65 ILCS 5/11. (This is a GIL.)
ST-13-0054-GIL 09/19/2013 Computer Software This letter discusses the taxability of computer software licenses and maintenance fees and the filing of quarterly returns. See 86 Ill. Adm. Code 130.502. See also 86 Ill. Adm. Code 130.1935 and 86 Ill. Adm. Code 140.301. (This is a GIL.)
ST-13-0053-GIL 09/11/2013 Miscellaneous This letter discusses “prepaid telephone calling arrangements” and prepaid calling plans.  See 35 ILCS 120/2-7. (This is a GIL.)
ST-13-0052-GIL 09/11/2013 Certificate Of Registration Section 2a of the Retailers’ Occupation Tax requires that a corporate applicant must submit the name, title and social security number of each corporate officer in order to obtain registration for sales taxes. See 35 ILCS 120/2a. (This is a GIL.)
ST-13-0051-GIL 09/13/2013 Computer Software This letter concerns the taxation of computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-13-0050-GIL 09/11/2013 Sale For Resale This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST-13-0049-GIL 09/11/2013 Computer Software This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935.  (This is a GIL.)
ST-13-0048-GIL 09/11/2013 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-13-0047-GIL 09/10/2013 Exempt Organizations Exclusively religious, educational, or charitable organizations 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-13-0046-GIL 09/10/2013 Miscellaneous This letter responds to a survey on series LLCs. See 86 Ill. Adm. Code Parts 130 and 150. (This is a GIL.)
ST-13-0045-GIL 08/23/2013 Motor Fuel Tax Motor Fuel Tax is imposed “on the privilege of operating motor vehicles upon the public highways, including toll roads, and recreational-type watercraft upon the waters of this State.” 86 Ill. Adm. Code 500.200(a). This letter discusses taxes applicable to a specific type of dual-fuel vehicle. (This is a GIL.)
ST-13-0044-GIL 08/23/2013 Rolling Stock Exemption This letter concerns the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (T his is a GIL.)
ST-13-0043-GIL 08/23/2013 Hotel Operators' Tax Redemption of a hotel chain’s “rewards points” for stay at one of its hotels is not subject to Hotel Operators’ Tax liability. See 35 ILCS 145/1 et seq. (This is a GIL.)
ST-13-0042-GIL 08/23/2013 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.)See 86 Ill. Adm. Code. (This is a GIL.)
ST-13-0041-GIL 08/23/2013 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-13-0040-GIL 08/23/2013 Food This letter discusses the State tax rate applicable to sales of food, soft drinks and candy. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST-13-0039-GIL 08/23/2013 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-13-0038-GIL 08/08/2013 Medical Appliances This letter discusses the State tax rates applicable to sales of medical appliances. See 86 Ill. Adm. Code 130.311. (This is a GIL.)
ST-13-0037-GIL 08/02/2013 Gross Receipts This letter discusses sales of prescription drugs by servicemen. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST-13-0036-GIL 07/31/2013 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code, Parts 120, 130, 140, and 160. (This is a GIL.)
ST-13-0035-GIL 07/31/2013 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-13-0034-GIL 07/31/2013 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-13-0033-GIL 07/30/2013 Occasional Sale When persons sell tangible personal property which they are not otherwise engaged in the business of selling, such transactions may be occasional sales not subject to ROT. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST-13-0032-GIL 06/19/2013 Computer Software A license of canned software is subject to Retailers' Occupation Tax liability if all of the criteria set out in 86 Ill. Adm. Code 130.1935(a)(1) are not met. (This is a GIL.)
ST-13-0031-GIL 06/12/2013 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-13-0030-GIL 06/11/2013 Returns A manufacturer or wholesaler whose products are sold by numerous distributors in Illinois may assume the responsibility of collecting and remitting Retailers’ Occupation Tax on behalf of all sales made by those distributors under the provisions of 86 Ill. Adm. Code 130.550. See 86 Ill. Adm. Code 130.550. (This is a GIL.)
ST-13-0029-GIL 06/10/2013 Claims For Credit If a taxpayer pays an amount of tax under the Retailers' Occupation Tax that is not due, either as a result of a mistake of fact or an error of law, the taxpayer may file a claim for credit with the Department. No credit shall be given the taxpayer unless the taxpayer shows that he or she has borne the burden of the tax or has unconditionally repaid the amount of the tax to the purchaser from whom it was collected. See 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST-13-0028-GIL 05/28/2013 Hotel Operators' Tax This letter discusses the Hotel Operators’ Tax Act. See 86 Ill. Adm. Code 480.101 (b)(3). (This is a GIL.)
ST-13-0027-GIL 05/28/2013 Computer Software This letter concerns computer software maintenance agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-13-0026-GIL 05/28/2013 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-13-0025-GIL 05/28/2013 Liquor Tax Under the Liquor Control Act of 1934, out-of-state wineries who are going to sell wine directly to Illinois residents must complete an Application For State Of Illinois Winery Shipper’s License (“Direct Shipping Permit”). (This is a GIL.)
ST-13-0024-GIL 05/28/2013 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-13-0023-GIL 04/30/2013 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.)
ST-13-0022-GIL 04/30/2013 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 130.2075. (This is a GIL.)
ST-13-0021-GIL 04/30/2013 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-13-0020-GIL 04/30/2013 Cigarette Tax Retailers must obtain cigarettes for sale at retail from licensed distributors. 35 ILCS 130/4d. (This is a GIL.)
ST-13-0019-GIL 04/26/2013 Sale of Service This letter rescinds, in part, ST-13-0004, regarding the taxation of the Tire User Fee. (This is a GIL.)
ST-13-0018-GIL 04/23/2013 Sale For Resale This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL)
ST-13-0017-GIL 03/31/2013 Tobacco Products Tax Act This letter discusses the taxation of moist snuff. See 35 ILCS 143/10-10. (This is a GIL.)
ST-13-0016-GIL 03/31/2013 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-13-0015-GIL 03/31/2013 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-13-0014-GIL 03/29/2013 Food, Drugs & Medical Appliances This letter discusses the State tax rates applicable to sales of food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310 and 130.311. (This is a GIL.)
ST-13-0013-GIL 03/29/2013 Motor Fuel Tax This letter describes documentation requirements under the Motor Fuel Tax Law. See 86 Ill. Adm. Code 500.335, 500.340 and 500.345. (This is a GIL.)
ST-13-0012-GIL 03/26/2013 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-13-0011-GIL 03/11/2013 Telecommunications Excise Tax This letter concerns the very limited exemptions from Telecommunications Excise Tax. See 35 ILCS 630/2. (This is a GIL.)
ST-13-0010-GIL 02/19/2013 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-13-0009-GIL 02/05/2013 Miscellaneous This letter discusses “prepaid telephone calling arrangements”. See 35 ILCS 120/2-7. (This is a GIL.)
ST-13-0008-GIL 02/05/2013 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-13-0007-GIL 02/05/2013 Enterprise Zones This letter describes the documentation required to document the Enterprise Zone building materials exemption. 35 ILCS 120/5k and 86 Ill. Adm. Code 130.1951(e). (This is a GIL.)
ST-13-0006-GIL 01/30/2013 Nexus This letter responds to questionnaire regarding nexus. See Quill Corp. v. North Dakota, 112 S. Ct. 1904 (1992). (This is a GIL.)
ST-13-0004-GIL 01/25/2013 Sale of Service This letter clarifies and replaces the Department’s previous response regarding the inquiry about the “Tire Disposal Fees” provided in our General Information Letter dated April 13, 2006, ST-06-0036. (This is a GIL.)
NOTE:  ST-13-0019-GIL 04/26/13 rescinds, in the part, ST-13-0004, regarding the taxation of the Tire Use Fee.
ST-13-0003-GIL 01/18/2013 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-13-0002-GIL 01/18/2013 Rolling Stock Exemption This letter discusses diesel exhaust fluid (DEF) and the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (This is a GIL.)
ST-13-0001-GIL
01/09/2013 Sale For Resale

This letter concerns sales for resale. See 86 Ill. Adm. Code 130.1401. (This is a GIL.)


Private Letter Rulings

Ruling Date Subject Synopsis
ST 13-0002-PLR 07/31/2013 Constructions Contractors Private Letter Ruling. 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 130.2075. (This is a PLR).
ST 13-0001-PLR 07/31/2013 Governmental Bodies Private Letter Ruling. Generally, a government contractor who purchases items to fulfill his obligations under a contract with a governmental unit purchases those items for use. See, U.S. v. New Mexico, 455 U.S. 720, 102 S. Ct. 1373 (1982). However, if the contract with the governmental unit explicitly requires the contractor to sell those items to the governmental unit, the purchase of those items by the contractor can be structured as purchases for the purpose of resale to the governmental unit. See 86 Ill. Adm. Code 130.2076. (This is a PLR).
       

 
 
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