Illinois Department of Revenue
 
 
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2014 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST-14-0031-GIL 05/12/2014 Miscellaneous The electronic download of a book is not subject to Retailers' Occupation Tax, Use Tax, Service Occupation Tax or Service Use Tax. See 86 Ill. Adm. Code 130. 2105(a)(3). (This is a GIL.)
ST-14-0030-GIL 05/05/2014 Use Tax For watercraft or aircraft, if the period of demonstration use or interim use by the retailer exceeds 18 months, the retailer shall pay Use Tax on the original cost price of the aircraft or watercraft, and no credit for that tax is permitted if the aircraft or watercraft is subsequently sold by the retailer. See 86 Ill. Adm. Code 150.306. (This is a GIL.)
ST-14-0029-GIL 05/05/2014 Construction Contractors As end users of such tangible personal property, construction contractors incur Use Tax liability for such purchases based upon the 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-14-0028-GIL 04/04/2014 Nexus This letter responds to a questionnaire regarding nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST-14-0027-GIL 04/30/2014 Manufacturing Machinery and Equipment Machinery used to shred and bale paper could qualify for the exemption if such equipment is 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(b) (This is a GIL.)
ST-14-0026-GIL 04/30/2014 Aircraft Use Tax The Aircraft Use Tax Law applies to non-retail transactions, gifts, or transfers of aircraft. See 86 Ill. Adm. Code 152.101. (This is a GIL.)
ST-14-0025-GIL 04/24/2014 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST-14-0024-GIL 04/24/2014 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-14-0023-GIL 04/11/2014 Leasing This letter discusses the taxability of various items which are the subject of a lease. See 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST-14-0022-GIL 04/08/2014 Telecommunications Excise Tax This letter provides an overview of items subject to the Telecommunications Excise Tax Act. See 35 ILCS 630. (This is a GIL.)
ST-14-0021-GIL 04/08/2014 Gross Receipts Costs of doing business are an element of the retailer's gross receipts subject to tax even if separately stated on the bill to the customer. See 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST-14-0020-GIL 00/07/2014 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST-14-0019-GIL 04/04/2014 Food This letter discusses the applicable sales tax rates for food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST-14-0018-GIL 04/04/2014 Gross Receipts This letter discusses the rules regarding handling and installation charges. See 86 Ill. Adm. Code 130.410. See also 86 Ill. Adm. Code 130.415 and 86 Ill. Adm. Code 130.450. (This is a GIL.)
ST-14-0017-GIL 04/04/2014 Computer Software This letter discusses the taxability of computer software licenses and maintenance agreements. See 86 Ill. Adm. Code 130.1935 and 86 Ill. Adm. Code 140.301. (This is a GIL.)
ST-14-0016-GIL 04/04/2014 Food This letter discusses the applicable sales tax rates for food and candy. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST-14-0015-GIL 04/04/2014 Rolling Stock Exemption This letter concerns the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (This is a GIL.)
ST-14-0014-GIL 04/04/2014 Farm Machinery & Equipment Nursery stock is not considered equipment under the farm machinery and equipment exemption. See 86 Ill. Adm. Code 130.305 (This is a GIL.)
ST-14-0013-GIL 04/04/2014 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-14-0012-GIL 04/03/2014 Service Occupation Tax Membership fees are generally considered intangibles and are not subject to Retailers’ Occupation Tax or Use Tax. If a membership charge entitles the customer to receive an item of tangible personal property or to receive a service and tangible personal property is transferred incident to the service, the charge may result in Retailers’ Occupation Tax liability, Service Occupation Tax liability, or Use Tax liability. See 86 Ill. Adm. Code 130.401(d) and 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST-14-0011-GIL 04/03/2014 Electricity Excise Tax The purchase price on which a self assessing purchaser must pay tax under the Electricity Excise Tax Law includes charges for transmission or any other service related to the sale or delivery of the electricity. See 35 ILCS 640/2-4(a) and 86 Ill. Adm. Code 511.110(c). (This is a GIL.)
ST-14-0010-GIL 03/10/2014 Exempt Organizations This letter discusses the rules regarding sales to exempt purchasers and certificates of resale. See 86 Ill. Adm. Code 130.210, 86 Ill. Adm. Code 130.1415, and 86 Ill. Adm. Code 130.2005 (This is a GIL.)
ST-14-0009-GIL 03/10/2014 Service Occupation Tax Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b) is met. See 86 Ill. Adm. Code 130.2115. (This is a GIL.)
ST-14-0008-GIL 03/07/2014 Sale For Resale This letter addresses the requirements for a certificate of resale. See 86 Ill. Adm. Code 130.1405 (This is a GIL.)
ST-14-0007-GIL 03/07/2014 Construction Contractors This letter discusses the rules regarding sales of tangible personal property to construction contractors for incorporation into real estate in an Illinois Enterprise Zone and the requirements for using “E” numbers. See 86 Ill. Adm. Code 130.1940, 35 ILCS 120/5k, and 86 Ill. Adm. Code 130.2075(d). (This is a GIL.)
ST-14-0006-GIL 03/07/2014 Machinery & Equipment This letter discusses the manufacturing, machinery & equipment exemption, the manufacturer’s purchase credit, claims for credit, and the rules for obtaining E numbers. See 86 Ill. Adm. Code 130.330 and 86 Ill. Adm. Code 130.331. See also 86 Ill. Adm. Code 130.1501 and 86 Ill. Adm. Code 130.2007 (This is a GIL.)
ST-14-0005-GIL 03/04/2014 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 130.311(f). (This is a GIL.)
ST-14-0004-GIL 03/04/2014 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-14-0003-GIL 03/03/2014 Construction Contractors This letter discusses the tax liability of construction contractors. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST-14-0002-GIL 01/02/2014 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 14-0003-PLR 06/26/2014 Telecommunications Private Letter Ruling. In the event this may not be a defined location, as in the case of mobile phones, paging systems, and maritime systems, service address means the customer's place of primary use as defined in the Mobile Telecommunications Sourcing Conformity Act. 35 ILCS 630/2(n). (This is a PLR.)
ST 14-0002-PLR 06/26/2014 Manufacturing Machinery and Equipment Private Letter Ruling. Post-production storage facilities do not generally qualify for the manufacturing machinery and equipment exemption. However, a refrigeration or freezer facility maintained at a specific temperature which is required in order to preserve a manufactured product, can qualify for the exemption. See 86 Ill. Adm. Code 130.330. (This is a PLR.)
ST 14-0001-PLR 01/02/2014 Manufacturing Machinery and Equipment Private Letter Ruling. The manufacturing machinery and equipment exemption includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a product being manufactured or assembled for sale or lease. See 86 Ill. Adm. Code 130.330(c)(6). (This is a PLR.)
 
 
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