General Information Letters

Ruling	Date	Subject	Synopsis
ST 02-0274-GIL	12/30/2002	Telecommunications Excise Tax	Facsimile transmission services are subject to Illinois Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.110 (This is a GIL).
ST 02-0273-GIL	12/27/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0272-GIL	12/27/2002	Delivery Charges	Transportation and delivery charges are not taxable if it can be shown that the charges are agreed to separately from the selling price of the tangible personal property sold, and the charges are actually reflective of the costs of shipping. To the extent the transportation and delivery charges exceed the costs of shipping, the charges will be subject to tax. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 02-0271-GIL	12/26/2002	Food	For purposes of the Illinois Retailers' Occupation Tax Act, food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0270-GIL	12/26/2002	Miscellaneous	This letter responds to a taxpayer’s request for a copy of an earlier letter sent to it by the Department, and provides the Department’s website and other information. See 86 Ill. Adm. Code 1200.130. (This is a GIL).
ST 02-0269-GIL	12/23/2002	Nexus	This letter discusses the issue of nexus. See Quill v. North Dakota, 112 S. Ct. 1902 (1992). (This is a GIL).
ST 02-0268-GIL	12/23/2002	Manufacturing Machinery and Equipment	Manufacturing Equipment used by a manufacturer in nonoperational activities, such as disposal of waste, does not qualify for the manufacturing
ST 02-0267-GIL	12/19/2002	Service Occupation Tax	The transfer of tangible personal property results in Service Occupation Tax liability rather than Retailers’ Occupation Tax liability where the purchaser employs the seller primarily for its engineering skill to design and produce the property on special order, where the property has use or value only for the specific purpose for which it was produced and where the property has use or value only to the purchaser. See 86 Ill. Adm. Code 130.2155. (This is a GIL).
ST 02-0266-GIL	12/12/2002	Pollution Control Facilities	No items qualify for the Pollution Control Facilities exemption in and of themselves. No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335(a) of the Department's rules. (This is a GIL).
ST 02-0265-GIL	12/12/2002	Construction Contractors	In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, 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. (This is a GIL).
ST 02-0264-GIL	12/11/2002	Construction Contractors	Construction contractors that make improvements to real estate by taking materials off the market and permanently affixing them to real estate owe Use Tax on the cost price of those materials. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 02-0263-GIL	12/10/2002	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 02-0262-GIL	12/10/2002	Computer Software	Sales of canned software are taxable regardless of the means of delivery. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 02-0261-GIL	12/06/2002	Construction Contractors	Construction contractors incur a Use Tax liability on the cost price of items such as trees and shrubs that they plant in the ground for their customers. See 86 Ill. Adm. Code 130.1965(c)(2). (This is a GIL).
ST 02-0260-GIL	12/06/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident of their sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 02-0259-GIL	12/06/2002	Food	This letter discusses the criteria used to determine the proper rate of taxation of food. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0258-GIL	12/04/2002	Sale for Resale	Certificates of Resale must contain the information if 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 02-0257-GIL	12/04/2002	Telecommunications Excise Tax	This letter answers questions regarding the application of the Mobile Telecommunications Sourcing Conformity Act to the Telecommunications Excise Tax Act and the Simplified Municipal Telecommunications Tax Act. See 35 ILCS 638/1 et seq. (This is a GIL).
ST 02-0256-GIL	12/03/2002	Certificate of Registration	Businesses are required to obtain certificates of registration from the Department in order to lawfully sell tangible personal property at retail in this State. See 35 ILCS 120/2a. (This is a GIL).
ST 02-0255-GIL	12/02/2002	Motor Fuel Tax	The International Fuel Tax Agreement (IFTA) and the Department’s regulations at 86 Ill. Adm. Code 500.300 prevent the Department from issuing multiple licenses to an IFTA licensee. (This is a GIL).
ST 02-0254-GIL	12/02/2002	Miscellaneous	Section 11 of the Retailers’ Occupation Tax Act, 35 ILCS 120/11, sets forth provisions for the confidentiality of taxpayer information. (This is a GIL.)
ST 02-0253-GIL	12/01/2002	Charitable Games	The provisions of the Raffles Act, 230 ILCS 15/1, govern the conduct of raffles in Illinois. (This is a GIL.)
ST 02-0252-GIL	11/20/2002	Food, Drugs, and Medical Appliances	Medicines and medical appliances are not taxed at the normal 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 02-0251-GIL	11/18/2002	Construction Contractors	Under Illinois law, a person who takes tangible personal property off the market by converting it into real estate is deemed to be a construction contractor and is the legal end-user of the tangible personal property. The construction contractor, as the user, incurs Illinois Use Tax and local Retailers’ Occupation Tax reimbursement liabilities when the tangible personal property that will be converted into real estate is purchased from registered Illinois suppliers. See 86 Ill. Adm. Code 130.1940. (This is a GIL).
ST 02-0250-GIL	11/14/2002	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 of tangible personal property 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 02-0249-GIL	11/07/2002	Motor Vehicles	86 Ill. Adm. Code 150.310(a)(4) requires that tangible personal property that is brought into Illinois for temporary storage and subsequently transported outside this State for use must be used solely outside this State for the temporary storage exemption to apply. (This is a GIL).
ST 02-0248-GIL	11/06/2002	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801, enclosed. (This is a GIL).
ST 02-0247-GIL	10/31/2002	Use Tax	This letter responds to a survey regarding Use Tax collection. See 86 Ill. Adm. Code 150.101. (This is a GIL).
ST 02-0246-GIL	10/31/2002	Nexus	This letter discusses nexus and Service Occupation Tax issues. See 86 Ill. Adm. Code 150.201. (This is a GIL).
ST 02-0245-GIL	10/31/2002	Trade-Ins	Under Illinois law, a trade-in credit is available to a retailer when the purchaser trades in tangible personal property of like kind and character as that which is being sold by the retailer. See 86 Ill. Adm. Code 130.425. (This is a GIL.)
ST 02-0244-GIL	10/31/2002	Exempt Organization	Although federally chartered credit unions do not qualify as exempt organizations under Illinois law, they do not incur Use Tax liability when making purchases of tangible personal property for use or consumption because of a federal statute See 12 USC 1768 and 86 Ill. Adm. Code 130.2085. (This is a GIL).
ST 02-0243-GIL	10/31/2002	Exempt Organizations	While the sale of tangible personal property at retail by exclusively religious, educational or charitable organizations is generally subject to Retailer’s Occupation Tax, there are three limited exceptions. See 86 Ill. Adm. Code 130.2005(a)(2-4). (This is a GIL).
ST 02-0242-GIL	10/31/2002	Food	For purposes of the Illinois Retailers' Occupation Tax Act, food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0241-GIL	10/31/2002	Food	If food is sold in automatic vending machines where an occupation tax is paid on such sales, the machines may be purchased tax free. See 86 Ill. Adm. Code 130.332. (This is a GIL).
ST 02-0240-GIL	10/31/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident of their sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 02-0239-GIL	10/31/2002	Miscellaneous	This letter discusses “shipping and handling” charges and the tax consequence of reward credits. See 86 Ill. Adm. Code 130.401(c). (This is a GIL).
ST 02-0238-GIL	10/31/2002	Local Taxes	It is the Department’s opinion that the provisions of 65 ILCS 5/7-4-2 do not apply to distribution of State and local sales tax revenue to local jurisdictions. (This is a GIL).
ST 02-0237-GIL	10/30/2002	Tobacco Products Tax Act	This letter discusses claims for credit under the Tobacco Products Tax Act of 1995. See 35 ILCS 143/10-1 et seq. (This is a GIL).
ST 02-0236-GIL	10/25/2002	Food	Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0235-GIL	10/25/2002	Tax Collection	Illinois law requires that all overcollections of tax must either be turned over to the Department or refunded to the customer. See, 35 ILCS 120/2-40. (This is a GIL).
ST 02-0234-GIL	10/25/2002	Medical Appliances	Lenses for the eye that are permanently placed in the eyes of patients that have cataract surgery qualify for the low (1%) rate of tax as medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0233-GIL	10/25/2002	Local Taxes	If purchase orders are accepted in a jurisdiction that imposes a local tax, that local tax will be incurred. See 86 Ill. Adm. Code 270.115(b). (This is a GIL).
ST 02-0232-GIL	10/24/2002	Delivery Charges	Transportation and delivery charges are not taxable if it can be shown that the charges are separately contracted for and the charges are actually reflective of the costs of shipping. To the extent the transportation and delivery charges exceed the costs of shipping, the charges will be subject to tax. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 02-0231-GIL	10/24/2002	Enterprise Zones	Window blinds that are physically installed into real estate can qualify for the enterprise zone building materials exemption from sales tax. See 86 Ill. Adm. Code 130.1951. (This is a GIL).
ST 02-0230-GIL	10/24/2002	Miscellaneous	The amount of Retailers’ Occupation Tax due is based upon a percentage of the gross receipts received from the sale of tangible personal property. See 35 ILCS 120/1 et seq. and the Department’s regulations at 86 Ill. Adm. Code 130.401(d) and 86 Ill. Adm. Code 130.2145(c)(2)(C). (This is a GIL).
ST 02-0229-GIL	10/24/2002	Food	For purposes of the Illinois Retailers' Occupation Tax Act, food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0228-GIL	10/23/2002	Food	Soft drinks do not include coffee, tea, non-carbonated water, various milk products, drinks containing 50% or more natural fruit or vegetable juice, powdered drink mixes or concentrated and reconstituted fruit juices. See 86 Ill. Adm. Code 130.310 (b)(5). (This is a GIL).
ST 02-0227-GIL	10/23/2002	Food	With respect to food for human consumption which is to be consumed off the premises where it is sold, Retailers' Occupation Tax is imposed at the rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0226-GIL	10/23/2002	Computer Software	Sales of “canned” computer software are considered taxable retail sales in Illinois regardless of the manner of the transfer of that software. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 02-0225-GIL	10/22/2002	Computer Software	If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL).
ST 02-0224-GIL	10/22/2002	Computer Software	Charges for freight are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 02-0223-GIL	10/22/2002	Delivery Charges	Exempt manufacturing equipment can include chemicals if they effect a direct and immediate change upon a product being manufactured pursuant to 86 Ill. Adm. Code 130.330(c)(6). (This is a GIL).
ST 02-0222-GIL	10/15/2002	Motor Fuel	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 02-0221-GIL	10/11/2002	Exempt Organizations	Only sales to exempt organizations holding an E-number are exempt from sales tax, not sales to individual members of the organization. See 86 Ill. Adm. Code 130.2005. (This is a GIL).
ST 02-0220-GIL	10/08/2002	Miscellaneous	Charges for Internet monitoring services when no tangible personal property is being transferred to the customer are not subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 02-0219-GIL	10/08/2002	Medical Appliances	Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0218-GIL	10/07/2002	Sale for Resale	Certificates of Resale must contain the information in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 02-0217-GIL	10/03/2002	Motor Fuel	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 02-0216-GIL	09/30/2002	Local Taxes	Local taxes are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. Please see 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0215-GIL	09/27/2002	Farm Machinery and Equipment	In order for a transaction to qualify for exemption on the basis of the Farm machinery & Equipment exemption, a certification must be obtained containing the information set out at 86 Ill. Adm. Code 130.305(m). (This is a GIL).
ST 02-0214-GIL	09/25/2002	Delivery Charges	Charges for shipping are gross receipts subject to Retailers’ Occupation Tax when they are part of the selling price of the tangible personal property being sold. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 02-0213-GIL	09/25/2002	Gross Receipts	The Illinois Retailers’ Occupation Tax (sales tax) is imposed upon the total gross receipts that are received by a retailer who makes a retail sale to an Illinois end user. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 02-0212-GIL	09/25/2002	Food	For purposes of the Illinois Retailers' Occupation Tax Act, food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0211-GIL	09/24/2002	Leasing	Lease agreements that contain purchase options that are equal to the fair market value of the tangible personal property at the end of the lease term are considered true leases, and the lessors incur Use Tax liability on their cost price of tangible personal property purchased for rental purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 02-0210-GIL	09/23/2002	Motor Fuel Tax	This letter discusses Motor Fuel Tax related to motor vehicles brought into the State by a manufacturer. See 35 ILCS 505/1 et seq. (This is a GIL).
ST 02-0209-GIL	09/23/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include chemicals that meet the conditions set out in 86 Ill. Adm. Code 130.330(c)(6). (This is a GIL).
ST 02-0208-GIL	09/23/2002	Medical Appliances	Dental lab coats do not qualify as medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0207-GIL	09/18/2002	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 located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 02-0206-GIL	09/17/2002	Use Tax	Section 3 of the 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. (This is a GIL).
ST 02-0205-GIL	09/17/2002	Gross Receipts	When a retailer allows a purchaser a discount from the selling price on the basis of a discount coupon for which the retailer receives no reimbursement from any source, the amount of such discount is not subject to tax. See 86 Ill. Adm. Code 130.2135. (This is a GIL).
ST 02-0204-GIL	09/17/2002	Sale for Resale	In order for a Certificate of Resale to be valid in Illinois, it must contain the information set out in 86 Ill. Adm. Code 130.1405(b) (This is a GIL).
ST 02-0203-GIL	09/17/2002	Enterprise Zones	This letter discusses the new provisions of P. A. 92-0779 with regard to sales of building materials for incorporation into real estate located in Illinois enterprise zones. See 35 ILCS 120/5k. (This is a GIL).
ST 02-0202-GIL	09/16/2002	Cigarette Tax	Only a licensed distributor may sell cigarettes to another licensed distributor without charging the tax. See 35 ILCS 130/2. (This is a GIL).
ST 02-0201-GIL	09/13/2002	Public Utility Taxes	Energy Assistance Charges and Renewable Energy Resources and Coal Technology Development Assistance Charges are statutorily considered charges for public utility services and are subject to Gas Revenue Tax liability when that tax is computed at the 5% rate on gross receipts. See 86 Ill. Adm. Code 470.101. (This is a GIL).
ST 02-0200-GIL	09/12/2002	Governmental Bodies	This letter discusses the sale of commissary items in correctional institutions by an independent vendor. See 86 Ill. Adm. Code 130.2055. (This is a GIL).
ST 02-0199-GIL	09/12/2002	Certificate of Registration	The requirement that Form NUC-1, Illinois Business Registration, be signed by an individual who will be responsible for filing returns and payment of taxes due (Question 14) is set out at Section 2a of the Retailers' Occupation Tax Act. See 35 ILCS 120/2a. (This is a GIL).
ST 02-0198-GIL	09/11/2002	Sale of Service	Repair work performed under a warranty may or may not be a taxable sale of service. See 86 Ill. Adm. Code 140.141 for explanations of the tax consequences of warranty repair work. (This is a GIL).
ST 02-0197-GIL	09/11/2002	Pollution Control Facilities	Equipment which is used for the primary purpose of reducing or eliminating pollution can qualify for the Pollution Control Facilities exemption. Equipment which provides an economic benefit cannot quality for the exemption. See 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 02-0196-GIL	09/09/2002	Exempt Organizations	Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification (an "E" number) numbers. See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 02-0195-GIL	09/09/2002	Exempt Organizations	Organizations that have E numbers are also allowed to engage in a very limited amount of retail selling without incurring Retailers’ Occupation Tax liability. These limited amounts of selling are described at 86 Ill. Adm. Code 130.2005(a)(2) through (a)(4). (This is a GIL).
ST 02-0194-GIL	09/06/2002	Local Taxes	Retailers subject to Special County Retailers' Occupation Tax For Public Safety are authorized to pass on the cost of that tax to their customers. See 86 Ill. Adm. Code 670.101. (This is a GIL).
ST 02-0193-GIL	09/06/2002	Sale of Service	Tangible personal property may be purchased for resale only if it is to be sold or is incorporated into an item that is to be sold. See 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 02-0192-GIL	09/06/2002	Nexus	This letter discusses nexus and other issues related to determining which sales taxes are owed. See 35 ILCS 105/1 et seq. (This is a GIL).
ST 02-0191-GIL	09/05/2002	Motor Fuel Tax	When the legal incidence of a tax is on the consumer, it is not considered to be part of the “selling price” of the tangible personal property for the purpose of calculating Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.445. (This is a GIL).
ST 02-0190-GIL	09/04/2002	Manufacturer's Purchase Credit	Digital cameras do not qualify as production related tangible personal property for purposes of using Manufacturer’s Purchase Credit. See 86 Ill. Adm. Code 130.331. (This is a GIL).
ST 02-0189-GIL	09/04/2002	Computer Software	Acceptance of a computer software license agreement by the customer clicking “accept” while online does not generally constitute a written agreement signed by the licensor and the customer for purposes of subsection (a)(1)(A) of Section 130.1935. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 02-0188-GIL	08/30/2002	Bulk Sales	Successor liability provisions in the Illinois Retailers' Occupation Tax are found at 35 ILCS 120/5j. (This is a GIL).
ST 02-0187-GIL	08/30/2002	Food	Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0186-GIL	08/26/2002	Manufacturing Machinery and 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 GIL).
ST 02-0185-GIL	08/19/2002	Leasing	86 Ill. Adm. Code Section 130.2010(a), sets out the factors to be considered in determining whether a transaction is a lease or a conditional sales contract for purposes of the Retailers' Occupation Tax Act. (This is a GIL).
ST 02-0184-GIL	08/16/2002	Construction Contractors	Construction contractors who physically incorporate tangible personal property into real estate owned by exempt organizations 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), as well as the “E” number of the group into whose real estate that property will be incorporated. (This is a GIL).
ST 02-0183-GIL	08/16/2002	Sale for Resale	Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL).
ST 02-0182-GIL	08/15/2002	Sale for Resale	Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL).
ST 02-0181-GIL	08/15/2002	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 02-0180-GIL	08/13/2002	Manufacturing Machinery and 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 GIL).
ST 02-0179-GIL	08/09/2002	Use Tax	Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL).
ST 02-0178-GIL	08/09/2002	Use Tax	Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL).
ST 02-0177-GIL	08/09/2002	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased and owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 02-0176-GIL	08/09/2002	Returns	Taxpayers that conduct businesses at more than one location in the State are required to file a single consolidated return (multi-site return). See 86 Ill. Adm. Code 130.530. (This is a GIL).
ST 02-0175-GIL	08/07/2002	Gross Receipts	If a seller and buyer agree upon the installation charges separately from the selling price of the tangible personal property which is sold, then the receipts from the installation charges are not a part of the "selling price" of the tangible personal property which is sold. Instead such charges constitute a service charge, separately contracted for, which need not be included in the figure upon which the seller computes his Retailers’ Occupation Tax liability. See 86 Ill. Adm. Code 130.450. (This is a GIL).
ST 02-0174-GIL	08/06/2002	Use Tax	If a direct mail firm accepts the purchase orders outside of Illinois, and its printing and mailing operations are conducted outside of the State of Illinois, no power or control is generally exercised over the property shipped in Illinois. Therefore, no taxable use of the property would be made in Illinois. See 86 Ill. Adm. Code 150.305. (This is a GIL).
ST 02-0173-GIL	08/06/2002	Hotel Operators' Tax	The Hotel Operators' Occupation Tax Act imposes a tax upon persons engaged in the business of renting, leasing or letting rooms in a hotel in Illinois. See 86 Ill. Adm. Code 480.101. (This is a GIL).
ST 02-0172-GIL	08/06/2002	Computer Software	If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL).
ST 02-0171-GIL	08/05/2002	Sale of Service	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL).
ST 02-0170-GIL	08/05/2002	Pollution Control Facilities	Purchasers of Pollution Control Facilities must give their sellers certifications as set out in 86 Ill. Adm. Code 130.335(a). (This is a GIL).
ST 02-0169-GIL	08/05/2002	Miscellaneous	This letter responds to an annual survey. See 86 Ill. Adm. Code Part 130. (This is a GIL).
ST 02-0168-GIL	08/01/2002	Miscellaneous	This letter describes the Retailers' Occupation Tax or Service Occupation Tax liability of a company that sells merchandise and services to entities providing workers compensation benefits. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0167-GIL	07/26/2002	Local Taxes	In general, the imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0166-GIL	07/26/2002	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 located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 02-0165-GIL	07/25/2002	Telecommunications Excise Tax	This letter amends ST-02-0005-PLR regarding provisions of the Telecommunications Excise Tax.
ST 02-0164-GIL	07/24/2002	Sale of Service	The transfer of tangible personal property by automobile repairmen to customers incident to a repair job is a sale of service is subject to liability under the Service Occupation Tax Act. (This is a GIL).
ST 02-0163-GIL	07/22/2002	Sale for Resale	Certificates of resale must contain the information set out in 86 Ill. Adm. Code 130.1415(b). (This is a GIL).
ST 02-0162-GIL	07/19/2002	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 02-0161-GIL	07/19/2002	Food	Soft drinks do not qualify for the low rate of tax that is applicable to certain food items. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0160-GIL	07/19/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include independent devices or tools separate from any machinery but essential to an integrated manufacturing or assembling process. See 86 Ill. Adm. Code 130.330(c)(3). (This is a GIL).
ST 02-0159-GIL	07/19/2002	Construction Contractors	Construction contractors incur Retailers’ Occupation Tax liability when they engage in selling any kind of tangible personal property (over-the-counter sales) to purchasers without permanently affixing the tangible personal property to real estate. See 86 Ill. Adm. Code 130.1940. (This is a GIL).
ST 02-0158-GIL	07/18/2002	Service Occupation Tax	A pharmacist who remits Service Occupation Tax to the Department may make tax-free sales of prescription drugs to an organization that provides an exemption identification number issued by the Department.
ST 02-0157-GIL	07/18/2002	Computer Software	If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL).
ST 02-0156-GIL	07/16/2002	Local Taxes	The regulation governing jurisdictional questions under the Home Rule Municipal Retailers' Occupation Tax does not apply to titled and registered tangible personal property. 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0155-GIL	07/16/2002	Gross Receipts	Charges for the wait time associated with making a delivery of ready-mix must be included in the sales tax base for the sale. See 86 Ill. Adm. Code 130.410.
ST 02-0154-GIL	07/15/2002	Manufacturing Machinery and Equipment	This letter discusses why the purchase of asphalt and concrete production machines by construction contractors who will transfer the product into roadways does not qualify because the contractors are using product themselves and not selling it. (This is a GIL).
ST 02-0153-GIL	07/12/2002	Leasing	86 Ill. Adm. Code Section 130.2010(a), sets out the factors to be considered in determining whether a transaction is a lease or a conditional sales contract for purposes of the Retailers' Occupation Tax Act. (This is a GIL).
ST 02-0152-GIL	07/12/2002	Computer Software	Transactions for the licensing of computer software may not be subject to ROT if the transaction agreements contain all the criteria set out in 86 Ill. Adm. code 130.1935(a)(1). (This is a GIL.)
ST 02-0151-GIL	07/08/2002	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 02-0150-GIL	07/08/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0149-GIL	07/05/2002	Manufacturing Machinery and 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 GIL.)
ST 02-0148-GIL	07/01/2002	Food	Soft drinks do not qualify for the low rate of tax that is applicable to certain food items. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 02-0147-GIL	06/28/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0146-GIL	06/28/2002	Leasing	The State of Illinois taxes leases differently for Retailers’ Occupation Tax and Use Tax purposes than the majority of other states. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 02-0145-GIL	06/28/2002	Sale for Resale	A Certificate of Resale must contain the items of information set out in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 02-0144-GIL	06/28/2002	Delivery	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 02-0143-GIL	06/28/2002	Leasing	86 Ill. Adm. Code Section 130.2010(a), sets out the factors to be considered in determining whether a transaction is a lease or a conditional sales contract for purposes of the Retailers' Occupation Tax Act. (This is a GIL).
ST 02-0142-GIL	06/28/2002	Motor Fuel	The Motor Fuel Tax Law provides that a distributor of motor fuel or a supplier of special fuel may make tax-free sales to a municipal corporation owning and operating a local transportation system for public service in this State when an official certificate of exemption is obtained in lieu of the tax. See 35 ILCS 505/6 item 4 and 35 ILCS 505/6a item 2. (This is a GIL).
ST 02-0141-GIL	06/27/2002	Telecommunications Excise Tax	The language of the Mobile Telecommunications Sourcing Conformity Act, P. A. 92-0474, indicates that all charges for mobile telecommunications services that are deemed to be provided by the customer’s home service provider are authorized to be taxed regardless of where the mobile telecommunications services originate, terminate or pass through. (This is a GIL).
ST 02-0140-GIL	06/26/2002	Graphic Arts	The Department’s regulation at Section 130.325(b)(1)(D) provides that “[t]he graphic arts machinery and equipment exemption includes printing by methods of engraving, letterpress, lithography, gravure, flexography, screen, quick, and digital printing.” (This is a GIL).
ST 02-0139-GIL	06/25/2002	Leasing	Under Illinois law, lessors under true lease agreements are deemed the users of items they purchase for rental purposes. Accordingly, lessors incur a Use Tax liability on such purchases. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 02-0138-GIL	06/25/2002	Construction Contractors	In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 02-0137-GIL	06/21/2002	Nexus	This letter discusses nexus issues. See 35 ILCS 105/1 et seq. (This is a GIL).
ST 02-0136-GIL	06/21/2002	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 02-0135-GIL	06/20/2002	Use Tax	According to 86 Ill. Adm. Code 150.401, the Use Tax shall whenever possible and practicable when collected, be stated as a distinct item separate and apart from the selling price of the tangible personal property. (This is a GIL).
ST 02-0134-GIL	06/12/2002	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 02-0133-GIL	06/12/2002	Motor Vehicles	This letter discusses when tax is due on motor vehicles brought into Illinois for leasing purposes. See 35 ILCS 105/10. (This is a GIL).
ST 02-0132-GIL	06/12/2002	Miscellaneous	This letter discusses “shipping and handling” charges and the tax consequences of reward credits. See 86 Ill. Adm. Code 130.401(c). (This is a GIL).
ST 02-0131-GIL	06/12/2002	Miscellaneous	This letter discusses various issues related to the purchase of motor vehicles. See 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 02-0130-GIL	06/12/2002	Miscellaneous	This letter is a follow up to ST 02-0068-GIL. (This is a GIL).
ST 02-0129-GIL	06/12/2002	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. (This is a GIL.)
ST 02-0128-GIL	06/12/2002	Gross Receipts	A manufacturer’s rebate that is applied to the purchase price of an automobile is generally part of the gross receipts subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 02-0127-GIL	06/10/2002	Nexus	This letter discusses nexus and Service Occupation Tax issues related to sales of medical appliances from outside the State. See 86 Ill. Adm. Code 150.201. (This is a GIL).
ST 02-0126-GIL	06/06/2002	Food, Drugs and Medical Appliances	A dietary supplement could be classified as a food taxed at the low rate of tax if it is not sold for immediate consumption. See Ill. Adm. Code 130.310 (This is GIL).
ST 02-0125-GIL	06/05/2002	Governmental Bodies	This letter discusses proper documentation of a tax-exempt sale to the U.S. Government. See 86 Ill. Adm. Code 130.2080. (This is a GIL.)
ST 02-0124-GIL	06/06/2002	Graphic Arts	The Department’s regulation at Section 130.325(b)(1)(D) provides that the graphic arts machinery and equipment exemption includes printing by methods including digital printing. (This is a GIL.)
ST 02-0123-GIL	06/05/2002	Miscellaneous	This letter discusses the new regulatory provisions regarding sellers of floor coverings. See 86 Ill. Adm. Code 130.2101. (This is a GIL.)
ST 02-0122-GIL	06/04/2002	Medical Appliances	The definition of a medical appliance is "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. (This is a GIL.)
ST 02-0121-GIL	06/04/2002	Food	86 Ill. Adm. Code 130.310(b) provides that food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 02-0120-GIL	05/31/2002	Sale for Resale	This letter sets out how a standard drop shipment is treated in Illinois for Retailers' Occupation Tax and Use Tax purposes. See, 86 Ill. Adm. Code 130.325 (This is a GIL).
ST 02-0119-GIL	05/28/2002	Certificate of Registration	Retailers are required to obtain certificates of registration from the Department in order to lawfully sell tangible personal property at retail in this State. See 35 ILCS 120/2a. (This is a GIL).
ST 02-0118-GIL	05/23/2002	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 02-0117-GIL	05/22/2002	Sale of Service	Where a business provides repair services that are accompanied with the transfer of tangible personal property, such transactions are generally subject to tax liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.140(l). (This is a GIL).
ST 02-0116-GIL	05/20/2002	Local Taxes	In general, the imposition of the various local Retailers' Occupation Tax in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL.)
ST 02-0115-GIL	05/17/2002	Miscellaneous	This letter responds to an annual survey regarding coal mining equipment. See 86 Ill. Adm. Code 130.350. (This is a GIL).
ST 02-0114-GIL	05/17/2002	Leasing	86 Ill. Adm. Code Section 130.2013 sets out the factors to be considered in determining whether a credit is available for the sale of an item of tangible personal property after it was leased by a person who is in the business of both selling and renting such property. (This is a GIL.)
ST 02-0113-GIL	05/17/2002	Exempt Organizations	The Department rule on exempt organizations, 86 Ill. Adm. Code 130.2005(a)(4)(B), limits the exempt occasional dinners, rummage sales or similar fundraisers that can be held by exclusively religious, educational or charitable organizations to not more than two in any calendar year. (This is a GIL.)
ST 02-0112-GIL	05/15/2002	Delivery Charges	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 02-0111-GIL	05/15/2002	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 02-0110-GIL	05/14/2002	Sale at Retail	The Retailers' Occupation Tax Act, 35 ILCS 120/1 et seq. (2000 State Bar Edition), 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 02-0109-GIL	05/13/2002	Local Taxes	In general, the imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL.)
ST 02-0108-GIL	05/09/2002	Food, Drugs and Medical Appliances	Incontinence pads for adults qualify for the low 1% State rate of tax. See 86 Ill. Adm. Code 130.310(c)(3). (This is a GIL.)
ST 02-0107-GIL	05/09/2002	Electricity Excise Tax	Public Act 92-0310, effective August 9, 2001, amended the definition of “delivering supplier” in Section 2-3 of the Electricity Excise Tax Law to exclude BOMAs. Therefore, BOMAs are required to pay the appropriate amount of tax to their suppliers and are not required to file returns or remit tax directly to the Department after that date. See 86 Ill. Adm. Code 511.100. (This is a GIL.)
ST 02-0106-GIL	05/03/2002	Leasing	Lessors of automobiles for initial lease periods in excess of one year are subject to Use Tax liability on the purchase price of those automobiles even if the lease agreements provide for renewal options of less than those initial lease periods. See 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 02-0105-GIL	05/03/2002	Computer Software	Sales of “canned” computer software are taxable retail sales in Illinois regardless of the means of the delivery of that software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 02-0104-GIL	05/01/2002	Manufacturer's Purchase Credit	This letter describes why a prior Private Letter Ruling was rescinded regarding the amount of MPC earned on the purchase of special order molds and dies. See 86 Ill. Adm. Code 130.331. (This is a GIL.)
ST 02-0103-GIL	05/01/2002	Manufacturer's Purchase Credit	Retailers are not responsible for determining whether the manufacturer’s or graphic arts producer’s MPC that is listed on an MPC certificate has expired or not. See 86 Ill. Adm. Code 130.331. (This is a GIL.)
ST 02-0102-GIL	05/01/2002	Food	Soft drinks do not qualify for the low rate of tax that is afforded certain food items. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 02-0101-GIL	05/01/2002	Food	Soft drinks do not qualify for the low rate of tax that is applicable to certain food items. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 02-0100-GIL	04/04/2002	Drugs	Medicines administered to animals do not qualify for the low rate of tax applicable to medicines and drugs. See 86 Ill. Adm. Code 130.310 (this is a GIL).
ST 02-0099-GIL	04/30/2002	Sales at Retail	The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (2000 State Bar Edition). (This is a GIL).
ST 02-0098-GIL	04/30/2002	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an "E" number). See the enclosed copy of 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 02-0097-GIL	04/29/2002	Sale at Retail	Gross receipts derived from sales of certain items for $0.50 or less through bulk vending machines are not sales at retail subject to Retailers’ Occupation Tax. See 35 ILCS 120/1. (This is a GIL).
ST 02-0096-GIL	04/29/2002	Sale at Retail	Persons who permanently affix modular homes to real estate act as construction contractors and incur Use Tax liability on their cost price of the tangible personal property they physically incorporate into real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 02-0095-GIL	04/26/2002	Sale of Service	Physicians are generally subject to the Service Occupation Tax on tangible personal property transferred as an incident to the sale of service. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 02-0094-GIL	04/25/2002	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. However, if the computer software consists of custom computer programs, then the sales of such software may not be taxable retail sales. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 02-0093-GIL	04/25/2002	Miscellaneous	Applicants who have been approved to participate in the Direct Payment Program will be issued a Direct Pay Permit by the Department, which participants may provide to retailers in order to remit their tax liability directly to the Department. See 86 Ill. Adm. Code 130.2500. (This is a GIL).
ST 02-0092-GIL	04/25/2002	Delivery Charges	As a technical proposition, handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 02-0091-GIL	04/25/2002	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 02-0090-GIL	04/24/2002	Motor Vehicles	The sale of a vehicle that has previously been modified to make it usable by a disabled person is reported on Form ST-556. Retailers' Occupation Tax is incurred on the entire selling price of the vehicle at the preprinted rate for motor vehicles. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0089-GIL	04/24/2002	Manufacturing Machinery and 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 GIL).
ST 02-0088-GIL	04/24/2002	Graphic Arts	The Department’s regulation at Section 130.325(b)(1)(D) provides that “[t]he graphic arts machinery and equipment exemption includes printing by methods of engraving, letterpress, lithography, gravure, flexography, screen, quick, and digital printing”. (This is a GIL).
ST 02-0087-GIL	04/12/2002	Exempt Organizations	While the sale of tangible personal property at retail by exclusively religious, educational or charitable organizations or governmental entities is generally subject to Retailer’s Occupation Tax, there are three limited exceptions. See 86 Ill. Adm. Code 130.2005(a)(2-4). (This is a GIL).
ST 02-0086-GIL	04/12/2002	Charitable Games	An essential element of a pull tab game is that the winning pull tab be predetermined. See 230 ILCS 20/1.1. (This is a GIL).
ST 02-0085-GIL	04/12/2002	Use Tax	This letter discusses the sales tax treatment of cellular phones when they are either given away or sold. (This is a GIL).
ST 02-0084-GIL	04/11/2002	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 02-0083-GIL	04/11/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL).
ST 02-0082-GIL	04/08/2002	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 02-0081-GIL	04/08/2002	Interstate Commerce	For the interstate commerce exemption to apply, delivery of the goods outside of Illinois must actually be made. Sales are subject to sales tax and are not deemed to be in interstate commerce if the purchaser or his representative receives the physical possession of the property in Illinois, even if such property is immediately transported outside of Illinois. See 86 Ill. Adm. Code 130.605(a)(1) and (2). (This is a GIL).
ST 02-0080-GIL	04/05/2002	Charitable Games	This letter discusses the production standards for Pull Tabs under the provisions of the Illinois Pull Tabs and Jar Games Act and regulations promulgated thereunder. (See 86 Ill. Adm. Code 432.130.) (This is a GIL.)
ST 02-0079-GIL	04/04/2002	Enterprise Zones	This letter discusses the changes to the enterprise zone building materials exemption as a result of Public Act 91-0954. See 35 ILCS 120/5k. (This is a GIL.)
ST 02-0078-GIL	04/03/2002	Manufacturing Machinery and 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 GIL).
ST 02-0077-GIL	04/01/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL).
ST 02-0076-GIL	04/01/2002	Local Taxes	For purposes of determining jurisdiction for local Retailers' Occupation Tax, the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 02-0075-GIL	04/01/2002	Sale of Service	Physicians and surgeons are primarily engaged in professions that render services. To the extent they are engaged in such professions and are not engaged in the business of selling tangible personal property to purchasers for use or consumption, they are not required to report and remit Retailers’ Occupation Tax measured by their receipts from engaging in such professions. See 86 Ill. Adm. Code 130.2020. (This is a GIL).
ST 02-0074-GIL	04/01/2002	Use Tax	The Department is authorized to pursue unpaid Use Tax from Use Tax collectors on Illinois sales. See Section 8 of the Use Tax Act (35 ILCS 105/8) (This is a GIL).
ST 02-0073-GIL	04/01/2002	Use Tax	The interim use exemption is available to persons primarily engaged in selling tangible personal property when such persons lease property that is carried on their books as inventory or is otherwise available for sale during the lease period. See 86 Ill. Adm. Code 150.306. (This is a GIL).
ST 02-0072-GIL	04/01/2002	Gross Receipts	Where retailers send merchandise to party hostesses who then distribute the merchandise to purchasers, shipping and handling charges are considered part of the retailer’s costs of doing business and are subject to tax. See 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 02-0071-GIL	03/29/2002	Enterprise Zones	Effective January 1, 2002, a retailer is no longer required to be located in the municipality or county that created the enterprise zone into which the building materials are to be incorporated in order to take the enterprise zone deduction. 35 ILCS 120/5k. (This is a GIL).
ST 02-0070-GIL	03/29/2002	Sale of Service	The purchase of tangible personal property that is transferred to service customers of an auto body shop may result in either Service Occupation Tax liability or Use Tax liability for the servicemen. 86 Ill. Adm. Code 140.101 (This is a GIL).
ST 02-0069-GIL	03/28/2002	Delivery Charges	As a technical proposition, handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 02-0068-GIL	03/28/2002	Miscellaneous	This letter discusses the tax treatment of automobiles used in a “rent to own” business. See 35 ILCS 120/1 et seq. (This is a GIL).
ST 02-0067-GIL	03/28/2002	Graphic Arts	Under the graphic arts machinery and equipment exemption, Retailers’ Occupation Tax does not apply to sales of machinery and equipment, including repair and replacement parts, both new and used and including that manufactured on special order to be used primarily in graphic arts production. See 86 Ill. Adm. Code 130.325. (This is a GIL).
ST 02-0066-GIL	03/28/2002	Food, Drugs and Medical Appliances	Dietary supplements could be classified as food or they could be classified as drugs if the products purport on the label to have medicinal qualities. See86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0065-GIL	03/28/2002	Governmental Bodies	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 GIL).
ST 02-0064-GIL	03/28/2002	Computer Software	Sales of “canned” computer software are taxable retail sales in Illinois regardless of the means of delivery of the software. See 86 Ill. Adm. Code 130. 1935. (This is a GIL).
ST 02-0063-GIL	03/11/2002	Sale for Resale	Small toys and crayons given by a restaurant to children as part of their meal is generally considered part of the meal being transferred to those children and may be purchased for resale. See 86 Ill. Adm. Code 130. 1401. (This is a GIL).
ST 02-0062-GIL	03/07/2002	Claims for Credit	Only persons who have actually paid taxes to the Department can file claims for credit. See 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST 02-0061-GIL	03/07/2002	Sale for Resale	Certificates from purchasers on Certificates of Resale in lieu of resale numbers that describe the drop-shipment situation and the fact that purchasers have no contact with Illinois that would require them to be registered and that they choose not to obtain Illinois resale numbers would constitute evidence that this particular sale is a sale for resale despite the fact that no registration number or resale number is provided. See 86 Ill. Adm. Code 130.225. (This is a GIL).
ST 02-0060-GIL	03/07/2002	Miscellaneous	This letter discusses possible sales tax, cigarette tax, and tobacco products tax consequences of selling tobacco products and cigarettes in Illinois from outside the State. See 35 ILCS 120/1 et seq. (This is a GIL).
ST 02-0059-GIL	03/07/2002	Motor Fuel Tax	This letter discusses the Motor Fuel Tax provisions in regard to off-highway use of fuel. See 35 ILCS 505/13. (This is a GIL).
ST 02-0058-GIL	03/05/2002	Nexus	This letter discusses Service Occupation Tax and nexus issues related to a company with a subsidiary that has volunteered to collect Illinois sales tax. See 35 ILCS 115/1 et seq. (This is a GIL).
ST 02-0057-GIL	03/05/2002	Food	A 1% sales tax rate, plus applicable local taxes, is applied to food sold for human consumption to be consumed off the premises where sold, drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 02-0056-GIL	03/05/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 02-0055-GIL	03/04/2002	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 02-0054-GIL	02/08/2002	Telecommunications Excise Tax	Gross charges for teleconferencing services that include the reselling of telephone services are subject to the Telecommunications Excise Tax Act. See 86 Ill. Adm. Code Part 495. (This is a GIL).
ST 02-0053-GIL	02/28/2002	Manufacturing Machinery and 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 GIL).
ST 02-0052-GIL	02/28/2002	Leasing	Under Illinois law, "true leases" and "leases" that are actually conditional sales contracts are treated differently for Retailers' Occupation and Use Tax purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 02-0051-GIL	02/28/2002	Assessments	To request a hearing after a Notice of Tax Liability has become final, one must submit a written application therefor to the Chief Administrative Law Judge pursuant to the requirements of 86 Ill. Adm. Code 200.175. (This is a GIL).
ST 02-0050-GIL	02/27/2002	Sale for Resale	The sale of tangible personal property for the purpose of resale is not taxable so long as the seller obtains a Certificate of Resale in accordance with 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 02-0049-GIL	02/27/2002	Medical Appliances	Generally, medical tools, devices and equipment used for diagnostic, rehabilitative and treatment purposes do not qualify for the reduced rate of tax for medical appliances as such items, while being used for treatment of patients, are not directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL)
ST 02-0048-GIL	02/26/2002	Interstate Commerce	Under 86 Ill. Adm. Code 140.501(a), where tangible personal property is located in this State at the time of its transfer (or is subsequently produced in Illinois) as an incident to a sale of service, and is then delivered in Illinois, registered servicemen may not claim the Interstate Commerce exemption from Service Occupation Tax. (This is a GIL).
ST 02-0047-GIL	02/26/2002	Charitable Games	This letter discusses a request to demonstrate table games to riverboat casino operators. See 230 ILCS 30/1 et seq. (This is a GIL).
ST 02-0046-GIL	02/26/2002	Use Tax	Out-of-State sellers who fall under the definition of a "retailer maintaining a place of business in this State" (see 86 Ill. Adm. Code Sec. 150.201(i), enclosed), must register to collect Illinois Use Tax from Illinois customers and remit that tax to the Department. (This is a GIL).
ST 02-0045-GIL	02/26/2002	Graphic Arts	Equipment that may be sold tax-exempt 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 graphics arts product. See 35 ILCS 120/2-5(4). (This is a GIL).
ST 02-0044-GIL	02/25/2002	Farm Machinery and Equipment	The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305 (This is a GIL).
ST 02-0043-GIL	02/25/2002	Electricity Excise Tax	Entities that qualify under Public Act 92-310 are no longer required to file Form RPU-13 and remit Electricity Excise Tax to the Illinois Department of Revenue. These entities satisfy their Electricity Excise Tax liability by paying the tax directly to their suppliers. See Public Act 92- 310. (This is a GIL).
ST 02-0042-GIL	02/25/2002	Hotel Operators' Tax	Receipts which are not in any way reasonably connected with or attributable to the renting, leasing or letting of rooms for use as living quarters or for sleeping or housekeeping accommodations are not subject to the Hotel Operators’ Occupation Tax. See 86 Ill. Adm. Code 480.101(b)(6). (This is a GIL).
ST 02-0041-GIL	02/25/2002	Gross Receipts	Sales of gift certificates and money orders represent the sale of intangibles, which are not subject to tax under the Retailers’ Occupation Tax Act. Any fees charged incident to the sale of gift certificates and money orders are also not subject to tax under the Retailers’ Occupation Tax Act as there has been no sale of tangible personal property. See 86 Ill. Adm. Code 130.120(a). (This is a GIL).
ST 02-0040-GIL	02/25/2002	Liquor Tax	Under Article VII-A of the Liquor Control Act of 1934 (235 ILCS 5/1-1 et seq.), every warehousemen in Illinois who stores any alcoholic liquors for compensation shall make application to the Department for a Certificate of Registration for each location where alcoholic liquors are stored. See 86 Ill. Adm. Code 420.120. (This is a GIL).
ST 02-0039-GIL	02/22/2002	Miscellaneous	This letter discusses the taxability of sales to Illinois customers made through the Internet. 86 Ill. Adm. Code 150.201. (This is a GIL).
ST 02-0038-GIL	02/20/2002	Hotel Operators' Tax	The Hotel Operators' Occupation Tax Act imposes a tax upon persons 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 02-0037-GIL	02/08/2002	Telecommunications Excise Tax	The Telecommunications Excise Tax is imposed on 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, generally, 86 Ill. Adm. Code 495. (This is a GIL.)
ST 02-0036-GIL	02/07/2002	Gross Receipts	Discount coupons and gift certificates do not constitute a sale under the Retailers’ Occupation Tax Act because no tangible personal property exchanges hands. In essence, a gift certificate or card is deemed an intangible and Use Tax is charged on the retailers purchase price of the item received upon tender of the certificate. 86 Ill. Adm. Code 130.2125(c). (This is a GIL).
ST 02-0035-GIL	02/07/2002	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 02-0034-GIL	02/06/2002	Cigarette Tax	The cigarette tax is imposed upon any person who exercises the privilege of engaging in business as a retailer of cigarettes in this State, and is at the total rate of 29 mills per cigarette; or 58¢ on a package of 20 cigarettes. See 86 Ill. Adm. Code 440.10. (This is a GIL).
ST 02-0033-GIL	02/06/2002	Telecommunications Excise Tax	The Telecommunications Excise Tax Act imposes a tax on the act or privilege of originating or receiving intrastate or interstate telecommunications by persons in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers by such persons, 35 ILCS 630/3 and 4. (This is a GIL).
ST 02-0032-GIL	02/05/2002	Leasing	Lessors are subject to a Use Tax on their cost price of tangible personal property which they use by leasing in Illinois. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 02-0031-GIL	02/04/2002	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. (This is a GIL).
ST 02-0030-GIL	02/04/2002	Public Utility Taxes	Section 2a.1 of the Public Utilities Revenue Act imposes a tax on the distribution of electricity in this State and a tax on the invested capital of electric cooperatives that are required to file reports with the Rural Utilities Service. See 35 ILCS 620/2a.1. (This is a GIL.)
ST 02-0029-GIL	01/31/2002	Manufacturing Machinery and 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 GIL).
ST 02-0028-GIL	01/31/2002	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL).
ST 02-0027-GIL	01/31/2002	Miscellaneous	This General Information Letter provides suggestions for improvements to, but does not comment on the accuracy of, a private legal publication. See 86 Ill. Adm. Code 140.101 (This is a GIL).
ST 02-0026-GIL	01/28/2002	Service Occupation Tax	Where a repairman provides repair services that are accompanied with the transfer of tangible personal property, such transactions are generally subject to tax liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.140(l). (This is a GIL).
ST 02-0025-GIL	01/25/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include independent devices or tools separate from any machinery but essential to an integrated manufacturing or assembling process. See 86 Ill. Adm. Code 130.330(c)(3). (This is a GIL).
ST 02-0024-GIL	01/24/2002	Use Tax	Section 10 of the Use Tax Act, 35 ILCS 105/10, provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return (Form RUT-25, Motor Vehicle Use Tax Return) with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. (This is a GIL).
ST 02-0023-GIL	01/24/2002	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive exemption identification numbers (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 02-0022-GIL	01/23/2002	Sale of Service	If a sale of service is made in Illinois and no tangible personal property of any kind is transferred incident to that sale of service, no Illinois sales tax or service tax would apply to that sale. See 86 Ill. Adm. Code 140.101 (This is a GIL).
ST 02-0021-GIL	01/22/2002	Manufacturer's Purchase Credit	Fuel used in a ready-mix cement truck to rotate the mixing drum will qualify as production related tangible personal property for purposes of using manufacturer’s purchase credit. The amount of fuel used or consumed in transportation of the truck will not qualify as production related tangible personal property. The amount of fuel used in a qualifying manner to rotate the drum may be stated as a percentage of the entire amount of fuel used or consumed by the ready-mix truck. See 86 Ill. Adm. Code 130.331(b)(4)(E). (This is a GIL).
ST 02-0020-GIL	01/22/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include chemicals that effect a direct and immediate change upon a product being manufactured for sale or lease. See 86 Ill. Adm. Code 130.330(c)(6). (This is a GIL).
ST 02-0019-GIL	01/22/2002	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 02-0018-GIL	01/22/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include chemicals that effect a direct and immediate change upon a product being manufactured for sale or lease. See 86 Ill. Adm. Code 130.330(c)(6). (This is a GIL).
ST 02-0017-GIL	01/22/2002	Construction Contractors	In Illinois, construction contractors are deemed to be the end users of tangible personal property they purchase for incorporation into real property. As such, 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 130.2075. (This is a GIL).
ST 02-0016-GIL	01/22/2002	Food, Drugs and Medical Appliances	A dietary supplement could be classified as a food taxed at the low rate of tax if it is not sold for immediate consumption. See 86 Ill. Adm. Code 130.310 (This is a GIL).
ST 02-0015-GIL	01/18/2002	Nexus	In the context of a General Information Letter, the Department is unable to make nexus determinations because the amount of information required to make that determination is often best gathered by an auditor. See 86 Ill. Adm. Code 150.201. (This is a GIL).
ST 02-0014-GIL	01/17/2002	Returns	The provisions of Subpart M of the Retailers' Occupation Tax regulations provide that if a lessee operates a business on the lessor’s premises under the identity of the lessor, the lessor must report and remit the lessee’s tax on the lessor’s Retailers' Occupation Tax return. See, 86 Ill. Adm. Code 130.1305. (This is a GIL.)
ST 02-0013-GIL	01/17/2002	Exempt Organizations	Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. 86 Ill. Adm. Code 130.207. (This is a GIL.)
ST 02-0012-GIL	01/16/2002	Exempt Organizations	The United States State Department, Office of Foreign Missions, issues tax exemption identification cards to certain accredited diplomatic personnel and consular offices under the authority of the Foreign Missions Act (22 U.S.C. 4301 et seq.). These cards can be presented at point of sale to document exemption from sales tax. See 86 Ill. Adm. Code 130.2080(c) and 130.Illustration A. (This is a GIL).
ST 02-0011-GIL	01/16/2002	Exempt Organizations	The United States State Department, Office of Foreign Missions, issues tax exemption identification cards to certain accredited diplomatic personnel and consular offices under the authority of the Foreign Missions Act (22 U.S.C. 4301 et seq.). These cards can be presented at point of sale to document exemption from sales tax. See 86 Ill. Adm. Code 130.2080(c) and 130.Illustration A. (This is a GIL).
ST 02-0010-GIL	01/14/2002	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 02-0009-GIL	01/14/2002	Computer Software	Licenses of computer software that meet the requirements set out in 86 Ill. Adm. Code 130.1935(a)1(A-E) constitute nontaxable licenses of software. (This is a GIL).
ST 02-0008-GIL	01/14/2002	Nexus	This letter discusses nexus issues related to a company and its newly created subsidiaries, which may be in the business of selling tangible personal property for use in Illinois. See 86 Ill. Adm. Code 150.201(i). (This is a GIL.)
ST 02-0007-GIL	01/11/2002	Sale at Retail	Persons engaged in the business of selling tangible personal property at retail are subject to the Retailers’ Occupation Tax Act. 35 ILCS 120/2 (1998 State Bar Edition).
ST 02-0006-GIL	01/11/2002	Sale at Retail	Persons engaged in the business of selling tangible personal property at retail are subject to the Retailers’ Occupation Tax Act. 35 ILCS 120/2 (1998 State Bar Edition).
ST 02-0005-GIL	01/09/2002	Miscellaneous	This letter discusses the Retailers’ Occupation Tax Act, Service Occupation Tax Act, and Use Tax Act and their application to several transactional hypotheticals.
ST 02-0004-GIL	01/04/2002	Telecommunications Excise Tax	Persons who provide satellite television services, including basic network channels, premium channels, pay per view movies, sporting events, etc., are generally not subject to the Telecommunications Excise Tax liability. See 35 ILCS 630/1 et. seq. (This is a GIL).
ST 02-0003-GIL	01/02/2002	Local Taxes	For the purpose of determining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. 86 Ill Adm. Code 270.115(g)(1). (This is a GIL).
ST 02-0002-GIL	01/02/2002	Nexus	The U. S. Supreme Court provides guidance on the issue of nexus in Quill v. North Dakota, 112 S. Ct. 1902 (1992). (This is a GIL).
ST 02-0001-GIL	01/02/2002	Use Tax	The Department is authorized to utilize its best judgment and information to correct Use Tax returns. See 35 ILCS 105/3-10. (This is a GIL).

Private Letter Rulings

Ruling	Date	Subject	Synopsis
ST 02-0032-PLR	12/19/2002	Miscellaneous	This PLR discusses sales tax issues raised by various aspects of a company’s sales of steam. See 86 Ill. Adm. Code 130.1951. (This is a PLR).
ST 02-0031-PLR	12/19/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0030-PLR	12/17/2002	Automobile Renting Tax	Extensions or renewals of automobile leases that have initial terms of more than one year are not subject to Automobile Renting Occupation and Use Tax liability if the initial lease term is for a period greater than one year. 86 Ill. Adm. Code 180.101. (This is a PLR).
ST 02-0029-PLR	11/22/2002	Local Taxes	This letter describes a situation in which the Department refuses to sanction a taxpayer’s arrangement for fixing the location of certain purchases for local tax purposes. (This is a PLR).
ST 02-0028-PLR	11/18/2002	Sale at Retail	Sales of intangible personal property are not taxable under the Retailers’ Occupation Tax Act. 86 Ill. Adm. Code 130.120. (This is a PLR).
ST 02-0027-PLR	11/12/2002	Computer Software	If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software nor subsequent updates of that software will be subject to Retailers’ Occupation Tax. (This is a PLR).
ST 02-0026-PLR	11/06/2002	Occasional Sale	When a person sells tangible personal property which he is not otherwise engaged in the business of selling, the sale is an occasional sale not subject to ROT. See 86 Ill. Adm. Code 130.110. (This is a PLR).
ST 02-0025-PLR	09/06/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order or other contracting action in the making of the sales contract. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0024-PLR	08/20/2002	Telecommunications Excise Tax	Any method that accurately approximates the Illinois portion of an interstate inter-office channel of a private line can be used in calculating Illinois Telecommunications Excise Tax liability. (This is a PLR.)
ST 02-0023-PLR	08/13/2002	Exempt Organizations	A school does not incur Retailers' Occupation Tax liability on its operation of a cafeteria or other dining facility which is conducted on the school's premises, and which confines its selling to the students and employees of the school. See 86 Ill. Adm. Code 130.2005(b)(4). (This is a PLR).
ST 02-0022-PLR	08/05/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0021-PLR	08/05/2002	Electricity Excise Tax	“Use” does not include the exercise of right or power over electricity for the generation, production, transmission, distribution, delivery or sale of electricity in the regular course of business or the use of electricity for such purposes. See 35 ILCS 640/2-3. (This is a PLR).
ST 02-0020-PLR	08/05/2002	Public Utilities Tax	System losses do not constitute electricity that is distributed to an end user. 35 ILCS 620/2a.1. (This is a PLR).
ST 02-0019-PLR	08/01/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0018-PLR	07/31/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0017-PLR	07/12/2002	Manufacturing Machinery and Equipment	Exempt manufacturing equipment can include independent devices or tools separate from any machinery but essential to an integrated manufacturing or assembling process. See 86 Ill. Adm. Code 130.330(c)(3). (This is a PLR).
ST 02-0016-PLR	07/08/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0015-PLR	07/05/2002	Local Taxes	The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0014-PLR	06/20/2002	Computer Software	Transactions for the licensing of computer software may not be subject to ROT if the transaction agreements contain all the criteria set out in 86 Ill. Adm. code 130.1935(a)(1). (This is a PLR).
ST 02-0013-PLR	06/20/2002	Local Taxes	Taxpayers incur no locally imposed occupation tax on the sale of the tangible personal property when the purchase order is accepted outside of this State and the order is filled from an inventory located out-of-State. See for example 86 Ill. Adm. Code 270.115 regarding the Home Rule Municipal Retailers' Occupation Tax. (This is a PLR).
ST 02-0012-PLR	06/10/2002	Enterprise Zones	If a retailer is located in a jurisdiction that has an enterprise zone ordinance restricting the scope of the enterprise zone exemption, then such ordinance restrictions will apply to and control the taxability of all sales of building materials made in that jurisdiction. See 86 Ill. Adm. Code 130.1951(a) and (c). (This is a PLR).
ST 02-0011-PLR	06/03/2002	Local Taxes	The imposition of the various local sales taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order or other contracting action in the making of the sales contract. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0010-PLR	05/21/2002	Local Taxes	This letter was revoked by ST 09-0005-PLR. In general, the imposition of the various local occupation taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR.)
ST 02-0009-PLR	05/20/2002	Exempt Organizations	Hospitals that are exclusively charitable and have been issued exemption numbers by the Department do not incur sales tax liability on sales of food made from a cafeteria operated for the benefit of its employees that is not open to the public. See 86 Ill. Adm. Code 130.2005. (This is a PLR.)
ST 02-0008-PLR	05/17/2002	Food	For purposes of the Illinois Retailers' Occupation Tax Act, food is “any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including food such as condiments, spices, seasonings, vitamins, bottled water and ice.” See 86 Ill. Adm. Code 130.310(b)(1). (This is a PLR.)
ST 02-0007-PLR	04/09/2002	Computer Software	If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software nor the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a PLR.)
ST 02-0006-PLR	03/21/2002	Leasing	This letter determines that the synthetic lease described in the letter is a conditional sale for Illinois sales tax purposes. See 86 Ill. Adm. Code 2010(a). (This is a PLR).
ST 02-0005-PLR	03/07/2002	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 PLR).
ST 02-0004-PLR	03/01/2002	Manufacturer's Purchase Credit	Manufacturers and graphic arts producers do not earn Manufacturer’s Purchase Credit (MPC) on purchases of manufacturing machinery and equipment or graphic arts machinery and equipment in transactions that are isolated or occasional sales by the seller. See 86 Ill. Adm. Code 130.331(a)(5). (This is a PLR).
ST 02-0003-PLR	01/25/2002	Manufacturer's Purchase Credit	Purchasers of manufacturing machinery and equipment that qualifies for the manufacturing machinery and equipment exemption earn a credit in an amount equal to a fixed percentage of the tax which would have been incurred under the Use Tax or Service Use Tax. See 35 ILCS 105/3-85, 35 ILCS 110/3-70. (This is a PLR). This PLR rescinds letter ruling ST 01-0006-PLR
ST 02-0002-PLR	01/15/2002	Local Taxes	The most important factor in determining jurisdiction for the local Retailers' Occupation Taxes is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 02-0001-PLR	01/14/2002	Computer Software	Transactions for the licensing of computer software that meet all of the criteria provided in 86 Ill. Adm. Code 130.1935(a)(1) will not be subject to Retailers’ Occupation Tax liability. See 86 Ill. Adm. Code 130.1935. (This is a PLR.)

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