Quick Links
Information For
About IDOR
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 03-0202-GIL | 12/23/2003 | Gross Receipts | If a manufacturer provides a rebate to the retailer, the amount of that rebate is considered part of the gross receipts received by the retailer and is fully taxable. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) |
| ST 03-0201-GIL | 12/23/2003 | Exempt Organizations | Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification numbers. These numbers establish that the Department recognizes said organizations as exempt from incurring Use Tax when purchasing tangible personal property in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 03-0200-GIL | 12/19/2003 | Miscellaneous | This letter discusses trade-ins. See 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 03-0199-GIL | 12/19/2003 | Medical Appliances | This letter discusses the taxation of heart defibrillators. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0198-GIL | 12/19/2003 | Service Occupation Tax | Retailers’ Occupation Tax and Use Tax do not apply to receipts from sales of personal services. 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 03-0197-GIL | 12/19/2003 | 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 03-0196-GIL | 12/19/2003 | Telecommunications Excise Tax | This letter discusses 9-1-1 surcharges. 35 ILCS 630 et seq. (This is a GIL.) |
| ST 03-0195-GIL | 12/19/2003 | Motor Fuel Tax | This letter has been rescinded by Letter ST 06-0183-GIL. (This is a GIL.) |
| ST 03-0194-GIL | 12/19/2003 | Coin Operated Amusement Devices | If a slot machine operates on tokens and returns no money or property or right to receive money or property, it qualifies as a coin operated amusement device. See 35 ILCS 510/1. (This is a GIL.) |
| ST 03-0193-GIL | 12/19/2003 | 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 03-0192-GIL | 12/18/2003 | Medical Appliances | This letter discusses taxation of drugs and medical appliances found in a dental office. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0191-GIL | 12/18/2003 | Certificate of Registration | Section 2a of the Retailers’ Occupation Tax requires that a corporate applicant must submit the name, title and social security number of each corporate officer in order to obtain registration for sales taxes. See 35 ILCS 120/2a. (This is a GIL.) |
| ST 03-0190-GIL | 12/18/2003 | Miscellaneous | This letter discusses issues of documenting sales for resale (86 Ill. Adm. Code 130.1405) and the enterprise zone manufacturing machinery and equipment exemption (86 Ill. Adm. Code 130.1951(g)(11)(A). (This is a GIL.) |
| ST 03-0189-GIL | 11/21/2003 | Certificate of Registration | A social security number is required from corporate officers registering their business in Illinois. See 35 ILCS 120/2a (This is a GIL.) |
| ST 03-0188-GIL | 11/19/2003 | Local Taxes | In general, the imposition of the various local sales taxes in Illinois takes effect 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. See 86 Ill. Adm. Code 270.115(b). (This is a GIL.) |
| ST 03-0187-GIL | 11/18/2003 | Food | Food, drugs, 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 03-0186-GIL | 11/18/2003 | Exempt Organizations | Organizations that have E numbers are 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 03-0185-GIL | 11/18/2003 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable, receive an exemption identification "E" number. See 86 Ill. Adm. Code 130.2007. |
| ST 03-0184-GIL | 11/18/2003 | 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 03-0183-GIL | 11/18/2003 | Penalties | This letter discusses a Motor Fuel Use Tax licensing penalty. See 35 ILCS 505/13a.6. (This is a GIL.) |
| ST 03-0182-GIL | 11/18/2003 | Enterprise Zones | This letter discusses statutory changes to the enterprise zone building materials exemption. See 35 ILCS 120/5k and 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 03-0181-GIL | 11/18/2003 | Local Taxes | The Department “will assume that the seller has accepted the purchase order at the place of business at which the seller receives such purchase order from the purchaser in the absence of clear proof to the contrary.” 86 Ill. Adm. Code 270.115(b)(2). (This is a GIL.) |
| ST 03-0180-GIL | 11/17/2003 | Construction Contractors | This letter discusses the tax liabilities of sellers of floor coverings. See 86 Ill. Adm. Code 130.2101. (This is a GIL). |
| ST 03-0179-GIL | 11/17/2003 | Sales for Resale | This letter describes the standard drop-shipment scenario and certificates of resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 03-0178-GIL | 11/17/2003 | 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 03-0177-GIL | 11/17/2003 | 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 03-0176-GIL | 11/17/2003 | Charitable Games | This letter discusses whether an agreement for the sale of pull-tab vending machines is permissible. See Illinois Pull Tabs and Jar Games Act, 230 ILCS 20/1 et seq. (This is a GIL.) |
| ST 03-0175-GIL | 11/14/2003 | Use Tax | When a retailer takes an item from inventory and makes a gift of it to someone the retailer is the user of the item and incurs a Use Tax liability on his cost price of the item. See 86 Ill. Adm. Code 150.305. (This is a GIL.) |
| ST 03-0174-GIL | 11/13/2003 | Use Tax | This letter discusses tax issues for motor vehicles subject to either a true lease or conditional sale. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL). |
| ST 03-0173-GIL | 11/06/2003 | 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 03-0172-GIL | 11/06/2003 | Farm Machinery and Equipment | Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily in production agriculture or for use in State or Federal agricultural programs. The purchase of a dirt scraper for the purpose of moving sand out of a field would not qualify for the exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.) |
| ST 03-0171-GIL | 11/05/2003 | Manufacturing Machinery and Equipment | The manufacturing machinery & equipment exemption includes machinery and equipment used in the general maintenance or repair of exempt machinery and equipment. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 03-0170-GIL | 11/05/2003 | Enterprise Zones | This letter discusses Department of Commerce and Economic Opportunity certified business issues. See Section 9-222.1 of the Public Utilities Act. 220 ILCS 5/9-222.1. (This is a GIL.) |
| ST 03-0169-GIL | 11/05/2003 | 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 03-0168-GIL | 11/05/2003 | 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 03-0167-GIL | 11/05/2003 | Miscellaneous | This letter discusses reward credits, sometimes referred to as hostess dollars. See 86 Ill. Adm. Code 130.401(c). (This is a GIL.) |
| ST 03-0166-GIL | 11/04/2003 | Sale for Resale | When a water utility company purchases a chemical that will be used in the water treatment process, it owes Use Tax on the purchase price of the chemical, even though the water in the chemical will be transferred to the customer. (This is a GIL.) |
| ST 03-0165-GIL | 11/04/2003 | 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 130.2007. (This is a GIL.) |
| ST 03-0164-GIL | 10/03/2003 | 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 03-0163-GIL | 10/23/2004 | Exempt Organization | This letter describes the requirements for documenting sales to exempt organizations and sales for resale. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 03-0162-GIL | 10/23/2004 | Use Tax | In general, the purchase of tangible personal property at retail for use or consumption in this State is subject to Illinois Use Tax. See 35 ILCS 105/2 and 3. (This is a GIL.) |
| ST 03-0161-GIL | 10/21/2003 | 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 03-0160-GIL | 10/17/2003 | Local Taxes | The Department “will assume that the seller has accepted the purchase order at the place of business at which the seller receives such purchase order from the purchaser in the absence of clear proof to the contrary.” 86 Ill. Adm. Code 270.115(b)(2) (This is a GIL.) |
| ST 03-0159-GIL | 10/08/2003 | Medical Appliances | All gross receipts from sales of tangible personal property in Illinois are subject to Retailers’ Occupation Tax unless an exemption is specifically provided. 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 03-0158-GIL | 10/08/2003 | 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 03-0157-GIL | 10/08/2003 | Sale 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 03-0156-GIL | 10/08/2003 | Coal Mining Equipment | Effective July 1, 2003, the Coal Exploration, Mining, Off Highway Hauling, Processing, Maintenance and Reclamation Equipment Exemption was repealed. See 86 Ill. Adm. Code 130.350 (This is a GIL.) |
| ST 03-0155-GIL | 10/08/2003 | Electricity Excise Tax | This letter discusses exemptions allowed under the Electricity Excise Tax Law, 35 ILCS 640/1 et seq. (This is a GIL.) |
| ST 03-0154-GIL | 10/08/2004 | Use Tax | Section 3-70 of the Use Tax Act provides that the Use Tax does not apply to the use, in this State, of tangible personal property acquired outside this State by a nonresident individual who then brings the property into this State for use here and who has used the property outside the State for at least 3 months before bringing the property to this State. See 35 ILCS 105/3-70. (This is a GIL.) |
| ST 03-0153-GIL | 10/07/2004 | Service Occupation Tax | Generally, photocopy services and incoming facsimile services are considered sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 03-0152-GIL | 10/07/2004 | Bingo | If no charge is made to play bingo, the games are not subject to the provisions of the Bingo License and Tax Act. See, 86 Ill. Adm. Code 530.100. (This is a GIL.) |
| ST 03-0151-GIL | 10/06/2003 | Sale for Resale | This letter describes how the resale exemption applies to pallets and shrink-wrap/stretch wrap. See 86 Ill. Adm. Code 130.2070. (This is a GIL.) |
| ST 03-0150-GIL | 10/06/2003 | Miscellaneous | Retailers selling do-it-yourself trailer kits are subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 03-0149-GIL | 10/06/2003 | Use Tax | This letter discusses the sales tax treatment of cellular phones when they are either given away or sold. (See, 86 Ill. Adm. Code 150.305.) (This is a GIL). |
| ST 03-0148-GIL | 09/19/2003 | Miscellaneous | This letter responds to various questions regarding registration and taxation of vehicles, aircraft, and equipment. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 03-0147-GIL | 09/19/2003 | 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 03-0146-GIL | 09/19/2003 | Electricity Excise Tax | This letter explains why political subdivisions of this State are subject to Electricity Excise Tax and Telecommunications Tax liability. See 86 Ill. Adm. Code 511.150. (This is a GIL.) |
| ST 03-0145-GIL | 09/18/2003 | Service Occupation Tax | If no tangible personal property is transferred incident to a sale of service, Service Occupation Tax is not incurred on the sale. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 03-0144-GIL | 09/15/2003 | Leasing | This letter concern a question regarding the procedure for claiming a credit for tax paid on the purchase of a vehicle for lease that is subsequently sold at retail. See 86 Ill. Adm. Code 130.2013. (This is a GIL.) |
| ST 03-0143-GIL | 09/15/2003 | Local Taxes | This letter describes when local occupation taxes are imposed in Illinois. See 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 03-0142-GIL | 09/15/2003 | Service Occupation Tax | This letter discussed prescription benefit management services. See 86 Ill. Adm. Code Part 140. (This is a GIL). |
| ST 03-0141-GIL | 09/15/2003 | 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 03-0140-GIL | 09/15/2003 | 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 03-0139-GIL | 09/09/2003 | Local Taxes | This letter describes when local occupation taxes are imposed in Illinois. See 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 03-0138-GIL | 09/09/2003 | Pollution Control Facilities | Effective July 1, 2003, the pollution control facilities exemption was repealed. 86 Ill. Adm. Code 130.335. (This is a GIL.) |
| ST 03-0137-GIL | 09/05/2003 | Bingo | Section 430.110(d) of the Department’s Bingo regulations may be construed to allow organizations to conduct Bingo at both the Illinois State Fair and any county fair held in Illinois. It does not require that organizations make a choice to conduct Bingo at one fair or the other. (This is a GIL). |
| ST 03-0136-GIL | 08/26/2003 | Miscellaneous | This letter responds to an annual survey. See 86 Ill. Adm. Code 130. (This is a GIL.) |
| ST 03-0135-GIL | 08/21/2003 | Miscellaneous | Sales of electricity and natural gas are not subject to Retailers’ Occupation Tax or Use Tax. Electricity and natural gas are taxed under the Electricity Excise Tax Law and the Gas Revenue Tax Act or Gas Use Tax Law. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 03-0134-GIL | 08/20/2003 | 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 03-0133-GIL | 08/19/2003 | Bingo | This letter discusses whether a game qualifies as bingo. See 230 ILCS 25/2. (This is a GIL.) |
| ST 03-0132-GIL | 08/18/2003 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. If tangible personal property is not transferred, tax is not incurred. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST 03-0131-GIL | 08/18/2003 | Sale at Retail | A funeral director is engaged in the business of selling tangible personal property to purchasers for use or consumption when he sells such items of tangible personal property as caskets, grave vaults, grave clothing and flowers to purchasers for use or consumption, and he is required to remit Retailers' Occupation Tax to the Department on his gross receipts from such sales. 86 Ill. Adm. Code 130.2130 (This is a GIL.) |
| ST 03-0130-GIL | 08/18/2003 | 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. 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 03-0129-GIL | 08/18/2003 | Construction Contractors | See August 31, 2001 letter. 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 03-0128-GIL | 08/18/2003 | 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 03-0127-GIL | 08/13/2003 | Manufacturer's Purchase Credit | If a corporate merger is recognized as a valid merger under the Illinois Business Corporation Act of 1983, then the surviving or new corporation will possess all the rights and privileges of the merged corporations including the ability to use the accumulated MPC of the original corporation or corporations. See 805 ILCS 5/11.50(a)(4) and 86 Ill. Adm. Code 130.331. (This is a GIL). |
| ST 03-0126-GIL | 08/12/2003 | Manufacturer's Purchase Credit | From January 1, 1995 through September 30, 2003, accumulated MPC credit may be used to satisfy Use Tax or Service Use Tax liability that is incurred on the purchase of production related tangible personal property that does not qualify for the manufacturing machinery and equipment exemption. The credit cannot be used after September 30, 2003 even for audit liabilities. See 86 Ill. Adm. Code 130.331. (This is a GIL.) |
| ST 03-0125-GIL | 07/30/2003 | 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 03-0124-GIL | 07/28/2003 | Nexus | This letter discusses basic principles of nexus. See 35 ILCS 105/1 et seq. and 35 ILCS 120/1 et seq. (This is a GIL.) |
| ST 03-0123-GIL | 07/24/2003 | Pollution Control Facilities | Public Act 93-0024 eliminates the exemption from Illinois Retailers’ Occupation and Use Tax afforded the sale of pollution control facilities beginning July 1, 2003. Sales of qualifying pollution control facilities made through June 30, 2003 are exempt from Illinois sales tax. See 86 Ill. Adm. Code 130.335 (This is a GIL.) |
| ST 03-0122-GIL | 07/22/2003 | Construction Contractors | In Illinois, construction contractors are deemed to be the end users of the building materials (which can include modular or manufactured and per-fabricated housing units) that they take off the market and permanently affix to real estate. As a result, these contractors incur a Use Tax liability on their cost price of the materials permanently affixed to real estate. 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST 03-0121-GIL | 07/22/2003 | Miscellaneous | This letter responds to an annual |
| ST 03-0120-GIL | 07/21/2003 | Occasional Sale | Persons do not incur Retailers' Occupation Tax liabilities upon gross receipts from such occasional sales and purchasers do not incur Use Tax liabilities in regards to such purchases. See 86 Ill. Adm. Code 130.110. (This is a GIL.) |
| ST 03-0119-GIL | 07/21/2003 | Farm Machinery and Equipment | The sale of certain types of tangible personal property used in production agriculture is not subject to Illinois Retailers’ Occupation Tax and Use Tax. See 35 ILCS 120/2-5(2). (This is a GIL.) |
| ST 03-0118-GIL | 07/21/2003 | Manufacturing Machinery and Equipment | Machinery qualifying for the exemption are major mechanical machines or major components of such machines contributing to a manufacturing or assembling process. This includes machinery and equipment used in the general maintenance or repair of such exempt machinery and equipment or for in-house manufacture of exempt machinery and equipment. See 86 Ill. Adm. Code 130.330(c)(2). (This is a GIL.) |
| ST 03-0117-GIL | 07/21/2003 | 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 03-0116-GIL | 07/17/2003 | Gross Receipts | The taxability of maintenance agreements is dependent upon whether the charge for the agreement is included in the selling price of tangible personal property. 86 Ill. Adm. Code 140.141. (This is a GIL.) |
| ST 03-0115-GIL | 07/16/2003 | 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 03-0114-GIL | 07/15/2003 | Computer Software | A transaction involving the licensing of software will not be considered a taxable retail sale if such transaction meets all the criteria listed in subsection (a)(1)(A-E) of Section 130.1935. See 86 Ill. Adm. Code 130.1935(a)(1) (This is a GIL.) |
| ST 03-0113-GIL | 07/14/2003 | Service Occupation Tax | The question of whether transactions are retail sales subject to the Retailers’ Occupation and Use Taxes or are sales of service subject to liability under the Service Occupation and Service Use Tax Acts depends in part upon characteristics of the items being produced and the extent to which the vendor has engaged in the design of such items. See 86 Ill. Adm. Code 130.2115. (This is a GIL.) |
| ST 03-0112-GIL | 07/11/2003 | Food | Food, drugs, 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 03-0111-GIL | 07/11/2003 | Certificate of Registration | Question 14 of Section 2 on Form NUC-1, Illinois Business Registration, is based upon Section 2a of the Retailers’ Occupation Tax Act, 35 ILCS 120/2a, which provides in part that “[t]he application shall contain an acceptance of responsibility signed by the person or persons who will be responsible for filing returns and payment of taxes under this Act.” See 35 ILCS 120/2a (This is a GIL.) |
| ST 03-0110-GIL | 07/10/2003 | Food | Food prepared for immediate consumption means food made ready by the retailer to be eaten without substantial delay after the final stage of preparation by the retailer. See 86 Ill. Adm. Code 130.310 (This is a GIL.) |
| ST 03-0109-GIL | 07/10/2003 | Sale for Resale | A seller need not verify that the tangible personal property sold for resale was actually resold if the seller obtains a registration or resale number and proper Certificate of Resale, containing all information required in 86 Ill. Adm. Code 130.1405. See 86 Ill. Adm. Code 130. 1405 (This is a GIL.) |
| ST 03-0108-GIL | 07/10/2003 | Telecommunications Excise Tax | As the tax collected by the Department of Revenue under the authority of the Simplified Municipal Telecommunications Tax Act is a telecommunications tax imposed by any municipality in the State, independent of home rule status, for the privilege of originating or receiving telecommunications, such tax is not in contravention of the provisions of the Illinois Insurance Code. See 35 ILCS 636/5-5. (This is a GIL.) |
| ST 03-0107-GIL | 07/10/2003 | Computer Software | If all the criteria listed in subsection (a)(1)(A)-(E) of Section 130.1935 are met, then neither a transaction involving the licensing of software nor the subsequent software updates will be considered a taxable retail sale subject to Retailers’ Occupation and Use Tax. See 86 Ill. Adm. Code 130.1935 (This is a GIL.) |
| ST 03-0106-GIL | 07/10/2003 | Leasing | Purchase of property pursuant to a lease agreement containing a nominal purchase option at the end of the lease term would be considered a conditional sale. All payments received by the lessor in such situation are subject to the Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.2010(a). (This is a GIL.) |
| ST 03-0105-GIL | 07/10/2003 | Agricultural Producers and Products | Farmers who sell products to purchasers for use or consumption from roadside stands or who rent or lease space from an established market and sell commodities in their own names to purchasers for use or consumption are engaged in the business of selling tangible personal property at retail and are therefore required to collect and remit Retailers’ Occupation Tax upon their receipts from such sales. 86 Ill. Adm. Code 130.1905 (This is a GIL.) |
| ST 03-0104-GIL | 07/10/2003 | Medical Appliances | Medical tools, devices and equipment such as x-ray machines, laboratory equipment, and surgical instruments which may be used in the treatment of patients but, which do not directly substitute for a malfunctioning part of the body do not qualify as exempt medical appliances subject to the reduced rate. See 86 Ill. Adm. Code 130.310(c)(2) (This is a GIL.) |
| ST 03-0103-GIL | 07/10/2003 | Delivery Charges | As gross receipts from the sale of tangible personal property under a conditional sale transaction are taxable, so too are the related delivery charges unless it can be shown that such charges were separately agreed to between the buyer and the seller and are reflective of the costs of delivery. See 86 Ill. Adm. Code 130.415 (This is a GIL.) |
| ST 03-0102-GIL | 07/10/2003 | Exempt Organizations | Where an exempt organization is engaged in ongoing selling activities (for example, sales of items in a thrift shop run by a church), then the organization must register with the Department as a retailer, file returns and remit sales tax on such sales. See 86 Ill. Adm. Code 130.2005 (This is a GIL.) |
| ST 03-0101-GIL | 07/10/2003 | Sale of Service | If a sale of service is made in Illinois and no tangible personal property of any kind is transferred incident to the sale of service, then no Illinois sales tax or service tax would apply to such sale. See 86 Ill. Adm. Code 140.101 (This is a GIL.) |
| ST 03-0100-GIL | 07/10/2003 | Food, Drugs and Medical Appliances | A nutritional supplement could be classified as a food taxed at the reduced rate of tax if it is not considered sold for immediate consumption after application of the criteria detailed in 86 Ill. Adm. Code 130.310. See 86 Ill. Adm. Code 130.310 (This is a GIL.) |
| ST 03-0099-GIL | 07/10/2003 | Sale for Resale | This letter discusses procedures for “drop shipments.” See 86 Ill. Adm. Code 130.225. (This is a GIL.) |
| ST 03-0098-GIL | 07/10/2003 | Enterprise Zones | This letter discusses the enterprise zone building materials exemption from sales tax. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 03-0097-GIL | 07/10/2003 | Pollution Control Facilities | Public Act 93-0024 eliminates the pollution control facilities exemption from sales tax effective July 1, 2003. (This is a GIL.) |
| ST 03-0096-GIL | 07/10/2003 | Products of Photoprocessing | This letter discusses how photographers should apply sales tax on their invoices. It also discusses claims for credit. See 35 ILCS 120/2-15. (This is a GIL.) |
| ST 03-0095-GIL | 07/10/2003 | Motor Vehicles | 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 03-0094-GIL | 07/10/2003 | Sale for Resale | This letter discusses the taxation of automobile repairs made by an automobile dealer. See 86 Ill. Adm. Code 140.125(g). (This is a GIL.) |
| ST 03-0093-GIL | 07/10/2003 | Sale of Service | This letter discusses the tax consequences of various sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 03-0092-GIL | 07/10/2003 | 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 03-0091-GIL | 07/09/2003 | 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 03-0090-GIL | 07/09/2003 | Returns | With an agency agreement, a manufacturer or wholesaler whose products are sold by numerous distributors in Illinois assumes the responsibility of collecting and remitting Retailers’ Occupation Tax on behalf of all sales made by distributors. 86 Ill. Adm. Code 130.550. (This is a GIL.) |
| ST 03-0089-GIL | 07/09/2003 | Drugs | A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0088-GIL | 07/09/2003 | Medical Appliances | If a ventilator is directly used to aid a patient in breathing thereby substituting for the patient’s lungs, the ventilator will qualify for the low rate. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0087-GIL | 07/08/2003 | Delivery Charges | Shipping and handling 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. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 03-0086-GIL | 07/08/2003 | Hotel Operator's 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 03-0085-GIL | 07/08/2003 | Hotel Operator's 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 03-0084-GIL | 07/07/2003 | Public Utility Tax | The Illinois BBB is subject to Electricity Excise Tax liability on purchases of electricity and utilities selling natural gas to the Illinois BBB are subject to Gas Revenue Tax liability on those sales. See 86 Ill. Adm. Code 511.110. (This is a GIL.) |
| ST 03-0083-GIL | 07/07/2003 | Telecommunications Excise Tax | This letter describes the potential telecommunications tax liability of a business that provides Internet kiosks. See 86 Ill. Adm. Code 495. (This is a GIL.) |
| ST 03-0082-GIL | 07/07/2003 | Nexus | This General Information Letter provides general guidance on the principles of nexus. See 86 Ill. Adm. Code 150.201 (This is a GIL.) |
| ST 03-0081-GIL | 07/07/2003 | Construction Contractors | Where a contractor contracts to sell tangible personal property without installation and then separately contracts to install such property to real property, the contractor is considered a retailer for purposes of the sale of tangible personal property and would incur Retailers’ Occupation Tax liability on such sale. See 86 Ill. Adm. Code 130. 1940. (This is a GIL.) |
| ST 03-0080-GIL | 07/07/2003 | Books and Records | Generally, taxpayers are required to maintain business books and records during any period for which the Illinois Department of Revenue is authorized to issue a Notice of Tax Liability (NTL). See 86 Ill. Adm. Code 130.315. (This is a GIL.) |
| ST 03-0079-GIL | 06/20/2003 | Manufacturing Machinery and Equipment | 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 is exempt from Retailers' Occupation Tax and Use Tax liability. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 03-0078-GIL | 06/20/2003 | Manufacturing Machinery and Equipment | The retreading of tires for wholesale or retail sale is generally considered manufacturing for purposes of the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.2015. (This is a GIL.) |
| ST 03-0077-GIL | 06/20/2003 | Miscellaneous | This letter is in response to a request for copies of the business registration certificate of a discontinued business. (This is a GIL.) |
| ST 03-0076-GIL | 06/19/2003 | Food, Drugs and Medical Appliances | A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0075-GIL | 06/18/2003 | Graphic Arts | This letter discusses the graphic arts exemption from sales tax. 86 Ill. Adm. Code 130.325. It also discusses the Service Occupation Tax. (This is a GIL.) |
| ST 03-0074-GIL | 06/18/2003 | Nexus | This letter is a follow up to letter (ST 02-0248-GIL) regarding sales tax and nexus issues. (This is a GIL.) |
| ST 03-0073-GIL | 06/18/2003 | Enterprise Zones | This letter discusses the exemptions from telecommunications excise taxes and fees that businesses certified by the Department of Commerce and Economic Opportunity under 220 ILCS 5/9-222.1 are eligible for. (This is a GIL.) |
| ST 03-0072-GIL | 06/18/2003 | Oil Field Equipment | Exemption certificates must be executed by the purchaser at the time of purchase to document the exemption for oil field exploration, drilling and production equipment. See 86 Ill. Adm. Code 130.345. (This is a GIL.) |
| ST 03-0071-GIL | 06/17/2003 | 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 deduction. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 03-0070-GIL | 06/17/2003 | Miscellaneous | Sales of discount cards, which enable purchasers to take advantage of exclusive discounts, are not considered sales of tangible personal property. Sales of such cards represent sales of intangibles and are not subject to Retailers' Occupation Tax and Use Tax liability. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 03-0069-GIL | 06/17/2003 | Construction Contractors | Under Illinois law, a person who takes tangible personal property off the market and converts it into real estate is deemed a construction contractor and is the legal end-user of the tangible personal property personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.) |
| ST 03-0068-GIL | 06/09/2003 | Agricultural Producers and Products | Farm chemicals include chemical products used in production agriculture, the products of which are to be sold, or in the production or care of animals that are to be sold or the products of which are to be sold. See 86 Ill. Adm. Code 130.1955. (This is a GIL.) |
| ST 03-0067-GIL | 06/09/2003 | Telecommunications Excise Tax | Charges for radio broadcasts, including those provided from satellites, are similar to charges for cable television programming and are not generally subject to telecommunications tax liability in Illinois. See 86 Ill. Adm. Code 495. (This is a GIL.) |
| ST 03-0066-GIL | 06/03/2003 | Sale 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 03-0065-GIL | 05/02/2003 | Telecommunications Excise Tax | This letter describes the importance of the customer’s service address for application of State and municipal telecommunications taxes. See 35 ILCS 630/2(n) and 35 ILCS 636/5-7. (This is a GIL.) |
| ST 03-0064-GIL | 05/02/2003 | Gross Receipts | Whether a particular tax is included in the selling price for computing Retailers' Occupation Tax, one must look at the statute or tax act to see upon whom the taxing government (whether federal, state or local) has placed the legal incidence of the tax. See 86 Ill. Adm. Code 130.435. (This is a GIL.) |
| ST 03-0063-GIL | 04/07/2003 | Food | Food, drugs, 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 PLR.) |
| ST 03-0062-GIL | 04/29/2003 | Enterprise Zone | This letter discusses several fact patterns related to the enterprise zone building materials exemption from sales tax. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 03-0061-GIL | 04/15/2003 | Books and Records | Illinois sales tax rules provide that taxpayers may utilize electronic data interchange (EDI) as a method for record keeping if the EDI process contains the level of record detail, in combination with other records related to the transaction, that is equivalent to the level of detail contained in an acceptable paper record. See 86 Ill. Adm. Code 130.805. (This is a GIL.) |
| ST 03-0060-GIL | 04/14/2003 | C.O.A.D. | The quarter push game described in this letter could not be regulated as a coin-operated amusement device because it returned money to the player. See 35 ILCS 510/1. (This is a GIL.) |
| ST 03-0059-GIL | 04/11/2003 | 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. (This is a GIL.) |
| ST 03-0058-GIL | 04/07/2003 | Miscellaneous | This letter describes how the transfer of assets in a merger of two limited liability companies is not subject to either Retailers' Occupation Tax or Use Tax liability. See 805 ILCS 180/37-30. (This is a GIL.) |
| ST 03-0057-GIL | 04/07/2003 | 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 03-0056-GIL | 04/07/2003 | Medical Appliances | All gross receipts from sales of tangible personal property in Illinois are subject to Retailers’ Occupation Tax unless an exemption is specifically provided. 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 03-0055-GIL | 04/03/2003 | Interstate Commerce | When a sale is conducted in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, the gross receipts are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST 03-0054-GIL | 04/03/2003 | Local Taxes | The Metro-East Mass Transit District Use Tax is set forth in 70 ILCS 3610/5.01. (This is a GIL.) |
| ST 03-0053-GIL | 04/03/2003 | Computer Software | Please note that sales of “canned” computer software are considered taxable retail sales in Illinois regardless of the manner of the transfer of that software (electronically for example). See the enclosed copy of 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 03-0052-GIL | 04/03/2003 | 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. This letter discusses dredges. (This is a GIL.) |
| ST 03-0051-GIL | 04/02/2003 | Tobacco Products Tax Act | This letter discusses whether escrow amounts paid for purposes of the Tobacco Product Manufacturers’ Escrow Act, 30 ILCS 168/1 et seq. are included in the “whole sale” price upon which the Tobacco Products Tax is based. 35 ILCS 143/10-5. (This is a GIL.) |
| ST 03-0050-GIL | 03/31/2003 | Interstate Commerce | Retailers' Occupation Tax does not apply where sellers are required to ship goods by carrier or by mail, according to the terms of agreements with purchasers, and the seller delivers the goods from a point within Illinois to a point outside Illinois and the goods are not to be returned to Illinois. 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 03-0049-GIL | 03/31/2003 | Sale for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 03-0048-GIL | 03/31/2003 | Sale for Resale | Certificates of Resale must contain the information found in 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 03-0047-GIL | 03/28/2003 | Food, Drugs, and Medical Appliances | This letter discusses sales tax issues related to the sale of skin care products by a dermatologist. Skin care products generally do not qualify for the 1% rate of tax as medicine unless they purport on the label to have medicinal qualities. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 03-0046-GIL | 03/28/2003 | Leasing | If lessors are guaranteed at the time of the lease that the leased property will be sold, this transaction is considered to be a conditional sale at the outset of the transaction, thus making all receipts subject to Retailers’ Occupation Tax. See 35 ILCS 120/1 et seq. (This is a GIL.) |
| ST 03-0045-GIL | 03/28/2003 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. There are currently no Illinois regulations specifically exempting Native American individuals, communities or groups from tax. 35 ILCS 120/2 (2000 State Bar Edition). (This is a GIL). |
| ST 03-0044-GIL | 03/25/2003 | Gas Revenue Tax | Customers that had acquired contractual rights for the direct purchase of gas or gas services originating from an out-of-State supplier or source on or before March 1, 1995 are exempt from Gas Revenue Tax. See 86 Ill. Adm. Code 470.171. (This is a GIL). |
| ST 03-0043-GIL | 03/24/2003 | Bingo | A bond is no longer required in order to obtain a Bingo regular license. Information about regular licenses is set forth at 86 Ill. Adm. Code 430.110. (This is a GIL). |
| ST 03-0042-GIL | 03/07/2003 | Service Occupation Tax | The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based upon the tangible personal property transferred incident to sales of service. See, 35 ILCS 115/3 (This is a GIL). |
| ST 03-0041-GIL | 03/07/2003 | Telecommunications Tax | Effective January 1, 2001 prepaid telephone calling card arrangements were no longer taxable under the Telecommunications Excise Tax Act, but became taxable as tangible personal property under the Retailers’ Occupation Tax Act, Service Occupation Tax Act, Service Use Tax Act and Use Tax Act. See Public Act 91-0870. (This is a GIL). |
| ST 03-0040-GIL | 03/07/2003 | Food | “Food” is 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 03-0039-GIL | 03/06/2003 | Gross Receipts | Gross receipts mean all the consideration actually received by the seller, except traded-in tangible personal property personal property. See 86 Ill. Adm. Code 130.401. (This is a GIL). |
| ST 03-0038-GIL | 03/05/2003 | Sale of Service | Sales of service that are accompanied with the transfer of tangible personal property are subject to liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 03-0037-GIL | 03/03/2003 | Miscellaneous | If no tangible personal property is transferred to customers, then no Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax Act, or Service Use Tax liability would be incurred on the sales to those customers. See 86 Ill. Adm. Code 130.301. (This is a GIL). |
| ST 03-0036-GIL | 03/03/2003 | Food, Drugs and Medical Appliances | Products that qualify as medicines, drugs, or medical appliances are taxed at the reduced low rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 03-0035-GIL | 02/21/2003 | Sale at Retail | This letter discusses the taxation of satellite TV equipment provided to customers who sign up for satellite TV service. See 86 Ill. Adm. Code 130.401. (This is a GIL). |
| ST 03-0034-GIL | 02/20/2003 | Food, Drugs, and Medical Appliances | The Department’s complete rules, regulations and rulings for sales tax are voluminous and can be found on our website at www.iltax.com. (This is a GIL). |
| ST 03-0033-GIL | 02/14/2003 | Miscellaneous | This letter discusses the sales tax liability of a group that provides a free service and issues a card to its customers. See 35 ILCS 120/1 et seq. (This is a GIL). |
| ST 03-0032-GIL | 02/14/2003 | Nexus | The Board of Appeals administers a voluntary disclosure program that can provide for limited liabilities for participants who come forward and disclose their liabilities. See 86 Ill. Adm. Code 210.126 (This is a GIL.) |
| ST 03-0031-GIL | 02/14/2003 | 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 03-0030-GIL | 02/14/2003 | Construction Contractors | This letter discusses the tax liability of construction contractors. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 03-0029-GIL | 02/14/2003 | Food, Drugs, and Medical Appliances | Products that qualify as medicines, drugs, or medical appliances are taxed at the reduced low rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 03-0028-GIL | 02/14/2003 | 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 03-0027-GIL | 02/14/2003 | 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 03-0026-GIL | 02/14/2003 | Sale 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. (This is a GIL). |
| ST 03-0025-GIL | 02/11/2003 | Sale at Retail | If a veterinarian sells tangible personal property that is available through retail outlets, those sales will be subject to Retailers' Occupation Tax liability even though the product may be prescribed by the veterinarian. See 86 Ill. Adm. Code 130.2165. (This is a GIL). |
| ST 03-0024-GIL | 02/10/2003 | 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 03-0023-GIL | 02/06/2003 | Medical Appliances | All gross receipts from sales of tangible personal property in Illinois are subject to Retailers’ Occupation Tax unless an exemption is specifically provided. 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 03-0022-GIL | 02/05/2003 | 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 03-0021-GIL | 02/05/2003 | Construction Contractors | Under Illinois law, a person who takes tangible personal property off the market and converts it into real estate is deemed a construction contractor and is the legal end-user of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 03-0020-GIL | 02/05/2003 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable, receive an exemption identification "E" number. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 03-0019-GIL | 02/05/2003 | Gross Receipts | When an item of tangible personal property is sold at retail and includes a core charge, the full retail selling price of the item, including the core charge, is subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.425. (This is a GIL). |
| ST 03-0018-GIL | 02/05/2003 | 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 03-0017-GIL | 02/04/2003 | Computer Software | If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 03-0016-GIL | 02/04/2003 | 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 03-0015-GIL | 02/04/2003 | 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 03-0014-GIL | 02/04/2003 | 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 03-0013-GIL | 01/28/2003 | Products of Photoprocessing | In transactions in which products of photoprocessing are sold in conjunction with other services, if a charge for the photoprocessing component is not separately stated, tax is imposed on 50% of the entire selling price unless the sale is made by a professional photographer, in which case tax is imposed on 10% of the entire selling price. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 03-0012-GIL | 01/14/2003 | Miscellaneous | This letter answers a survey regarding Braille equipment and computer devices. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 03-0011-GIL | 01/13/2003 | 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 03-0010-GIL | 01/13/2003 | Motor Vehicles | The sale of a vehicle that has previously been modified to make it usable by a disabled person is subject to Retailers' Occupation Tax liability on the entire selling price of the vehicle at the general merchandise rate (6.25% plus any applicable local tax). See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 03-0009-GIL | 01/10/2003 | Manufacturer's Purchase Credit | Hand tools, protective apparel, and fire and safety equipment used or consumed in a graphic arts production facility (or manufacturing facility) will qualify as production related tangible personal property. See 86 Ill. Adm. Code 130.331. (This is a GIL). |
| ST 03-0008-GIL | 01/08/2003 | Returns | This letter discusses who owes the sales tax when a lessee operates a business upon property owned by the lessor. See 86 Ill. Adm. Code 130.101, 130.1305, and 130.1310 concerning Leased Portions of Lessor's Business Space. (This is a GIL.) |
| ST 03-0007-GIL | 01/07/2003 | Sale at Retail | A retailer’s costs of doing business are not deductible from his gross receipts. See 86 Ill. Adm. Code 130.410. (This is a GIL.) |
| ST 03-0006-GIL | 01/07/2003 | Returns | Agency agreements authorize wholesalers whose products are sold by numerous distributors in Illinois to assume responsibility for reporting and paying tax on behalf of such distributors. See 86 Ill. Adm. Code 130.550. (This is a GIL.) |
| ST 03-0005-GIL | 01/06/2003 | 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 03-0004-GIL | 01/06/2003 | 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 03-0003-GIL | 01/06/2003 | Gross Receipts | 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 03-0002-GIL | 01/03/2003 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation Tax liability or Use Tax liability for the servicemen depending upon his activities. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 03-0001-GIL | 01/02/2003 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940. (This is a GIL.) |
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 03-0032-PLR | 12/03/2003 | Local Taxes | The Department “will assume that the seller has accepted the purchase order at the place of business at which the seller receives such purchase order from the purchaser in the absence of clear proof to the contrary.” 86 Ill. Adm. Code 270.115(b)(2). (This is a PLR.) |
| ST 03-0031-PLR | 12/03/2003 | Local Taxes | The Department “will assume that the seller has accepted the purchase order at the place of business at which the seller receives such purchase order from the purchaser in the absence of clear proof to the contrary.” 86 Ill. Adm. Code 270.115(b)(2). (This is a PLR.) |
| ST 03-0030-PLR | 11/20/2003 | Sales 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 PLR.) |
| ST 03-0029-PLR | 11/20/2003 | Manufacturing Machinery and Equipment | This letter makes rulings regarding the application of the manufacturing machinery and equipment and Manufacturer’s Purchase Credit to a steam and electricity producing operation. See 86 Ill. Adm. Code 130.330 and 130.331. (This is a PLR.) |
| ST 03-0028-PLR | 11/20/2003 | Motor Fuel Tax | Under the Motor Fuel Use Tax rules at 86 Ill. Adm. Code 500.325(b), in the case of a carrier using independent contractors under long-term leases (more than 30 days), the lessor and lessee will be given the option of designating which party will report and pay fuel use tax. If the designated party does not fulfill its obligations, the Department may proceed against either party. (This is a PLR). |
| ST 03-0027-PLR | 11/19/2003 | 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 03-0026-PLR | 11/06/2003 | Telecommunications Excise Tax | This letter discusses a reseller of telecommunications. See 86 Ill. Adm. Code 495 (This is a PLR.) |
| ST 03-0025-PLR | 11/03/2003 | Hotel Operators' Tax | The Hotel Operators’ Occupation Tax provides an exemption for “permanent residents,” which is defined in Section 2 of the Hotel Operators’ Occupation Tax Act as “any person who occupied or has the right to occupy any room or rooms in a hotel for at least 30 consecutive days.” (See 35 ILCS 145/2) (This is a PLR.) |
| ST 03-0024-PLR | 10/22/2003 | Manufacturing Machinery and Equipment | This letter discusses specific equipment used to mine coal and whether that equipment qualifies for the exemption under 86 Ill. Adm. Code 130.330 and Nokomis Quarry Co. v. Department of Revenue, 295 Ill. App. 3d 264, 692 N.E. 2d 855 (1998). (This is a PLR.) |
| ST 03-0023-PLR | 10/02/2003 | Enterprise Zones | A “qualified sale” is a sale of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued. See 86 Ill. Adm. Code 130.1951. (This is a PLR.) |
| ST 03-0022-PLR | 08/27/2003 | Local Taxes | The Department’s regulations state that “enough of the selling activity must occur within the home rule municipality to justify concluding that the seller is engaged in business within the home rule municipality with respect to that sale.” 86 Ill. Adm. Code 270.115(a)(1). (This is a PLR.) |
| ST 03-0021-PLR | 08/27/2003 | Service Occupation Tax | This letter discusses roof truss systems. The test for special order items that result in Service Occupation Tax liability is set forth in subsection (b) of the Department’s regulation at 86 Ill. Adm. Code 130.2115. (This is a PLR.) |
| ST 03-0020-PLR | 08/25/2003 | Exempt Organizations | This letter determines that an educational institution that provides optometry services as part of its curriculum does not incur tax on the transfer of tangible personal property incident to the providing of that service. See generally 86 Ill. Adm. Code 130.2005. (This is a PLR.) |
| ST 03-0019-PLR | 08/25/2003 | 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)(1) is met. See 86 Ill. Adm. Code 130.2115. (This is a PLR.) |
| ST 03-0018-PLR | 07/16/2003 | 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 03-0017-PLR | 07/16/2003 | 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 PLR.) |
| ST 03-0016-PLR | 06/02/2003 | 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 03-0015-PLR | 05/15/2003 | Use Tax | The Use Tax is a privilege tax imposed on the privilege of using, in this State, any kind of tangible personal property that is purchased anywhere at retail from a retailer. See 86 Ill Adm. Code 150.101. (This is a PLR.) |
| ST 03-0013-PLR | 04/14/2003 | Replacement Vehicle Tax | A replacement vehicle tax of $200 is imposed on purchases of passenger cars by insurance companies to replace passenger cars of insured persons in settlement of total loss claims. See 625 ILCS 5/3-2001 et seq. (This is a PLR.) |
| ST 03-0012-PLR | 04/14/2003 | Replacement Vehicle Tax | A replacement vehicle tax of $200 is imposed on purchases of passenger cars by insurance companies to replace passenger cars of insured persons in settlement of total loss claims. See 625 ILCS 5/3-2001 et seq. (This is a PLR.) |
| ST 03-0011-PLR | 04/14/2003 | Food | 86 Ill. Adm. Code 130.310 states that food prepared for immediate consumption means food made ready by the retailer to be eaten without substantial delay after the final stage of preparation by the retailer. (This is a PLR.) |
| ST 03-0010-PLR | 04/14/2003 | 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. See 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 03-0009-PLR | 04/14/2003 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 03-0008-PLR | 03/12/2003 | Manufacturer's Purchase Credit | This letter describes how the base for determining the amount of MPC earned on the purchase of special order molds and dies is 50% of the entire service billing if no separate selling price is stated for the molds and dies (This is a PLR). |
| ST 03-0007-PLR | 03/11/2003 | Local Taxes | The imposition of the various sales tax related local taxes in Illinois are triggered when "selling" occurs in a jurisdiction imposing a tax. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST 03-0006-PLR | 03/07/2003 | 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 jurisdiction’s tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a PLR). |
| ST 03-0005-PLR | 01/17/2003 | 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 03-0004-PLR | 01/17/2003 | Enterprise Zones | A “qualified sale” is a sale of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued. 35 ILCS 120/5k. (This is a PLR). |
| ST 03-0003-PLR | 01/17/2003 | Enterprise Zones | A “qualified sale” is a sale of building materials that will be incorporated into real estate as part of a project for which a Certificate of Eligibility for Sales Tax Exemption has been issued. 35 ILCS 120/5k. (This is a PLR). |
| ST 03-0002-PLR | 01/14/2003 | Exempt Organizations | A hospital that qualifies as a charitable institution is not taxable when selling drugs to anyone because this is for the relief of the sick and so is “primarily for the purpose of” such hospitals. See 86 Ill. Adm. Code 130.2005(b)(1)(B). (This is a PLR). |
| ST 03-0001-PLR | 01/13/2003 | 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 retails ale or lease. See 86 Ill. Adm. Code 130.330. (This is a PLR.) |