Illinois Department of Revenue
 
 
Legal Information
 
 
 
 
 

2004 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST 04-0244-GIL 12/30/2004 Rolling Stock Exemption For periods after July 1, 2004, a taxpayer may elect to use the mileage method to record and document the qualifying use of a vehicle for the rolling stock exemption. If no election is recorded in a taxpayer’s books and records, the taxpayer will be deemed to have chosen the mileage method for any period after July 1, 2004 for that vehicle or trailer. See Informational Bulletin 2005-01. (This is a GIL.)
ST 04-0243-GIL 12/28/2004 Sale of Service If no tangible personal property is being transferred to the customers, then no Illinois Retailers’ Occupation Tax nor Use Tax would apply. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 04-0242-GIL 12/23/2004 Sale of Service 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 04-0241-GIL 12/23/2004 Telecommunications Excise Tax The purchase of telecommunications cannot be made tax-free as being purchase for resale unless a valid resale number is provided at the time of purchase. See 35 ILCS 630/8. (This is a GIL.)
ST 04-0240-GIL 12/22/2004 Graphic Arts Machinery & Equipment Exemption Printing plates constitute exempt graphic arts equipment. See 86 Ill. Adm. Code 130.325 (This is a GIL.)
ST 04-0239-GIL 12/20/2004 Manufacturing Machinery and Equipment The Manufacturing Machinery and Equipment Exemption does not apply to lubricants or fuel oil purchased for use in exempt machinery or equipment. See 86 Ill. Adm. 130.330. (This is a GIL.)
ST 04-0238-GIL 12/20/2004 Gross Receipts If a retailer obtains reimbursements for accepting discount coupons, the amount of the reimbursement must be included in gross receipts for calculating Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST 04-0237-GIL 12/17/2004 Leasing Lessors that have paid taxes in another state with respect to acquisition of the tangible personal property leased for use in Illinois, would be exempt from Use Tax only to the extent of the amount of such tax properly due and paid in such other state. See Subsection (a)(3) of 86 Ill. Adm. Code 150.310. (This is a GIL.)
ST 04-0236-GIL 12/17/2004 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 o f the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 04-0235-GIL 12/17/2004 Food The manner in which food is taxed depends upon the nature of the establishment that is selling the food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0234-GIL 12/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0233-GIL 12/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0232-GIL 12/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0231-GIL 12/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0230-GIL 12/17/2004 Sale for Resale A sale of tangible personal property for resale is exempt from Retailers’ Occupation and Use Tax. 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 04-0229-GIL 12/15/2004 Telecommunications Excise Tax Generally, persons that provide subscribers access to the Internet and who do not, as part of that service, charge customers for the line or other transmission charges, which are used to obtain access to the Internet, are not considered to be telecommunications retailers. See 86 Ill. Adm. Code 495.100(d). (This is a GIL.)
ST 04-0228-GIL 12/15/2004 Coal Mining Equipment The exemption for coal exploration, mining, off highway, processing maintenance and reclamation equipment, contained in regulation 86 Ill. Adm. Code 130.350 was repealed, effective July 1, 2003. Some items may qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 04-0227-GIL 12/15/2004 Graphic Arts Under the graphic arts machinery and equipment exemption, Retailers’ Occupation Tax does not apply to sales of machinery and equipment used primarily in graphic arts production. See 86 Ill. Adm. Code 130.325. (This is a GIL.)
ST 04-0226-GIL 12/15/2004 Returns Any person engaged in the business of selling alcoholic liquor at retail through a liquor store, tavern, or restaurant is required to file a monthly statement with the Department listing the total amount paid for alcoholic liquor purchased during the preceding calendar month. See Emergency Regulation 86 Ill. Adm. Code 130.552. (This is a GIL.)
ST 04-0225-GIL 12/15/2004 Manufacturing Machinery & Equipment In order to qualify for the manufacturing machinery and equipment exemption, the process or activity must be commonly regarded as manufacturing. See 86 Ill. Adm. Code 130.330(b)(3). (This is a GIL.)
ST 04-0224-GIL 11/30/2004 Exempt Organizations This letter discusses the various tax liabilities of fund raising organizations and their suppliers. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 04-0223-GIL 11/30/2004 Construction Contractors 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 and 130.2075. (This is a GIL.)
ST 04-0222-GIL 11/30/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0221-GIL 11/29/2004 Sale of Service The transfer of special order printing materials is a service transaction that may result in either Service Occupation Tax or Use Tax liability for the servicemen, depending upon which tax base the servicemen choose to calculate their liability. See 86 Ill. Code 140.101 through 140.109. (This is a GIL.)
ST 04-0220-GIL 11/29/2004 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 04-0219-GIL 11/29/2004 Computer Software This letter references the Department’s administrative rules on computer software and maintenance agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0218-GIL 11/29/2004 Delivery Charges Whether transportation and delivery charges may be deducted by retailers in calculating Retailers' Occupation Tax liability depends not upon the separate billing of such transportation or delivery charges but upon whether the charges are included in the selling price of the property or are contracted for separately by purchasers and retailers. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 04-0217-GIL 11/29/2004 Gross Receipts “Gross receipts” means 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 04-0216-GIL 11/29/2004 Graphic Arts For purposes of the Retailers' Occupation Tax regarding the reinstatement of the graphics arts machinery and equipment exemption, the date of delivery of the equipment will determine the date of the sale. See Emergency Regulations 86 Ill. Adm. Code 130.101 and 130.325. (This is a GIL.)
ST 04-0215-GIL 11/29/2004 Rolling Stock Exemption Beginning again on July 1, 2004, the trips or mileage of a motor vehicle for which persons or property are carried for hire just between points in Illinois may be used to qualify for the rolling stock exemption, if the journey of the passenger or shipment of the property either originates or terminates outside of Illinois. See Public Act 93-1033. (This is a GIL.)
ST 04-0214-GIL 11/24/2004 Miscellaneous This letter responds to a survey regarding the Telecommunications Excise Tax, Telecommunications Infrastructure Maintenance Fee Act, and the Simplified Municipal Telecommunications Tax. See 86 Ill. Adm. Code 495, 35 ILCS 635/1, and 35 ILCS 636/5-1 et seq. (This is a GIL.)
ST 04-0213-GIL 11/24/2004 Rolling Stock Exemption The rolling stock exemption applies to owners, lessors, or shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce as long as so used by the interstate carriers for hire. See 35 ILCS 120/2-5(13). (This is a GIL.)
ST 04-0212-GIL 11/18/2004 Medical Appliances The term “medical appliances” is defined in 86 Ill. Adm. Code 130.310(c). This regulation was amended, effective June 24, 2002. (This is a GIL.)
ST 04-0211-GIL 11/18/2004 Occasional Sale A farmer who demolishes his hog confinement buildings and crushes and sells the concrete foundations from those buildings but who does not hold himself out as being engaged (and who does not habitually engage) in selling crushed concrete at retail is making an “occasional sale” that is not subject to Retailers’ Occupation Tax or Use Tax. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 04-0210-GIL 11/15/2004 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. Lessors under true leases incur Illinois 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 04-0209-GIL 11/15/2004 Miscellaneous Response to survey. (This is a GIL.)
ST 04-0208-GIL 11/12/2004 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 04-0207-GIL 11/09/2004 Manufacturing Machinery and Equipment 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 04-0206-GIL 11/08/2004 Rolling Stock This letter provides a reference to the Department’s rules regarding the Rolling Stock Exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 04-0205-GIL 11/08/2004 Use Tax Persons who provide cleaning or janitorial services and use cleaning supplies as part of those services incur Use Tax liability on the cost price of those cleaning supplies. See, generally, 86 Ill. Adm. Code 150.101 (This is a GIL.)
ST 04-0204-GIL 11/08/2004 Delivery Charges This letter refers to the Department’s rule concerning transportation and delivery charges. See, generally, 86 Ill. Adm. Code 130.415 (This is a GIL.)
ST 04-0203-GIL 11/08/2004 Delivery Charges This letter refers to the Department’s rule concerning transportation and delivery charges. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 04-0202-GIL 11/08/2004 Sale for Resale This letter discusses sales for resale. See 86 Ill. Adm. 130.210. (This is a GIL.)
ST 04-0201-GIL 11/08/2004 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.)
ST 04-0200-GIL 11/03/2004 Service Occupation Tax The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based on the tangible personal property transferred incident to sales of service. See 35 ILCS 115/3. (This is a GIL.)
ST 04-0199-GIL 11/03/2004 Construction Contractors Contractors who physically incorporate tangible personal property into real estate owned by holders of E-numbers can purchase such property tax-free by providing their suppliers with the certification described in Section 130.2075(d), as well as the E-number of the group into whose real estate that property will be incorporated. See 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 04-0198-GIL 11/03/2004 Service Occupation Tax If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 04-0197-GIL 11/03/2004 Governmental Bodies Sales to a governmental body are generally subject to tax unless the governmental body has an active exemption identification “E” number. See 86 Ill. Adm. Code 130.2080. (This is a GIL.)
ST 04-0196-GIL 11/03/2004 Sale for Resale Certificates of Resale must contain the information required in 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 04-0195-GIL 11/01/2004 Miscellaneous This letter responds to a survey regarding Telecommunications Excise Tax, invoices and cable TV. See 35 ILCS 630/1. (This is a GIL).
ST 04-0194-GIL 11/01/2004 Coal Mining Equipment Information regarding the tax liabilities incurred and applicable exemptions, if any, for a coal processing plant (coal wash), may be found at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 04-0193-GIL 11/01/2004 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 04-0192-GIL 10/21/2004 Gross Receipts This letter discusses tax liability on the issuance of a gift card and purchases made using the gift card. See 86 Ill. Adm. Code 130.2125(c). (This is a GIL.)
ST 04-0191-GIL 10/15/2004 Aircraft Use Tax For purchases of a fractional share in an aircraft, Aircraft Use Tax liability is incurred on the purchase price of the fractional share of the aircraft purchased. However, the taxable purchase price of the fractional share shall not be less than the fair market value of the fractional share. See 35 ILCS 157/1. (This is a GIL.)
ST 04-0190-GIL 10/15/2004 Miscellaneous If no tangible personal property is transferred to customers, then no Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax, 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 04-0189-GIL 10/15/2004 Miscellaneous The Department does not consider the viewing and downloading of text and similar data over the Internet to be the transfer of tangible personal property. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 04-0188-GIL 10/12/2004 Computer Software Charges for updates of canned software are considered to be sales of software, and taxable. See 86 Ill. Adm. Code 130.1935(b). (This is a GIL.)
ST 04-0187-GIL 09/27/2004 Miscellaneous This letter responds to a survey regarding the Hotel Operators’ Occupation Tax Act. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 04-0186-GIL 09/22/2004 Sale of Service Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 04-0185-GIL 09/22/2004 Leasing Persons who purport to “lease” the use of property, but in fact sell such tangible personal property to the “lessees,” are considered to be making conditional sales subject to Retailers' Occupation Tax. Section 130.2010(a). See 86 Ill. Adm. Code 270.115(b). (This is a GIL.)
ST 04-0184-GIL 09/22/2004 Claims for Credit A retailer may file a claim for credit memorandum for a motor vehicle returned under the New Vehicle Buyer Protection Act. See 86 Ill. Adm. Code 130.1501. (This is a GIL.)
ST 04-0183-GIL 09/22/2004 Nexus The definition of a “retailer maintaining a place of business in Illinois” is described in 86 Ill. Adm. Code 150.201(i). This type of retailer 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 04-0182-GIL 09/21/2004 Leasing A conditional sale to an organization holding an active exemption identification “E” number is not subject to the Retailers' Occupation Tax and Use Tax obligations upon exercising the nominal buyout option. See 86 Ill. Adm. Code 130.420 and 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 04-0181-GIL 09/21/2004 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 04-0180-GIL 09/21/2004 Computer Software Sales of canned software are taxable regardless of the means of delivery. For instance, the transfer or sale of canned computer software downloaded electronically would be taxable. See 86 Ill. Adm. Code 130.1935(a). (This is a GIL.)
ST 04-0179-GIL 09/21/2004 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 04-0178-GIL 09/21/2004 Food For purposes of the 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 04-0177-GIL 09/21/2004 Tobacco Products Tax Act A licensed importing distributor of alcoholic liquor that distributes bottles of cognac with a cigar sealed within the bottle is not, in this instance, acting as a distributor of tobacco pro
ST 04-0176-GIL 09/20/2004 Sale for Resale Unless an exemption is documented, the sale and delivery of tangible personal property to an Illinois customer creates a legal presumption that the sale is for use in Illinois and subject to tax. See 35 ILCS 105/4. (This is a GIL.)
ST 04-0175-GIL 09/17/2004 Enterprise Zones This letter addresses a request for information regarding documentation needed to validate a purchase transaction of materials to be incorporated into an enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST 04-0174-GIL 09/17/2004 Enterprise Zones This letter addresses a request for information regarding documentation needed to validate a purchase transaction of materials to be incorporated into an enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST 04-0173-GIL 09/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0172-GIL 09/17/2004 Computer Software This letter concerns maintenance service agreements. See 86 Ill. Adm. Code 140.301(b)(3). (This is a GIL.)
ST 04-0171-GIL 09/17/2004 Medical Appliances 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 04-0170-GIL 09/15/2004 Nexus This letter discusses interior design and nexus issues. See 86 Ill. Adm. Code 150.801. (This is a GIL.)
ST 04-0169-GIL 09/15/2004 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. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0168-GIL 09/15/2004 Sale of Service When the seller and buyer agree upon an alteration or other special service charge separately from the selling price of tangible personal property, the charge for the alteration or other special service does not incur Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.450. (This is a GIL.)
ST 04-0167-GIL 09/14/2004 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code 130. (This is a GIL.)
ST 04-0166-GIL 09/14/2004 Tax Collection Manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, may assume the responsibility for accounting and paying to the Department all tax accruing under the Act with respect to such sales, if the retailers who are affected do not make a written objection to the Department to the arrangement. See 86 Ill. Adm. Code 130.550. (This is a GIL.)
ST 04-0165-GIL 09/14/2004 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 04-0164-GIL 09/14/2004 Trade-Ins A trade-in of a vehicle, with its trade-in value agreed to by the parties to be determined at a later date, would generally qualify as a trade-in for purposes of the Illinois Retailers' Occupation Tax and Use Tax. See 86 Ill. Adm. Code 130.425 and 130.455. (This is a GIL.)
ST 04-0163-GIL 09/14/2004 Manufacturing Machinery and Equipment 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 04-0162-GIL 09/14/2004 Leasing Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. The State of Illinois imposes no tax on rental receipts. Consequently, lessees incur no tax liability. See 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 04-0161-GIL 09/14/2004 Food A caterer’s gross receipts would include all receipts associated with his or her sale of food. Such costs would include charges for linens, tables, chairs, dishes, glasses, flowers, labor and set-up and delivery. Each of these items is a part of the cost of doing business as a caterer. 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST 04-0160-GIL 09/14/2004 Tax Collection Manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, may assume the responsibility for accounting and paying to the Department all tax accruing under the Act with respect to such sales, if the retailers who are affected do not make a written objection to the Department to the arrangement. See 86 Ill. Adm. Code 130.550. (This is a GIL.)
ST 04-0159-GIL 09/14/2004 CDF Exemption Components or parts added to a motor vehicle after it has been purchased do not qualify for the CDF Sales Tax Exemption. See the Department’s proposed rules regarding the CDF Sales Tax Exemption, 86 Ill. Adm. Code 130.341. (This is a GIL.)
ST 04-0158-GIL 09/14/2004 Miscellaneous This letter discusses the high impact service facility exemption. See 35 ILCS 120/5j. (This is a GIL.)
ST 04-0157-GIL 09/14/2004 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 04-0156-GIL 09/14/2004 Sale of Service In multi-service situations, when both primary servicemen and secondary servicemen are registered, primary servicemen provide secondary servicemen with a certificate of resale. See 86 Ill. Adm. Code 140.145. (This is a GIL.)
ST 04-0155-GIL 09/14/2004 Food, Drugs and Medical Appliances Dietary supplements may be classified as drugs if the products purport on the label to have medicinal qualities. See 86 Ill. Adm. Code 130. 310(c)(1) (This is a GIL.)
ST 04-0154-GIL 09/13/2004 Gross Receipts This letter discusses fees charged in retail sale and lease situations. See 86 Ill. Adm. Code 130.420. (This is a GIL.)
ST 04-0153-GIL 09/13/2004 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 that have purchased those telecommunications at retail from retailers. See 86 Ill. Adm. Code 495/100 et seq. (This is a GIL.)
ST 04-0152-GIL 09/10/2004 Use Tax If a user of tangible personal property purchases the tangible personal property at retail from a retailer, but does not pay the Use Tax to such retailer, the purchaser shall pay the Use Tax directly to the Department. See 86 Ill. Adm. 150.130. (This is a GIL.)
ST 04-0151-GIL 09/09/2004 Construction Contractors Construction contractors incur Use Tax liability on the cost price of the tangible personal property permanently affixed or estate. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 04-0150-GIL 09/09/2004 Miscellaneous PLRs are issued at the discretion of the Department. If the same issue is pending in litigation before the Department, a PLR will not be issued. See section 1200.110. (This is a GIL.)
ST 04-0149-GIL 09/08/2004 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. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0148-GIL 09/07/2004 Miscellaneous Fees charged by automobile dealers for the Electronic Vehicle Registration program are taxable in the same manner as other “documentation fees” or similar fees charged by automobile retailers. See Velde Ford Sales v. Dept. of Revenue, 136 Ill. App. 3d 589 (4th Dist 1985). (This is a GIL.)
ST 04-0147-GIL 09/02/2004 Leasing This letter discusses tax liabilities in regards to construction contracts to engineer, install and maintain, data, voice, video, security and telecommunications equipment for the improvement of real estate. See 35 ILCS 120/1. (This is a GIL).
ST 04-0146-GIL 08/23/2004 Telecommunications Excise Tax This letter discusses voice mail services. See 86 Ill. Adm. Code 495.100. (This is a GIL).
ST 04-0145-GIL 08/23/2004 Trade-Ins This letter provides information regarding advance trade-ins. See 86 Ill. Adm. Code 130.455(d). (This is a GIL.)
ST 04-0144-GIL 08/20/2004 Interstate Commerce This letter discusses sales in interstate commerce that originate in Illinois. 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 04-0143-GIL 08/20/2004 Miscellaneous Television programming or other services in which no tangible personal property is transferred are not subject to Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax, and Service Use Tax liability. See 86 Ill. Adm. Code 130.101 et. seq. (This is a GIL).
ST 04-0142-GIL 08/19/2004 Use Tax Construction contractors are deemed the end users of property permanently affixed to real estate. See 86 Ill. Adm. Code 130.1940(b). (This is a GIL.)
ST 04-0141-GIL 08/18/2004 Repairs Tangible personal property transferred incident to the completion of an extended warranty will result in Use Tax liability by a serviceman based on the cost price of that tangible personal property. See 86 Ill. Adm. Code 140.301(b)(3) and 86 Ill. Adm. Code 140.141(c). (This is a GIL.)
ST 04-0140-GIL 08/18/2004 Interstate Commerce This letter discusses sales in interstate commerce that originate in Illinois. 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 04-0139-GIL 08/18/2004 Sale for Resale Other evidence may be used to document a sale for resale, when a registration number or resale number and certification to the seller are not provided. See 86 Ill. Adm. Code 130.1405(d). (This is a GIL).
ST 04-0138-GIL 08/18/2004 Use Tax When a retailer allows a purchaser a discount from the selling price 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 130.420. (This is a GIL).
ST 04-0137-GIL 08/18/2004 Public Utility Taxes This letter responds to a survey regarding utility taxes, fuels and telecommunication taxes. See 86 Ill. Adm. Code 470.110. (This is a GIL).
ST 04-0136-GIL 08/17/2004 Use Tax Citizens of foreign countries are not exempt from Use Tax liability for purchases of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 04-0135-GIL 08/17/2004 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. A written claim on the label that a product is intended to cure or treat disease, illness, injury or pain, or to mitigate the symptoms of such disease, illness, injury or pain constitutes a medicinal claim. See 86 Ill. Adm. Code 130.310(c). (This is a GIL).
ST 04-0134-GIL 08/17/2004 Leasing For Retailers' Occupation Tax and Use Tax liability purposes, there are two types of leasing situations: conditional sales and true leases. A conditional sale is usually characterized by a nominal or one dollar purchase at the close of the lease term. See Ill. Adm. Code 130.2010. (This is a GIL).
ST 04-0133-GIL 08/17/2004 Tire User Fee This letter concerns the application of Tire User Fees to reprocessed tires. See 415 ILCS 5/55.8(e). (This is a GIL).
ST 04-0132-GIL 08/17/2004 Manufacturer's Purchase Credit Manufacturer’s Purchase Credit reported on any original or amended return filed after October 20, 2003 shall be disallowed under the provisions of P.A. 93-24. See 35 ILCS 120/3 (Text of Section from P.A. 93-24). (This is a GIL).
ST 04-0131-GIL 08/17/2004 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 130.2010. (This is a GIL).
ST 04-0130-GIL 08/11/2004 Miscellaneous 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 04-0129-GIL 08/11/2004 Miscellaneous This letter responds to a request for the Department to review information contained in a tax publication. See 86 Ill. Adm. Code 130. (This is a GIL).
ST 04-0128-GIL 08/10/2004 Enterprise Zones Protective clothing is exempt from sales and use tax if it is purchased for use or consumption within an Enterprise Zone in connection with the Enterprise Zone Manufacturing Machinery and Equipment Exemption, the Enterprise Zone Graphic Arts Production exemption, or the Enterprise Zone Pollution Control Facilities exemption. See 86 Ill. Adm. Code Section 130.1951. (This is a GIL.)
ST 04-0127-GIL 08/09/2004 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 140. (This is a GIL.)
ST 04-0126-GIL 08/16/2004 Computer Software Sales of “canned” computer software are taxable retail sales in Illinois. Canned software that is purchased via a download over the Internet is taxable as a retail sale. See 86 Ill. Adm. Code 140.141. (This is a GIL.)
ST 04-0125-GIL 08/16/2004 Leasing Sales of tangible personal property to a lessor who leases that property to a governmental body are not subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.2012. (This is a GIL).
ST 04-0124-GIL 08/06/2004 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 04-0123-GIL 08/06/2004 Delivery Charges This letter discusses the taxation of shipping and handling charges. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 04-0122-GIL 08/06/2004 Food Ready-to-heat meals that are not prepared for immediate consumption and are sold from a facility without an on-premises dining area are taxed at the lower rate. See 86 Ill. Adm. Code 130.310(a). (This is a GIL).
ST 04-0121-GIL 08/04/2004 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 130.2010. (This is a GIL).
ST 04-0120-GIL 08/04/2004 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 130.2010. (This is a GIL).
ST 04-0119-GIL 08/04/2004 Computer Software Charges for updates of canned software are fully taxable. See 86 Ill. Adm. Code Section 130.1935. (This is a GIL).
ST 04-0118-GIL 08/03/2004 Miscellaneous The council created under the Dry-cleaner Environmental Response Trust Act determines categorization of solvents for dry cleaning solvent tax liability purposes. See 415 ILCS 135/65(a). (This is a GIL.)
ST 04-0117-GIL 08/03/2004 Cigarette Tax A tax is imposed upon any person who exercises the privilege of engaging in business as a retailer of cigarettes in this State under the Cigarette Tax Act. See 86 Ill. Adm. Code 440.10. (This is a GIL.)
ST 04-0116-GIL 08/03/2004 Claims for Credit This letter discusses claims for credit for automobiles returned under the New Vehicle Buyer Protection Act. See Ill. Adm. Code 130.1501. (This is a GIL).
ST 04-0115-GIL 08/03/2004 Sale for Resale This letter discusses the sale of containers or packing materials for resale. See 86 Ill. Adm. 130.2070. (This is a GIL.)
ST 04-0114-GIL 08/02/2004 Use Tax This letter discusses the tax consequences of the gift, or the sale for a nominal value, of a cellular phone as part of a promotional event. See 86 Ill. Adm. 150.305(c). (This is a GIL.)
ST 04-0113-GIL 08/02/2004 Hotel Operator's Occupation Tax The exemption from the Hotel Operators’ Occupation Tax for “permanent residents” applies if an organization occupies or has the right to occupy any room or rooms in a hotel for at least 30 consecutive days, regardless of whether the individual who occupies the room during that period changes. See 35 ILCS 145/2. (This is a GIL.)
ST 04-0112-GIL 08/02/2004 Food This letter discusses how sales of food can be subject to either low (1%) or high (6.25%) State tax rates under the Retailers’ Occupation Tax Act. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0111-GIL 08/02/2004 Food This letter discusses the manner in which food is taxed. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0110-GIL 07/12/2004 Nexus This letter concerns nexus for collection of Illinois Use Tax 86 Ill. Adm. Code 150.201(i) and 150.801. (This is a GIL).
ST 04-0109-GIL 07/08/2004 Computer Software Licensing of computer software meeting all of the criteria in subsection (a)(1) of Section 130.1935, will not be subject to Retailers' Occupation Tax and neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See Ill. Adm. Code 130.1935(a)(1). (This is a GIL).
ST 04-0108-GIL 07/08/2004 Gross Receipts Legal tender, currency, medallions, or gold and silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion are exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130. 1910(c). (This is a GIL).
ST 04-0107-GIL 07/08/2004 Claims for Credit Tax is deemed to be erroneously paid by a retailer when the manufacturer of a motor vehicle sold by the retailer accepts the return of that automobile and refunds to the purchaser the purchase price of the vehicle, as provided in Section 3 of the New Vehicle Buyer Protection Act, 815 ILCS 380/3. See Ill. Adm. Code 130.1501. (This is a GIL).
ST 04-0106-GIL 07/07/2004 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. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 04-0105-GIL 07/01/2004 Construction Contractors 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 and 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 04-0104-GIL 06/30/2004 Vehicle Use Tax The Vehicle Use Tax is a privilege tax imposed on the privilege of using, in this State, motor vehicles of the First and Second Divisions, motorcycles, motor driven cycles and motorized pedal-cycles. See 86 Ill. Adm. Code 1151.101(a). (This is a GIL).
ST 04-0103-GIL 06/30/2004 Medical Appliances Medical devices used for diagnostic or treatment purposes do not qualify for the reduced rate of tax for medical appliances. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 04-0102-GIL 06/28/2004 Miscellaneous Non-United States citizen is not exempt from sales tax obligations for purchase of merchandise at retail within the State of Illinois. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 04-0101-GIL 06/24/2004 Computer Software The Department has declined to issue a ruling in this letter regarding the use of encrypted keys in computer licensing agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0100-GIL 06/24/2004 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. A written claim on the label that a product is intended to cure or treat disease, illness, injury or pain, or to mitigate the symptoms of such disease, illness, injury or pain constitutes a medicinal claim. See 86 Ill. Adm. Code 130.310(c). (This is a GIL).
ST 04-0099-GIL 06/24/2004 Charitable Games The Department of Revenue does not currently license raffles. Raffle licenses and the conduct governing raffles may be found in the Raffles Act, 230 ILCS 15/1 et seq. (This is a GIL).
ST 04-0098-GIL 06/24/2004 Gross Receipts When a retailer allows a purchaser a discount from the selling price on the basis of a discount coupon for which the seller receives no reimbursement, the amount of the discount is not subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2125. (This is a GIL).
ST 04-0097-GIL 06/24/2004 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 04-0096-GIL 06/24/2004 Gross Receipts This letter concerns discount coupons. See 86 Ill. Adm. Code 130.2125(b). (This is a GIL.)
ST 04-0095-GIL 06/24/2004 Charitable Games All of the card games allowed in the Charitable Games Act must be played substantially according to the description of the games found in Hoyle’s Modern Encyclopedia of Card games by Walter B. Gibson, published by Doubleday and Company, Inc., April 174, 1st Edition. See 86 Ill. Adm. Code 435.160(a). (This a GIL).
ST 04-0094-GIL 06/23/2004 Motor Vehicles This letter concerns motor vehicles that have been converted for use by disabled persons. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0093-GIL 06/22/2004 Charitable Games A game piece must comply with the production standards cited under the Pull Tabs and Jar Games Act. See 86 Ill. Adm. Code 432.130. (This is a GIL).
ST 04-0092-GIL 06/22/2004 Exempt Organizations This letter discusses personal property purchased through certain fundraising events for the benefit of certain schools. See 86 Ill. Adm. Code 130.2009. (This is a GIL).
ST 04-0091-GIL 06/21/2004 Use Tax If the taxpayer has already paid taxes in another state with respect to the acquisition of tangible personal property, the taxpayer may take credit for those taxes properly due and paid. See, 86 Ill. Adm. Code 150.310(a)(3) (This is a GIL.)
ST 04-0090-GIL 06/16/2004 Gross Receipts This letter concerns cellular phones given to customers when those customers enter into contracts with cellular service providers. See 86 Ill. Adm. 150.305(c). (This is a GIL.)
ST 04-0089-GIL 06/15/2004 Medical Appliances Medical devices used for diagnostic or treatment purposes do not qualify for the reduced rate of tax for medical appliances. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 04-0088-GIL 06/14/2004 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(c). (This is a GIL.)
ST 04-0087-GIL 05/26/2004 Gross Receipts This letter discusses fees included in gross receipts. See 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST 04-0086-GIL 05/25/2004 Gas Use Tax This letter references the exemptions from Gas Use Tax for governmental, charitable, religious, and educational entities. See 35 ILCS 173/5-50. (This is a GIL.)
ST 04-0085-GIL 05/25/2004 Miscellaneous This letter concerns the providing of Internet music services. See 86 Ill. Adm. Code Part 495. (This is a GIL.)
ST 04-0084-GIL 05/19/2004 Tax Collection Manufacturers, importers and wholesalers whose products are sold at retail in Illinois by numerous retailers, may assume the responsibility for accounting and paying to the Department all tax accruing under the Act with respect to such sales, if the retailers who are affected do not make a written objection to the Department to the arrangement. See 86 Ill. Adm. Code 130.550. (This is a GIL).
ST 04-0083-GIL 04/26/2004 Claims for Credit When a motor vehicle is returned for a refund of the purchase price under the New Vehicle Buyer Protection Act, the Department can issue a credit memorandum or a refund for the amount of tax paid attributable to the initial sale of that vehicle, but only to the retailer, not the manufacturer. See 86 Ill. Adm. Code 130.1501. (This is a GIL.)
ST 04-0082-GIL 04/26/2004 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 04-0081-GIL 04/19/2004 Sale of Service This letter provides a reference to the Department’s rules regarding maintenance agreements. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 04-0080-GIL 04/19/2004 Telecommunications Tax This letter provides a reference to Form RT-12, Request for Determination of Proper Tax Jurisdiction. This form is used by persons who believes that they are improperly being charged a Simplified Municipal Telecommunications Tax because those persons service addresses are assigned to the wrong taxing jurisdictions. See 35 ILCS 636/5-1 et seq. (This is a GIL.)
ST 04-0079-GIL 04/13/2004 Charitable Games Providing “casino parties” for a client for a fixed dollar amount where the people engaging in the casino games are not charged a fee, are provided with free chips to play with, and bid on prizes using chips won is not subject to the Charitable Games Act or any other gaming Act administered by the Department. The application of the Raffles Act and the gambling provisions of the Criminal Code are not under the jurisdiction of the Department. (This is a GIL.)
ST 04-0078-GIL 04/13/2004 Electricity Excise Tax The Retailers’ Occupation Tax Act does not impose a tax on electricity because it is not “tangible personal property”. Electricity used in relation to cell phone towers is not exempt from the Electricity Excise Tax. (This is a GIL.)
ST 04-0077-GIL 04/12/2004 Manufacturing Machinery and Equipment This letter discusses metallurgical coke manufacturing. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 04-0076-GIL 04/12/2004 Miscellaneous This letter describes corporate purchasing cards and exempt purchases. See 86 Ill. Adm. Code 130.2080. (This is a GIL).
ST 04-0075-GIL 04/12/2004 Claims for Credit This letter describes claims for credit in a lemon law situation. See 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST 04-0074-GIL 04/12/2004 Gas Use Tax This letter provides a reference to the Department’s proposed rules regarding the Gas Use Tax Law. See 86 Ill. Adm. Code 471.101 et seq. (This is a GIL.)
ST 04-0073-GIL 04/12/2004 Miscellaneous This letter discusses sales of partial shares of aircraft and leases of aircraft. See 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 04-0072-GIL 04/12/2004 Miscellaneous This letter provides a reference to the Department’s rules regarding vendors of meals. See 86 Ill. Adm. Code 130.2145. (This is a GIL).
ST 04-0071-GIL 04/12/2004 Farm Machinery & 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 pump for a diesel farm tank would not qualify for the exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 04-0070-GIL 04/09/2004 Gas Use Tax This letter provides a reference to the Department’s proposed rules regarding the Gas Use Tax Law. See 86 Ill. Adm. Code 471.101 et seq. (This is a GIL.)
ST 04-0069-GIL 03/22/2004 Manufacturing Machinery and Equipment This letter provides a reference to the Department’s rules regarding the manufacturing machinery & equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 04-0068-GIL 03/22/2004 Food, Drugs and Medical Appliances This letter provides a reference to the Department’s rules regarding food, drugs, and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0066-GIL 03/15/2004 Computer Software Canned or prewritten computer software or software upgrades transferred to a customer, either on a tangible personal property medium or electronically, will be subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0065-GIL 03/15/2004 Occasional Sales This letter provides a reference to the Department’s rules regarding isolated or occasional sales. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 04-0064-GIL 03/12/2004 CDF Exemption This letter provides a reference to the Department’s proposed rules regarding the Commercial Distribution Fee Sales Tax Exemption. See 86 Ill. Adm. Code 130.341. (This is a GIL.)
ST 04-0063-GIL 03/11/2004 Medical Appliances Pharmaceutical glass, with the exception of syringes used in treating diabetes in human beings, is not a medical appliance eligible for the 1% sales tax rate. See 86 Ill. Adm. Code 130.310. Pharmaceutical glass may, however, be sold tax free as a sale of containers for resale. See, 86 Ill. Adm. Code 130.2070. (This is a GIL.)
ST 04-0062-GIL 03/04/2004 Gas Use Tax This letter provides a reference to the Department’s proposed rulemaking regarding the Gas Use Tax Law. See 86 Ill. Adm. Code 471.101 et seq. (This is a GIL.)
ST 04-0061-GIL 03/03/2004 Construction Contractors This letter discusses the different tax treatment of sales of mobile homes. See 130.1940. (This is a GIL.)
ST 04-0060-GIL 02/26/2004 Medical Appliances This letter provides a reference to the Department’s rules regarding food, drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 04-0059-GIL 02/26/2004 Sale at Retail This letter provides a reference to the Department’s rules regarding vendors of curtains, slip covers and other similar items made to order. See 86 Ill. Adm. Code 130.2140. (This is a GIL.)
ST 04-0058-GIL 02/26/2004 Manufacturing Machinery & Equipment Exemption This letter provides references regarding the manufacturing machinery and equipment exemption and the recently repealed graphic arts machinery and equipment exemption. See 86 Ill. Adm. Code 130.330 and 130.325. (This is a GIL.)
ST 04-0057-GIL 02/26/2004 Rolling Stock Exemption This letter provides a reference to the Department’s rules regarding the Rolling Stock Exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 04-0056-GIL 02/26/2004 Rolling Stock Exemption This letter provides a reference to the Department’s rules regarding the Rolling Stock Exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 04-0055-GIL 02/26/2004 Computer Software This letter references the Department’s administrative rules on computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0054-GIL 02/25/2004 Sale for Resale This letter discusses sales for resale. Please see 86 Ill. Adm. Code 130.210. (This is a GIL.)
ST 04-0053-GIL 02/25/2004 Exempt Organizations This letter provides a reference to the Department regulations regarding the issuance of Exemption Identification Numbers. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 04-0052-GIL 02/25/2004 Miscellaneous This letter provides references regarding sales of service, construction contracts, maintenance contracts, data and security systems, and armored car services. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 04-0051-GIL 02/25/2004 Service Occupation Tax This letter provides a reference to the Department’s Service Occupation Tax rules. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 04-0050-GIL 02/24/2004 Hotel Operators' Tax Hotel Operators' Occupation Tax applies to gross receipts received from a person who occupies a room or becomes irrevocably liable to pay rent for the right to occupy a specific room or rooms. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 04-0049-GIL 02/24/2004 Use Tax A sale is subject to use tax in this State if the purchaser or his representative receives the physical possession of the property in this State. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 04-0048-GIL 02/24/2004 Leasing This letter provides references to other GILs regarding leasing and maintenance agreements. See 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 04-0047-GIL 02/24/2004 Farm Machinery and Equipment This letter refers to the Department’s rules regarding the Farm Machinery & Equipment Exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 04-0046-GIL 02/24/2004 Sale at Retail This letter discusses taxation of vending machines sales and equipment. Please see 86 Ill. Adm. Code 130.2135. (This is a GIL).
ST 04-0045-GIL 02/24/2004 Telecommunications Excise Tax This letter discusses dark fiber optics and taxation. See 35 ILCS 636/5-45. (This is a GIL.)
ST 04-0044-GIL 02/20/2004 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 04-0043-GIL 02/06/2004 Gas Use Tax This letter lists the uses of gas that are exempt from Gas Use Tax liability. See 35 ILCS 173/5-50. (This is a GIL).
ST 04-0042-GIL 02/03/2004 Manufacturing Machinery and Equipment Coal mining operations are still generally exempt from tax under the manufacturing machinery and equipment exemption per the decision of the Illinois Court of Appeals, Fifth District, in Nokomis Quarry Co. v. Department of Revenue, 295 Ill. App. 3d 264, 692 N.E. 2d 855 (1998). (This is a GIL).
ST 04-0041-GIL 01/30/2004 Use Tax This letter references tax on promotional items. See 86 Ill. Adm. Code 130.2125 (This is a GIL.)
ST 04-0040-GIL 01/30/2004 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 04-0039-GIL 01/30/2004 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 04-0038-GIL 01/29/2004 Miscellaneous This letter discusses the application of Service Occupation Tax to sales of advertising in a magazine. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 04-0037-GIL 01/29/2004 Telecommunications Excise Tax Regards DSL service. See 86 Ill. Adm. Code Part 495. (This is a GIL.)
ST 04-0036-GIL 01/29/2004 Gross Receipts 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 04-0035-GIL 01/29/2004 Manufacturing Machinery and Equipment The manufacturing machinery and equipment exemption does not extend to cameras and equipment to take pictures, expose film, or otherwise create the images for photoprocessing. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 04-0034-GIL 01/29/2004 Farm Machinery and Equipment Exemption In general, a generator or stand-by generator used in the production of electricity to operate machinery or equipment that qualified for an exemption would also qualify for the exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 04-0033-GIL 01/29/2004 Telecommunications Excise Tax Generally, persons or entities that charge customers for telecommunications services are considered telecommunications retailers and are subject to Telecommunications Excise Tax. See 86 Ill. Adm. Code 495. (This is a GIL.)
ST 04-0032-GIL 01/29/2004 Public Utility Taxes Generally, persons or entities that charge customers for telecommunications services are considered telecommunications retailers and are subject to Telecommunications Excise Tax. See 86 Ill. Adm. Code 495. (This is a GIL.)
ST 04-0031-GIL 01/29/2004 Miscellaneous This letter provides a reference to Public Act 93-0031 which created the Gas Use Tax Law. See Public Act 93-0031. (This is a GIL.)
ST 04-0030-GIL 01/29/2004 Miscellaneous This letter discusses questions regarding the CDF Sales Tax Exemption created by Public Act 93-0023. See Public Act 93-0023. (This is a GIL.)
ST 04-0029-GIL 01/29/2004 Rolling Stock Exemption In general, parts added to a motor vehicle after it has been purchased do not qualify for the CDF Sales Tax Exemption. However, such parts may qualify for the Rolling Stock Exemption. See emergency rules for 86 Ill. Adm. Code 130.340 & 130.341. (This is a GIL.)
ST 04-0028-GIL 01/29/2004 Rolling Stock Exemption This letter discusses the rolling stock exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 04-0027-GIL 01/29/2004 Rolling Stock Exemption This letter answers questions regarding the Rolling Stock Exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 04-0026-GIL 01/27/2004 Sale for Resale This letter provides a reference to the Department’s rules regarding drop shipments. See 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 04-0025-GIL 01/27/2004 Gas Use Tax This letter discusses to an exemption under the Gas Use Tax Law for business enterprises located in enterprise zones certified by the Department of Commerce and Economic Opportunity. See 35 ILCS 173/5-50. (This is a GIL.)
ST 04-0024-GIL 01/26/2004 Nexus This letter concerns nexus for collection of Illinois Use Tax. See 86 Ill. Adm. Code 150.201(i) and 150.801. (This is a GIL.)
ST 04-0023-GIL 01/26/2004 Nexus This letter concerns nexus for collection of Illinois Use Tax. See 86 Ill. Adm. Code 150.201(i) and 150.801. (This is a GIL.)
ST 04-0022-GIL 01/26/2004 Delivery Charges This letter provides a reference to the Department’s regulation on treatment of transportation and delivery charges. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 04-0021-GIL 01/26/2004 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 04-0020-GIL 01/26/2004 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 04-0019-GIL 01/26/2004 Leases 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 04-0018-GIL 01/26/2004 Delivery Charges This letter provides a reference to the Department’s administrative rules regarding the treatment of transportation and delivery charges. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 04-0017-GIL 01/26/2004 Gross Receipts This letter provides a reference to other General Information Letters describing the tax treatment of what are commonly referred to as “reward” credits or “hostess” credits. See ST 02-0239-GIL; ST 02-0132-GIL. (This is a GIL.)
ST 04-0015-GIL 01/23/2004 Pollution Control Facilities See 86 Ill. Adm. Code 130.335. (This is a GIL.)
ST 04-0014-GIL 01/22/2004 Pollution Control Facilities The pollution control exemption was repealed effective July 1, 2003, by P.A. 93-24. (See P.A. 93-24.) (This is a GIL.)
ST 04-0013-GIL 01/14/2004 Newsprint and Ink This letter informs the taxpayer that the publications described qualify for the newsprint and ink exemption under the Retailers' Occupation Tax Act. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 04-0012-GIL 01/14/2004 Motor Fuel Tax The Department’s Motor Fuel Use Tax regulations at 86 Ill. Adm. Code 500.305 set forth the information that an applicant must provide in order to be registered for the Motor Fuel Use Tax. (This is a GIL.)
ST 04-0011-GIL 01/14/2004 Miscellaneous This letter discusses agency agreements for filing sales tax returns (See 86 Ill. Adm. Code 130.550). It also discusses tax rates. (This is a GIL.)
ST 04-0010-GIL 01/14/2004 Computer Software See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0009-GIL 01/14/2004 Exempt Organizations See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 04-0008-GIL 01/14/2004 Nexus See 86 Ill. Adm. Code 150.201. (This is a GIL.)
ST 04-0007-GIL 01/14/2004 Certificate of Registration See 35 ILCS 120/2a, 35 ILCS 735/3-7 and 86 Ill. Adm. Code 700.340. (This is a GIL.)
ST 04-0006-GIL 01/14/2004 Miscellaneous This letter discusses the taxability of artwork. See 86 Ill. Adm. Code 130.1910. (This is a GIL.)
ST 04-0005-GIL 01/14/2004 Computer Software See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 04-0004-GIL 01/13/2004 Service Occupation Tax See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 04-0003-GIL 01/13/2004 Nexus See 86 Ill. Adm. Code 150.201. (This is a GIL.)
ST 04-0002-GIL 01/13/2004 Sales at Retail The Retailers' Occupation Tax applies to retail sales of tangible personal property. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 04-0001-GIL 01/08/2004 Telecommunications Excise Tax If Limited Exchange Carriers and Inter-Exchange Carriers are retailers of telecommunications originated or received intrastate or interstate in Illinois, then they are subject to the Telecommunications Excise Tax. See 35 ILCS 630/1 et seq. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 04-0014-PLR 11/03/2004 Exempt Organizations Exempt Organization incurs Retailers’ Occupation Tax liability upon delivery and transfer of building materials when collecting a percentage of the actual retail value of materials delivered in order to recoup operating costs. See 86 Ill. Adm. Code 130.2005 (This is a PLR.)
ST 04-0013-PLR 10/27/2004 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 PLR.)
ST 04-0011-PLR 06/28/2004 Telecommunications Excise Tax This letter concerns the resale of telecommunications. See 86 Ill. Adm. Code 495.110. (This is a PLR.)
ST 04-0010-PLR 06/28/2004 Sale at Retail This letter discusses whether sales of “Treatment Cards” and patent fees are subject to Illinois sales and use tax. See 35 ILCS 120/1. (This is a PLR.)
ST 04-0009-PLR 01/23/2004 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 04-0008-PLR 01/23/2004 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 04-0007-PLR 01/23/2004 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 04-0006-PLR 01/23/2004 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 04-0005-PLR 01/23/2004 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 04-0004-PLR 01/23/2004 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 04-0003-PLR 01/23/2004 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 04-0002-PLR 01/23/2004 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 04-0001-PLR 01/23/2004 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.)
 
 
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