Illinois Department of Revenue
 
 
Legal Information
 
 
 
 
 

2005 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST 05-0144-GIL 12/30/2005 Miscellaneous This letter discusses the distinction between a sale at retail and a sale of service. See 86 Ill. Adm. Code 130.101 et seq. and 86 Ill. Adm. Code 140.101 et seq. (This is a GIL.)
ST 05-0143-GIL 12/30/2005 Use Tax Although the donee of a gift is not a taxable user, the donor who purchases the property and gives it away in Illinois makes a taxable use of the property when making such gift. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.)
ST 05-0142-GIL 12/30/2005 Use Tax This letter rescinds part of ST 00-0087-GIL in regards to the volume production exclusion from the Department’s special order rule set out in 86 Ill. Adm. Code 130.2115. (This is a GIL.)
ST 05-0141-GIL 12/29/2005 Use Tax Under the Use Tax Act, persons who purchase tangible personal property from out-of-State retailers, and either ship or bring that property into Illinois incur Use Tax Liability. The purchaser would get credit against his or her Illinois Use Tax obligations for taxes properly due and paid in another state. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL.)
ST 05-0140-GIL 12/29/2005 Exempt Organizations Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405. This letter also discusses noncompetitive sales made by exempt organizations under 86 Ill. Adm. Code 130.2005(a)(3)(B)(iv). (This is a GIL.)
ST 05-0139-GIL 12/29/2005 Miscellaneous This letter discusses liability for Hotel Operators’ Occupation Tax and Retailers’ Occupation Tax in regard to students attending summer camp programs provided by a college or other school for which they receive credit or some other recognition of completion. See 86 Ill. Adm. Code Sections 480.101 and 130.2005. (This is a GIL.)
ST 05-0138-GIL 12/29/2005 Delivery Charges The Department’s regulation on the treatment of transportation and delivery charges under the Retailers’ Occupation Tax Act may be found at 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 05-0137-GIL 12/29/2005 Construction Contractors A contract to incorporate tangible personal property into real property is considered a construction contract. A contractor incurs Use Tax on the cost price of the tangible personal property that is installed. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 05-0136-GIL 12/29/2005 Miscellaneous This letter discusses the taxation of trash collection tags or stickers that are sold separately from the trash bags. See 86 Ill. Adm. Code 130.120. (This is a GIL.)
ST 05-0135-GIL 12/29/2005 Governmental Bodies This letter provides a reference to the Department’s rules regarding sales though a chit system to governmental bodies. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 05-0134-GIL 12/27/2005 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 05-0133-GIL 12/22/2005 Hotel Operators' Tax This letter provides a reference to the Department’s rules regarding the permanent resident exclusion under the Hotel Operators’ Tax. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 05-0132-GIL 12/22/2005 Coins and Precious Metals This letter provides a reference to the Department’s rules regarding the sale of collector coins. See 86 Ill. Adm. Code 130.1910. (This is a GIL.)
ST 05-0131-GIL 12/21/2005 Food This letter provides a brief summary of when the high rate of tax for food and the low rate of tax for food apply. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 05-0130-GIL 12/20/2005 Sale for Resale The purchase of telecommunications cannot be made tax-free as being a purchase for resale unless the purchaser possesses a valid Telecommunications Tax resale number. See 35 ILCS 630/8. (This is a GIL.)
ST 05-0129-GIL 12/16/2005 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL).
ST 05-0128-GIL 12/16/2005 Claims for Credit This letter discusses claims for credit when a retailer has collected sales tax on a sale for resale. See 86 Ill. Adm. Code 130.1401 and 150.1501. (This is a GIL.)
ST 05-0127-GIL 12/16/2005 Hotel Operators' Tax The Hotel Operators' Occupation Tax is imposed upon hotel operators engaged in the business. Hotel operators are permitted to ask guests renting rooms to pay a corresponding reimbursement for the tax. 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 05-0126-GIL 12/16/2005 Food A plain cup of ice for off-premises consumption is taxable at the 6.25% rate plus local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 05-0125-GIL 11/29/2005 Exempt Organizations When merchandise is sold to a Parent Teacher Association or to a school and that Parent Teacher Association or school will re-sell the merchandise, the entity selling to the Parent- Teacher Association or school must obtain either a Certificate of Resale or a valid “E” number from the Parent Teacher Association or school in order to sell the items tax-free. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 05-0124-GIL 11/29/2005 Repairs This letter discusses the taxation of express warranties and extended warranties. See 86 Ill. Adm. Code 140.141 and 86 Ill. Adm. Code 140.301. (This is a GIL).
ST 05-0123-GIL 11/29/2005 Service Occupation Tax The Service Occupation Tax is a tax imposed on the tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101 – 140.109. (This is a GIL.)
ST 05-0122-GIL 11/29/2005 Charitable Games Information regarding charitable games may be found at 86 Ill. Adm. Code 435.100 through 435.220. (This is a GIL.)
ST 05-0121-GIL 11/29/2005 Gross Receipts If a seller receives a reimbursement or rebate for a discount, the amount of that reimbursement or rebate is considered part of the gross receipts received by the seller and is subject to Retailers' Occupation Tax. If a seller provides a discount to a purchaser and does not receive a reimbursement or rebate for that discount, only the (discounted) amount received by the seller is taxable. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST 05-0120-GIL 11/28/2005 Sale for Resale Addresses whether a lessor may purchase as a tax-exempt sale for resale consumable materials to be provided along with rental equipment. See 86 Ill. Adm. Code 130.1401 and 130.1405. (This is a GIL.)
ST 05-0118-GIL 11/28/2005 Service Occupation Tax This letter discusses donor/donee situations and Service Occupation Tax. See 86 Ill. Adm. Code 150.305 and 35 ILCS 115/3. (This is a GIL).
ST 05-0117-GIL 11/28/2005 Nexus This letter discusses nexus and construction contractor issues. See Brown’s Furniture, Inc. v. Wagner, 171 Ill.2d 410 (1996) regarding nexus and 86 Ill. Adm. Code 130.1940 regarding construction contractors. (This is a GIL).
ST 05-0116-GIL 11/18/2005 Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a GIL).
ST 05-0115-GIL 11/17/2005 Trade-Ins Neither the rule concerning traded-in property nor the rule concerning trade-in allowances
limits the allowance of credit for trade-ins to motor vehicles that are titled in Illinois at the time
of the trade-in. Nor do these provisions require that the trade-in vehicle has to have been
originally purchased in Illinois and subject to Illinois Retailers’ Occupation Tax or Use Tax on
the original purchase in order to qualify for the credit. See 86 Ill. Adm. Code 130.425 and
130.455. (This is a GIL.)
ST 05-0114-GIL 11/15/2005 Trade-Ins Under Illinois law, a trade-in credit is available to a retailer when the purchaser trades in
tangible personal property of like kind and character as that which is being sold by the retailer.
See 86 Ill. Adm. Code 130.425. (This is a GIL.)
ST 05-0113-GIL 11/08/2005 Miscellaneous This letter describes sales in interstate commerce and the manufacturing machinery and
equipment exemption from sales tax. See 86 Ill. Adm. Code 130.605 and 86 Ill. Adm. Code
130.330. (This is a GIL).
ST 05-0112-GIL 11/07/2005 Newsprint and Ink Sales of newspapers and magazines are not subject to Retailers' Occupation Tax when the publication is issued periodically and published at least twice a year. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 05-0111-GIL 11/07/2005 Rolling Stock Exemption This letter answers questions regarding the rolling stock exemption, trade-in allowances for aircraft, and amount of tax due when the rolling stock exemption can no longer be claimed. See 86 Ill. Adm. Code Sections 130.340 and 130.425 and 35 ILCS 105/10. (This is a GIL.)
ST 05-0110-GIL 11/07/2005 Delivery Charges Whether delivery charges are taxable depends on whether the charges are included in the selling price of the property which is sold or whether the seller and the buyer contract separately for such transportation or delivery charges by not including those charges in the selling price of the property. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 05-0109-GIL 10/25/2005 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 05-0108-GIL 10/20/2005 Bingo Under the Bingo License and Tax Act, all advertising by a licensed organization regarding the conducting of its bingo sessions shall contain the name and bingo license number of the organization. Licensed organizations may not participate in joint advertising with other licensed organizations. See 86 Ill. Adm. Code 430.160. (This is a GIL.)
ST 05-0107-GIL 10/20/2005 Exempt Organizations An entity which would otherwise qualify for tax-exempt status on its purchases of tangible personal property for use or consumption cannot make tax-free purchases unless it has an active exemption identification number issued by the Department. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 05-0106-GIL 10/20/2005 Miscellaneous 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 05-0105-GIL 10/19/2005 Claims for Credit This letter discusses sales for resale and claims for credit. See 86 Ill. Adm. Code Sections 130.210, 130.1405 and 130.1501. (This is a GIL.)
ST 05-0104-GIL 10/19/2005 Leasing Discusses tax obligations related to the sales and leases of satellite equipment and programming services and servicing of the satellite equipment. See 86 Ill. Adm. Code 130.220 (This is a GIL.)
ST 05-0103-GIL 10/13/2005 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 05-0102-GIL 10/13/2005 Miscellaneous This letter directs licensing of a business for purposes of conducting business in Illinois to the Secretary of State’s office. (This is a GIL.)
ST 05-0101-GIL 10/13/2005 Claims for Credit If a taxpayer pays an amount of tax under the Retailers' Occupation Tax that is not due, either as a result of a mistake of fact or an error of law, the taxpayer may file a claim for credit with the Department. See 86 Ill. Adm. Code 130.1501. (This is a GIL.)
ST 05-0100-GIL 10/13/2005 Rolling Stock Exemption The certification requirements of a seller in relation to a sale involving rolling stock may be found at 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 05-0099-GIL 10/13/2005 Exempt Organizations For a sale to qualify as exempt, because the item is sold to an exempt organization, the seller may not rely on an invalid exemption number, even if accepted in good faith. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 05-0098-GIL 10/13/2005 Bingo The provisions of the Raffles Act, 230 ILCS 15/1, govern the conduct of raffles in Illinois. (This is a GIL.)
ST 05-0097-GIL 10/13/2005 Use Tax This letter concerns the taxability of materials that are damaged in the manufacturing process. See 35 ILCS 105/3-10. (This is a GIL.)
ST 05-0096-GIL 10/12/2005 Charitable Games For information regarding a licensed supplier in the distribution of charitable gaming equipment please see 86 Ill. Adm. Code 435.130. (This is a GIL.)
ST 05-0095-GIL 10/06/2005 Food, Drugs & Medical Appliances Information regarding the taxation of food, drugs, and medical appliances may be found at 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 05-0094-GIL 10/05/2005 Food This letter describes how sales of food can be subject to either the lower (1%) State tax rate or the higher (6.25%) State tax rate under the Retailers’ Occupation Tax Act. See Section 130.310. (This is a GIL.)
ST 05-0093-GIL 10/05/2005 Certificate of Registration This letter discusses registration of servicemen. See 86 Ill. Adm. Code 160.130. (This is a GIL.)
ST 05-0092-GIL 10/05/2005 Bingo A limited bingo license allows an organization to conduct bingo at no more than two indoor or outdoor festivals during the calendar year for which the license is issued for a maximum of five consecutive days on each occasion. See 86 Ill. Adm. Code 430.160. (This is a GIL.)
ST 05-0091-GIL 10/03/2005 Watercraft Use Tax Watercraft Use Tax is a privilege tax imposed on the privilege of using, in this State, watercraft acquired by gift, transfer, or non-retail purchase after September 1, 2004. See 86 Ill. Adm. Code 153.105. (This is a GIL.)
ST 05-0090-GIL 10/03/2005 Delivery Charges This letter discusses shipping and handling charges. See 86 Ill. Adm. Code 130.410 and 130.415. (This is a GIL.)
ST 05-0089-GIL 09/30/2005 Medical Appliances The Department no longer issues a Medical Appliance List. The Department’s regulation for “Food, Drugs, Medicines and Medical Appliances.” is set forth at 86 Ill. Adm. 130.310. (This is a GIL.)
ST 05-0088-GIL 09/30/2005 Sale at Retail If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Use Tax would apply. See 86 Ill. Adm. Code 130.201 regarding sales at retail. (This is a GIL.)
ST 05-0087-GIL 09/28/2005 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 05-0086-GIL 09/28/2005 Rolling Stock Exemption This letter discusses the rolling stock exemption in regards to watercraft. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 05-0085-GIL 09/28/2005 Watercraft Use Tax This letter discusses purchases of watercraft. See 86 Ill. Adm. Code 153.101. (This is a GIL.)
ST 05-0084-GIL 09/28/2005 Food Information regarding food, drugs, medicines and medical appliances may be found at 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 05-0083-GIL 09/27/2005 Rolling Stock Exemption The rolling stock exemption includes equipment or parts that become a physical component of qualifying rolling stock and to equipment which, though not physically incorporated, is dedicated to a particular qualifying carrier and participates directly in the transportation process. See 86 Ill. Adm. Code 130.340(b). (This is a GIL.)
ST 05-0082-GIL 09/27/2005 Service Occupation Tax The Service Occupation Tax is a tax imposed on the tangible personal property transferred incident to sales of service. See 35 ILCS 115/3. (This is a GIL.)
ST 05-0081-GIL 09/26/2005 Food Pumpkins are considered to be food and are subject to the low rate of State tax. This is the case so long as the pumpkins are sold in a condition suitable for human consumption. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 05-0080-GIL 09/22/2005 Construction Contractors A contract to incorporate tangible personal property into real property is considered a construction contract. A contractor incurs Use Tax on the cost price of the tangible personal property that is installed. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 05-0079-GIL 09/21/2005 Miscellaneous The Department will not approve the accuracy of private legal publications. (This is a GIL.)
ST 05-0078-GIL 09/20/2005 Rolling Stock Exemption Service vehicles generally do not qualify for the rolling stock exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 05-0077-GIL 09/19/2005 Sale of Service This letter describes the application of the Service Occupation Tax to a multi-service situation. See 86 Ill. Adm. 140.145. (This is a GIL.)
ST 05-0076-GIL 09/09/2005 Vehicle Use Tax The $15 tax rate applies when the intended beneficiary of a will disclaims the will and, as a result, a motor vehicle is transferred to the testator’s niece. See 625 ILCS 5/1001. (This is a GIL.)
ST 05-0075-GIL 09/09/2005 Occasional Sales This letter concerns isolated or occasional sales. See also 86 Ill. Adm. Code 130.110 (This is a GIL.)
ST 05-0074-GIL 09/09/2005 Governmental Bodies Sales of materials to construction contractors for incorporation into real estate owned by governmental bodies are exempt from Retailers’ Occupation Tax and Use Tax. See 86 Ill. Adm. Code 130.2075(d). (This is a GIL.)
ST 05-0073-GIL 09/08/2005 Manufacturing Machinery & Equipment This letter discusses the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 05-0072-GIL 090/8/2005 Local Taxes This letter discusses the imposition of local taxes and the use of the ST-2 Multiple Site Form. See 86 Ill. Adm. Code 270.115 regarding jurisdiction questions. (This is a GIL.)
ST 05-0071-GIL 090/8/2005 Manufacturing Machinery & Equipment This letter provides a reference to the Department’s rules regarding the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 05-0069-GIL 07/25/2005 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 05-0068-GIL 07/22/2005 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 and 86 Ill. Adm. Code 130.2013. (This is a GIL.)
ST 05-0067-GIL 07/22/2005 Leasing Information regarding the tax liabilities in a lease situation may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 05-0066-GIL 07/22/2005 Charitable Games For information regarding pull tabs and jar games, see 86 Ill. Adm. Code 432.100. (This is a GIL.)
ST 05-0065-GIL 07/22/2005 Charitable Games Every pull-tab must have certain information printed on the face of the ticket. See 86 Ill. Adm. Code 432.130(c)(3). (This is a GIL.)
ST 05-0064-GIL 07/22/2005 Sale of Service The Service Occupation Tax Act and Service Use Tax are imposed on the transfer of tangible personal property incident to sales of service. If no tangible personal property were being transferred to the customers incident to the services provided, then neither Illinois Service Occupation Tax nor Service Use Tax would apply. See 86 Ill. Adm. Code 140.101 and 160.101. (This is a GIL.)
ST 05-0063-GIL 07/20/2005 Manufacturing Machinery & Equipment The manufacturing machinery and equipment exemption can be documented by using Illinois Department of Revenue Form “ST-587 Equipment Exemption Certificate”, which can be found on the Department’s website. See 86 Ill. Adm. 130.330. (This is a GIL.)
ST 05-0061-GIL 07/19/2005 Gross Receipts This letter concerns the taxability of reimbursement payments for travel expenses. See 86 Ill. Adm. 130.410. (This is a GIL.)
ST 05-0060-GIL 07/18/2005 Farm Machinery & Equipment Liquid propane purchased for use in exempt farm machinery and equipment is not itself exempt from the Retailers’ Occupation Tax Act or the Use Tax Act under the farm machinery and equipment exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 05-0059-GIL 07/18/2005 Service Occupation Tax This letter discusses the tax liability of out-of-State printers who mail printed materials into
Illinois. See 86 Ill. Adm. Code, Part 140. (This is a GIL.)
ST 05-0058-GIL 07/15/2005 Electricity Excise Tax This is a general information letter regarding electricity and gas taxes. See 86 Ill. Adm. Code
511.110, 470.110 and 471.105. (This is a GIL.)
ST 05-0057-GIL 07/15/2005 Sale at Retail Seminar or training session providers incur Retailers' Occupation Tax on gross receipts from sales in Illinois of seminar or training materials such as workbooks and reference materials. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 05-0056-GIL 07/15/2005 Leasing A lessor engaged in selling like-kind tangible personal property will incur Retailers' Occupation Tax liability on sales of off-lease tangible personal property. See 86 Ill. Adm. Code 130.2013(h). (This is a GIL.)
ST 05-0055-GIL 07/15/2005 Sale at Retail General information regarding the sale of containers and packaging materials may be found at 86 Ill. Adm. Code 130.2070. (This is a GIL.)
ST 05-0054-GIL 07/15/2005 Sale for Resale GloTell® added to anhydrous ammonia by fertilizer dealers may be purchased for resale by those dealers. See 86 Ill. Adm. 130.1405. (This is a GIL.)
ST 05-0053-GIL 07/11/2005 Use Tax Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation or that Use Tax will not be added to the selling price. See 86 Ill. Adm. Code 150.515. (This is a GIL.)
ST 05-0052-GIL 06/23/2005 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 05-0051-GIL 06/23/2005 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 05-0050-GIL 06/23/2005 Miscellaneous The sale of a prescription discount card is the sale of an intangible and is not subject to tax. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 05-0049-GIL 06/20/2005 Gross Receipts This letter discusses reward credits, sometimes referred to as “hostess dollars.” See 86 Ill. Adm. Code 130.401(c). (This is a GIL.)
ST 05-0048-GIL 06/20/2005 Occasional Sales This letter directs taxpayers to the Illinois Department of Revenue’s administrative rules on occasional sales and bulk sales as well as to sunshine letters on these subjects. See 86 Ill. Adm. Code 130.110 and 86 Ill. Adm. 130.1701. (This is a GIL.)
ST 05-0047-GIL 06/20/2005 Miscellaneous This letter responds to a general information request regarding sales and excise taxes. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 05-0046-GIL 06/17/2005 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 86 Ill. Adm. Code 130.210. (This is a GIL.)
ST 05-0045-GIL 06/09/2005 Sale for Resale This letter concerns sales for resale. See 86 Ill. Adm. Code Sections 130.1401 and 130.1405. (This is a GIL.)
ST 05-0044-GIL 06/01/2005 Manufacturing Machinery & Equipment The manufacturing machinery and equipment exemption includes machinery and equipment used to inspect, test or measure the tangible personal property to be sold, when that function is an integral part of the production process. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 05-0043-GIL 06/01/2005 Telecommunications Excise Tax This letter discusses the various tax liabilities for wireless enhanced services. See 86 Ill. Adm. Code 495.100(c). (This is a GIL.)
ST 05-0042-GIL 06/01/2005 Replacement Vehicle Tax The Replacement Vehicle Tax is applicable in transactions where an insured receives a check from his insurance company in settlement of a total loss claim and endorses that check over to a dealer, provided that the dealer is able to document in his books and records that the check was, in fact, endorsed over to the dealer and the gross proceeds were applied entirely to the purchase of a new replacement vehicle. See 625 ILCS 5/3-2001 et seq.
ST 05-0041-GIL 05/31/2005 Special Order A sign manufacturer does not incur Retailers' Occupation Tax liability if he produces the sign on the special order of a particular purchaser and if the sign has use or value only to such purchaser. See 86 Ill. Adm. Code 130.2155. (This is a GIL.)
ST 05-0040-GIL 05/31/2005 Returns Information regarding gross receipts and merchandise that is returned may be found at 86 Ill. Adm. Code 130.401. (This is a GIL.)
ST 05-0039-GIL 05/31/2005 Local Taxes Jurisdictional questions in relation to the situs of a sales transaction may be found in Section 270.115 of the Department’s regulations which sets forth the test used to determine what local tax is applicable to any given sale. See 86 Ill. Adm. Code 270.115. (This is a GIL.)
ST 05-0038-GIL 05/31/2005 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 05-0037-GIL 05/31/2005 Charitable Games Auxiliary organizations of a licensee shall not be eligible for a license to conduct charitable games, except for auxiliary organizations of veterans’ organizations . See 86 Ill. Adm. Code 435.120(a)(3). (This is a GIL.)
ST 05-0036-GIL 05/26/2005 Graphic Arts The date of delivery of qualifying graphic arts machinery and equipment will determine if a purchase qualifies under the reinstated graphics arts machinery and equipment exemption. See 86 Ill. Adm. Code 130.325. (This is a GIL.)
ST 05-0035-GIL 05/24/2005 CDF Exemption Persons may claim the commercial distribution fee sales tax exemption for a qualifying commercial motor vehicle even if the vehicle does not qualify for the rolling stock exemption. See 86 Ill. Adm. Code 130.341. (This is a GIL.)
ST 05-0034-GIL 05/20/2005 Motor Fuel Tax In the absence of acceptance of a purchase order in Illinois, the location of the sale is considered to be where the inventory from which the order is filled is maintained in the State. See 86 Ill. Adm. Code 270.115(b)(3). (This is a GIL).
ST 05-0033-GIL 05/10/2005 Repairs The taxability of maintenance agreements is dependent upon whether the charge for the agreement is included in the selling price of tangible personal property. See 86 Ill. Adm. Code 140.141. (This is a GIL.)
ST 05-0032-GIL 05/10/2005 Motor Vehicles This letter concerns Department Bulletin FY 2005-13. (This is a GIL.)
ST 05-0031-GIL 05/09/2005 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 05-0030-GIL 05/05/2005 Motor Vehicles This letter concerns Department Bulletin FY 2005-13. (This is a GIL.)
ST 05-0029-GIL 05/04/2005 Delivery Charges If delivery charges are included in the selling price of the tangible personal property sold, the delivery expenses are not deductible from gross receipts for Retailers' Occupation Tax liability purposes. See 86 Ill. Adm. Code 130.415(c). (This is a GIL.)
ST 05-0028-GIL 05/04/2005 Cigarette Tax Under the Cigarette Tax Act, it is unlawful for any person to engage in the business as a distributor of cigarettes in this State without first having obtained a license or permit from the Department. See 86 Ill. Adm. Code 440.50. (This is a GIL.)
ST 05-0027-GIL 05/04/2005 Food This letter discusses various taxes applicable to a food service company. See 86 Ill. Adm. Code 130.310 and 130.2070. (This is a GIL.)
ST 05-0026-GIL 05/04/2005 Sale of Service Exhibits and displays that are customized or personalized so as to have use or value only to a particular purchaser are subject to Service Occupation Tax and Service Use Tax. See 86 Ill. Adm. Code 140.101 et seq. (This is a GIL.)
ST 05-0025-GIL 05/04/2005 Gross Receipts If a vendor is reimbursed in full or in part for the value of a coupon accepted by that vendor, the reimbursement amount would be a part of the gross receipts subject to sales tax. See 86 Ill. Adm. Code 130.2125(b)(2). (This is a GIL.)
ST 05-0024-GIL 05/03/2005 Construction Contractors Construction contractors incur Use Tax on the cost price of the tangible personal property they permanently affix to real estate. See Section 130.2075. (This is a GIL.)
ST 05-0023-GIL 04/29/2005 Manufacturing Machinery & Equipment Consumable supplies, which although necessary in the manufacturing process, do not qualify for the Manufacturing Machinery and Equipment exemption. Please see 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 05-0022-GIL 04/29/2005 Aircraft Use Tax The transfer of an aircraft from a parent corporation to a newly formed corporation created by a parent corporation, is a taxable event under the Aircraft Use Tax Law. See. 35 ILCS 157/10-1 et seq. (This is a GIL.)
ST 05-0021-GIL 04/29/2005 Motor Fuel Tax County Motor Fuel Taxes imposed under the County Motor Fuel Tax Law are includable in gross receipts subject to Retailers' Occupation Tax because such taxes are imposed upon retailers of motor fuel and not upon consumers. See 86 Ill. Adm. Code 130.435(c). (This is a GIL).
ST 05-0020-GIL 04/29/2005 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 05-0019-GIL 03/29/2005 Motor Vehicles The exemption from the Use Tax and the Retailers’ Occupation Tax for nonresident purchasers of motor vehicles who take delivery in Illinois but register the motor vehicle in their home state is allowed for purchases of motor vehicles in Illinois by lessors who then lease the motor vehicle to a nonresident whose home state does not allow a “reciprocal exemption” for a sale to an Illinois purchaser if that lessee’s home state would exempt the sale of a motor vehicle to a lessor who then enters into a lease with and delivers in that state the motor vehicle to an Illinois resident who then registers it in Illinois. See 35 ILCS 120/2-5(25-5)). (This is a GIL.)
ST 05-0018-GIL 03/14/2005 Graphic Arts This letter rescinds part of General Information Letter ST 04-0216-GIL and clarifies that the date of delivery of qualifying graphic arts machinery and equipment will determine if a purchase qualifies under the reinstated graphics arts machinery and equipment exemption. (This is a GIL.)
ST 05-0017-GIL 02/28/2005 Leasing Lessors of tangible personal property, including motor vehicles, 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 and 86 Ill. Adm. Code 130.2013. (This is a GIL.)
ST 05-0016-GIL 01/28/2005 Hotel Operators' Tax A private club which restricts its renting of rooms to its members and their guests does not incur Hotel Operators’ Occupation Tax on its rental receipts from such rooms. See 86 Ill. Adm. Code 480.101(b)(2). (This is a GIL.)
ST 05-0014-GIL 01/14/2005 Hotel Operators' Tax The Hotel Operators' Occupation Tax Act does not include any provision for the exemption of exclusively charitable, religious, or educational organizations, or for governments or their agencies. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 05-0013-GIL 01/14/2005 Prepaid Sales Tax A taxpayer must be registered as a reseller of motor fuel in order to collect and remit prepaid sales tax on motor fuel to the Illinois Department of Revenue. See 86 Ill. Adm. Code 130.551. (This is a GIL.)
ST 05-0011-GIL 01/14/2005 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 their cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 05-0010-GIL 01/14/2005 Manufacturing Machinery & Equipment This letter discusses the Manufacturing Machinery & Equipment exemption and meat slicers. See 86 Ill. Adm. 130.300. (This is a GIL.)
ST 05-0009-GIL 01/13/2005 Coins and Precious Metals 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 05-0008-GIL 01/12/2005 Telecommunications Excise Tax In general, Voice Over Internet Protocol (“VOIP”) is telecommunications subject to tax within the meaning of “Telecommunications” and “Gross Charges” pursuant to The Telecommunications Excise Tax, 35 ILCS 630/2; the Telecommunications Infrastructure Maintenance Fee, 35 ILCS 635/10; and the Simplified Municipal Telecommunications Tax Act, 35 ILCS 636/5-7. (This is a GIL.)
ST 05-0007-GIL 01/11/2005 Interstate Commerce It is critical that the seller is shown as the consignor or shipper on the bill of lading for the interstate commerce exemption to apply. If the purchaser is shown as either the consignor or the shipper, the exemption will not apply. See 86 Ill. Adm. Code 130.605(c). (This is a GIL.)
ST 05-0006-GIL 01/11/2005 Nexus Any type of physical presence in the State of Illinois, including the vendor’s delivery and installation of his product on a repetitive basis will trigger Use Tax collection responsibilities. See Brown’s Furniture, Inc. v. Wagner, 171 Ill.2d 410 (1996). (This is a GIL.)
ST 05-0005-GIL 01/11/2005 Food Persons that are engaged in the business of selling meals to purchasers for use or consumption incur Retailers' Occupation Tax liability on their gross receipts from such sales. Such persons specifically include caterers. See 86 Ill. Adm. Code 130.2145. (This is a GIL.)
ST 05-0004-GIL 01/10/2005 Medical Appliances A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 05-0003-GIL 01/07/2005 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. Farm chemicals are statutorily exempt from Sales and Use Taxes in Illinois. See 86 Ill. Adm. Code 130.1955. (This is a GIL.)
ST 05-0002-GIL 01/07/2005 Medical Appliances Corrective medical appliances such as hearing aids, glasses, and contact lenses are eligible for the lower sales tax rate. See Section 130.310(c)(2). (This is a GIL.)
ST 05-0001-GIL 01/07/2005 Use Tax This letter discusses the basis of the Use Tax collected by a “retailer maintaining a place of business in Illinois” who is required to collect Use Tax from his customer. See 86 Ill. Adm. 150.105. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 05-0028-PLR 12/30/2005 Computer Software “Rescinded and clarified by ST 06-0010-PLR.” If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a PLR.)
ST 05-0027-PLR 12/30/2005 Computer Software The volume production (50 or more) of an identical roof truss or wall panel in a single order or simultaneous orders will be subject to Retailers’ Occupation Tax liability, rather than Service Occupation Tax liability. This letter clarifies that any subsequent order of an identical roof truss or wall panel after the initial order or simultaneous order will be subject to Retailers’ Occupation Tax liability regardless of whether or not that roof truss or wall panel is part of a roof truss system or wall panel system. See 86 Ill. Adm. Code 130.2115. This letter ruling partially rescinds Private Letter Ruling ST 03-0021-PLR. (This is a PLR).
ST 05-0026-PLR 12/30/2005 Computer Software The Department recognizes that the construction industry has evolved to where construction contractors may obtain stock or standard roof trusses. See 86 Ill. Adm. Code 130.2115. This letter ruling partially rescinds Private Letter Ruling ST 97-0016-PLR. (This is a PLR).
ST 05-0025-PLR 12/22/2005 Exempt Organizations Construction contractors incorporating tangible personal property into real estate owned by a governmental body can claim an exemption from tax. See 86 Ill. Adm. Code Sections 130.2075(d)(1) and 130.2075(d)(4). (This is a PLR.)
ST 05-0024-PLR 12/22/2005 Miscellaneous This letter discusses issues related to the sales tax exemption for Tangible Personal Property Purchased for Use or Consumption within an Enterprise Zone. (This is a PLR.)
ST 05-0023-PLR 12/21/2005 Construction Contractors Construction contracts for the improvement of real estate consisting of engineering, installation, and maintenance of voice, data, video, security, and all telecommunication systems do not constitute engaging in a business of selling tangible personal property at retail within the meaning of the Retailers’ Occupation Tax Act if they are sold at one specified contract price. See 35 ILCS 120/1 and 86 Ill. Adm. Code 130.1940(c)(3). (This is a PLR.)
ST 05-0021-PLR 11/29/2005 Manufacturing Machinery & Equipment Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily (over 50%) 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 05-0020-PLR 11/18/2005 Enterprise Zones Under the Enterprise Zone building materials exemption, a deduction from Illinois Retailers’ Occupation Tax liability exists for gross receipts from retail sales of building materials that will be incorporated into real estate located in an enterprise zone established by a county or municipality under the Illinois Enterprise Zone Act by remodeling, rehabilitation or new construction. (See Section 5k of the Retailers’ Occupation Tax Act and 86 Ill. Adm. Code 130.1951(e).) (This is a PLR.)
ST 05-0019-PLR 11/18/2005 Delivery Charges This letter discusses how shipping and handling charges should be handled for in-home host or hostess sales. (This is a PLR.)
ST 05-0018-PLR 10/12/2005 Manufacturing Machinery & Equipment The taxpayer must be able to establish through adequate records that the machinery or equipment in question is used over 50 percent in an exempt manner in order to claim the manufacturing machinery and equipment exemption from sales tax. 86 Ill. Adm. Code 130.330. (This is a PLR).
ST 05-0017-PLR 10/12/2005 Computer Software This letter discusses whether certain software agreements qualify as licenses of software and not retail sales of software under the Retailers’ Occupation Tax Act. See 86 Ill. Adm. Code 130.1935. (This is a PLR.)
ST 05-0016-PLR 10/07/2005 Construction Contractors This letter discusses whether the contractual agreement between a vendor and its customers to install blinds, shutters, roman shades and cornice boards constitutes a construction contract. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a PLR).
ST 05-0015-PLR 10/06/2005 Hotel Operators' Tax Redemption of a hotel chain’s “rewards points” for stay at one of its hotels is not subject to Hotel Operators’ Tax liability. See 35 ILCS 145/1 et seq. (This is a PLR.)
ST 05-0014-PLR 09/16/2005 Manufacturing Machinery & Equipment This letter modifies ST-02-0017-PLR. If a de-minimis serviceman is not registered as a retailer, serviceman, or a reseller with the Department, he or she cannot claim the resale exemption. See 86 Ill. Adm. Code 140.106. (This is a PLR.)
ST 05-0013-PLR 09/15/2005 Manufacturing Machinery & Equipment This letter modifies ST-05-0011-PLR. If a de-minimis serviceman is not registered as a retailer, serviceman, or a reseller with the Department, he or she cannot claim the resale exemption. See 86 Ill. Adm. Code 140.106. (This is a PLR.)
ST 05-0012-PLR 08/31/2005 Sale at Retail A retailer’s costs of doing business are not deductible from his gross receipts in calculating his Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.410. (This is a PLR.)
ST 05-0011-PLR 08/31/2005 Manufacturing Machinery & Equipment acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a product being manufactured or assembled for sale or lease. See 86 Ill. Adm. Code 130.330(c)(6). (This is a PLR.)
ST 05-0010-PLR 08/25/2005 Interstate Commerce This letter discusses the interstate commerce exemption as applied to the sale of coal within this State to an out-of-State purchaser. See 86 Ill. Adm. Code 130.605(c). (This is a PLR.)
ST 05-0009-PLR 08/25/2005 Computer Software If a Software Licensing Agreement meets all criteria under subsection (a)(1) of Section 130.1935, then 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(a)(1). (This is PLR.)
ST 05-0008-PLR 08/25/2005 Trade-ins This letter discusses a number of trade-in situations regarding lessors of motor vehicles. See 86 Ill. Adm. Code 130.455. (This is a PLR).
ST 05-0007-PLR 07/26/2005 Sale of Service This letter describes the tax liability of a serviceman providing health and medical record processing services. See 86 Ill. Adm. Code 140.101. (This is a PLR).
ST 05-0006-PLR 07/21/2005 Leasing This letter concerns the application of the temporary storage exemption and the expanded temporary storage exemption. See 86 Ill. Adm. Code 150.310(a)(4) and 150.310(a)(6). (This is a PLR.)
ST 05-0004-PLR 06/03/2005 Construction Contractors Construction contractors owe Use Tax on the cost price of any tangible personal property they
incorporate into real estate. See 86 Ill. Adm. Code 130.1940. (This is a PLR.)Construction contractors owe Use Tax on the cost price of any tangible personal property they incorporate into real estate. See 86 Ill. Adm. Code 130.1940. (This is a PLR.)
ST 05-0003-PLR 05/13/2005 Medical Appliances This letter concerns whether various mastectomy related products qualify for the reduced rate of tax provided to medical appliances. See 86 Ill. Adm. Code 130.310. (This is a PLR.)
ST 05-0002-PLR 04/22/2005 Sales for Resale A product manufacturer that purchases display racks that it gives to store owners to display the manufacturer’s products does not incur tax on those purchases because they are purchases for resale. See, Boye Needle Co. v. Department of Revenue, 45 Ill.2d (484) (1970) and 86 Ill. Adm. Code 130.201(b). (This is a PLR.)
ST 05-0001-PLR 04/22/2005 Computer Software This letter discusses whether certain software agreements qualify as licenses of software. It
also discusses whether certain software qualifies as custom software. See 86 Ill. Adm. Code
130.1935. (This is a PLR.)
 
 
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