Illinois Department of Revenue
 
 
Legal Information
 
 
 
 
 

2006 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST 06-0218-GIL 12/11/2006 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. This letter discusses the obligations of Internet service providers. See 86 Ill. Adm. Code 495. (This is a GIL.)
ST 06-0217-GIL 12/11/2006 Medical Appliances Wheelchair ramps, stairway wheelchair lifts, stairway chair lifts, vertical wheelchair lifts, and bathtub lifts do not qualify for the low rate of tax afforded medical appliances. See 86 Ill. Adm. Code subsection 130.310(c)(2). (This is a GIL.)
ST 06-0216-GIL 12/11/2006 Food This letter discusses sales of food through vending machines. See 35 ILCS 120/2-10. (This is a GIL.)
ST 06-0215-GIL 12/11/2006 Exempt Organizations Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification (an "E" number) numbers. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 06-0214-GIL 12/11/2006 Miscellaneous This letter responds to an annual survey regarding coal mining equipment. See 86 Ill. Adm. Code 130.350. (This is a GIL.)
ST 06-0213-GIL 12/11/2006 Manufacturing Machinery & Equipment Machinery and equipment used to clean floors generally does not qualify for the manufacturing machinery and equipment exemption because it is not used to manufacture or assemble tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330(a). (This is a GIL.)
ST 06-0212-GIL 12/11/2006 Miscellaneous The Department’s regulation “Persons Who Repair or Otherwise Service Tangible Personal Property” at 86 Ill. Adm. Code 130.2015 provides guidance for when such persons incur Retailers' Occupation Tax liability or Service Occupation Tax liability. (This is a GIL.)
ST 06-0211-GIL 12/11/2006 Miscellaneous For information regarding sales tax and exemptions we refer you to the sales tax rules at 86 Ill. Adm. Code Part 130. (This is a GIL.)
ST 06-0210-GIL 12/07/2006 Miscellaneous If a taxpayer can show the Department that a substantial change in the taxpayer's business has occurred which causes the taxpayer to anticipate that his average monthly tax liability for the reasonably foreseeable future will fall below the $20,000 threshold for making quarter-monthly payments, then such taxpayer may petition the Department for a change in such taxpayer's reporting status. See 35 ILCS120/3. (This is a GIL).
ST 06-0209-GIL 10/30/2006 Miscellaneous This letter discusses the various tax liabilities of fund raising organizations and their suppliers. See 86 Ill. Adm. Code 130.2005, 86 Ill. Adm. Code 130.2006, 86 Ill. Adm. Code 130.2007, and 86 Ill. Adm. Code 130.2009. (This is a GIL.)
ST 06-0208-GIL 10/30/2006 Manufacturing Machinery & Equipment In order to qualify for the manufacturing machinery and equipment exemption from sales tax, the machinery or equipment must be used 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 06-0207-GIL 10/24/2006 Manufacturing Machinery & Equipment This letter concerns Service Occupation Tax liabilities of pharmacists. See 86 Ill. Adm. Code 140.106. (This is a GIL.)
ST 06-0206-GIL 10/19/2006 Miscellaneous This letter discusses the application of tax to monthly subscription charges that entitle the purchaser to download postage. See 86 Ill. Adm. Code Part 495 and 86 Ill. Adm. Code Part 130. (This is a GIL.)
ST 06-0205-GIL 10/19/2006 Miscellaneous This letter refers the taxpayer to the Department’s website at www.ILTAX.com for access to the Department’s letters, regulations, and publications. (This is a GIL.)
ST 06-0204-GIL 10/19/2006 Miscellaneous This letter answers questions about nexus and charges for support/service contracts, upgrade installations and labor to install equipment. (This is a GIL.)
ST 06-0203-GIL 10/19/2006 Medical Appliances Food, drugs, medicines and medical appliances are subject to a low rate of tax, 1%. Prescription eyeglasses and contact lenses, eyeglass frames, eyeglass lenses and reading glasses are taxable at the low rate. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0202-GIL 10/03/2006 Trade-ins This letter concerns trade-ins of motor vehicles. See 86 Ill. Adm. Code 130.425 and 130.455. (This is a GIL.)
ST 06-0201-GIL 09/26/2006 Leasing This letter discusses the taxability of sale/leaseback situations. See 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 06-0200-GIL 09/26/2006 Manufacturing Machinery & Equipment Hand tools do not qualify for the manufacturing machinery and equipment exemption. However, pneumatic hand tools or electric powered hand tools used primarily in manufacturing or assembling tangible personal property for wholesale or retail sale or lease can qualify. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0199-GIL 09/26/2006 Service Occupation Tax The Department’s regulation, “Sellers of Machinery, Tools and Special Order Items” at 86 Ill. Adm. Code 130.2115 provides guidance for determining whether a business is subject to Retailers’ Occupation Tax or Service Occupation Tax. (This is a GIL.)
ST 06-0198-GIL 09/26/2006 Gross Receipts This is a follow up to letter ST 06-0015-PLR involving coal emission allowances. (This is a GIL.)
ST 06-0197-GIL 09/26/2006 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 06-0196-GIL 09/26/2006 Manufacturing Machinery & Equipment This letter discusses whether a grinder used to sharpen saw blades qualifies for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0195-GIL 09/25/2006 Computer Software This letter discusses a business that re-licenses software and resells maintenance agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0194-GIL 09/25/2006 Food Products that only purport on the label to whiten teeth do not make medicinal claims. As a result, these items are subject to the full rate of tax. See 86 Ill. Adm. Code 130.310(c)(1). (This is a GIL.)
ST 06-0193-GIL 09/20/2006 Medical Appliances Blood glucose monitoring systems used in treating diabetes in humans qualify for the low rate of tax. See 86 Ill. Adm. Code 130.310 and letters ST 92-0037, ST 94-0470, and ST 95-0518.
ST 06-0192-GIL 09/19/2006 Service Occupation Tax This letter discusses how a printer can satisfy his SOT liability. (This is a GIL.)
ST 06-0191-GIL 09/19/2006 Gross Receipts 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. See the Department’s regulation entitled “Vendors of Meals” at 86 Ill. Adm. Code 130.2145. (This is a GIL.)
ST 06-0190-GIL 09/19/2006 Telecommunications Excise Tax This letter discusses the various tax liabilities for sales of prepaid landline phone cards, prepaid landline rechargeable minute cards, prepaid cellular phone cards, prepaid cellular chargeable minute cards, prepaid music download cards, prepaid game download cards, prepaid wireless ring tone download cards, prepaid internet access cards, and propane for home use or cooking. See 86 Ill. Adm. Code 495.100(c). (This is a GIL.)
ST 06-0189-GIL 09/14/2006 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 06-0188-GIL 09/13/2006 Sale for Resale This letter provides references for how to properly document a drop-shipment. See also 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 06-0187-GIL 09/08/2006 Rolling Stock Exemption This letter references the taxpayer to the rolling stock exemption regulation. See 86 Ill. Adm. Code 130.340. (This is a GIL.)
ST 06-0186-GIL 09/07/2006 Use Tax This letter discusses purchases of watercraft. See 35 ILCS 105/3. (This is a GIL.)
ST 06-0185-GIL 09/07/2006 Use Tax Persons who purchase tangible personal property in another state get a credit for tax that was properly due and paid to such other state. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL.)
ST 06-0184-GIL 09/06/2006 Motor Fuel Tax Pure denatured ethanol, as it is currently used, does not generally fit within the definition of “motor fuel” under the Motor Fuel Tax Law. 35 ILCS 505/1.1. This letter rescinds Letter 87-0700. (This is a GIL.)
ST 06-0183-GIL 09/06/2006 Motor Fuel Tax Pure denatured ethanol, as it is currently used, does not generally fit within the definition of “motor fuel” under the Motor Fuel Tax Law. 35 ILCS 505/1.1. This letter rescinds Letter ST 03-0195-GIL. (This is a GIL.)
ST 06-0182-GIL 09/01/2006 Enterprise Zones A sale of building materials to be incorporated into real estate in an enterprise zone that otherwise meets the requirements of the exemption does not lose exemption status because the purchaser is the contractor of a lessee of the real estate. See 86 Ill. Adm. Code 130.1951 and 35 ILCS 120/5k. (This is a GIL.)
ST 06-0181-GIL 09/01/2006 Medical Appliances This letter responds to questions about the rate of tax for various medical products. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0180-GIL 08/23/2006 Telecommunications Excise Tax This letter discusses Internet services and the Illinois Telecommunications Excise Tax Act. See 35 ILCS 630/3 and 4. (This is a GIL.)
ST 06-0179-GIL 08/23/2006 Service Occupation Tax If tangible personal property is transferred incident to the providing of a service, those transfers may 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 through 140.109. (This is a GIL.)
ST 06-0178-GIL 08/22/2006 Motor Vehicles Wreckers and car carriers sold in Illinois to Indiana residents are not “cargo trailers” eligible for the drive -away permit exemption. See 35 ILCS 120/2-5(25-5). (This is a GIL.)
ST 06-0177-GIL 08/22/2006 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 06-0176-GIL 08/22/2006 Miscellaneous This letter provides general information about how to tax various types of sales related to sales of wheels and wheel repair. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0175-GIL 08/22/2006 Sale For Resale This letter discusses the documentation requirements for sales for resale and for the manufacturing machinery and equipment, production agriculture, and graphic arts exemptions. See 86 Ill. Adm. Code 130.1405 and 86 Ill. Adm. Code Sections 130.330, 130.305, and 130.325. (This is a GIL.)
ST 06-0174-GIL 08/22/2006 Manufacturing Machinery & Equipment The purchase of an inkjet cartridge refiller unit does not qualify for the Manufacturing Machinery and Equipment exemption from sales tax. See the Department’s regulation for this exemption at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0173-GIL 08/22/2006 Enterprise Zones The building materials exemption conferred at 35 ILCS 120/5k is explained in Department regulations found at 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST 06-0172-GIL 08/14/2006 Computer Software This letter concerns licenses of computer software and software maintenance agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0171-GIL 08/11/2006 Exempt Organizations This letter references information regarding the tax liabilities for certain fund raising organizations and their suppliers. See 86 Ill. Adm. Code 130.2009. (This is a GIL.)
ST 06-0170-GIL 08/11/2006 Medical Appliances This letter discusses whether hearing aid batteries qualify for the low State rate of tax applied to qualifying medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0169-GIL 08/11/2006 Sale For Resale When a retailer obtains a properly completed Certificate of Resale that contains a registration or resale number that is valid on the date it is given, the retailer’s liability is at an end. See Rock Island Tobacco and Specialty Company v. Illinois Department of Revenue, 87 Ill.App.3d 476, 409 N.E.2d 136, 42 Ill. Dec. 641 (3rd Dist. 1980). (This is a GIL.)
ST 06-0168-GIL 08/11/2006 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code 130. (This is a GIL.)
ST 06-0167-GIL 08/10/2006 Returns This letter describes the circumstances under which a quarter monthly filer may change his filing status. See 35 ILCS 120/3 and 86 Ill. Adm. Code 130.535. (This is a GIL.)
ST 06-0166-GIL 08/10/2006 Trade-ins A trade-in credit is available when the purchaser trades in tangible personal property to a retailer when that property is of like kind and character as that which is being sold. See 86 Ill. Adm. Code 130.425. (This is a GIL.)
ST 06-0165-GIL 08/10/2006 Farm Machinery & Equipment Notwithstanding the fact that the sales may be at retail, the Retailers' Occupation Tax does not apply to sales of machinery and equipment, both new and used and including that manufactured on special order, used or leased for use primarily in production agriculture or for use in State or Federal agricultural programs, including any individual replacement part for such machinery and equipment. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 06-0164-GIL 08/10/2006 Nexus The Board of Appeals administers a voluntary disclosure program that can provide for limited liabilities for participants who come forward and disclose their liabilities. See 86 Ill. Adm. Code 210.126. (This is a GIL.)
ST 06-0163-GIL 08/10/2006 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 06-0162-GIL 08/10/2006 Service Occupation Tax Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident of their sales of service in Illinois. 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0161-GIL 08/10/2006 Tax Collection The letter discusses issues regarding self-assessing de minimis servicemen. See 86 Ill. Adm. Code 140.108. (This is a GIL.)
ST 06-0160-GIL 08/10/2006 Manufacturing Machinery & Equipment This letter provides general information regarding the Manufacturing Machinery and Equipment Exemption found at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0159-GIL 08/10/2006 Sale for Resale In general, items that will become a component part of a product that is subsequently sold will qualify for the resale exemption. See 86 Ill. Adm. Code 130.210. (This is a GIL.)
ST 06-0158-GIL 08/10/2006 Service Occupation Tax This letter discusses application of the Service Occupation Tax to maintenance agreements. See 86 Ill. Adm. Code 140.301. (This is a GIL.)
ST 06-0157-GIL 08/09/2006 Nexus This letter discusses nexus and local taxes. See 86 Ill. Adm. Code 270.115. (This is a GIL.)
ST 06-0156-GIL 08/08/2006 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 06-0155-GIL 07/31/2006 Sale at Retail This letter rescinds letter ST 00-0084-GIL regarding the taxation of SO2 allowance sales. Determinations regarding the taxability of sales of SO2 allowances will require a review of the contract and billing documents. (This is a GIL.)
ST 06-0154-GIL 07/31/2006 Telecommunications Excise Tax This letter discusses the taxation of sales of on-line database subscriptions. See 86 Ill. Adm. Code 495.100. (This is a GIL.)
ST 06-0153-GIL 07/28/2006 Computer Software This letter refers the taxpayer to additional resources for information regarding the tax liabilities of computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0152-GIL 07/24/2006 Manufacturing Machinery & Equipment The Manufacturing Machinery and Equipment exemption does not apply to hand tools, supplies, coolants, lubricants, adhesives, or solvents, items of personal apparel, coal, fuel oil, electricity, natural gas, artificial gas, steam, refrigerants or water. See section 130.330. (This is a GIL.)
ST 06-0151-GIL 07/20/2006 Sale For Resale This letter discusses the sale for resale exemption as applied to veterinarians registered for Service Occupation Tax who transfer medicine to animals held for sale, as an incident of service. See 86 Ill. Adm. Code 130.1955. (This is a GIL.)
ST 06-0150-GIL 07/20/2006 Sale For Resale This letter discusses the sale for resale exemption as applied to veterinarians registered for Service Occupation Tax who transfer medicine to animals held for sale, as an incident of service. See 86 Ill. Adm. Code 130.1955. (This is a GIL.)
ST 06-0149-GIL 07/18/2006 Leasing Except as provided in 86 Ill. Adm. Code 130.2011 and 130.2012, lessors incur Use Tax even if the tangible personal property is leased to an exempt entity that has been issued an exemption identification number. See 86 Ill. Adm. Code 130.2011 and 130.2012. (This is a GIL.)
ST 06-0147-GIL 07/18/2006 Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL.)
ST 06-0146-GIL 07/17/2006 Interstate Commerce This letter discusses the Interstate Commerce exemption. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 06-0145-GIL 07/17/2006 Food, Drugs & Medical Appliances This letter refers a taxpayer to information regarding food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0144-GIL 07/17/2006 Tire User Fee The requirements of a tire retailer to collect the Tire User Fee apply exclusively to tires to be used for vehicles defined in Section 1-217 of the Illinois Vehicle Code (625 ILCS 5/1-217), aircraft tires, special mobile equipment, and implements of husbandry. See 415 ILCS 5/55.8. (This is a GIL.)
ST 06-0143-GIL 07/13/2006 Drugs Sales of prescription drugs are not exempt from sales tax under the Medicare Part D Plan because these are not sales to the government. However, the Prescription Drug Provider (“PDP”) rather than the insured is responsible for the tax. (This is a GIL.)
ST 06-0142-GIL 07/13/2006 Construction Contractors When an in-state supplier makes a sale to a combination contractor/retailer of tangible personal property that will be incorporated into realty located in Illinois, the contractor will incur Retailers’ Occupation Tax liability, including any applicable local taxes. See 86 Ill. Adm. Code 130.2075(b)(2) and (b)(3). (This is a GIL.)
ST 06-0141-GIL 07/12/2006 Service Occupation Tax This letter concerns Illinois printers who have out-of-State customers. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0140-GIL 07/11/2006 Food, Drugs & Medical Appliances Information regarding the State tax rates for food, drugs, medicines and medical appliances may be found at 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0139-GIL 07/11/2006 Sale at Retail For issues regarding repair and replacement services, see the Department’s regulation “Persons Who Repair or Otherwise Service Tangible Personal Property” at 86 Ill. Adm. Code 130.2015. (This is a GIL.)
ST 06-0138-GIL 07/11/2006 Miscellaneous This letter discusses the Department’s regulation for sales of containers, wrapping and packing materials and related products as set forth at 86 Ill. Adm. Code 130.2070. It also discusses sales in interstate commerce. See 86 Ill. Adm. Code 130.605(a)(1) and (2). (This is a GIL.)
ST 06-0137-GIL 07/11/2006 Manufacturing Machinery & Equipment A manufacturing process is the production of articles of tangible personal property by procedures commonly regarded as manufacturing, processing, fabricating, or refining which changes some existing material or materials into a material with a different form, use or name. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0136-GIL 07/11/2006 Motor Fuel Tax A portion of the Motor Fuel tax collected by the Illinois Department Of Revenue is distributed by the Illinois Department of Transportation to local governments. See 35 ILCS 505/8. (This is a GIL.)
ST 06-0135-GIL 07/11/2006 Computer Software If transactions for the licensing of computer software meet all of the criteria provided in 86 Ill. Adm. Code 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 06-0134-GIL 07/10/2006 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 06-0133-GIL 07/10/2006 Medical Appliances Pursuant to 86 Ill. Adm. Code 130.310, prescription and non-prescription medicines, drugs, medical appliances, modifications to a motor vehicle for he purpose of rendering it usable by a disabled person, and insulin, urine testing utensils, syringes, and needles used by diabetics, for human use, are taxed at the lower rate of 1%. (This is a GIL.)
ST 06-0131-GIL 06/30/2006 Telecommunications Excise Tax DSL services purchased, used, or sold by a provider of Internet access, to provide Internet access, remain subject to Illinois telecommunications taxes. Illinois falls under the November 1, 2007, grandfather clause provided in the Internet Tax Nondiscrimination Act. See P.L. 108- 435. (This is a GIL.)
ST 06-0130-GIL 06/30/2006 Service Occupation Tax Under the Service Occupation Tax Act, businesses providing services (i.e. 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 06-0129-GIL 06/30/2006 Service Occupation Tax This letter discusses the Service Occupation Tax and the taxation of repairs involving leased vehicles. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0128-GIL 06/27/2006 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 150.310(a)(3). (This is a GIL.)
ST 06-0127-GIL 06/23/2006 Manufacturer’s Purchase Credit Manufacture’s Purchase Credit (“MPC”) can only be used to satisfy a liability under the Use Tax Act or Service Use Tax Act incurred on purchases of certain production related tangible personal property. See 35 ILCS 105/3 -85 and 35 ILCS 110/3-70. (This is a GIL.)
ST 06-0126-GIL 06/12/2006 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 06-0125-GIL 06/07/2006 Miscellaneous Useful information for many sales tax questions can be found by reviewing the Department’s regulations for these taxes at 86 Ill. Adm. Code Part 130 and Part 150. The Department’s General Information Letters are also helpful for guidance in specific situations. (This is a GIL.)
ST 06-0124-GIL 06/06/2006 Miscellaneous This letter discusses taxation of various kinds of digital photographs. conventional photographs and other souvenirs sold at an amusement park. See 86 Ill. Adm. Code sections 130.2000 and 130.1995, and 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0123-GIL 06/05/2006 Motor Fuel Tax When a purchaser of motor fuel is not licensed in Illinois, but takes delivery of the fuel in Illinois, the purchaser must pay the motor fuel tax. See 35 ILCS 505/1 et seq. (This is a GIL.)
ST 06-0122-GIL 06/05/2006 Rolling Stock Exemption This letter provides an example of how a carrier may use intrastate trips to qualify for the rolling stock exemption. See 86 Ill. Adm. Code 130.340(g). (This is a GIL.)
ST 06-0121-GIL 05/31/2006 Leasing For Retailers' Occupation Tax and Use Tax liability purposes, there are two types of leasing situations: conditional sales and true leases. This letter discusses the taxability of fees often associated with leases. See 86 Ill. Adm. Code 130.420 and 130.410. (This is a GIL.)
ST 06-0120-GIL 05/31/2006 Miscellaneous This letter discusses nexus, construction contractors, sales for resale, and sales to governmental bodies. See 86 Ill. Adm. Code Part 130. (This is a GIL.)
ST 06-0119-GIL 05/31/2006 Public Utility Taxes This letter discusses Energy Assistance Charges and Renewable Energy Resources and Coal Technology Development Assistance Charges. See 305 ILCS 20/13 and 20 ILCS 687/6-5. (This is a GIL.)
ST 06-0118-GIL 05/23/2006 Miscellaneous This letter discusses nexus, local taxes and drop shipments. See 86 Ill. Adm. Code Part 270 and 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 06-0117-GIL 05/17/2006 Construction Contractors For general information regarding the sales tax liabilities of construction contractors in Illinois, see the Department’s regulations at 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 06-0116-GIL 05/16/2006 Computer Software The Department declines to issue at this time any General Information Letters concerning the taxability of Application Service Provider “ASP” software transactions. For general information regarding the taxation of computer software, see 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0115-GIL 05/15/2006 Construction Contractors If a purchaser makes a purchase of cabinetry under a purchase agreement, and enters into a separate installation agreement for the cabinetry, then the retailer owes Retailers' Occupation Tax and must collect the corresponding Use Tax from the customer on the sale of the cabinetry. See 86 Ill. Adm. Code 130.450 and 130.1940. (This is a GIL.)
ST 06-0114-GIL 05/11/2006 Tire User Fee This letter discusses the general application of the Tire User Fee. See 415 ILCS 5/55.8. (This is a GIL.)
ST 06-0113-GIL 05/11/2006 Food, Drugs & Medical Appliances This letter provides a reference for the tax liabilities incurred on sales of chewing gum. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0112-GIL 05/09/2006 Motor Vehicles This letter provides references for information regarding motor vehicles converted for use by disabled persons. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0111-GIL 05/09/2006 Service Occupation Tax Physicians are generally subject to the Service Occupation Tax on tangible personal property transferred as an incident to the sale of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0110-GIL 05/09/2006 Exempt Organizations This letter discusses sales to persons who lease tangible personal property to exempt hospitals. See 86 Ill. Adm. Code 130.2011. (This is a GIL.)
ST 06-0109-GIL 04/28/2006 Sale at Retail Vendors who accept points in exchange for the transfer of tangible personal property will incur Retailers' Occupation Tax liability on their gross receipts from their sales involving the redemption of points. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST 06-0107-GIL 04/27/2006 Certificate of Registration The Social Security Act establishes federal authority by which this Department may use social security numbers as the identification numbers required by the tax laws. See 42 USC 405 (c)(2)(C)(i). (This is a GIL.)
ST 06-0106-GIL 04/27/2006 Miscellaneous This letter discusses nexus and taxation of computer software and installation. (See 86 Ill. Adm. Code 130.1935). (This is a GIL.)
ST 06-0105-GIL 04/27/2006 Miscellaneous This letter discusses documentation issues regarding government exemptions, drop shipments, resales, and exports. See 86 Ill. Adm. Code Part 130. (This is a GIL.)
ST 06-0104-GIL 04/27/2006 Food, Drugs & Medical Appliances Information concerning the tax liabilities of dietary supplements, vitamins and personal care products may be found at 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0103-GIL 04/27/2006 Manufacturer’s Purchase Credit If items of tangible personal property are used or consumed in a production related process, they will qualify as production related tangible personal property. See 86 Ill. Adm. Code 130.331. (This is a GIL.)
ST 06-0102-GIL 04/27/2006 Telecommunications Excise Tax Pursuant to the Simplified Municipal Telecommunications Tax Act, a municipality may furnish a list of service address information to the telecommunications retailers for tax situs reasons. See 35 ILCS 636/5-42. (This is a GIL.)
ST 06-0101-GIL 04/27/2006 Rolling Stock Exemption Information concerning the tax liabilities related to rolling stock moving in interstate commerce may be found by reviewing the Department’s regulations found at 86 Ill. Adm. Code 130.340 and Public Act 93-1033. (This is a GIL.)
ST 06-0100-GIL 04/26/2006 Rolling Stock Exemption In general, a school does not incur Retailers' Occupation Tax liability on its operation of a cafeteria or other dining facility which is conducted on the school's premises, and which confines its selling to the students and employees of the school. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 06-0099-GIL 04/26/2006 Returns With an agency agreement, a manufacturer or wholesaler whose products are sold by numerous distributors in Illinois assumes the responsibility of collecting and remitting Retailers’ Occupation Tax on behalf of all sales made by distributors. See 86 Ill. Adm. Code 130.550. (This is a GIL.)
ST 06-0098-GIL 04/26/2006 Exempt Organizations For general information regarding sales by exempt organizations, see the Department’s regulation, “Persons Engaged in Nonprofit Service Enterprises and in Similar Enterprises Operated as Businesses, and Suppliers of Such Persons” at 86 Ill. Adm. Code 130.2005. Also see the Department’s letters on exempt organizations. (This is a GIL.)
ST 06-0097-GIL 04/26/2006 Graphic Arts The Department’s rules regarding the Graphic Arts Machinery and Equipment Exemption are set forth at 86 Ill. Adm. Code 130.325. (This is a GIL.)
ST 06-0096-GIL 04/26/2006 Manufacturing Machinery & Equipment Cleaning activities are not considered to be repair or maintenance for purposes of 86 Ill. Adm. Code 130.330(c)(2). As a result, machinery whose function is to clean exempt machinery and equipment does not qualify for the manufacturing machinery and equipment exemption. (This is a GIL.)
ST 06-0095-GIL 04/26/2006 Interstate Commerce A review of the Department’s regulation, “Sales of Property Originating in Illinois” at 86 Ill. Adm. Code 130.605, is useful for questions regarding interstate commerce. (This is a GIL.)
ST 06-0094-GIL 04/26/2006 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. See the Department’s regulation “Vendors of Meals” at 86 Ill. Adm. Code 130.2145. (This is a GIL.)
ST 06-0093-GIL 04/24/2006 Miscellaneous The Legal Services Office does not issue Private Letter Rulings regarding requests for sales tax Exemption Identification “E” Numbers. “E” numbers are issued by the Sales Tax Exemption Section. (This is a GIL.)
ST 06-0092-GIL 04/24/2006 Computer Software Issues regarding the taxation of software and software licenses may be found at 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0091-GIL 04/24/2006 Computer Software In general, maintenance agreements that cover computer software and hardware are treated the same as maintenance agreements for other types of tangible personal property. See 86 Ill. Adm. Code Sec. 130.1935. (This is a GIL.)
ST 06-0090-GIL 04/24/2006 Vehicle Use Tax The Vehicle Use Tax is a tax imposed on the use of motor vehicles acquired by gift, transfer, or purchase. See 86 Ill. Adm. Code 151.101. (This is a GIL.)
ST 06-0089-GIL 04/24/2006 e Sale for Resale This letter concerns Certificates of Resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 06-0088-GIL 04/21/2006 Miscellaneous This letter discusses sales tax issues in regard to sales made by a retailer located on a U.S. Government facility in Illinois. See 86 Ill. Adm. Code 130.1105. (This is a GIL.)
ST 06-0087-GIL 04/20/2006 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 06-0086-GIL 04/20/2006 Sale at Retail Retailers' Occupation Tax is measured by gross receipts from retail sales of tangible personal property. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 06-0085-GIL 04/20/2006 Bingo Unlicensed raffles or other forms of gambling prohibited by law shall not be conducted on the premises where bingo is being conducted. See 86 Ill. Adm. Code 430.160. (This is a GIL.)
ST 06-0084-GIL 04/20/2006 Sale for Resale This letter concerns Certificates of Resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 06-0083-GIL 04/20/2006 Miscellaneous The sale of a satellite television-programming 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 06-0082-GIL 04/20/2006 Manufacturing Machinery & Equipment The sale of a satellite television-programming 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 06-0081-GIL 04/20/2006 Computer Software The transfer of any canned software (or update of canned software) is considered the transfer of tangible personal property and will be subject to Retailers' Occupation Tax and Use Tax liability. Sales of canned software are taxable regardless of the means of delivery. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0080-GIL 04/20/2006 Repairs A "service exchange" program is taxed under the Retailers' Occupation Tax Act or the Service Occupation Tax Act depending upon the relationship between the parties. See 86 Ill. Adm. Code 130.2015. (This is a GIL.)
ST 06-0079-GIL 04/20/2006 Use Tax Information concerning the tax liabilities of biodiesel-blended fuel under the Use Tax Act may be found at 35 ILCS 105/3-10. (This is a GIL.)
ST 06-0078-GIL 04/19/2006 Miscellaneous This letter discusses the Department’s regulation governing “Sales of Containers, Wrapping and Packing Materials and Related Products,” at 86 Ill. Adm. Code 130.2070. It also discusses the warehousing of alcoholic liquors. (This is a GIL.)
ST 06-0077-GIL 04/19/2006 Gas Use Tax The provisions of 49 U.S.C.A. 24301(l) prevent the State of Illinois from taxing ABC and its rail carrier subsidiaries. (This is a GIL.)
ST 06-0076-GIL 04/19/2006 Medical Appliances Products that qualify as medicines, drugs, or medical appliances are taxed at the reduced sales tax rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0075-GIL 04/19/2006 Manufacturing Machinery & Equipment Paper balers and compactors generally qualify for the exemption when they are used to compact cardboard and other paper materials for wholesale or retail sale or lease. This type of use is considered to be manufacturing because the machinery is effecting a direct and immediate physical change upon the form of the paper by compacting it. See 86 Ill. Adm. Code 130.330(d)(3)(A). (This is a GIL.)
ST 06-0074-GIL 04/19/2006 Construction Contractors This letter discusses various kinds of sales and leases of tangible personal property to construction contractors who are under contract to the government. See 86 Ill. Adm. Code Sections 130.2012, 130.2075, and 130.2076. (This is a GIL.)
ST 06-0073-GIL 04/19/2006 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 06-0072-GIL 04/19/2006 Aircraft Use Tax Aircraft Use Tax liability is incurred on aircraft acquired by gift, transfer, or non-retail purchase after June 30, 2003. See 86 Ill. Adm. Code 152.101. (This is a GIL.)
ST 06-0071-GIL 04/19/2006 Use Tax In general, the downloading of digital media represents the transfer of an intangible and is thus not subject to Retailers' Occupation and Use Tax. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 06-0070-GIL 04/19/2006 Construction Contractors In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, these 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 06-0069-GIL 04/19/2006 Delivery Charges Shipping and handling charges are not taxable if it can be shown that the charges are agreed to separately from the selling price of the tangible personal property sold and, the charges are actually reflective of the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 06-0068-GIL 04/19/2006 Medical Appliances Generally, medical tools, devices and equipment used for diagnostic, rehabilitative and treatment purposes do not qualify for the reduced State 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. (This is a GIL.)
ST 06-0067-GIL 04/18/2006 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred as an incident of sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0066-GIL 04/18/2006 Local Taxes The Department's opinion is that the most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 220.115. (This is a GIL.)
ST 06-0065-GIL 04/18/2006 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 06-0063-GIL 04/17/2006 Miscellaneous The regulations for taxes administered by the Department are posted on the Department’s web site at www.ILTAX.com. (This is a GIL.)
ST 06-0062-GIL 04/17/2006 Service Occupation Tax When custom order items such as personalized business calling cards and letterheads are sold, Retailers’ Occupation Tax does not apply. However, sales of custom order items are subject to Service Occupation Tax liability. See 86 Ill. Adm. Code 130.1995. (This is a GIL.)
ST 06-0061-GIL 04/17/2006 Use Tax When custom order items such as personalized business calling cards and letterheads are sold, Retailers’ Occupation Tax does not apply. However, sales of custom order items are subject to Service Occupation Tax liability. See 86 Ill. Adm. Code 130.1995. (This is a GIL.)
ST 06-0060-GIL 04/17/2006 Enterprise Zones This letter discusses an out-of-state combination retailer/contractor installation of qualifying building materials into an Illinois enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST 06-0059-GIL 04/14/2006 Occasional Sale A person does not incur Retailers' Occupation Tax liability on the gross receipts from an isolated or occasional sale. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 06-0058-GIL 04/14/2006 Motor Fuel Tax Section 13a.8 of the Motor Fuel Tax Law, 35 ILCS 505/13a.8, allows licensed receivers to file claims for credit. These provisions, however, do not apply to unlicensed receivers. (This is a GIL.)
ST 06-0057-GIL 04/14/2006 Service Occupation Tax Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0056-GIL 04/14/2006 Service Occupation Tax Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b) is met. See 86 Ill. Adm. Code 130.2115. (This is a GIL.)
ST 06-0055-GIL 04/14/2006 Miscellaneous Sales of fuel used in the operation of ships which are used primarily in transportation of property or the conveyance of persons for hire on rivers bordering on this State are exempt from Retailers' Occupation Tax if such fuel is delivered by the seller to the purchaser's ship while it is afloat upon such bordering river. See 86 Ill. Adm. Code 130.315. (This is a GIL.)
ST 06-0054-GIL 04/14/2006 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 into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 06-0053-GIL 04/14/2006 Miscellaneous This letter discusses sales of cigarette rolling papers. See the Cigarette Tax Act (35 ILCS 130/1 et seq.), the Cigarette Use Tax Act (35 ILCS 135/1 et seq.), and the Tobacco Products Tax Act of 1995 (35 ILCS 143/10-1 et seq.). (This is a GIL.)
ST 06-0052-GIL 04/14/2006 Miscellaneous This letter responds to an annual survey regarding coal mining equipment. See 86 Ill. Adm. Code 130.350. (This is a GIL.)
ST 06-0051-GIL 04/14/2006 Manufacturing Machinery & Equipment This letter discusses items that qualify for the manufacturing machinery and equipment exemption when used to convey component parts. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0050-GIL 04/13/2006 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 06-0049-GIL 04/13/2006 Trade-ins This letter discusses advance trade-ins. See 86 Ill. Adm. Code 130.455. (This is a GIL.)
ST 06-0048-GIL 04/13/2006 Manufacturing Machinery & Equipment Baking equipment that falls within the definition of equipment set forth in Section 2-45 of the Retailers' Occupation Tax qualifies for the manufacturing machinery and equipment exemption if it is used primarily in an exempt manner. Use in the preparation of food for immediate consumption does not qualify. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0047-GIL 04/13/2006 Food For general information regarding sales of food, see the Department’s regulation “Food, Drugs, Medicines and Medical Appliances” at 86 Ill. Adm. Code 130.310, available on the Department’s website. (This is a GIL.)
ST 06-0046-GIL 04/13/2006 Computer Software For general information regarding sales of computer goods and services, see the Department’s regulation “Computer Software” at 86 Ill. Adm. Code 130.1935, available on the Department’s website. (This is a GIL.)
ST 06-0045-GIL 04/13/2006 Farm Machinery and Equipment If tender trailers are used primarily to transport fertilizer to the field and are then attached to equipment that applies the fertilizer to the field, they would qualify for the farm equipment and machinery exemption pursuant to 86 Ill. Adm. Code 130.305(h). (This is a GIL.)
ST 06-0044-GIL 04/13/2006 Telecommunications Excise Tax The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495.100. (This is a GIL.)
ST 06-0043-GIL 04/13/2006 Computer Software A license of canned software is subject to Retailers' Occupation Tax liability if all of the criteria set out in 86 Ill. Adm. Code 130.1935(a)(1) are not met. (This is a GIL.)
ST 06-0042-GIL 04/13/2006 Bingo Bingo is defined as the form of lottery authorized by the Act in which prizes are awarded on the basis of designated numbers or symbols on a card for which consideration has been paid, conforming to numbers or symbols selected at random. See 86 Ill. Adm. Code 430.100. (This is a GIL.)
ST 06-0041-GIL 04/13/2006 Use Tax Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.)
ST 06-0040-GIL 04/13/2006 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 06-0039-GIL 04/13/2006 Sale of Service This letter discusses the sale of service and various fees. See 86 Ill. Adm. Code 140.101 through 140.109. (This is a GIL.)
NOTE: ST-13-0004-GIL 01/25/2013 clarifies and replaces the Department’s previous response regarding the inquiry about the “Tire Disposal Fees” provided in our General Information Letter dated April 13, 2006, ST-06-0039.
ST 06-0038-GIL 04/13/2006 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 06-0037-GIL 04/13/2006 Tax Collection This letter discusses various taxes imposed by the State. See 86 Ill. Adm. Code 130.101, 150.101, 140.101, and 160.101. (This is a GIL.)
ST 06-0036-GIL 04/13/2006 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 06-0035-GIL 04/13/2006 Computer Software The sale of canned software is subject to tax in Illinois regardless of the form in which it is transferred. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0034-GIL 04/12/2006 Telecommunications Excise Tax For purposes of the Telecommunications Excise Tax, “telecommunications” does not include value added services in which computer processing applications are used to act on the form, content, code, and protocol of the information for purposes other than transmission. See 35 ILCS 630/5-7 and 86 Ill. Adm. Code 495.100(d). (This is a GIL.)
ST 06-0033-GIL 04/03/2006 Computer Software For information regarding sales of computer goods and services, please see the Department’s regulation on “Computer Software” at 86 Ill. Adm. Code 130.1935 available on the Department’s website. (This is a GIL .)
ST 06-0032-GIL 03/31/2006 Sale For Resale If an electronic resale certificate is kept, it should contain all of the information required under 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 06-0031-GIL 03/31/2006 Manufacturing Machinery & Equipment Information regarding manufacturing or assembling of tangible personal property for wholesale or retail sale or lease may be found at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0030-GIL 03/30/2006 Electricity Excise Tax This letter concerns the exclusion for the use of electricity in the generation, production, transmission, distribution, delivery and sale of electricity in the regular course of business. See 35 ILCS 640/2-3. (This is a GIL.)
ST 06-0029-GIL 03/30/2006 Gross Receipts For general information regarding the taxation of “core” charges, please refer to sales tax letter ST 00-0207-GIL. (This is a GIL.)
ST 06-0028-GIL 03/28/2006 Telecommunications Excise Tax The Department’s regulation at 86 Ill. Adm. Code 495.140(a) provides that [o]n and after January 1, 2001, prepaid telephone calling arrangements shall not be considered telecommunications subject to the Telecommunications Excise Tax. (Sections 3 and 4 of the Act). (This is a GIL.)
ST 06-0027-GIL 03/28/2006 Miscellaneous This letter is a response to a survey regarding drop shipments. For information regarding drop shipments, see the Department’s regulation entitled “Drop Shipments,” found at 86 Ill. Adm. Code 130.225. (This is a GIL).
ST 06-0026-GIL 03/28/2006 Sale For Resale This letter describes drop-shipments and explains certificates of resale. See 86 Ill. Adm. Code 130.225 and 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 06-0025-GIL 03/27/2006 Food If more than 50% of all food sales are bulk or grocery type items, all food sales are taxed at the low rate with the exception of hot foods, food that has been prepared for immediate consumption, alcoholic beverages, and soft drinks. See 86 Ill Adm. Code 130.310(a). (This is a GIL.)
ST 06-0024-GIL 03/22/2006 Motor Fuel Tax When a motor fuel vendor delivers B11 and #2 high sulfur together it is blending motor fuel to arrive at B5. In order to make this blend, the vendor must be licensed as a motor fuel distributor and a blender. See 35 ILCS 505/3. (This is a GIL).
ST 06-0023-GIL 03/17/2006 Use Tax Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.)
ST 06-0022-GIL 03/17/2006 Miscellaneous General information letters are intended to aid taxpayers in a determination of their tax liabilities. See 86 Ill. Adm. Code 1200.120. (This is a GIL.)
ST 06-0021-GIL 03/03/2006 Sale For Resale This letter discusses drop-shipments. See 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 06-0020-GIL 02/28/2006 Sale of Service Where a business provides repair services that are accompanied with the transfer of tangible personal property, such transactions are generally subject to tax liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.140. (This is a GIL.)
ST 06-0019-GIL 02/28/2006 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. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0018-GIL 02/28/2006 Construction Contractors This letter concerns construction contractors. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 06-0017-GIL 02/28/2006 Telecommunications Excise Tax Charges for voice mail services are not subject to Telecommunications Excise Tax if they are disaggregated from transmission charges and separately identified in the books and records of the retailer. See 86 Ill. Adm. Code 495.100. (This is a GIL.)
ST 06-0016-GIL 02/24/2006 Miscellaneous Whether to issue a private letter ruling in response to a letter-ruling request is within the discretion of the Department. See 2 Ill. Adm. Code 1200.110(a)(4). (This is a GIL.)
ST 06-0015-GIL 02/10/2006 Manufacturing Machinery & Equipment Information regarding the manufacturing machinery and equipment exemption may be found at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 06-0014-GIL 02/10/2006 Computer Software Sales of canned computer software are taxable sales in Illinois. See Section 130.1935. (This is a GIL.)
ST 06-0013-GIL 02/03/2006 Exempt Organizations Generally, occasional dinners and similar activities may be conducted on no more than two occasions per year by a nonprofit organization without incurring tax liability. Please refer to 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 06-0012-GIL 01/31/2006 Service Occupation Tax This letter concerns enrollment fees and the transfer of prescription drugs. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 06-0011-GIL 01/27/2006 Hotel Operators' Tax This letter discusses the Hotel Operators’ Occupation Tax liabilities of hunting establishments that provide overnight stay accommodations as part of hunting packages it sells. See 86 Ill. Adm. Code 480.101(b)(6). (This is a GIL.)
ST 06-0010-GIL 01/24/2006 Motor Fuel Tax Even if motor fuel is dyed in accordance with the statute, it is only exempt from the Motor Fuel Tax if it is actually used for non-highway purposes. See 35 ILCS 505/2. (This is a GIL.)
ST 06-0009-GIL 01/24/2006 Computer Software This letter discusses the Department’s administrative rules on computer software and maintenance agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 06-0008-GIL 01/24/2006 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 Act, 35 ILCS 630/2; the Telecommunications Infrastructure Maintenance Fee Act, 35 ILCS 635/10; and the Simplified Municipal Telecommunications Tax Act, 35 ILCS 636/5-7. (This is a GIL.)
ST 06-0007-GIL 01/10/2006 Farm Machinery and Equipment This letter discusses the exemption from the Retailers' Occupation Tax for Farm Machinery and Equipment and Farm Chemicals. See 86 Ill. Adm. Code 130.305 and 130.1955. (This is a GIL.)
ST 06-0005-GIL 01/10/2006 Motor Vehicles Explains the effect of Public Act 93-1068 on the sale of a motor vehicle to an out of state resident. See Public Act 93-1068. (This is a GIL.)
ST 06-0004-GIL 01/09/2006 Medical Appliances Defibrillators do not qualify for the low rate of tax provided to medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 06-0003-GIL 01/09/2006 Vehicle Use Tax This letter concerns Vehicle Use Tax. See 625 ILCS 5/3 -1001 et seq. (This is a GIL.)
ST 06-0002-GIL 01/09/2006 Hotel Operators' Tax The Hotel Operators’ Tax provides no exemption for the rental of rooms to governmental entities. See 86 Ill. Adm. Code 480.101. (This is a GIL.)
ST 06-0001-GIL 01/09/2006 Service Occupation Tax If no tangible personal property is transferred incident to a sale of service, then no Service Occupation Tax liability or Use Tax liability would be incurred in regards to that service. See 86 Ill. Adm. Code 140.101 et seq. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 06-0020-PLR 10/30/2006 Sale at Retail The Retailers' Occupation Tax Act, 35 ILCS 120/1 et seq. imposes a tax upon persons engaged in this State in the business of selling tangible personal property to purchasers for use or consumption. (This is a PLR.)
ST 06-0019-PLR 10/19/2006 Miscellaneous The Department’s regulation “Public Information, Rulemaking and Organization” provides that “[w]hether to issue a private letter ruling in response to a letter ruling request is within the discretion of the Department. The Department will respond to all requests for private letter rulings either by issuance of a ruling or by a letter explaining that the request for ruling will not be honored.” 2 Ill. Adm. Code 1200.110(a)(4). (This is a PLR.)
ST 06-0018-PLR 10/18/2006 Hotel Operators’ Tax Early Departure Fees are a part of a hotel’s gross receipts subject to Hotel Operators’ Occupation Tax liability. See 35 ILCS 145/2 and 86 Ill. Adm. Code 480.101. (This is a PLR.)
ST 06-0017-PLR 10/16/2006 Service Occupation Tax Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b)(1) is met. See 86 Ill. Adm. Code 130.2115. (This is a PLR.)
ST 06-0016-PLR 07/19/2006 Computer Software A license of software is not a taxable retail sale if it meets the criteria set forth at 86 Ill. Adm. Code 130.1935(a)(1)(A)-(E). (This is a PLR.)
ST 06-0015-PLR 07/19/2006 Gross Receipts Adjustments to the selling price of coal, based on the sulfur content of the coal, are subject to sales tax. See 86 Ill. Adm. Code Section 130.401. (This is a PLR.)
ST 06-0014-PLR 07/19/2006 Exempt Organizations An exclusively charitable retirement home dining facility is not considered to be open to the public if the facility is restricted to residents and their visitors, retirement home employees and volunteer workers. See 86 Ill. Adm. Code Section 130.2005. (This is a PLR.)
ST 06-0013-PLR 07/19/2006 Manufacturing Machinery & Equipment The manufacturing machinery and equipment exemption does not apply to machinery or equipment used primarily in pre-production or post-production activities. See 86 Ill. Adm. Code 130.330. (This is a PLR.)
ST 06-0012-PLR 07/11/2006 Computer Software If all the criteria listed in subsection (a)(1)(A)-(E) of Section 130.1935 are met, then neither a transaction involving the licensing of software nor the subsequent software updates will be considered a taxable retail sale subject to Retailers’ Occupation and Use Tax. See 86 Ill. Adm. Code 130.1935. (This is a PLR.)
ST 06-0011-PLR 07/07/2006 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 through 140.109. (This is a PLR.)
ST 06-0010-PLR 06/29/2006 Computer Software This letter rescinds and clarifies ST-05-0028-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 06-0009-PLR 06/29/2006 Electricity Excise Tax This is a supplemental private letter ruling issued in response to ST-06-0030-GIL, which discusses the definition of “use” pursuant to The Electricity Excise Tax Law. See 35 ILCS 640/2-3(k). (This is a PLR.)
ST 06-0008-PLR 06/14/2006 Graphic Arts The sale of an integrated computer and printer system for the printing of digital images is graphic arts machinery and equipment exempt from Retailer’s Occupation Tax and Use Tax. See 86 Ill. Adm. 130.325. (This is a PLR.)
ST 06-0007-PLR 06/12/2006 Service Occupation Tax The purchase of a conveyor system does not qualify as a purchase of special order machinery because the conveyor system cannot be shown to have use or value only to the purchaser. See 86 Ill. Adm. Code 130.2115. (This is a PLR.)
ST 06-0006-PLR 05/31/2006 Construction Contractors Tangible personal property that will be physically incorporated into public improvements, the ownership of which is required to be conveyed to a unit of local government pursuant to a predevelopment transfer requirement, is exempt from Retailers’ Occupation Tax and Use Tax. See 86 Ill. Adm. Code 130.2075(e). (This is a PLR.)
ST 06-0005-PLR 05/16/2006 Computer Software License agreements in which the customer electronically accepts the terms by clicking (“I agree”) do not comply with the requirement of a written agreement signed by the licensor and customer as set forth in 86 Ill. Adm. Code 130.1935(a)(1)(A). (This is a PLR.)
ST 06-0004-PLR 05/03/2006 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 PLR.)
ST 06-0003-PLR 03/27/2006 Enterprise Zones Note: This letter was rescinded by Private Letter Ruling ST 08-0006-PLR - All “qualified sales” of building materials sold for incorporation into any Illinois enterprise zone are eligible for a deduction for sales tax purposes. (See 86 Ill. Adm. Code 130.1951(d)(1).) (This is a PLR.)
ST 06-0002-PLR 03/03/2006 Special Order This letter concerns the taxation of a material handling system. See 86 Ill. Adm. Code 130.2115. (This is a PLR.)
ST 06-0001-PLR 02/26/2006 Miscellaneous This letter discusses application of the Retailers’ Occupation Tax to Buy and Hold orders which are delivered to the customer at the taxpayer’s warehouse in Illinois. See 86 Ill. Adm. Code 130.605. (This is a PLR.)
 
 
Answer Center
 
 
Quick Links
 
 
 
 
Information For
 
 
 
 
About IDOR