Illinois Department of Revenue
 
 
Legal Information
 
 
 
 
 

2007 Sales Tax Letter Rulings

 
 

General Information Letters

Ruling Date Subject Synopsis
ST 07-0167-GIL 12/31/2007 Interstate Commerce This letter discusses the Interstate Commerce exemption. See 86 Ill. Adm. Code 130.605. (This is a GIL.)
ST 07-0166-GIL 12/31/2007 Medical Appliances Medical tools, devices and equipment used for diagnostic or treatment purposes do not qualify for the reduced State rate of tax for medical appliances. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.)
ST 07-0165-GIL 12/31/2007 Gross Receipts Proceeds from mandatory service charges that are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food or beverage function with respect to which the service charge is imposed are not subject to tax. See 86 Ill. Adm. Code 130.2145(d). (This is a GIL.)
ST 07-0164-GIL 12/31/2007 Use Tax By giving away tangible personal property in Illinois, the donor makes a taxable use of the property and is subject to Use Tax on the cost price of the property purchased to be given away. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.)
ST 07-0163-GIL 12/31/2007 Use Tax Prepaid telephone calling arrangements are considered tangible personal property subject to tax imposed under the Retailers' Occupation Tax Act and Use Tax Act, regardless of the form in which those arrangements may be embodied, transmitted, or fixed by any method now known or hereafter developed. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0162-GIL 12/31/2007 Service Occupation Tax This letter concerns tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0161-GIL 12/31/2007 Repairs This letter concerns the taxability of maintenance agreements. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 07-0160-GIL 12/31/2007 Food, Drugs & Medical Appliances Medicines and medical appliances are not taxed at the normal State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310(c). (This is a GIL).
ST 07-0159-GIL 12/31/2007 Telecommunications Excise Tax This letter concerns the furnishing of financial information by the Department to municipalities pursuant to 35 ILCS 630/15. (This is a GIL.)
ST 07-0158-GIL 12/31/2007 Service Occupation Tax This letter concerns tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.01. (This is a GIL.)
ST 07-0157-GIL 12/31/2007 Construction Contractors This letter concerns installation of security systems. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 07-0156-GIL 12/31/2007 Farm Machinery & Equipment This letter concerns the taxability of RFID ear tags and ear tag applicators used in production agricultural. See 86 Ill. Adm. Code 130.305. (This is a GIL.)
ST 07-0155-GIL 12/31/2007 Medical Appliances Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0154-GIL 12/31/2007 Food This letter concerns the tax rate applicable for food for immediate consumption. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0153-GIL 12/31/2007 Manufacturer’s Purchase Credit The State of Illinois provides a manufacturer’s purchase credit in addition to the exemption for manufacturing machinery and equipment. See 86 Ill. Adm. Code 130.331. (This is a GIL.)
ST 07-0152-GIL 12/19/2007 Use Tax The Use Tax does not apply to the use in this State of tangible personal property which has been acquired outside this State by a nonresident individual who then brings the property into this State for use here, and who has used the property outside this State for more than 90 days. See 86 Ill. Adm. Code 150.315. (This is a GIL.)
ST 07-0151-GIL 12/18/2007 Miscellaneous The Illinois Department of Revenue does not administer locally imposed food and beverage taxes. (This is a GIL.)
ST 07-0150-GIL 12/07/2007 Construction Contractors The Department’s regulation at 86 Ill. Adm. Code 130.2076 sets forth specific rules for sales to purchasers performing contracts with governmental bodies. This letter discusses this regulation and also the Manufacturer’s Purchase Credit. (This is a GIL).
ST 07-0149-GIL 11/29/2007 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 07-0148-GIL 11/15/2007 Manufacturing Machinery & Equipment Machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 07-0147-GIL 10/26/2007 Construction Contractors When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 07-0146-GIL 10/26/2007 Sale of Service If no tangible personal property is transferred incident to the sales of services, then no Service Occupation Tax or Use Tax would be incurred on the sales of those services. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 07-0145-GIL 10/24/2007 Gross Receipts A caterer incurs Retailers’ Occupation Tax liability on his entire receipts from his catering service without any deduction for his costs of doing business. See 86 Ill. Adm. Code 130.410 and 130.2145. (This is a GIL.)
ST 07-0144-GIL 10/24/2007 Manufacturer’s Purchase Credit This letter discusses sales for resale and whether MPC credits can be applied toward purchases of packaging material. See 86 Ill. Admin. Code 130.331. (This is a GIL.)
ST 07-0143-GIL 10/24/2007 Claim For Credit The Department’s regulation at 86 Ill. Adm. Code 130.1501 describes the procedures used to obtain a credit for sales tax that is erroneously paid. (This is a GIL.)
ST 07-0142-GIL 10/24/2007 Aircraft Use Tax The Aircraft Use Tax Law applies to non-retail transactions, gifts, or transfers of aircraft. See 86 Ill. Adm. Code 152.101. (This is a GIL.)
ST 07-0141-GIL 10/24/2007 Sale For Resale The Department’s regulation at 86 Ill. Adm. Code 130.1405 describes the requirements for Certificates of Resale. (This is a GIL.)
ST 07-0140-GIL 10/22/2007 Returns This letter concerns consolidation of businesses on a single sales tax return. (This is a GIL.)
ST 07-0138-GIL 10/22/2007 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 07-0137-GIL 10/22/2007 Sale At Retail Illinois Retailers' Occupation Tax is imposed only upon sales tangible personal property and does not apply to sales of intangibles. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0136-GIL 10/22/2007 Leasing This letter discusses leases and leasing related charges. 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 07-0135-GIL 10/22/2007 Manufacturing Machinery & Equipment Mold release agents do not generally qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 07-0134-GIL 10/22/2007 Exempt Organizations This letter concerns the length of an annual Christmas tree sale by an exempt organization. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 07-0133-GIL 10/02/2007 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 07-0132-GIL 08/27/2007 Miscellaneous The Federal government is exempt from the Gas Revenue Tax, the Public Utilities Tax, the Telecommunications Excise Tax and the Electricity Excise Tax. See 86 Ill. Adm. Code 470.160 and 510.160, 35 ILCS 630/2 and 35 ILCS 640/1 et seq. (This is a GIL.)
ST 07-0131-GIL 08/27/2007 Food, Drugs & Medical Appliances This letter discusses tax on food supplements. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0130-GIL 08/27/2007 Food, Drugs & Medical Appliances This letter discusses tax on supplements. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0129-GIL 08/23/2007 Sale For Resale In regard to the signature requirement for a Retailers’ Occupation Tax resale certificate, a digital signature would be acceptable. See 5 ILCS 175/5-120 and 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 07-0128-GIL 08/21/2007 Miscellaneous This letter discusses issues related to tangible personal property purchased for use or consumption within an enterprise zone in the process of manufacturing or assembling by certain business enterprises certified by the Department of Commerce and Community Affairs. 86 Ill. Adm. Code 130.1951(g). (This is a GIL.)
ST 07-0127-GIL 08/17/2007 Miscellaneous This letter discusses issues related to tangible personal property purchased for use or consumption within an enterprise zone in the process of manufacturing or assembling by certain business enterprises certified by the Department of Commerce and Community Affairs. 86 Ill. Adm. Code 130.1951(g). (This is a GIL.)
ST 07-0126-GIL 08/17/2007 Medical Appliances Medical appliances are not taxed at the normal State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 07-0125-GIL 08/16/2007 Computer Software This letter discusses sales of software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 07-0124-GIL 08/16/2007 Sale At Retail This letter discusses tax issues related to the sale of residential security systems. See 35 ILCS 120/1. (This is a GIL.)
ST 07-0123-GIL 08/16/2007 Service Occupation Tax This letter concerns sales of advertising services. See 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST 07-0122-GIL 08/16/2007 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 regarding sales of service and Service Occupation Tax. (This is a GIL.)
ST 07-0121-GIL 08/16/2007 Gross Receipts This letter discusses a sales incentive program between a supplier and its retailer customer. (This is a GIL.)
ST 07-0120-GIL 08/16/2007 Use Tax While a watercraft is in the retailer’s sales inventory, the retailer may use the watercraft without incurring any Use Tax for 18 months. See 86 Ill. Adm. Code 150/306(c). (This is a GIL.)
ST 07-0119-GIL 08/15/2007 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 07-0118-GIL 08/15/2007 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 07-0117-GIL 08/15/2007 Medical Appliances Medical appliances are not taxed at the normal State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0116-GIL 08/07/2007 Exempt Organizations Sales to exempt organizations are subject to sales tax unless the organization has obtained an active exemption identification num
ST 07-0115-GIL 08/07/2007 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 07-0114-GIL 08/07/2007 Graphic Arts The Department’s regulation at Section 130.325(b)(1)(D) provides that the graphic arts machinery and equipment exemption includes printing by methods including digital printing. (This is a GIL.)
ST 07-0113-GIL 08/07/2007 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 07-0111-GIL 08/07/2007 Sales For Resale This letter describes the standard drop-shipment scenario and certificates of resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 07-0110-GIL 08/07/2007 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 part (c) of Section 130.310. (This is a GIL.)
ST 07-0108-GIL 08/02/2007 Miscellaneous This letter responds to an annual survey. See 86 Ill. Adm. Code, Parts 130, 140, 150 and 160. (This is a GIL.)
ST 07-0107-GIL 08/01/2007 Exempt Organizations Organizations that have E numbers are allowed to engage in a very limited amount of retail selling without incurring Retailers’ Occupation Tax liability. These limited amounts of selling are described at 86 Ill. Adm. Code 130.2005(a)(2) through (a)(4). (This is a GIL.)
ST 07-0105-GIL 07/27/2007 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 07-0104-GIL 07/27/2007 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 07-0103-GIL 07/26/2007 Medical Appliances According to the Department’s regulation at 86 Ill. Adm. Code 130.310, a medical appliance is an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. (This is a GIL.)
ST 07-0102-GIL 07/26/2007 Charitable Games The Raffles Act governs the conduct of raffles in Illinois. 230 ILCS 15/0.01 et seq.. (This is a GIL.)
ST 07-0101-GIL 07/25/2007 Certificate of Registration The Social Security Act establishes federal authority by which the Department of Revenue 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 07-0100-GIL 07/24/2007 Service Occupation Tax In general, if one business provides tangible personal property to another business and the second business returns the same tangible personal property back to the first business in a different form, then no Retailers’ Occupation Tax, Use Tax, Service Occupation Tax, or Service Use Tax is owed for this transaction by either business. See 86 Ill. Adm. Code 150.101 (This is a GIL.)
ST 07-0099-GIL 07/24/2007 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 07-0096-GIL 07/23/2007 Sale At Retail This letters discusses sales tax for groceries ordered in Illinois but delivered in COUNTRY. See 35 ILCS 120/1 et seq. and 35 ILCS 105/1 et al.. (This is a GIL.)
ST 07-0097-GIL 07/23/2007 Exempt Organizations While the sale of tangible personal property at retail by exclusively religious, educational or charitable organizations is generally subject to Retailer’s Occupation Tax, there are three limited exceptions. See 86 Ill. Adm. Code Sections 130.2005(a)(2) through 130.2005(a)(4). (This is a GIL.)
ST 07-0096-GIL 07/17/2007 Use Tax The Use Tax Act imposes a tax upon the privilege of using in this State
ST 07-0095-GIL 07/16/2007 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 07-0094-GIL 07/13/2007 Food, Drugs & Medical Appliances This letter concerns the low 1% State rate of tax applicable to food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0093-GIL 07/13/2007 Use Tax Foreign and domestic travelers 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 07-0092-GIL 07/13/2007 Miscellaneous The Department will not approve the accuracy of private legal publications. (This is a GIL.)
ST 07-0091-GIL 07/12/2007 Gross Receipts “Gross receipts” includes all the consideration received by a retailer for a retail sale. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST 07-0090-GIL 07/12/2007 Service Occupation Tax Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0089-GIL 07/12/2007 Food, Drugs & 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 07-0088-GIL 07/10/2007 Exempt Organizations This letter concerns the taxation of purchases of fuel oil under the Low Income Home Energy Assistance Program. See 86 Ill. Adm. Code 130.2007 and 130.2080. (This is a GIL.)
ST 07-0087-GIL 07/05/2007 Service Occupation Tax The Service Occupation Tax is a tax imposed on tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0086-GIL 07/05/2007 Sale For Resale This letter references the Department’s rules on drop shipments. See 86 Ill. Adm. Code 130.225. (This is a GIL.)
ST 07-0085-GIL 07/05/2007 Use Tax This letter concerns the interim use exemption. See 86 Ill. Adm. Code 150.306. (This is a GIL.)
ST 07-0084-GIL 07/03/2007 Use Tax This letter discusses the Department’s voluntary disclosure program. See 86 Ill. Adm. Code 210.126 for information about voluntary disclosure. (This is a GIL.)
ST 07-0083-GIL 07/03/2007 Leasing This letter refers to ST 06-0201-GIL regarding leases and conditional sales. (This is a GIL.)
ST 07-0082-GIL 07/03/2007 Use Tax For a listing of possible exemptions from Use Tax for incoming out-of-State motor vehicles, see the instructions for form RUT-25, “Use Tax Transaction Return” available on the Department’s web site. (This is a GIL.)
ST 07-0080-GIL 06/29/2007 Service Occupation Tax Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0079-GIL 06/28/2007 Gas Use Tax This letter discusses the exemption under the Gas Use Tax Law for business enterprises located in enterprise zones certified by the Department of Commerce and Economic Opportunity. See 35 ILCS 173/5-50. (This is a GIL.)
ST 07-0078-GIL 06/27/2007 Miscellaneous Information or data that is electronically downloaded is not considered the transfer of tangible personal property in this State. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 07-0077-GIL 06/26/2007 Nexus This letter discusses basic principles of nexus. See 35 ILCS 105/1 et seq., 35 ILCS 120/1 et seq., and 86 Ill. Adm. Code 150.201. (This is a GIL.)
ST 07-0076-GIL 06/26/2007 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 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0075-GIL 06/26/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0074-GIL 06/26/2007 Telecommunications Excise Tax If telecommunications retailers provide “concierge type services” and also transmission services, the charges for each must be disaggregated and separately stated from telecommunications charges in the books and records of the retailers. See 35 ILCS 630/2(a) and 630(c). (This is a GIL.)
ST 07-0073-GIL 06/25/2007 Miscellaneous This letter discusses sales tax issues of concern to a business that provides both traditional and virtual file room services. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0072-GIL 06/25/2007 Returns This letter discusses who must file a return when a leasing portfolio is acquired by a company that has a division that is already registered to file returns for the resale and leasing of property. See 86 Ill. Adm. Code 130.701. (This is a GIL.)
ST 07-0070-GIL 06/22/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0069-GIL 06/21/2007 Drugs This letter concerns the low 1% State rate of tax applicable to drugs and medicines. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0068-GIL 06/19/2007 Miscellaneous Information or data that is electronically downloaded is not considered the transfer of tangible personal property in this State. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 07-0067-GIL 06/18/2007 Service Occupation Tax This letter discusses the tax liabilities of persons who retread tires. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0066-GIL 06/18/2007 Miscellaneous This letter concerns sales of music and videos downloaded from the Internet. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0065-GIL 06/14/2007 Leasing This letter concerns leasing. See 86 Ill. Adm. Code 130.220. (This is a GIL.)
ST 07-0064-GIL 06/13/2007 Farm Machinery & Equipment Accessories, not essential to the operation of exempt machinery, except when sold as an integral part of a qualified machine at the time of purchase, do not qualify for the exemption. (This is a GIL.)
ST 07-0063-GIL 06/12/2007 Miscellaneous This letter concerns sales of gift certificates. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0062-GIL 06/11/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0061-GIL 06/11/2007 Certificate of Registration The responsible individual named at Step 9 of Form REG-1 is subject to personal liability penalty if he or she willfully fails to file returns and/or pay tax when due. See 35 ILCS 120/2a and 735/3-7, and 86 Ill. Adm. Code 130.701(d) and 700.340. (This is a GIL.)
ST 07-0060-GIL 06/11/2007 Manufacturers This letter concerns electricity, gas, and water services provided to manufacturers. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 07-0059-GIL 06/08/2007 Hotel Operators’ Tax This letter provides reference regarding “reward points” programs and refunds pursuant to the Hotel Operator’s Occupation Tax Act. See 86 Ill. Adm. Code 480.125. (This is a GIL.)
ST 07-0058-GIL 06/08/2007 Construction Contractors Where a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user. As the end user, the contractor incurs Use Tax on the cost price of the tangible personal property that is incorporated into real property. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 07-0057-GIL 06/07/2007 Miscellaneous Information concerning the tax liabilities of biodiesel-blended fuel under the Retailers’ Occupation Tax Act may be found at 35 ILCS 120/2-10. (This is a GIL.)
ST 07-0056-GIL 06/07/2007 Gross Receipts For information regarding installation, alteration and special service charges see 86 Ill. Adm. Code 130.450. (This is a GIL.)
ST 07-0055-GIL 06/06/2007 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 07-0054-GIL 06/06/2007 Manufacturing Machinery & Equipment The manufacturing machinery and equipment exemption includes chemicals or chemicals acting as catalysts but only if the chemicals or chemicals acting as catalysts effect a direct and immediate change upon a product being manufactured or assembled for sale or lease. See 86 Ill. Adm. Code 130.330(c)(6). (This is a GIL.)
ST 07-0053-GIL 06/06/2007 Delivery Charges The best evidence that transportation or delivery charges were agreed to separately and apart from the selling price, is a separate and distinct contract for transportation or delivery. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 07-0052-GIL 06/06/2007 Miscellaneous This letter discusses Illinois sales taxes, nexus, local taxes, and warranties. See 35 ILCS 120/1 et seq. (This is a GIL.)
ST 07-0051-GIL 05/25/2007 Governmental Bodies 86 Ill. Adm. Code 130.2055 provides that governmental units, incur Retailers Occupation Tax liability when selling tangible personal property to the public for use or consumption. The only exception is the sale of an item by a governmental unit in the performance of its governmental function. (This is a GIL.)
ST 07-0050-GIL 05/24/2007 Telecommunications Excise Tax The Telecommunications Excise Tax Act provides that "'[s]ervice address' means the location of telecommunications equipment from which the telecommunications services are originated or at which telecommunications services are received by a taxpayer. See 35 ILCS 630/1 et seq. (This is a GIL.)
ST 07-0049-GIL 05/23/2007 Gas Use Tax The Gas Use Tax Law contains an exemption for gas used in the production of electric energy. See 86 Ill. Adm. Code 471.125(a)(3). (This is a GIL.)
ST 07-0048-GIL 05/23/2007 Sale At Retail The Illinois Retailers’ Occupation Tax Act imposes a tax upon persons engaged in this State in the business of selling tangible personal property to purchasers for use or consumption. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 07-0047-GIL 05/23/2007 Newsprint & Ink Gross receipts from the sale of newspapers and magazines in Illinois are not subject to sales tax. See 86 Ill. Adm. Code Section 130.2105. (This is a GIL.)
ST 07-0046-GIL 05/23/2007 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 07-0045-GIL 05/23/2007 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 07-0044-GIL 05/22/2007 Construction Contractors Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 07-0042-GIL 05/22/2007 Use Tax Foreign or domestic travelers 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 07-0041-GIL 05/22/2007 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 07-0040-GIL 05/22/2007 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 07-0039-GIL 05/22/2007 Food, Drugs & Medical Appliances Items such as sleep apnea monitors for example do not qualify for the 1% rate of tax because these items do not directly substitute for a malfunctioning part of the body. See 86 Ill. Admin. Code 130.310(c). (This is a GIL.)
ST 07-0038-GIL 05/22/2007 Medical Appliances The definition of medical appliance is "an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body." See 86 Ill. Adm. Code 130310(c)(2). (This is a GIL.)
ST 07-0037-GIL 05/22/2007 Food, Drugs, and Medical Appliances For more information regarding whether the 6.25% rate or the 1% rate of tax applies to catheters, we refer you to the Department’s regulation at 86 Ill. Adm. Code 130.310(c) and to letter ST 93-0526. (This is a GIL.)
ST 07-0036-GIL 05/21/2007 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 07-0035-GIL 05/21/2007 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 07-0034-GIL 05/17/2007 Trade-ins The acceptance of trade-ins of like kind and character may be used to reduce a retailer’s gross receipts from a retail transaction as described in the Department’s administrative rules regarding trade-ins. See 86 Ill. Adm. Code 130.425 and 130.455. (This is a GIL.)
ST 07-0033-GIL 05/17/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0032-GIL 05/17/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0031-GIL 05/17/2007 Agricultural Producers and Products Preservatives used for drying hay may qualify for the farm chemical exemption. See 86 Ill. Adm. Code 130.1955. (This is a GIL.)
ST 07-0030-GIL 05/17/2007 Repairs The taxability of maintenance agreements depends upon whether charges for the agreements are included in the selling price of the tangible personal property. See 86 Ill. Adm. Code 140.301. (This is a GIL.)
ST 07-0029-GIL 05/17/2007 Repairs The taxability of maintenance agreements depends upon whether charges for the agreements are included in the selling price of the tangible personal property. See 86 Ill. Adm. Code 140.301. (This is a GIL.)
ST 07-0028-GIL 05/16/2007 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 130.1405. (This is a GIL.)
ST 07-0027-GIL 05/16/2007 Exempt Organizations Sale of school annuals are considered noncompetitive sales. See 86 Ill. Adm. Code 130.2005. (This is a GIL.)
ST 07-0026-GIL 05/16/2007 Medical Appliances Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0025-GIL 05/16/2007 Construction Contractors To claim the exemption at 86 Ill. Adm. Code 130.2075(e), contractors must provide their suppliers with the exemption identification number of the governmental unit to which the public improvements will be transferred upon completion. (This is a GIL.)
ST 07-0024-GIL 05/09/2007 Gross Receipts This letter discusses sales of prescription drugs by servicemen. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 07-0023-GIL 05/04/2007 Miscellaneous Please note that the Department has no authority to compel the seller to file a claim for credit. Whether or not the seller files a claim for credit with the Department is a private business matter. (This is a GIL.)
ST 07-0022-GIL 05/04/2007 Service Occupation Tax The issue of whether a person incurs a Retailers' Occupation Tax or Service Occupation Tax liability depends upon the nature of the items being produced and the nature of the design work involved. See 86 Ill. Adm. Code 130.2115. (This is a GIL.)
ST 07-0021-GIL 05/04/2007 Occasional Sales This letter discusses limitations on the meaning of “occasional sales.” See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 07-0020-GIL 05/04/2007 Occasional Sale Tangible personal property transferred pursuant to a business reorganization may qualify for the occasional sales exemption if the transferor of such tangible personal property has not ordinarily sold like-kind property at retail. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 07-0019-GIL 05/04/2007 Construction Contractors For information on construction contractors, see 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.)
ST 07-0018-GIL 05/04/2007 Farm Machinery & Equipment Chemicals that are required to provide a specific temperature and humidity in order to grow a crop to be sold do not qualify as farm chemicals for purposes of the exemption. See 86 Ill. Adm. Code 130.1955. (This is a GIL.)
ST 07-0017-GIL 05/03/2007 Miscellaneous This letter discusses several sales tax issues for lessors of durable medical equipment. See 35 ILCS 130.310. (This is a GIL.)
ST 07-0016-GIL 05/03/2007 Miscellaneous This letter concerns the tax rate imposed on biodiesel. See 35 ILCS 120/2 -10. (This is a GIL.)
ST 07-0015-GIL 05/03/2007 Gross Receipts This letter discusses how sales tax is applied when a vehicle is replaced under the New Vehicle Buyer Protection Act (a.k.a. the “Lemon Law”), 815 ILCS 380/1 et seq. (This is a GIL.)
ST 07-0014-GIL 04/30/2007 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 07-0013-GIL 04/24/2007 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 07-0012-GIL 04/23/2007 Use Tax Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 35 ILCS 105/7. (This is a GIL.)
ST 07-0011-GIL 04/23/2007 Exempt Organizations A limited liability partnership can qualify for an “E” number as an association as long as all other requirements for an “E” number are met. See 35 ILCS 120/2-5(11) and 35 ILCS 105/3- 5(4). (This is a GIL.)
ST 07-0010-GIL 04/23/2007 Governmental Bodies Sales made to Medicare, Medicaid and other government healthcare providers are exempt from tax as sales to a government body so long as the exemption is properly documented through provision of an active exemption identification number and payment is made directly by the government agency. See 86 Ill. Adm. Code 130.2080. (This is a GIL.)
ST 07-0009-GIL 04/12/2007 Construction Contractors This letter concerns sales of cabinetry. (This is a GIL.)
ST 07-0008-GIL 04/04/2007 Motor Fuel Tax This letter concerns home blenders who blend bio
ST 07-0007-GIL 03/28/2007 Trade-ins The language of 86 Ill. Admin. Code 130.455(c)(C), that “[a] third party trade-in authorization may not be used in conjunction with an advance trade transaction” means not only that the car being traded in the advance trade must be owned by the purchaser of the new vehicle, but also that regular trade-in transactions involving third parties may not be part of an advance trade transaction. (This is a GIL.)
ST 07-0006-GIL 01/12/2007 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 07-0005-GIL 01/05/2007 Nexus This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 07-0004-GIL 01/04/2007 Use Tax Under the Use Tax Act, a tax is imposed upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL).
ST 07-0003-GIL 01/04/2007 Manufacturing Machinery and Equipment Machinery and equipment that is used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax. See the Department’s regulation at 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 07-0002-GIL 01/04/2007 Medical Appliances This letter provides a reference to the Department’s rules regarding food, drugs, medicines and medical appliances. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 07-0001-GIL 01/04/2007 Medical Appliances Retailers' Occupation Tax does not apply where sellers ship goods by carrier or by mail, according to the terms of agreements with purchasers, and the seller delivers the goods from a point within Illinois to a point outside Illinois and the goods are not to be returned to Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST 07-0005-PLR 09/26/2007 Exempt Organizations Exempt organizations can make only certain limited amounts of sales without incurring Retailers' Occupation Tax liability. 86 Ill. Adm. Code 130.2005. (This is a PLR).
ST 07-0004-PLR 08/10/2007 Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a PLR.)
ST 07-0003-PLR 01/04/2007 Interstate Commerce 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 07-0002-PLR 08/10/2007 Exempt Organizations This letter discusses the sales tax liabilities of university dining facilities that are open to the public, where sales are made by the university and by other vendors, and some purchases are made using university “dining dollars.” See 86 Ill. Adm. Code 130.2005. (This is a PLR.)
ST 07-0001-PLR 05/01/2007 Sale at Retail An partnership that owns and operates a coal mine is not subject to Retailers’ Occupation Tax on coal that is used in that same partnership’s electric generating facility because the coal will be conveyed from the mine to the electric generating facility without any sale at retail taking place. See 86 Ill. Adm. Code 130.101. (This is a PLR.)
 
 
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