2012 Sales Tax Letter Rulings

General Information Letters

Ruling	Date	Subject	Synopsis
ST 12-0019-GIL	03/30/2012	Nexus	This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.)
ST 12-0018-GIL	03/27/2012	Sale For Resale	This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 12-0017-GIL	03/23/2012	Medical Appliances	A medical appliance is defined as 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 130.311. (This is a GIL.)
ST 12-0016-GIL	03/14/2012	Telecommunications Excise Tax	“Prepaid telephone calling arrangements” are taxable under the Retailers’ Occupation Tax Act. See 35 ILCS 120/2-7. (This is a GIL.)
ST 12-0015-GIL	03/16/2012	Gross Receipts	This letter discusses sales of prescription drugs by servicemen. See 86 Ill. Adm. Code Part 140. (This is a GIL.)
ST 12-0014-GIL	03/14/2012	Telecommunications Excise Tax	“Prepaid telephone calling arrangements” are taxable under the Retailers’ Occupation Tax Act. See 35 ILCS 120/2-7. (This is a GIL.)
ST 12-0013-GIL	03/05/2012	Exempt Organizations	Organizations possessing “E” numbers issued by the Department are exempt on purchases used in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 12-0012-GIL	03/05/2012	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 12-0011-GIL	02/29/2012	Computer Software	This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 12-0010-GIL	02/29/2012	Miscellaneous	This letter discusses taxation of purchases of printing paper by Illinois printer customers. See 86 Ill. Adm. Code Sections 130.1405 and 130.2105. (This is a GIL.)
ST 12-0009-GIL	02/28/2012	Sale At Retail	This letter discusses deal-of-the-day transactions. 35 ILCS 120/1. (This is a GIL.)
ST 12-0008-GIL	02/24/2012	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-12-0007- GIL	01/31/2012	Gross Receipts	This letter discusses layaway service charges and cancellation fees. See 86 Ill. Adm. Code 130.430. (This is a GIL.)
ST-12-0006- GIL	01/27/2012	Miscellaneous	Municipal gas taxes imposed under the authority provided in Section 8-11-2 of the Illinois Municipal Code (65 ILCS 5/8-11-2) are not administered by the Department of Revenue. (This is a GIL.)
ST-12-0005- GIL	01/20/2012	Leasing	Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST-12-0004- GIL	01/20/2012	Sale For Resale	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-12-0003- GIL	01/11/2012	Governmental Bodies	Governmental bodies 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 body in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL.)
ST-12-0002- GIL	01/06/2012	Computer Software	This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-12-0001- GIL	01/06/2012	Miscellaneous	This letter responds to a questionnaire. See 86 Ill. Adm. Code, Parts 130, 150, and 270. (This is a GIL.)

Private Letter Rulings

Ruling	Date	Subject	Synopsis
ST-12-0002-PLR	03/30/2012	Manufacturing Machinery & Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a PLR).
ST-12-0001-PLR	01/26/2012	Gas Revenue Tax	This letter concerns purchases for resale of natural gas that is converted into Compressed Natural Gas (CNG) for sale as a motor fuel. See 86 Ill. Adm. Code 470.145. (This is a PLR).