General Information Letters

Ruling	Date	Subject	Synopsis
ST 99-0432-GIL	12/30/1999	Interstate Commerce	When a sale is conducted in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, the gross receipts are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0431-GIL	12/30/1999	Pollution Control Faciities	No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335(a) of the Department's rules. (This is a GIL).
ST 99-0430-GIL	12/30/1999	Sale of Service	The purchase of tangible personal property that is transferred to service customers may result in either Service Occupation Tax liability or Use Tax liability for the servicemen, depending upon which tax base the servicemen choose to calculate their liability. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 99-0429-GIL	12/30/1999	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0428-GIL	12/30/1999	Construction Contractors	In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 1940 and 130.2075. (This is a GIL).
ST 99-0427-GIL	12/30/1999	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 99-0426-GIL	12/30/1999	Sale of Service	Sellers of personalized business calling cards, letterheads, envelopes, labels, name plates, badges, medallions and the like do not incur Retailers’ Occupation Tax liability on their receipts from such sales because they are engaged in a service occupation in producing or procuring custom-ordered items that have no commercial value to others. If the items produced, however, have intrinsic usefulness and so have commercial value to persons other than the customer, they are subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1995. (This is a GIL).
ST 99-0425-GIL	12/30/1999	Motor Fuel Tax	Under the Motor Fuel Tax Law, a tax is imposed upon the use of motor fuel upon Illinois highways by commercial motor vehicles. 35 ILCS 505/13a (1998 State Bar Edition). Such Motor Fuel Use Tax is not a tax that is collected or withheld by a taxpayer from another person nor is it a tax for which an amount is required to be collected or withheld by a taxpayer from another person. The Motor Fuel Use Tax is directly remitted by taxpayers to the Department. As such, the Motor Fuel Use Tax is not a trust tax. (This is a GIL).
ST 99-0424-GIL	12/30/1999	Nexus	An out-of-State retailer maintaining a place of business in this State is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0423-GIL	12/30/1999	Gross Receipts	The proceeds of mandatory service charges separately stated on customers’ bills for the purchase and consumption of food and beverages purchased at retail from a retailer are exempt from tax to the extent that the proceeds of the service charge 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 and beverage function with respect to which the service charge is imposed. See 35 ILCS 120/2-5(15) (1998 State Bar Edition). (This is a GIL).
ST 99-0422-GIL	12/29/1999	Pollution Control Facilities	No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 99-0421-GIL	12/29/1999	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 99-0420-GIL	12/29/1999	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0419-GIL	12/29/1999	Gross Receipts	In computing Retailers' Occupation Tax liability, no deductions shall be taken by a taxpayer from gross receipts on account of the cost of the property sold, the cost of materials used, labor costs, or any other expense whatsoever. See 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 99-0418-GIL	12/29/1999	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0417-GIL	12/29/1999	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0416-GIL	12/29/1999	Gross Receipts	Retailers' Occupation Tax applies to the total selling price of tangible personal property. No deduction from the tax base is allowed for costs of doing business such as labor or service expenses. See 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 99-0415-GIL	12/29/1999	Interstate Commerce	When a sale is conducted in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, the gross receipts are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0414-GIL	12/29/1999	Food	Soft drinks do not include coffee, tea, non-carbonated water, various milk products, drinks containing 50% or more natural fruit or vegetable juice, powdered drink mixes or concentrated and reconstituted fruit juices. See Section 130.310 (b)(5). (This is a GIL).
ST 99-0413-GIL	12/29/1999	Sale at Resale	The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (1998 State Bar Edition). (This is a GIL).
ST 99-0412-GIL	12/29/1999	Miscellaneous	Public Act 91-941 changed the thresholds, beginning October 1, 2000, for quarter monthly payments and payments required to be made through the use of electronic funds transfer regarding liabilities under the Use Tax Act, the Retailers Occupation Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act. See P.A. 91-941. (This is a GIL).
ST 99-0411-GIL	12/28/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0410-GIL	12/28/1999	Pollution Control Facilities	Illinois does have a pollution control facilities exemption. See 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 99-0409-GIL	12/28/1999	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 99-0408-GIL	12/28/1999	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0407-GIL	12/28/1999	Returns	If a taxpayer that is paying on the gross sales (accrual) basis wishes to change to the gross receipts basis, it must notify Department processing personnel in writing of the proposed change. See 86 Ill. Adm. Code 130.401. (This is a GIL).
ST 99-0406-GIL	12/28/1999	Food	Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 99-0405-GIL	12/28/1999	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0404-GIL	12/28/1999	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0403-GIL	12/28/1999	Automobile Renting Tax	Effective July 20, 1999, the Automobile Renting Occupation and Use Tax Act excludes from tax any receipts received by an automobile dealer from a manufacturer or service contract provider for reimbursement of that automobile dealer’s cost in providing loaner automobiles. See Public Act 91-0193. (This is a GIL).
ST 99-0402-GIL	12/27/1999	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 99-0401-GIL	12/27/1999	Hotel Operators' Tax	This letter responds to a questionnaire. (This is a GIL).
ST 99-0400-GIL	12/27/1999	Sale for Resale	Certificates of Resale are valid if they contain the information set forth in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0399-GIL	12/23/1999	Miscellaneous	If a retailer collects more tax from a customer than is due, the overcollection must be returned to that customer. If the overcollection is not returned to the customer, it must be paid to the Department as an overcollection. (This is a GIL.)
ST 99-0398-GIL	12/23/1999	Temporary Storage	The temporary storage exemption is available for tangible personal property which is “acquired outside this State and which subsequent to being brought into this State and stored here temporarily, is used solely outside this State or is physically attached to or incorporated into other tangible personal property that is used solely outside this State, or is altered by converting, fabricating, manufacturing, printing, processing or shaping, and, as altered, is used solely outside this State.” 86 Ill. Adm. Code 150.310(a)(4). (This is a GIL).
ST 99-0397-GIL	12/23/1999	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 Section 130.310. (This is a GIL).
ST 99-0396-GIL	12/23/1999	Service Occupation	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 99-0395-GIL	12/22/1999	Use Tax	Section 10 of the Use Tax Act, 35 ILCS 105/10 provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return (Form RUT- 25, Motor Vehicle Use Tax Return) with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. (This is a GIL).
ST 99-0394-GIL	12/22/1999	Construction Contractors	In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0393-GIL	12/21/1999	Telecommunications Excise Tax	The Telecommunications Excise Tax is imposed on the act or privilege of originating or receiving intrastate or interstate telecommunications by a person in this State at the rate of 7% of the gross charges purchased at retail from a retailer by such person. (This is a GIL.)
ST 99-0392-GIL	12/21/1999	Construction Contractors	Persons who permanently affix tangible personal property to real estate, thereby making improvements to real estate, are considered to be construction contractors. In Illinois, construction contractors are deemed to be the users of the items that they permanently affix to realty and owe Use Tax on the cost price of the tangible personal property that they so affix to real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 99-0391-GIL	12/21/1999	Exempt Organizations	Organizations that make application to the Department and are determined to be exclusively charitable, religious, or educational receive a tax exemption identification number. Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes, and retailers do not incur Retailers' Occupation Tax on such sales. See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0390-GIL	12/21/1999	Medical Appliances	In general, mastectomy products, such as breast prosthetics, may qualify for the lower rate of tax if they are used to substitute for a malfunctioning part of the body. However, breast implants that are merely cosmetic in nature and are not used to substitute for a malfunctioning part of the body do not qualify for the lower rate of tax. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0389-GIL	12/21/1999	Electricity Excise Tax	Under the Electricity Excise Tax Law, in conjunction with federal law, the Department may request information it deems necessary before it will grant a certificate of registration. See 35 ILCS 640/2-10 (1998 State Bar Edition). (This is a GIL).
ST 99-0388-GIL	12/21/1999	Construction Contractors	In Illinois, construction contractors are deemed the end users of tangible personal property that is purchased for incorporation into real property. As end users of such tangible personal property, contractors incur a Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0387-GIL	12/21/1999	Nexus	A “retailer maintaining a place of business in Illinois” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0386-GIL	12/21/1999	Sale of Service	Persons who transfer tangible personal property incident to providing service under separate maintenance agreements or service contracts are acting as servicemen and incur Use Tax liability based upon their cost price of tangible personal property transferred incident to the completion of the maintenance agreements. See 86 Ill. Adm. Code 140.301(b)(3). (This is a GIL).
ST 99-0385-GIL	12/21/1999	Nexus	A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0384-GIL	12/21/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, charitable, or a governmental body receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0383-GIL	12/21/1999	Service Occupation Tax	If maintenance agreements are sold separately from tangible personal property, the sale of the agreement is not a taxable transaction. However, when maintenance services or parts are provided under the maintenance agreement, the company providing the maintenance or repair will be acting as a service provider under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 99-0382-GIL	12/20/1999	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 99-0381-GIL	12/10/1999	Exempt Organizations	In order to qualify as an exclusively charitable organization, the organization must be organized and operated for charitable purposes.
ST 99-0380-GIL	12/03/1999	Leasing	For purposes of the Illinois sales tax laws, lessors of tangible personal property under true leases are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0379-GIL	12/02/1999	Miscellaneous	This letter discusses taxation of sale/leaseback transactions. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 99-0378-GIL	12/02/1999	Service Occupation Tax	Sales of service are governed by the provisions of the Service Occupation Tax Act. (See, 35 ILCS 115/1 et seq.). (This is a GIL.)
ST 99-0377-GIL	12/01/1999	Delivery Charges	Charges for shipping are gross receipts subject to ROT unless they are agreed to separate and apart from the selling price of the items being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 99-0376-GIL	12/01/1999	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. (This is a GIL).
ST 99-0375-GIL	12/01/1999	Gross Receipts	The Retailers’ Occupation Tax Act imposes a tax on persons engaged in this State in the business of selling tangible personal property to purchasers for use or consumption and is measured by the seller’s gross receipts from sales made in the course of such business. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 99-0374-GIL	11/30/1999	Telecommunications Excise Tax	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 99-0373-GIL	11/30/1999	Sale at Retail	Retailers' Occupation Tax and Use Tax only apply to situations where tangible personal property is transferred. 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 99-0372-GIL	11/30/1999	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 99-0371-GIL	11/30/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0370-GIL	11/30/1999	Newsprint Ink	Sales of newspapers and magazines are not subject to Retailers' Occupation Tax. See the enclosed copy of 86 Ill. Adm. Code 130.2105. (This is a GIL).
ST 99-0369-GIL	11/30/1999	Construction Contractors	Construction contractors are deemed end users of tangible personal property purchased for incorporation into real property and incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940. (This is a GIL).
ST 99-0368-GIL	11/30/1999	Telecommunications Excise Tax	Generally, persons who provide subscribers access to the Internet ("ISPs") and who do not, as part of that service, charge customers for the line or other transmission charges which are used to obtain access to the Internet, are not considered to be telecommunications retailers. See 86 Ill. Adm. Code 495.100. (This is a GIL).
ST 99-0367-GIL	11/30/1999	Rolling Stock	Retailers' Occupation Tax does not apply to sales of tangible personal property to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL).
ST 99-0366-GIL	11/30/1999	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. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 99-0365-GIL	11/29/1999	Electricity Excise Tax	“Demand charges” are generally part of the purchaser’s “purchase price” for electricity or electric service that is used for calculating the purchaser’s Electricity Excise Tax liability on purchases from municipal systems. See 35 ILCS 640/2-4(b). (This is a GIL.)
ST 99-0364-GIL	11/29/1999	Nexus	This letter sets out the guidelines concerning different types of retailers in order to determine whether the retailer should collect Illinois Use Tax. See, 86 Ill. Adm. Code 150.201. (This is a GIL.)
ST 99-0363-GIL	11/29/1999	Computer Software	If transactions for the licensing of computer software, including canned software, meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software nor the subsequent software updates will be subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0362-GIL	11/29/1999	Food	Tax shall be imposed at the rate of 1% on food prepared for immediate consumption and transferred incident to a sale of service subject to the Service Occupation Tax Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act or the Nursing Home Care Act. See 35 ILCS 115/3-10 (1998 State Bar Edition). (This is a GIL).
ST 99-0361-GIL	11/29/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0360-GIL	11/29/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive exemption identification numbers (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0359-GIL	11/29/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0358-GIL	11/29/1999	Cigarette Tax	No stamp or imprint may be affixed to, or made upon, any package of cigarettes unless that package complies with all requirements of the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1331 and following, for the placement of labels, warnings, or any other information upon a package of cigarettes that is sold within the United States. See 35 ILCS 130/3. (This is a GIL).
ST 99-0357-GIL	11/29/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0356-GIL	11/24/1999	Miscellaneous	Sales that do not involve the transfer of tangible personal property are not subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 99-0355-GIL	11/24/1999	Sale for Resale	Certificates of Resale must contain the information set forth in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0354-GIL	11/23/1999	Pollution Control Facilities	Equipment whose primary purpose is to confer an economic benefit does not qualify for the pollution control facilities exemption. See the enclosed copy of 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 99-0353-GIL	11/22/1999	Prepaid Sales Tax	Section 2d of the Retailers' Occupation Tax Act requires persons engaged in the business of selling motor fuel at retail to prepay a portion of the Retailers' Occupation Tax to his distributor or supplier. See, 86 Ill. Adm. Code 130.551. (This is a GIL.)
ST 99-0352-GIL	11/18/1999	Nexus	Determinations regarding nexus are very fact specific and cannot be addressed the context of a General Information Letter. See generally the enclosed copy of 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0351-GIL	11/12/1999	Nexus	A “retailer maintaining a place of business in Illinois,” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0350-GIL	11/12/1999	Local Taxes	For the purpose of determining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. 86 Ill Adm. Code 270.115(g)(1). (This is a GIL).
ST 99-0349-GIL	11/10/1999	Hotel Operators' Tax	Counties are given the authority to impose a County Hotel Operators’ Occupation Tax. See 55 ILCS 5/5-1030. (This is a GIL).
ST 99-0348-GIL	11/10/1999	Medical Appliances	A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0347-GIL	11/10/1999	Tax Collection	Section 3 of the Retailers’ Occupation Tax Act, 35 ILCS 120/3, grants the Department discretion to make collection of Retailers' Occupation Tax upon demand of concessionaires at special exhibitions. The statute does not mandate that the Department collect the tax in this way at all events, but provides for discretionary authority to collect the tax when it is determined that there is a significant risk of loss of revenue to the State of Illinois. In cases where the Department does not collect tax at an event, merchants should file their returns as usual. (This is a GIL).
ST 99-0346-GIL	11/10/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0345-GIL	11/09/1999	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 99-0344-GIL	11/09/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, charitable, or a governmental body receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0343-GIL	11/09/1999	Computer Software	Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0342-GIL	11/09/1999	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 99-0341GIL	11/09/1999	Medical Appliances	Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0340-GIL	11/09/1999	Nexus	A “retailer maintaining a place of business in Illinois,” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0339-GIL	11/09/1999	Cigarette Tax	The amount of cigarette tax imposed by the Act shall be separately stated, apart from the price of the goods, by both distributors and retailers, in all advertisements, bills and sales invoices. See 86 Ill. Adm. Code 440.10(h). (This is a GIL).
ST 99-0338-GIL	11/09/1999	Construction Contractors	Construction contractors incur Retailers' Occupation Tax liability when they engage in selling of tangible personal property to purchasers without permanently affixing the tangible personal property to real estate. See 86 Ill. Adm. Code 130.1940. (This is a GIL).
ST 99-0337-GIL	11/08/1999	Trade-Ins	86 Ill. Adm. Code 130.445(d) states that advanced trade-in credits are not transferable. (This is a GIL).
ST 99-0336-GIL	11/08/1999	Food, Drugs and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310(c)(1). (This is a GIL).
ST 99-0335-GIL	11/08/1999	Miscellaneous	This letter describes the requirements for Certificates of Resale and for farm machinery and equipment exemption certificates. See 86 Ill. Adm. Code 130.1405 and 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0334-GIL	11/08/1999	Computer Software	The application of the Retailers’ Occupation Tax to sales of computer software is set forth at 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0333-GIL	11/08/1999	Graphic Arts Machinery and Equipment	P.A.–941 amended the definition of graphic arts machinery and equipment to mean “…printing, including ink jet printing, by one or more of the processes described in Groups 323110 through 323110…Groups 511110 through 511199…and Group 512230…of the North American Industry Classification System…” (This is a GIL).
ST 99-0332-GIL	11/08/1999	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 99-0331-GIL	11/08/1999	Leasing	In Illinois, lessors of tangible personal property under a true lease, except for automobiles leased for terms of one year or less, are considered to be the end users of the property to be leased. As the end users of tangible personal property located in Illinois, lessors incur Use Tax on the lessors' cost price of the property. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL).
ST 99-0330-GIL	11/08/1999	Food	Generally, if vitamins or dietary supplements are intended by the manufacturer for human use and purport on the label to have medicinal qualities, such vitamins or dietary supplements are considered to be drugs and are taxed at the low rate of tax. However, since not many vitamins or dietary supplements are likely to have medicinal claims, the vitamins may be considered to be a food. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0329-GIL	11/08/1999	Vehicle Use Tax	Under the Illinois Vehicle Code, a flat tax rate of $15 is imposed for each motor vehicle acquired in a transaction when a motor vehicle which has once been subjected to the Retailers’ Occupation Tax or Use Tax is transferred in connection with the organization, reorganization, dissolution, or partial liquidation of an incorporated or unincorporated business wherein the beneficial ownership is not changed. See 625 ILCS 5/3-1001. (This is a GIL).
ST 99-0328-GIL	11/08/1999	Miscellaneous	The Telecommunications Municipal Infrastructure Maintenance Fee Act provides that the term “telecommunications” does not include the purchase of telecommunications by a telecommunications service provider for use as a component part of the service provided by him or her to the ultimate retail consumer who originates or terminates the end-to-end communications. See 35 ILCS 635/10(b). (This is a GIL).
ST 99-0327-GIL	11/04/1999	Gross Receipts	Handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 99-0326-GIL	11/03/1999	Newsprint and Ink	Sales of newspapers and magazines are not subject to sales tax in Illinois. See 86 Ill. Adm. Code 130.2105. (This is a GIL.)
ST 99-0325-GIL	10/25/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0324-GIL	10/25/1999	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 99-0323-GIL	10/22/1999	Farm Machinery and Equipment	The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0322-GIL	10/21/1999	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. 35 ILCS 630/3 (1996 State Bar Edition). (This is a GIL).
ST 99-0321-GIL	10/20/1999	Medical Appliances	A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0320-GIL	10/20/1999	Telecommunications Excise Tax	Retailers that purchase telecommunications units from telephone service providers and sell them at retail to their customers present situations similar to hotels who sell telecommunications services. See 86 Ill. Adm. Code 495.100. (This is a GIL).
ST 99-0319-GIL	10/19/1999	Nexus	When an out-of-State mail order company has any representative in Illinois performing a function that aids or enhances the mail order sales, then the company has nexus and is required to register as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.201(i) and 150. 801(c). (This is a GIL).
ST 99-0318-GIL	10/18/1999	Construction Contractors	Under Illinois law, persons who take tangible personal property and permanently affix it to real estate in Illinois 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. (This is a GIL).
ST 99-0317-GIL	10/18/1999	Farm Machinery and Equipment	The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0316-GIL	10/18/1999	Food, Drugs and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0315-GIL	10/18/1999	Manufacturer's Purchase Credit	Purchasers of manufacturing machinery and equipment that qualifies for the manufacturing machinery and equipment exemption earn a credit in an amount equal to a fixed percentage of the tax which would have been incurred under the Use Tax or Service Use Tax. 35 ILCS 105/3-85; 35 ILCS 110/3-70. (This is a GIL).
ST 99-0314-GIL	10/18/1999	Nexus	A “retailer maintaining a place of business in Illinois,” defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0313-GIL	10/18/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0312-GIL	10/18/1999	Hotel Operators' Tax	The only exemptions available to hotel operators are for rentals to permanent residents and to certain diplomatic personnel. Permanent residents are persons who occupy or have the right to occupy such rooms for at least thirty consecutive days. See 86 Ill. Adm. Code 480.101(a)(1). (This is a GIL).
ST 99-0311-GIL	10/13/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0310-GIL	10/13/1999	Liquor Tax	The Liquor Control Act of 1934 ("Act") imposes a tax upon the privilege of engaging in business as a manufacturer or as an importing distributor of alcoholic liquor. See 235 ILCS 5/8-1 et seq. (1996 State Bar Edition). (This is a GIL).
ST 99-0309-GIL	10/12/1999	Sale for Resale	Illinois Retailers’ Occupation and Use Taxes do not apply to the sale of tangible personal property for purposes of resale in any form as tangible personal property. See 86 Ill. Adm. Code 130.120(c). (This is a GIL).
ST 99-0308-GIL	10/12/1999	Food, Drugs and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0307-GIL	10/12/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0306-GIL	10/12/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0305-GIL	10/07/1999	Use Tax	Section 10 of the Use Tax Act, 35 ILCS 105/10 (1996 State Bar Edition), provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return (Form RUT-25, Motor Vehicle Use Tax Return) with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. Illinois will give a credit for taxes properly due and paid in another state. See 86 Ill. Adm. Code 150.310. (This is a GIL).
ST 99-0304-GIL	10/06/1999	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 99-0303-GIL	10/06/1999	Telecommunications Excise Tax	This letter describes the application of Telecommunications Excise Tax and Telecommunications Municipal Infrastructure Maintenance Fees to prepaid phone cards. See 86 Ill. Adm. Code 495.110. (This is a GIL).
ST 99-0301-GIL	09/30/1999	Miscellaneous	This letter discusses taxation of electronic commerce transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0300-GIL	09/30/1999	Manufacturing Machinery and Equipment	Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0299-GIL	09/30/1999	Drugs	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0298-GIL	09/30/1999	Temporary Storage	Temporary storage is not applicable in transactions where there is Retailers’ Occupation Tax liability because the exemption is limited to situations where the only liability that can be involved is Use Tax. See 86 Ill. Adm. Code 150.310. (This is a GIL).
ST 99-0297-GIL	09/29/1999	Food, Drugs and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0296-GIL	09/29/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0295-GIL	09/29/1999	Medical Appliances	A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL).
ST 99-0294-GIL	09/27/1999	Food, Drugs, and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0293-GIL	09/27/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0292-GIL	09/27/1999	Rolling Stock	The Retailers’ Occupation Tax Act provides an exemption for tangible personal property sold to interstate carriers for hire for use as rolling stock moving in interstate commerce or to lessors of such interstate carriers. See 35 ILCS 120/2-5(12) and (13) (1996 State Bar Edition). (This is a GIL).
ST 99-0291-GIL	09/27/1999	Manufacturing Machinery and Equipment	Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0290-GIL	09/24/1999	Food, Drugs, and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0289-GIL	09/24/1999	Food, Drugs, and Medical Appliances	A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0288-GIL	09/24/1999	Food	Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0287-GIL	09/24/1999	Governmental Bodies	Pursuant to 86 Ill. Adm. Code 130.2080 sales of tangible personal property made to governmental bodies (Federal, State, local, or foreign) are not subject to Retailers' Occupation Tax. (This is a GIL).
ST 99-0286-GIL	09/23/1999	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. These numbers establish that the Department recognizes said organizations as exempt from incurring Use Tax when purchasing tangible personal property in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0285-GIL	09/22/1999	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0284-GIL	09/22/1999	Bulk Sales	Special procedures exist for the successor to minimize exposure from the predecessor. These procedures are described in subparts (a)(4) and (b) of 86 Ill. Adm. Code 130.1701. The notice of sale/purchase of business assets must be reported to the Department on Form NUC-542A no later than 10 days after the sale or transfer. (This is a GIL).
ST 99-0283-GIL	09/22/1999	Gross Receipts	Gross receipts are defined as all the consideration actually received by the seller, except traded-in tangible personal property. See 86 Ill. Adm. Code 130.425. (This is a GIL).
ST 99-0282-GIL	09/21/1999	Rolling Stock	The Retailers' Occupation Tax Act provides an exemption for tangible personal property sold to interstate carriers for hire for use as rolling stock moving in interstate commerce or to lessors of such interstate carriers. See 35 ILCS 120/2-5(12) and (13) (1996 State Bar Edition). (This is a GIL).
ST 99-0281-GIL	09/17/1999	Gross Receipts	As a technical proposition, handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL).
ST 99-0280-GIL	09/17/1999	Farm Machinery and Equipment	Even though sales may be at retail, the Illinois Retailers’ Occupation Tax does not apply to sales of machinery and equipment used primarily in production agriculture or in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0279-GIL	09/17/1999	Farm Machinery and Equipment	Consumable supplies do not qualify for exemption on the basis of the Farm Machinery & Equipment exemption. See 86 Ill. Adm. Code 130.305(k). (This is a GIL).
ST 99-0278-GIL	09/17/1999	Manufacturer's Purchase Credit	The Manufacturer's Purchase Credit may be used to satisfy Use Tax or Service Use Tax liability incurred on the purchase of qualifying production related tangible personal property. See 86 Ill. Admin. Code 130.331. (This is a GIL).
ST 99-0277-GIL	09/15/1999	Leasing	The State of Illinois taxes leases differently for Retailers' Occupation Tax and Use Tax purposes than the majority of other states. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0276-GIL	09/13/1999	Leasing	The State of Illinois taxes leases differently for Retailers' Occupation Tax and Use Tax purposes than the majority of other states. See Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0275-GIL	09/09/1999	Computer Software	Illinois law imposes Retailers' Occupation Tax (sales tax) upon persons who sell computer software at retail. Computer software means a set of statements, data, or instructions to be used directly or indirectly in a computer in order to bring about a certain result in any form in which those statements, data, or instructions may be embodied, transmitted, or fixed, by any method now known or hereafter developed, regardless of whether the statements, data, or instructions are capable of being perceived by or communicated to humans, and includes prewritten or canned software that is held for repeated sale or lease, and all associated documentation and materials, if any, whether contained on magnetic tapes, discs, cards, or other devices or media (35 ILCS 120/2-25). (This is a GIL).
ST 99-0274-GIL	09/07/1999	Bingo	The Bingo License and Tax Act (“Act”) (230 ILCS 25/1 et seq.) requires that any bona fide religious, charitable, labor, fraternal, youth athletic, senior citizen, educational, or veterans’ organization organized in Illinois be licensed in order to conduct bingo games. (This is a GIL).
ST 99-0273-GIL	09/07/1999	Sale for Resale	Generally, hotels in Illinois incur a Use Tax liability upon items of tangible personal property, such as toiletries, they purchase for the purpose of supplying to guests, whether these items are automatically placed into the guest rooms or are available at the front desk or lobby area. (See 35 ILCS 105/1 et seq.) (This is a GIL).
ST 99-0272-GIL	09/07/1999	Hotel Operators' Tax	The Hotel Operators' Occupation Tax Act imposes a tax upon persons engaged in the business of renting, leasing or letting rooms in a hotel. See 86 Ill. Adm. Code 480.101. (This is a GIL).
ST 99-0271-GIL	09/03/1999	Use Tax	The Use Tax Act, 35 ILCS 105/1 et seq., imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. (This is a GIL).
ST 99-0270-GIL	09/03/1999	Farm Machinery and Equipment	Gross receipts from proceeds from the sale of semen used for artificial insemination of livestock for direct agricultural production are exempt from taxation. 35 ILCS 120/2-5(26) (1996 State Bar Edition). (This is a GIL).
ST 99-0269-GIL	09/02/1999	Medical Appliances	Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower rate of 1%. See the enclosed copy of 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0268-GIL	09/01/1999	Farm Machinery and Equipment	This letter rescinds part of letter ruling, ST 90-0414, concerning whether ear tags used to identify livestock can qualify for the Farm Machinery & Equipment Exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0267-GIL	09/01/1999	Farm Machinery and Equipment	This letter describes some of the items that qualify for the Farm Machinery & Equipment Exemption . See Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0266-GIL	09/01/1999	Penalties	Penalties can only be abated by the Director on recommendation from the Board of Appeals. (This is a GIL.)
ST 99-0265-GIL	08/31/1999	Public Utility Taxes	The Illinois Department of Revenue does not administer the tax on electricity set forth in the Illinois Municipal Code, 65 ILCS 5/8-11-2. (This is a GIL).
ST 99-0264-GIL	08/30/1999	Delivery Charges	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 99-0263-GIL	08/27/1999	Telecommunications Excise Tax	Sellers that purchase telecommunications units from telephone service providers and sell them at retail to their customers are required to collect the Illinois Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.110. (This is a GIL).
ST 99-0262-GIL	08/26/1999	Construction Contractors	The specific tax liability of modular or manufactured home dealers depends upon whether they act as retailers or construction contractors in their transactions. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 99-0261-GIL	08/26/1999	Leasing	In determining whether agreements with fixed purchase options are conditional sales or true leases, the Department would look to see if the agreement also contained language that guaranteed that the equipment was sold at the end of the term. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 99-0260-GIL	08/25/1999	Local Taxes	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. Please see 86 Ill. Adm. Code 270.115 (This is a GIL).
ST 99-0259-GIL	08/10/1999	Pollution Control Facilities	In general, air and water treatment equipment can qualify for the pollution control exemption so long as their primary purpose is treating or disposing of pollutants in the air or water which if remaining in the air or water without such treatment or disposal, would be offensive to human, plant, or animal life or to property. See the enclosed copy of 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 99-0258-GIL	08/03/1999	Manufacturing Machinery & Equipment	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 are exempt from Retailers' Occupation Tax. Supplies, such as consumables, do not qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 99-0257-GIL	08/03/1999	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident to sales of service. See the enclosed copy of 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 99-0256-GIL	08/02/1999	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 99-0255-GIL	08/02/1999	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 99-0254-GIL	07/30/1999	Sale For Resale	A Certificate of Resale must contain the items of information set out in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0253-GIL	07/30/1999	Nexus	A "retailer maintaining a place of business in Illinois" as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0252-GIL	07/30/1999	Interstate Commerce	A sale is taxable even though a purchaser that receives physical possession of the property in this State, transports or sends the property out of this State for use outside the State or for use in the conduct of interstate commerce. See 86 Ill. Adm. Code 130.605(a)(2). (This is a GIL).
ST 99-0251-GIL	07/30/1999	Vehicle Use Tax	The Vehicle Use Tax is imposed on the privilege of using, in this State, any motor vehicle as defined in Section 1-146 of the Code acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001 (1996 State Bar Edition). (This is a GIL.)
ST 99-0250-GIL	07/29/1999	Food	Food that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption), and prescription and non-prescription medicines, drugs, and various medical appliances are taxed at the State rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0249-GIL	07/29/1999	Hotel Operators' Tax	The Hotel Operators' Occupation Tax Act does not include any provision for the exemption of exclusively religious, charitable, or educational organizations, or for governments or their agencies. See 86 Ill. Adm. Code 480.101. (This is a GIL).
ST 99-0248-GIL	07/29/1999	Oil Field Equipment	Chemicals used in a water injection system do not qualify for the oil field exploration, drilling, and production equipment exemption. See 86 Ill. Adm. Code 130.345. (This is a GIL).
ST 99-0247-GIL	07/29/1999	Local Taxes	If a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL).
ST 99-0246-GIL	07/29/1999	Manufacturing Machinery and Equipment	Asphalt manufacturing equipment does not qualify for the Manufacturing Machinery and Equipment Exemption unless that machinery and equipment is used primarily (over 50 percent of the time) in the manufacturing of asphalt for wholesale or retail sale. Asphalt manufacturing equipment used to manufacture asphalt which the owner primarily will use to satisfy his own obligations under a construction contract does not qualify for the exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0245-GIL	07/29/1999	Sale For Resale	This letter sets forth how a standard drop-shipment transaction is treated in Illinois for Retailers’ Occupation Tax and Use Tax purposes. See 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0244-GIL	07/27/1999	Food, Drugs & Medical Appliances	Generally, if vitamins or dietary supplements are intended by the manufacturer for human use and purport on the label to have medicinal qualities, such vitamins or dietary supplements are considered to be drugs and are taxed at the low rate of tax. However, since not many vitamins or dietary supplements are likely to have medicinal claims, the vitamins may be
ST 99-0243-GIL	07/26/1999	Pollution Control Facilities	Air cleaners may qualify for the pollution control exemption if their primary purpose is to eliminate, prevent or reduce air pollution. See Section 130.335. (This is a GIL.)
ST 99-0242-GIL	07/26/1999	Telecommunications Excise Tax	"Gross charges" means the amount paid for the act or privilege of originating or receiving telecommunications in this State and for all services and equipment provided in connection therewith by a retailer, valued in money whether paid in money or otherwise, including cash, credits, services and property of every kind or nature, and shall be determined without any deduction on account of the cost of such telecommunications, the cost of materials used, labor or service costs or any other expense whatsoever. See 86 Ill. Adm. Code 495.100. (This is a GIL).
ST 99-0241-GIL	07/26/1999	Trade-Ins	86 Ill. Adm. Code 130.445(d) states that advanced trade-in credits are not transferable. (This is a GIL).
ST 99-0240-GIL	07/26/1999	Manufacturing Machinery & Equipment	Gloves do not qualify for the Manufacturing Machinery and Equipment Exemption.. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0239-GIL	07/26/1999	Exempt Organizations	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 of tangible personal property by a governmental unit in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL).
ST 99-0238-GIL	07/26/1999	Leasing	This letter answers a number of questions concerning the taxation of different lease charges and fees. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0237-GIL	07/26/1999	Public Utility Taxes	This letter discusses issues regarding Gas Revenue Tax and Electricity Excise Tax. See 86 Ill. Adm. Code 470.101. (This is a GIL).
ST 99-0236-GIL	07/26/1999	Service Occupation Tax	If tangible personal property is transferred incident to a sale of service, this will result in either Service Occupation Tax liability or Use Tax liability for the serviceman. See 86 Ill. Adm. Code 140.101. (This is a GIL).
ST 99-0235-GIL	07/23/1999	Gross Receipts	Any payment on the purchase price of an item being sold must be reported as gross receipts for Illinois sales tax purposes when the item that is being sold has been identified to a contract under the standards set forth in Section 2-501 of the Uniform Commercial Code, 810 ILCS 5/2-501 (1996 State Bar Edition). See 86 Ill. Adm. Code 130.430. (This is a GIL).
ST 99-0234-GIL	07/23/1999	Returns	In the case of any retailer who ceases to engage in a kind of business which makes him responsible for filing Illinois sales tax returns, such retailer shall file a final return pursuant to 86 Ill. Adm. Code 130.520. (This is a GIL).
ST 99-0233-GIL	07/23/1999	Rolling Stock Exemption	The Retailers’ Occupation Tax does not apply to sales of tangible personal to interstate carriers for hire for use as rolling stock moving in interstate commerce or lessors under leases of one year or longer executed or in effect at the time of purchase to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL).
ST 99-0232-GIL	07/22/1999	Use Tax	The Use Tax is a privilege tax imposed on the privilege of using, in this State, any kind of tangible personal property that is purchased anywhere at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL).
ST 99-0231-GIL	07/22/1999	Returns	The Department may approve taxpayers' use of certain computer-generated returns. (This is a GIL).
ST 99-0230-GIL	07/22/1999	Electricity Excise Tax	The Electricity Excise Tax Law, effective August 1, 1998, imposes a tax upon the privilege of using in this State electricity purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service. See 35 ILCS 640/1 et seq. (This is a GIL).
ST 99-0229-GIL	07/21/1999	Cigarette Tax	Under the Cigarette Tax Act, it is unlawful for any person to engage in the business as a distributor of cigarettes in this State without first having obtained a license or permit from the Department. Except when the applicant is the manufacturer, no distributor’s license shall be issued to an applicant unless he presents the Department with satisfactory proof in writing that he will be able to buy cigarettes directly from at least 3 major cigarette manufacturers. See 86 Ill. Adm. Code 440.50. (This is a GIL).
ST 99-0228-GIL	07/21/1999	Cigarette Tax	Under the Cigarette Tax Act, it is unlawful for any person to engage in the business as a distributor of cigarettes in this State without first having obtained a license or permit from the Department. Except when the applicant is the manufacturer, no distributor’s license shall be issued to an applicant unless he presents the Department with satisfactory proof in writing that he will be able to buy cigarettes directly from at least 3 major cigarette manufacturers. See 86 Ill. Adm. Code 440.50. (This is a GIL).
ST 99-0227-GIL	07/14/1999	Telecommunications Excise Tax	The Telecommunications Excise Tax Act imposes a tax on the act or privilege of originating or receiving intrastate or interstate telecommunications by persons in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers by such persons, 35 ILCS 630/3 and 4. (This is a GIL.)
ST 99-0226-GIL	07/14/1999	Miscellaneous	This letter responds to a questionnaire. (This is a GIL).
ST 99-0225-GIL	07/14/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0224-GIL	07/14/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0223-GIL	07/13/1999	Miscellaneous	This letter responds to an annual survey. See 86 Ill. Adm. Code 130.101. (This is a GIL).
ST 99-0222-GIL	07/13/1999	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 99-0221-GIL	07/13/1999	Use Tax	The Use Tax Act imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 35 ILCS 105/3 (1996 State Bar Edition) (This is a GIL).
ST 99-0220-GIL	07/13/1999	Telecommunications Excise Tax	Retailers that purchase telecommunications units from telephone service providers and sell them at retail to their customers present situations similar to hotels who sell telecommunications services. See Section 495.100 (This is a GIL).
ST 99-0219-GIL	07/13/1999	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 99-0218-GIL	07/13/1999	Delivery Charges	In general, shipping and handling or delivery charges are includable in the gross receipts subject to tax unless the buyer and seller agree upon such charges separately from the selling price of the tangible personal property which is sold. In addition, such charges must be reflective of the costs of shipping and delivery. To the extent that these charges exceed the costs of shipping, they are subject to tax. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 99-0217-GIL	07/13/1999	Construction Contractors	Construction contractors that make improvements to real estate by taking materials off the market and permanently affixing them to real estate owe Use Tax on the cost price of those materials. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 99-0216-GIL	07/13/1999	Manufacturing Machinery and Equipment	This letter discusses application of the manufacturing machinery and equipment exemption to CAD/CAM systems. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0215-GIL	07/13/1999	Exempt Organizations	Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes, and retailers do not incur Retailers' Occupation Tax on such sales. It is important to note that only sales of tangible personal property invoiced to and paid by the organization itself are exempt, and sales to individual members of the organization are taxable. See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0214-GIL	07/13/1999	Gross Receipts	An itemized “into-plane” fee for pumping aviation fuel into aircraft is deductible from gross receipts if it is part of a delivery charge that is agreed to separate and apart from the selling price of the fuel. See 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 99-0213-GIL	07/13/1999	Tax Increment Financing	The Department does not enforce violations of the Tax Increment Allocation Redevelopment Act. (This is a GIL).
ST 99-0212-GIL	07/13/1999	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 99-0211-GIL	07/12/1999	Use Tax	A credit for Use Tax is provided for tangible personal property that is acquired outside this State and caused to be brought into this State by a person who has already paid a tax in another State in respect to the sale, purchase, or use of that property, to the extent of the amount of the tax properly due and paid in the other State See the enclosed copy of 86 Ill. Adm. Code 150.310. (This is a GIL).
ST 99-0210-GIL	07/12/1999	Leasing	This letter discusses the taxation of excess mileage, wear & tear, cancellation, and other administrative fees in leasing situations. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0209-GIL	06/25/1999	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 99-0208-GIL	06/25/1999	Use Tax	An advertisement by a business stating it will pay the customer’s sales tax violates the provisions of Section 7 of the Use Tax Act (35 ILCS 105/7). (This is a GIL).
ST 99-0207-GIL	06/25/1999	Leasing	In Illinois, lessors of tangible personal property under true leases in Illinois are deemed end users of the leased property. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 99-0206-GIL	06/25/1999	Leasing	In Illinois, lessors of tangible personal property are deemed end users of the leased property. See 86 Ill. Adm. Code 130.2010. (This is a GIL).
ST 99-0205-GIL	06/25/1999	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 99-0204-GIL	06/25/1999	Miscellaneous	Before a Private Letter Ruling can be issued, all of the requirements of 2 Ill. Adm. Code 1200.120(b) and (c) must be met. (This is a GIL).
ST 99-0203-GIL	06/22/1999	Leasing	In Illinois, lessors of automobiles under true leases for periods in excess of one year owe Use Tax 'up-front" when they purchase motor vehicles for leasing purposes.
ST 99-0202-GIL	06/22/1999	Miscellaneous	Section 3 of the Retailers' Occupation Tax, 35 ILCS 120/3 (1996 State Bar Edition) states that if a taxpayer’s average monthly tax liability to the Department was $10,000 or more during the preceding 4 complete calendar quarters, the taxpayer is required to make payments to the Department on or before the 7th, 15th, 22nd and last day of the month. (This is a GIL).
ST 99-0201-GIL	06/22/1999	Local Taxes	Retail sales of soft drinks to airlines in CITY are subject to the Home Rule Municipal Soft Drink Retailers’ Occupation Tax, in addition to the State Retailers’ Occupation Tax and Use Tax. See 65 ILCS 5/8-11-6b (1996 State Bar Edition). This is a GIL).
ST 99-0200-GIL	06/22/1999	Claims For Credit	Claims for credit must include the information required under 86 Ill. Adm. Code 130.1501(b). (This is a GIL).
ST 99-0199-GIL	06/22/1999	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. The taxability of maintenance agreements depends upon if the charges for the agreements are included in the selling price of the tangible personal property. If the charges for the agreements are included in the selling price of the tangible personal property, those charges are part of the gross receipts of the retail transaction and are subject to tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0198-GIL	06/22/1999	Sale For Resale	A Certificate of Resale must contain the items of information set out at 86 Ill. Adm. Code 130.1405(b). (This is a GIL).
ST 99-0197-GIL	06/15/1999	Hotel Operators' Tax	The Hotel Operators’ Occupation Tax Act imposes a tax upon persons engaged in the business of renting, leasing or letting rooms in a hotel. 86 Ill. Adm. Code 480.101. (This is a GIL).
ST 99-0196-GIL	06/14/1999	Computer Software	Transactions for the licensing of computer software may not be subject to ROT if the licensing agreements contain all the criteria set out in 86 Ill. Adm. Code 130.1935(a)(1).: (This is a GIL).
ST 99-0195-GIL	06/14/1999	Manufacturing Machinery and Equipment	In general, the Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily 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 99-0194-GIL	06/11/1999	Local Taxes	The Home Rule Municipal Retailers’ Occupation Tax provides authority to home rule municipalities to impose only one Home Rule Municipal Retailers’ Occupation Tax upon all persons engaged in the business of selling tangible personal property at retail in the municipality. The Act makes no provision for creating special service districts within the home rule municipality wherein different tax rates could be imposed.
ST 99-0193-GIL	06/11/1999	Food	The manner in which food is taxed depends upon the nature of the establishment that is selling the food. Retailers who provide seating or facilities for on-premises consumption of food generally incur tax at the high rate on all food sales (including bulk or grocery type items). However, if establishments sell both food that has been prepared for immediate consumption and bulk or grocery type items and also provide facilities for on-premises consumption, the lower rate of tax may be charged on the bulk or grocery type items only if the dining facilities are physically partitioned from the area where food not for immediate consumption is sold and these facilities utilize a separate means of collection of receipts. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0192-GIL	06/10/1999	Food	As a general proposition, the Department considers dietary supplements to fall within the definition of food. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0191-GIL	06/08/1999	Claims For Credit	In order to submit claims for credit, taxpayers must first establish that they have either borne the burden of the tax or that they have unconditionally repaid the amount of tax to the vendees from whom they have collected the tax. See 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST 99-0190-GIL	06/07/1999	Manufacturing Machinery and Equipment	This letter discusses the application of the Manufacturing Machinery and Equipment exemption to paint mixing machines. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0189-GIL	06/02/1999	Telecommunications Excise Tax	Generally, persons who charge subscribers for access to a specific internet web site and who do not, as part of that service, charge for the line or other transmission charges that are used to obtain access to the internet or that specific internet web site are not considered to be telecommunications retailers from these activities. See 86 Ill. Adm. Code 495.100. (This is a GIL).
ST 99-0188-GIL	06/02/1999	Gross Receipts	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL).
ST 99-0187-GIL	05/28/1999	Prepaid Sales Tax	The provisions of Section 2d of the Retailers’ Occupation Tax require “any person engaged in the business of selling motor fuel at retail … and who is not a licensed distributor or supplier … [to] prepay to his or her distributor, supplier, or other reseller of motor fuel a portion of the tax imposed by this Act if the distributor, supplier, or other reseller of motor fuel is registered.
ST 99-0186-GIL	05/27/1999	Cigarette Tax	Cigarettes are taxed in Illinois under the Cigarette Tax Act ("Act") at the rate of 29 mills per cigarette, or 58 cents per 20-count package, through a system utilizing stamps that are affixed to the cigarette package. See, 86 Ill. Adm. Code 440.20 (this is a GIL).
ST 99-0185-GIL	05/26/1999	Agents	Auctioneers selling on behalf of undisclosed principals are responsible for Retailers’ Occupation Tax on the gross receipts from the sales. However, if auctioneers act on behalf of known or disclosed principals, the sale of tangible personal property is taxable to the principals and not the auctioneers if the principals are retailers of the tangible personal property being sold at the auction. See 86 Ill. Adm. Code 130.1915. (This is a GIL).
ST 99-0184-GIL	05/25/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0183-GIL	05/25/1999	Claims for Credit	No credit for Retailers’ Occupation Tax may be allowed or refund made for any amount paid by or collected from any claimant unless it appears that the claimant has borne the burden of the tax erroneously paid or the claimant has unconditionally repaid the amount of the tax to the vendee from whom it was collected. See the enclosed copy of 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST 99-0182-GIL	05/24/1999	Enterprise Zones	The enterprise zone exemption allows retailers located in the municipality or unincorporated area of a county that has established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL).
ST 99-0181-GIL	05/24/1999	Certificate of Registration	This letter discusses Illinois Business Tax numbers. See 35 ILCS 120/2. (This is a GIL).
ST 99-0180-GIL	05/24/1999	Farm Machinery & Equipment	The farm machinery and equipment exemption does not extend to propane or other fuel used to power such machinery or equipment. Therefore, sales of propane are subject to Retailers’ Occupation Tax and Use Tax. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0179-GIL	05/20/1999	Nexus	A "retailer maintaining a place of business in Illinois", as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0178-GIL	05/19/1999	Medical Appliances	A medical appliance that qualifies for the low rate of tax is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See the enclosed copy of 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0177-GIL	05/19/1999	Interstate Commerce	Gross receipts from a sale in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0176-GIL	05/19/1999	Miscellaneous	This letter responds to a taxpayer’s attorney concerning a letter that was allegedly sent by the taxpayer. (This is a GIL).
ST 99-0175-GIL	05/18/1999	Miscellaneous	This letter rescinds a prior letter ruling (87-0479) regarding the taxability of Toluene under the Motor Fuel Tax Law. (This is a GIL).
ST 99-0174-GIL	05/18/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0173-GIL	05/18/1999	Sale for Resale	In order to document the fact that their sales are sales for resale, retailers are obligated to obtain valid Certificates of Resale from their purchasers. See 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0172-GIL	05/17/1999	Tax Increment Financing	There are no provisions in the Tax Increment Allocation Redevelopment Act for municipal investigations and audits to be conducted by the Department of Revenue. See 65 ILCS 5/11-74.4-8a. (This is a GIL).
ST 99-0171-GIL	05/17/1999	Public Utility Taxes	If equipment is leased or rented by a self-assessing purchaser from a delivering supplier and that equipment is necessary for furnishing, supplying, or selling electricity, the rental or lease charges for that equipment is part of the purchase price of electricity subject to Electricity Excise Tax liability. See 35 ILCS 640/2-3(d). (This is a GIL).
ST 99-0170-GIL	05/17/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0169-GIL	05/17/1999	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0168-GIL	05/17/1999	Exempt Organizations	Organizations that make application to the Department and are determined to be exclusively charitable, religious, or educational receive a tax exemption identification number ("E" number). Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes, and retailers do not incur Retailers' Occupation Tax on such sales. See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0167-GIL	05/17/1999	Exempt Organizations	Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL).
ST 99-0166-GIL	05/17/1999	Telecommunications Excise Tax	Generally, persons who provide subscribers access to the internet and who do not, as part of that service, charge subscribers for the line or other transmission charges that are used to obtain access to the internet are not considered to be telecommunications retailers from these activities. (This is a GIL).
ST 99-0165-GIL	05/17/1999	Construction Contractors	Persons who permanently affix tangible personal property to real estate, thereby making improvements to real estate, are considered to be construction contractors. In Illinois, construction contractors are deemed to be the users of the items that they permanently affix to realty and owe Use Tax on the cost price of the tangible personal property that they so affix to real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL).
ST 99-0164-GIL	05/13/1999	Graphic Arts	Photocopiers are specifically excluded from the graphic arts machinery and equipment exemption and their sales are subject to Retailers’ Occupation Tax and Use Tax. See 86 Ill. Adm. Code 130.325(c)(4)(E). (This is a GIL).
ST 99-0163-GIL	05/12/1999	Miscellaneous	This letter discusses taxpayers’ rights regarding Notices of Tax Liability and issues relating to home rule sales taxes. See the Retailers’ Occupation Tax Act, 35 ILCS 120/1 et seq., the Taxpayers’ Bill of Rights Act, 20 ILCS 2520/1 et seq., the Home Rule Municipal Retailers’ Occupation Tax Act, 65 ILCS 5/8-11-1, and the Department’s regulations regarding sales in interstate commerce at 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0162-GIL	05/11/1999	Occasional Sale	When persons sell tangible personal property which they are not otherwise engaged in selling, such transactions may be occasional sales not subject to ROT. See 86 Ill. Adm. Code 130.110. (This is a GIL.)
ST 99-0161-GIL	05/10/1999	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 99-0160-GIL	05/07/1999	Manufacturing Machinery and Equipment	In general, the Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily (over 50%) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0159-GIL	05/07/1999	Manufacturer's Purchase Credit	Purchasers who did not pay the appropriate amount of Use Tax or Service Use Tax liability to their suppliers on qualifying purchases of production related tangible personal property and want to utilize accumulated MPC to satisfy that liability, should report the use of that MPC both on Form ST-17 and on line 16(a) of Form ST-1. See 86 Ill. Adm. Code 130.331. (This is a GIL).
ST 99-0158-GIL	05/06/1999	Sale at Retail	Illinois retail sales are made by persons who either accept purchase orders in the State or maintain an inventory in Illinois and fill Illinois orders from that inventory. The Illinois retailer is then liable for Retailers’ Occupation Tax on gross receipts of sales and must collect the corresponding Use Tax incurred by purchasers. See 86 Ill. Adm. Code 130.605(a). (This is a GIL).
ST 99-0157-GIL	05/06/1999	Nexus	An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL).
ST 99-0156-GIL	05/06/1999	Food	In order for a fruit drink to qualify for the reduced rate of tax, it must contain 50% or more natural fruit juice. See 86 Ill. Adm. Code 130.310. (This is a GIL).
ST 99-0155-GIL	05/06/1999	Nexus	A "retailer maintaining a place of business in Illinois" as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801, enclosed. (This is a GIL).
ST 99-0154-GIL	05/06/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0153-GIL	05/06/1999	Public Utility Taxes	The Electricity Excise Tax Law, 35 ILCS 640/1 et seq., imposes a tax on the privilege of using in Illinois, electricity purchased for use or consumption and not for resale. (This is a GIL).
ST 99-0152-GIL	05/06/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0151-GIL	05/06/1999	Vehicle Use Tax	Article X of the Illinois Vehicle Code imposes a tax on the privilege of using a motor vehicle in this State that is acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001 (1996 State Bar Edition). (This is a GIL).
ST 99-0150-GIL	05/06/1999	Farm Machinery & Equipment	The farm machinery and equipment exemption can include machinery and equipment used primarily in floriculture or horticulture. See 86 Ill. Adm. Code 130.305(b-d). (This is a GIL).
ST 99-0149-GIL	05/06/1999	Miscellaneous	Each of the laws that make up what is commonly called the Illinois sales tax has a section that explains the distribution of the tax. See, for example, 35 ILCS 120/3. (This is a GIL).
ST 99-0148-GIL	05/06/1999	Certificate of Registration	The requirement that Form NUC-1, Illinois Business Registration, be signed by an individual who will be responsible for filing returns and payment of taxes due (Question 14 of Section 2) stems from Section 2a of the Retailers’ Occupation Tax Act. The provision ensures that the Department be able to identify those persons who are responsible for filing returns and paying taxes. By signing Form NUC-1, these persons do not become personal guarantors of a corporation’s tax liability under all circumstances. It is only if those persons are found to have willfully failed to file returns or pay taxes that they can be held personally liable for amounts equal to the tax plus penalties and interest. (This is a GIL).
ST 99-0147-GIL	05/06/1999	Exempt Organizations	Please be advised retail sales made to Medicare and Medicaid are exempt from tax as sales to a government body so long as the exemption is properly documented. See 86 Ill. Adm. Code 130.2080(a). (This is a GIL).
ST 99-0146-GIL	05/06/1999	Medical Appliances	Medicines and medical appliances are not taxed at the normal 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 99-0145-GIL	05/03/1999	Telecommunications Excise Tax	The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a GIL).
ST 99-0144-GIL	03/10/1999	Sale for Resale	Certificates of Resale must contain the information set forth in 86 Ill. Adm. Code 130.1405. (This is a GIL).
ST 99-0143-GIL	04/30/1999	Miscellaneous	This letter reviews sales and use tax information in a mining publication. (This is a GIL).
ST 99-0142-GIL	04/30/1999	Manufacturing Machinery and Equipment	The Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily 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 99-0141-GIL	04/27/1999	Use Tax	It is a Class A misdemeanor for a retailer to advertise that he will assume or absorb the sales tax on a purchase or that the sales tax will not be added to the selling price of the property sold. See 86 Ill. Adm. Code 150.515. (This is a GIL).
ST 99-0140-GIL	04/27/1999	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 99-0139-GIL	04/26/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0138-GIL	04/23/1999	Public Utility Taxes	Electricity Excise Tax is imposed on self-assessing purchasers at the rate of 5.1% of the self-assessing purchaser’s purchase price for all electricity distributed, supplied, furnished, sold, transmitted and delivered to the self-assessing purchaser in a month. See, 35 ILCS 640/2-4. (This is a GIL).
ST 99-0137-GIL	04/23/1999	Public Utility Taxes	Taxpayers under the Electricity Excise Tax that have chosen to become selfassessing purchasers may choose which accounts to self–assess electricity excise tax. See 35 ILCS 640/2-1 et seq. (This is a GIL).
ST 99-0136-GIL	04/23/1999	Pollution Control Facilities	Sales of tangible personal property that qualify as pollution control facilities are exempt from Retailers’ Occupation Tax liability. See the enclosed copy of 86 Ill. Adm. Code 130.335. (This is a GIL).
ST 99-0135-GIL	04/23/1999	Hotel Operators' Tax	"Hotel" is define in the Hotel Operators' Occupation Tax Act as any building or buildings in which the public may, for a consideration, obtain living quarters, sleeping or housekeeping accommodations. See the enclosed copy of 86 Ill. Adm. Code 480.101 et seq. (This is a GIL).
ST 99-0134-GIL	04/23/1999	Use Tax	The Use Tax is a tax imposed on the privilege of using, in this State, any kind of tangible personal property that is purchased anywhere at retail from a retailer. The Use Tax Act provides that in order to prevent actual or likely multistate taxation, the Use Tax does not apply to the use of tangible personal property in this State of tangible personal property that is acquired outside this State and caused to be brought into this State by a person who has already paid a tax in another state in respect to the sale, purchase, or use of that property, to the extent of the amount of the tax properly due and paid in the other state. See 86 Ill. Adm. Code 150.310. (This is a GIL.)
ST 99-0133-GIL	04/23/1999	Sale for Resale	Resale numbers are issued to persons who make no taxable sales in Illinois but who need the wherewithal to provide suppliers with Certificates of Resale when purchasing items which will be resold. See the enclosed copy of 86 Ill. Adm. Code 130.1415. (This is a GIL).
ST 99-0132-GIL	04/23/1999	Nexus	Determinations regarding nexus are very fact specific and cannot be addressed in the context of a General Information Letter. See generally the enclosed copy of 86 Ill. Adm. Code 130.605. (This is a GIL).
ST 99-0131-GIL	04/23/1999	Exempt Organizations	Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable receive a tax exemption identification number (“E” number). See 86 Ill. Adm. Code 130.2005. (This is a GIL).
ST 99-0130-GIL	04/23/1999	Graphic Arts	Photographers are subject to Retailers' Occupation Tax on the photoprocessing component of their total service charge when they sell products of photoprocessing. See 86 Ill. Adm. Code 130.2000. (This is a GIL).
ST 99-0129-GIL	04/23/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0128-GIL	04/22/1999	Automobile Renting Tax	The rental of sport utility vehicles may be subject to tax under the Automobile Renting Occupation and Use Tax Act depending upon how they are registered by the Secretary of State’s Office. See 35 ILCS 155/2. (This is a GIL).
ST 99-0127-GIL	04/22/1999	Miscellaneous	This letter answers questions about Certificates of Resale and exemption identification (“E”) numbers. See 86 Ill. Adm. Code Sections 130.1405 and 130.2007. (This is a GIL).
ST 99-0126-GIL	04/21/1999	Farm Machinery & Equipment	The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL).
ST 99-0125-GIL	04/21/1999	Certificate of Registration	Section 2a of the Retailers’ Occupation Tax Act provides the requirements in order to obtain a Certificate of Registration. See 86 Ill. Adm. Code 130.701. (This is a GIL).
ST 99-0124-GIL	04/07/1999	Exempt Organizations	Federally-chartered credit unions do not incur Use Tax liability when making purchases of tangible personal property for use or consumption. (See 12 U.S.C. 1768.) Retailers making sales of tangible personal property to Federal credit unions are not able to reimburse themselves for the Retailers' Occupation Tax they incur as a result of making such sales by collecting the reimbursing Use Tax. Nonetheless, retailers making sales of tangible personal property to Federal credit unions do incur Retailers' Occupation Tax liability on their gross receipts from such sales." See 86 Ill. Adm. Code 130.2085. (This is a GIL).
ST 99-0123-GIL	04/06/1999	Public Utility Taxes	This letter discusses the definition of “taxpayer” under the Public
ST 99-0122-GIL	04/06/1999	Miscellaneous	Discusses various issues pertaining to corporate purchasing cards, sales tax reporting and audits. See 35 ILCS 105/1 et seq. (This is a GIL.)
ST 99-0121-GIL	03/31/1999	Manufacturing Machinery & Equipment	Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption extends to 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. See 86 Ill. Adm. Code 130.330. (This is a GIL).
ST 99-0120-GIL	03/29/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0119-GIL	03/29/1999	Gross Receipts	When retailers or other persons issue coupons which entitle the bearer to obtain an item of tangible personal property free of any charge whatever and not conditioned upon the purchase of other property, the furnishing of such tangible personal property does not constitute a sale under the Retailers' Occupation Tax and the retailers do not incur Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2125(c). (This is a GIL).
ST 99-0118-GIL	03/26/1999	Public Utility Taxes	The sale of natural gas or gas services in Illinois is subject to taxation under the Gas Revenue Tax Act. See the enclosed copy of 86 Ill. Adm. Code 470.110. (This is a GIL).
ST 99-0117-GIL	03/26/1999	Public Utility Taxes	Sellers of electricity that do not deliver the electricity to their customers, do not qualify as delivering suppliers under the Electricity Excise Tax Law. See 35 ILCS 640/2-3. (This is a GIL).
ST 99-0116-GIL	03/25/1999	Nexus	A "retailer maintaining a place of business in Illinois," as that term is described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL).
ST 99-0115-GIL	03/25/1999	Tobacco Products Tax Act	The Tobacco Products Tax is imposed upon the last distributor who sells tobacco products to a retailer or consumer in Illinois at the rate of 18% of the wholesale price of tobacco products sold or otherwise disposed of in this State.
ST 99-0114-GIL	03/25/1999	Leasing	Persons who purpose to “lease” the use of property, but in fact sell such tangible personal property to nominal "lessees," are considered to be making conditional sales subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0113-GIL	03/25/1999	Interstate Commerce	The Retailers' Occupation Tax does not apply to the gross receipts from a sale in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made. See 86 Ill. Adm. Code 130.605(b). (This is a GIL).
ST 99-0112-GIL	03/25/1999	Interstate Commerce	The Department’s regulation, 86 Ill. Adm. Code 130.605, Sales of Property Originating in Illinois, states that where tangible personal property is located in this State at the time of its sale (or is subsequently produced in Illinois), and then delivered in Illinois to the purchaser, the sale is taxable if the sale is at retail. (This is a GIL).
ST 99-0111-GIL	03/25/1999	Pollution Control Facilities	Balers and other equipment used in recycling operations do not qualify as exempt pursuant to 86 Ill. Adm. Code 130.335. Such equipment does not reduce, prevent, or eliminate air or water pollution or treat or dispose of potentially harmful pollutants. (This is a GIL.)
ST 99-0110-GIL	03/25/1999	Leasing	Under Illinois law, lessors under true lease agreements are deemed the users of items they purchase for rental purposes. Accordingly, lessors incur a Use Tax liability on such purchases. See 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 99-0109-GIL	03/23/1999	Sale at Retail	The Retailers’ Occupation Tax Act, 35 ILCS 120/1 et seq., imposes a tax upon persons engaged in the business of selling tangible personal property at retail in Illinois. See 35 ILCS 120/2. (This is a GIL).
ST 99-0108-GIL	03/23/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois regardless of the form in which the software is transferred. Therefore, sales of canned computer software over the Internet are taxable sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0107-GIL	03/23/1999	Hotel Operators' Tax	The Hotel Operators' Occupation Tax Act does not include any provision for the exemption of exclusively charitable, religious, or educational organizations, or for governments or their agencies. See 86 Ill. Adm. Code 480.101(b)(3). (This is a GIL.)
ST 99-0106-GIL	03/23/1999	Miscellaneous	In order to respond to a specific request concerning the application of a tax statute or regulation to a particular fact pattern, all of the information required for a Private Letter Ruling must be included in such a request. See 86 Ill. Adm. Code 1200.110(b)(1-8). (This is a GIL).
ST 99-0105-GIL	03/22/1999	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, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0104-GIL	03/19/1999	Manufacturer's Purchase Credit	Tangible personal property, such as paper and ink, that is purchased for transfer to customers does not qualify as production related tangible personal property that is "used or consumed" in a production related process. See 86 Ill. Adm. Code 130.331. (This is a GIL).
ST 99-0103-GIL	03/19/1999	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 99-0102-GIL	03/19/1999	Construction Contractors	When a retailer permanently affixes or incorporates a mobile home into real estate, that retailer is acting as a construction contractor for purposes of the Illinois sales tax laws. See 86 Ill. Adm. Code 130.1940. (This is a GIL).
ST 99-0101-GIL	03/19/1999	Telecommunications Excise Tax	The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code Part 495. (This is a GIL).
ST 99-0100-GIL	03/19/1999	Rolling Stock Exemption	The rolling stock exemption is available to interstate carriers for hire for use as rolling stock moving in interstate commerce or lessors under leases of one year or longer executed or in effect at the time of purchase to interstate carriers for hire for use as rolling stock moving in interstate commerce. The rolling stock must be moving in interstate commerce on a regular and frequent basis. Please see Section 130.340 (This is a GIL).
ST 99-0099-GIL	03/19/1999	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed to be the end users of the items they lease. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0098-GIL	03/19/1999	Books and Records	Generally taxpayers are required to maintain business books and records during any period for which the Illinois Department of Revenue is authorized to issue a Notice of Tax Liability (NTL). See 86 Ill. Adm. Code 130.815. (This is a GIL).
ST 99-0097-GIL	03/19/1999	Service Occupation Tax	The transfer of tangible personal property in conjunction with the provision of advertising services is generally subject to liability under the Service Occupation Tax Act. (This is a GIL.)
ST 99-0096-GIL	03/19/1999	Leasing	Lease agreements containing purchase options that are equal to the fair market value of the tangible personal property at the end of the lease term are considered true leases, and the lessors incur Use Tax liability on their cost price of tangible personal property purchased for rental purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL.)
ST 99-0095-GIL	03/18/1999	Sale at Retail	The use in Illinois of tangible personal property purchased at retail from a retailer is subject to liability under the Illinois Retailers' Occupation and Use Tax Acts. (This is a GIL.)
ST 99-0094-GIL	03/15/1999	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 99-0093-GIL	03/10/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0092-GIL	03/08/1999	Construction Contractors	Construction contractors incur Retailers' Occupation Tax liability when they engage in selling tangible personal property to purchasers without permanently affixing the tangible personal property to real estate. See 86 Ill. Adm. Code 130.1940(b)(1). (This is a GIL).
ST 99-0091-GIL	02/26/1999	Sale at Retail	The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling tangible personal property at retail in Illinois. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 99-0090-GIL	02/25/1999	Sale of Service	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 99-0089-GIL	02/25/1999	Cigarette Tax	Manufacturers of cigarettes may seek a distributor's license and collect Illinois cigarette tax from retailers in this State if they meet the qualifications contained in the statute. See 35 ILCS 130/4b. (This is a GIL).
ST 99-0088-GIL	02/25/1999	Public Utility Taxes	The Electricity Excise Tax Law, 35 ILCS 640/1 et seq., imposes a tax on the privilege of using in Illinois, electricity purchased for use or consumption and not for resale. (This is a GIL).
ST 99-0087-GIL	02/24/1999	Motor Fuel Tax	The County Motor Fuel Tax Law, 55 ILCS 5/5-1035.1 (1996 State Bar Edition), provides that the county board of the counties of DuPage, Kane and McHenry may impose a tax upon all persons engaged in the county in the business of selling motor fuel at retail for the operation of motor vehicles upon public highways or for the operation of recreational watercraft. (This is a GIL).
ST 99-0086-GIL	02/24/1999	Sale for Resale	Raw materials that will be incorporated into manufactured goods and resold may be purchased free of tax as purchases made for the purpose of resale. See 86 Ill. Adm. Code 130.1405(b). (This is a GIL).
ST 99-0085-GIL	02/24/1999	Motor Vehicles	Section 3 of the Retailers’ Occupation Tax Act, 35 ILCS 120/3, states, in part, that with respect to motor vehicles, watercraft, aircraft, and trailers that are required to be registered with an agency of this State, every retailer selling this kind of tangible personal property shall file, with the Department, upon a form to be prescribed and supplied by the Department, a separate return for each such item of tangible personal property which the retailer sells. (This is a GIL).
ST 99-0084-GIL	02/24/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois regardless of the form in which the software is transferred. Sales of canned computer software that are transferred or downloaded over the Internet are taxable sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL).
ST 99-0083-GIL	02/22/1999	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
ST 99-0082-GIL	02/19/1999	C.O.A.D.	In Illinois, if a machine qualifies as a coin-operated amusement device or a redemption machine, its operation does not violate the Criminal Code so long as it is licensed and operated in compliance with the Coin-Operated Amusement Device and Redemption Machine Tax Act. See 35 ILCS 510. (This is a GIL).
ST 99-0081-GIL	02/19/1999	Local Taxes	A tax is imposed, in Illinois, upon persons engaged in the business of selling at retail tangible personal property. See 35 ILCS 120/2 and 2-10. (This is a GIL).
ST 99-0080-GIL	02/19/1999	Local Taxes	For the purpose of determining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. 86 Ill Adm. Code 270.115(g)(1). (This is a GIL).
ST 99-0079-GIL	02/19/1999	Leasing	Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. The only exception is the rentor of automobiles under lease terms of one year or less. See 86 Ill. Adm. Code 130.220. (This is a GIL).
ST 99-0078-GIL	02/17/1999	Claims for Credit	No claim for credit can be approved unless the claimant shows that he has borne the burden of the tax or has unconditionally refunded the amount of the tax to the customers from whom it was collected. See 86 Ill. Adm. Code 130.1501. (This is a GIL).
ST 99-0077-GIL	02/17/1999	Interstate Commerce	A boat dealer selling a boat to an out-of-state customer picking up the boat in Illinois is subject to tax. See 86 Ill. Adm. Code 130.605 (This is a GIL.)
ST 99-0076-GIL	02/16/1999	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 35 ILCS 630/3. (This is a GIL.)
ST 99-0075-GIL	02/08/1999	Manufacturer's Purchase Credit	This letter answers a number of questions regarding reporting Manufacturers' Purchase Credit accepted by retailers. See, 86 Ill. Admin. Code 130.331. (This is a GIL.)
ST 99-0074-GIL	02/08/1999	Hotel Operators' Tax	Hotel operators incur Hotel Operators’ Occupation Tax on room rentals to entities that would otherwise be exempt from sales tax (i.e. entities such as exclusively charitable, religious, or educational groups). See 86 Ill. Adm. Code 480.101(b)(3). (This is a GIL).
ST 99-0073-GIL	02/08/1999	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 99-0072-GIL	02/08/1999	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 99-0071-GIL	02/08/1999	Motor Vehicles	Section 10 of the Use Tax Act, 35 ILCS 105/10 (1996 State Bar Edition), provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. (This is a GIL.)
ST 99-0070-GIL	02/08/1999	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service. (This is a GIL.)
ST 99-0069-GIL	02/08/1999	Sale at Retail	The 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. 35 ILCS 120/2 (1996 State Bar Edition). (This is a GIL.)
ST 99-0068-GIL	02/05/1999	Food	Where establishments sell both food which has been prepared for immediate consumption and grocery-type items and also provide facilities for onpremises consumption, the lower rate of tax can be charged on the grocerytype items if the selling areas are separated and served by separate means of collection. See 86 Ill. Adm. Code 130.310(b)(3). (This is a GIL.)
ST 99-0067-GIL	02/05/1999	Nexus	This letter discusses the issue of nexus. See Quill v. North Dakota, 112 S.Ct. 1902 (1992). (This is a GIL.)
ST 99-0066-GIL	02/05/1999	Food	Vitamins and dietary supplements generally qualify for the reduced rate of tax applicable to food. See 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST 99-0065-GIL	02/05/1999	Nexus	A "retailer maintaining a place of business in Illinois" as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801 (This is a GIL.)
ST 99-0064-GIL	02/05/1999	Newsprint & Ink	Gross receipts from sales of magazines are not subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2105. (This is a GIL).
ST 99-0063-GIL	02/05/1999	Charitable Games	The entire net proceeds from the sale of pull tabs must be exclusively devoted to the lawful purposes of the licensee (230 ILCS 20/4(1)). See 86 Ill. Adm. Code 432.160. (This is a GIL.)
ST 99-0062-GIL	02/05/1999	Tax Rate	A retailer that knowingly makes overcollections of tax from customers is guilty of a Class 4 felony. 35 ILCS 105/14 (1996 State Bar Edition). (This is a GIL.)
ST 99-0061-GIL	02/08/1999	Construction Contractors	In Illinois, construction contractors (including subcontractors) are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL).
ST 99-0060-GIL	02/05/1999	Tax Rate	A retailer that knowingly makes overcollections of tax from customers is guilty of a Class 4 felony. 35 ILCS 105/14 (1996 State Bar Edition). (This is a GIL.)
ST 99-0059-GIL	02/05/1999	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 99-0058-GIL	02/04/1999	Construction Contractors	Persons who permanently affix tangible personal property to real estate, thereby making improvements to real estate, are considered to be construction contractors. In Illinois, construction contractors are deemed to be the users of the items that they permanently affix to realty and owe Use Tax on the cost price of the tangible personal property that they so affix to real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL.)
ST 99-0057-GIL	02/04/1999	Miscellaneous	This letter directs the taxpayer to general Department publications regarding State and local sales taxes. See 35 ILCS 120/1 et seq. (This is a GIL.)
ST 99-0056-GIL	02/04/1999	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 GIL.)
ST 99-0055-GIL	02/04/1999	Sale for Resale	In order to document the fact that sales are sales for resale, taxpayers should obtain valid Certificates of Resale from their purchasers. See 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 99-0054-GIL	02/03/1999	Manufacturing Machinery and Equipment	The Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily in manufacturing or assembling tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST 99-0053-GIL	02/03/1999	Assessments	A taxpayer can apply to the Department's Administrative Hearings Office for a "rehearing" on an assessment in the context of being granted an original review in the case of failure to protest the Notice of Tax Liability timely. See 86 Ill. Adm. Code 200.175. (This is a GIL.)
ST 99-0052-GIL	02/03/1999	Motor Fuel Tax	"Blending" is defined as the mixing together by any process whatsoever, of any one or more products with other products, and regardless of the original character of the products so blended, provided the resultant product so obtained is suitable or practicable for use as a motor fuel, except such blending as may occur in the process known as refining by the original refiner of crude petroleum, and except, also, the blending of products known as lubricating oil in the production of lubricating oils and greases. Taxpayers must file Schedule M with Form RMFT-5 to report blended products. See 86 Ill. Adm. Code 500.100 (This is a GIL.)
ST 99-0051-GIL	02/02/1999	Sale for Resale	Nonreusable tangible personal property sold to food and beverage vendors, including persons engaged in the business of operating restaurants, cafeterias or drive-ins, whereby such sale is a sale for resale when it is transferred to customers in the ordinary course of business as part of the sale of food or beverages and are used to deliver, package, or consume food or beverages, regardless of where consumption of the food or beverage occurs. See 86 Ill. Adm. Code 130.2070. (This is a GIL.)
ST 99-0050-GIL	02/02/1999	Gross Receipts	If the retailer separately states the mandatory gratuity charge, and if the gratuity is distributed to the servers or other employees who participated directly in serving, preparing, hosting, or cleaning up the food or beverage function with respect to which the mandatory gratuity is charged, the gratuity is not subject to Retailers' Occupation Tax. See 35 ILCS 120/2- 5(15). (This is a GIL.)
ST 99-0049-GIL	02/02/1999	C.O.A.D.	Coin-in-the-slot-operated amusement devices and redemption machines are legal in Illinois when conducted in accordance with the provisions of the Coin-Operated Amusement Device and Redemption Machine Tax Act and all regulations promulgated thereunder. See, 35 ILCS 510/1 et seq. and corresponding regulations at 86 Ill. Adm. Code 460.101 et seq. (This is a GIL.)
St 99-0048-GIL	02/02/1999	Exempt Organizations	Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable, receive an exemption identification "E" number. See 86 Ill. Adm. Code 130.2007. (This is a GIL.)
ST 99-0047-GIL	02/02/1999	Manufacturer's Purchase Credit	The Manufacturer's Purchase Credit (MPC) may be used to satisfy Use Tax or Service Use Tax liability incurred on the purchase of qualifying "production related" tangible personal property. See 86 Ill. Adm. Code 130.331(b). (This is a GIL.)
ST 99-0046-GIL	02/02/1999	Food, Drugs & Medical Appliances	Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL).
ST 99-0045-GIL	01/04/1999	Gross Receipts	If a retailer accepts a coupon for which he will receive full or partial reimbursement, the value of that reimbursement must be included in the retailer's "gross receipts" that are subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST 99-0044-GIL	01/29/1999	Exempt Organizations	Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes. See 86 Ill. Adm. Code 130.2005 and 130.2007. (This is a GIL.)
ST 99-0043-GIL	01/29/1999	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. When construction contractors manufacture tangible personal property they will affix to real estate, the tax base includes all costs of materials used in manufacturing the finished item as well as nails, screws or other items of tangible personal property that he buys and incorporates into real estate for his customer in the course of making the installation of the finished item. See 86 Ill. Adm. Code 130.2075(a)(2). (This is a GIL.)
ST 99-0042-GIL	01/27/1999	Telecommunications Excise Tax	For purposes of the Telecommunications Excise Tax, “gross charges” includes the amount paid for the act or privilege of originating or receiving telecommunications in Illinois, and for all services and equipment provided in connection therewith by a retailer.
ST 99-0041-GIL	01/15/1999	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 130.310(c). (This is a GIL.)
ST 99-0040-GIL	01/13/1999	Pollution Control Facilities	Equipment which is used for the primary purpose of reducing or eliminating pollution can qualify for the Pollution Control Facilities exemption. Equipment which is used primarily to provide an economic benefit cannot quality for the exemption. See 86 Ill. Adm. Code 130.335. (This is a GIL.)
ST 99-0039-GIL	01/12/1999	Automobile Renting Tax	Auto dealers incur Automobile Renting Occupation Tax liability when those dealers provide vehicles to repair customers for short-term periods and are compensated by manufacturers. See 35 ILCS 155/1 et seq. (This is a GIL.)
ST 99-0038-GIL	01/12/1999	Tobacco Products Tax Act	The Tobacco Products Tax Act is imposed upon the last distributor who sells tobacco products to a retailer or consumer in Illinois at the rate of 18% of the wholesale price of tobacco products sold or otherwise disposed of in Illinois. See 35 ILCS 143/10-1 et seq. (This is a GIL.)
ST 99-0037-GIL	01/12/1999	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 99-0036-GIL	01/12/1999	Construction Contractors	In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 99-0035-GIL	01/11/1999	Nexus	An out-of-State seller falling under the definition of a "retailer maintaining a place of business in Illinois", as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL.)
ST 99-0034-GIL	01/11/1999	Manufacturing Machinery & Equipment	The manufacturing machinery and equipment exemption extends to repair and replacement parts as long as the parts are incorporated into machinery and equipment that is exempt under the regulation. See 86 Ill. Adm. Code 130.330(c). (This is a GIL.)
ST 99-0033-GIL	01/11/1999	Computer Software	Generally, sales of "canned" computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST 99-0032-GIL	01/11/1999	Manufacturing Machinery & Equipment	The Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily 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 99-0031-GIL	01/11/1999	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 99-0030-GIL	01/10/1999	Manufacturing Machinery & Equipment	In general, the Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily 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 99-0029-GIL	01/08/1999	Use Tax	The Use Tax Act, 35 ILCS 105/1 et seq. (1996 State Bar Edition), imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. (This is a GIL.)
ST 99-0028-GIL	01/08/1999	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 is a GIL.)
ST 99-0027-GIL	01/08/1999	Sale at Retail	The Illinois Retailers' Occupation Tax applies to purchases of tangible personal property at retail and is presently imposed at the rate of 6.25%, plus local taxes, if any. The tax is applicable to boats and other vessels purchased at retail. See 86 Ill. Adm. Code 130.101. (This is a GIL.)
ST 99-0026-GIL	01/08/1999	Telecommunications Excise Tax	Generally, persons who provide subscribers access to the Internet and who do not, as part of that service, charge customers for the line or other transmission charges which are used to obtain access to the Internet, are not considered to be telecommunications retailers from these activities. See, 86 Ill. Adm. Code 495.110. (This is a GIL.)
ST 99-0025-GIL	01/08/1999	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 99-0024-GIL	01/07/1999	Delivery Charges	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 99-0023-GIL	01/07/1999	Exempt Organizations	Exempt organizations that have E numbers are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See, 86 Ill. Admin. Code 130.2005. (This is a GIL.)
ST 99-0022-GIL	01/07/1999	Gross Receipts	If retailers offer discounted prices for items and do not receive any reimbursement or rebate for those discounts, the lower amounts received for those items would be the retailers' gross receipts for those sales. See 86 Ill. Adm. Code 130.401. (This is a GIL.)
ST 99-0021-GIL	01/07/1999	Delivery Charges	In general, shipping and handling or delivery charges are includable in the gross receipts subject to tax unless the buyer and seller agree upon such charges separately from the selling price of the tangible personal property which is sold. In addition, such charges must be reflective of the costs of shipping and delivery. To the extent that these charges exceed the costs of shipping, they are subject to tax. See 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 99-0020-GIL	01/07/1999	Construction Contractors	Construction contractors incur Retailers' Occupation Tax liability when they engage in selling any kind of tangible personal property to purchasers without permanently affixing the tangible personal property to real estate. See 86 Ill. Adm. Code 130.1940(b)(1). (This is a GIL.)
ST 99-0019-GIL	01/07/1999	Delivery Charges	Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL.)
ST 99-0018-GIL	01/06/1999	Vehicle Use Tax	Under the provisions of the Motor Vehicle Code (625 ILCS 5/3-1001), there are no exemptions available for transfers between a divorced husband and wife. (This is a GIL.)
ST 99-0017-GIL	01/06/1999	Exempt Organizations	Exempt organizations that have E numbers are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See, 86 Ill. Admin. Code 130.2005. (This is a GIL.)
ST 99-0016-GIL	01/06/1999	Sale For Resale	Sales of tangible personal property for the purpose of resale are not taxable so long as sellers obtain Certificates of Resale in accordance with 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 99-0015-GIL	01/05/1999	Sale For Resale	Nonreusable tangible personal property sold to food and beverage vendors, including persons engaged in the business of operating restaurants, cafeterias or drive-ins, is a sale for resale when it is transferred to customers in the ordinary course of business as part of the sale of food or beverages and is used to deliver, package, or consume food or beverages, regardless of where consumption of the food or beverage occurs. See 86 Ill. Adm. Code 130.2070. (This is a GIL.)
ST 99-0014-GIL	01/04/1999	Sale For Resale	Sales for resale should be documented by Certificates of Resale that contain the information set out in 86 Ill. Adm. Code 130.1405. (This is a GIL.)
ST 99-0013-GIL	01/04/1999	Certificate of Registration	Section 2a of the Retailers' Occupation Tax Act requires that Illinois retailers obtain certificates of registration from the Department. See 35 ILCS 120/2a (This is a GIL.)
ST 99-0012-GIL	01/04/1999	Sale for Resale	This letter sets out a standard drop-shipment situation. See, 86 Ill. Admin. Code 130.1405. (This is a GIL.)
ST 99-0011-GIL	01/04/1999	Miscellaneous	This letter briefly describes the Manufacturing Machinery & Equipment exemption and the Pollution Control Exemption. See, 86 Ill. Admin. Code 130.330 and 130.335. (This is a GIL.)
ST 99-0010-GIL	01/04/1999	Sale at Retail	This letter discusses the sales tax treatment of purchases and sales of motor vehicles in which funds are channeled through a Qualified Escrow Account. See 86 Ill. Adm. Code 130.1915. (This is a GIL.)
ST 99-0009-GIL	01/04/1999	Construction Contractors	Persons who and permanently affix tangible personal property to real estate act as construction contractors. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 99-0008-GIL	01/04/1999	Temporary Storage	The temporary storage exemption provides that no use tax applies to the temporary storage, in this State, of tangible personal property which is acquired outside this State and which, subsequent to being brought into this State and stored here temporarily, is used solely outside this State. See 86 Ill. Adm. Code 150.310. (This is a GIL.)
ST 99-0007-GIL	01/04/1999	Public Utility Taxes	Taxpayers under the Public Utility Revenue Act are liable for the public utility revenue tax with respect to gross receipts from the furnishing of electricity for use or consumption and not for resale. This is true even though the customer is a church or a charity. 86 Ill. Adm. Code Section 510.170. (This is a GIL.)
ST 99-0006-GIL	01/04/1999	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 99-0005-GIL	01/04/1999	Construction Contractors	Persons who permanently incorporate tangible personal property into real property are considered construction contractors for Retailers' Occupation Tax purposes. See 86 Ill. Adm. Code 130.1940. (This is a GIL.)
ST 99-0004-GIL	01/04/1999	Delivery Charges	The taxability of freight or delivery charges is set out at 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST 99-0003-GIL	01/04/1999	Pollution Control Facilities	Purchasers of pollution control facilities must comply with the certification requirements in the Department's regulations otherwise the sale of such pollution control facilities is subject to tax. See 86 Ill. Adm. Code 130.335. (This is a GIL.)
ST 99-0002-GIL	01/04/1999	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 130.310(c). (This is a GIL.)
ST 99-0001-GIL	01/04/1999	Telecommunications Excise Tax	Charges for "900 number" calls are specifically subject to Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.100(h). (This is a GIL.)

Private Letter Rulings

Ruling	Date	Subject	Synopsis
ST 99-0037-PLR	11/29/1999	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 PLR).
ST 99-0036-PLR	11/02/1999	Computer Software	Sales of “canned” computer software are taxable retail sales in Illinois whether purchased off the shelf or downloaded over the Internet. See 86 Ill. Adm. Code 130.1935. (This is a PLR).
ST 99-0035-PLR	10/25/1999	Service Occupation	This letter describes the Service Occupation Tax liabilities of a printer of personalized checks. See 86 Ill. Adm. Code 140.101. (This is a PLR).
ST 99-0034-PLR	10/20/1999	Gross Receipts	Gross receipts subject to Retailers' Occupation Tax liability are defined as all the consideration actually received by the seller, except traded-in tangible personal property. See the enclosed copy of 86 Ill. Adm. Code 130.401. (This is a PLR).
ST 99-0033-PLR	09/29/1999	Graphic Arts	This letter discusses whether a piece of equipment qualifies for
ST 99-0032-PLR	09/07/1999	Leasing	The leasing of tangible personal property by persons who are primarily engaged the business of selling such property at retail is within the interim use exemption if that property is carried as inventory on the books of the retailer or is otherwise available for sale during the lease period. See 86 Ill. Adm. Code 150.306. (This is a PLR).
ST 99-0031-PLR	09/03/1999	Nexus	A “retailer maintaining a place of business in Illinois” as that term is defined in 86 Ill. Adm. Code 150.201(i), enclosed, is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801 (This is a PLR).
ST 99-0030-PLR	09/02/1999	Enterprise Zones	The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR).
ST 99-0029-PLR	08/30/1999	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 PLR).
ST 99-0028-PLR	07/26/1999	Enterprise Zones	The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a PLR).
ST 99-0027-PLR	07/26/1999	Miscellaneous	Private Letter Rulings must contain all information listed at 2 Ill. Reg. 1200.110. (This is a PLR.)
ST 99-0026-PLR	07/26/1999	Pollution Control Facilities	This letter advises whether items used at a landfill qualify for the pollution control facilities exemption. See 86 Ill. Adm. Code 130.335. (This is a PLR.)
ST 99-0025-PLR	07/13/1999	Service Occupation Tax	Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred incident to sales of service in Illinois. See 86 Ill. Adm. Code 140.101. (This is a PLR).
ST 99-0024-PLR	06/08/1999	Manufacturer's Purchase Credit	Retailers of motor fuel or gasohol who have accepted MPC from their customers may not transfer that MPC to their suppliers or distributors to satisfy prepaid Retailers’ Occupation Tax liabilities. See generally 86 Ill. Adm. Code 130.331. (This is a PLR).
ST 99-0023-PLR	05/24/1999	Pollution Control Facilities	This letter advises whether some of the equipment used at a landfill qualifies for the pollution control facilities exemption. See 86 Ill. Adm. Code 130.335. (This is a PLR.)
ST 99-0022-PLR	05/11/1999	Gross Receipts	Service charges for seaming or beveling glass are costs of doing business that are not excludable from gross receipts subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.410. (This is a PLR.)
ST 99-0021-PLR	05/06/1999	Electricity Excise Tax	The Electricity Excise Tax is imposed upon the privilege of using electricity in Illinois which is purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service.
ST 99-0020-PLR	05/06/1999	Manufacturer's Purchase Credit	The Manufacturer's Purchase Credit (MPC) may be used to satisfy Use Tax or Service Use Tax liability incurred on the purchase of qualifying "production related" tangible personal property. See 86 Ill. Adm. Code 130.331(b). (This is a PLR).
ST 99-0019-PLR	05/04/1999	Local Taxes	Local taxes are triggered when "selling" occurs in a jurisdiction imposing a tax. See 86 Ill. Adm. Code 270.115. (This is a PLR).
ST 99-0018-PRL	05/04/1999	Occasional Sale	When persons sell tangible personal property which they are not otherwise engaged in selling, such transactions may be occasional sales not subject to ROT. See 86 Ill. Adm. Code 130.110. (This is a PLR.)
ST 99-0017-PLR	04/23/1999	Computer Software	Licenses that meet the requirements set forth at 86 Ill. Adm. Code 130.1935(a)(1)(A-E) constitute nontaxable licenses of software. (This is a PLR).
ST 99-0016-PLR	04/23/1999	Sale at Retail	"Sale at retail" means any transfer of the ownership of or title to tangible personal property to a purchaser, for the purpose of use or consumption, and not for the purpose of resale in any form as tangible personal property to the extent not first subject to a use for which it was purchased, for a valuable consideration. See 86 Ill. Adm. Code 130.201. (This is a PLR).
ST 99-0015-PLR	04/23/1999	Exempt Organizations	Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable receive an exemption identification number ("E" number). See 86 Ill. Adm. Code 130.2007. (This is a PLR).
ST 99-0014-PLR	03/29/1999	Newspring & Ink	The publication listed in the letter qualifies as a magazine and is excluded from Retailers' Occupation Tax and Service Occupation Tax liability. See the enclosed copy of 86 Ill. Adm. Code 130.2105 and 140.125. (This is a PLR).
ST 99-0013-PLR	03/24/1999	Graphic Arts	The Graphic Arts Machinery and Equipment Exemption extends to machinery and equipment that is used primarily (more than 50% of the time) in graphic arts production. See 86 Ill. Adm. Code 130.325. (This is a PLR.)
ST 99-0012-PLR	03/19/1999	Manufacturer's Purchase Credit	Manufacturers and graphic arts producers use accumulated MPC by providing the retailer or serviceman with a ST-16-C Manufacturer's Purchase Credit Certificate or by incorporating such certification into the purchase order. See 86 Ill. Adm. Code 130.331(f). (This is a PLR).
ST 99-0011-PLR	03/10/1999	Gas Revenue Tax	This letter rules on questions regarding application of the Gas Revenue Tax to transactions in interstate commerce and transactions involving customers who acquired contractual rights for the direct purchase of gas or gas services originating from an out-of-state supplier or source on or before March 1, 1995. See 35 ILCS 615/1 et seq. (This is a PLR).
ST 99-0010-PLR	03/10/1999	Sale at Retail	Governmental units, including State agencies, 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 of tangible personal property by a governmental unit in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a PLR).
ST 99-0009-PLR	03/09/1999	Enterprise Zones	The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone by remodeling, rehabilitation or new construction. See 86 Ill. Adm. Code 130.1951. (This is a PLR).
ST 99-0008-PLR	02/24/1999	Computer Software	Transactions for the licensing of computer software may not be subject to ROT if the transaction agreements contain all the criteria set out in 86 Ill. Adm. code 130.1935(a)(1). (This is a PLR.)
ST 99-0007-PLR	02/24/1999	Sale of Service	If maintenance agreements or warranties are sold separately from tangible personal property, the sales of those agreements are not taxable transactions. However, when maintenance services or parts are provided under those maintenance agreements, the repair or service providers will be acting as service providers under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.301. (This is a PLR.)
ST 99-0006-PLR	01/20/1999	Computer Software	Transactions for the licensing of computer software may not be subject to ROT if the transaction agreements contain all the criteria set out in 86 Ill. Adm. code 130.1935(a)(1). (This is a PLR.)
ST 99-0005-PLR	01/14/1999	Sale of Service	If maintenance agreements or warranties are sold separately from tangible personal property, the sales of those agreements are not taxable transactions. However, when maintenance services or parts are provided under those maintenance agreements, the repair or service providers will be acting as service providers under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.301. (This is a PLR.)
ST 99-0004-PLR	01/12/1999	Computer Software	This letter discusses the requirements to qualify as a nontaxable license of computer software. See, 86 Ill. Admin. Code 130.1935. (This is a PLR.)
ST 99-0003-PLR	01/11/1999	Rolling Stock	Form RUT-7, Rolling Stock Certification, may be used by servicemen to document the rolling stock exemption when they transfer qualifying tangible personal property incident to sales of service to interstate carriers for hire. See 86 Ill. Adm. Code 140.201(e)(4) and 86 Ill. Adm. Code 130.340. (This is a PLR.)
ST 99-0002-PLR	01/08/1999	Computer Software	Licenses of computer software are not taxable if they meet all of the criteria listed in Section 130.1935(a)(1). See 86 Ill. Adm. Code 130.1935. (This is a PLR.)
ST 99-0001-PLR	01/06/1999	Occasional Sale	Isolated or occasional sales of tangible personal property at retail by persons who do not hold themselves out as being engaged (or who do not habitually engage) in selling such tangible personal property at retail do not constitute engaging in a business of selling such tangible personal property at retail. See 86 Ill. Adm. Code 130.110. (This is a PLR.)

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