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What is tangible personal property?

“Tangible personal property” exists physically (i.e., you can touch it) and can be used or consumed. Clothing, vehicles, jewelry, and business equipment are examples of tangible personal property. Retailers’ occupation and use taxes apply when tangible personal property is sold at retail to be used or consumed in Illinois. Paper assets that represent value, such as stock certificates, bonds, and franchises, are considered intangible property not subject to “sales” tax.

Effective January 1, 2025, sales and use taxes apply to most leased or rented tangible personal property. Informational bulletins FY 2025-15, Illinois Sales and Use Tax Applies to Leased or Rented Tangible Personal Property and FY 2025-17, Reporting Requirements for Certain Titled or Registered Property Subject to Tax on Lease or Rental Receipts  describe these changes.

Real estate or “real property” is not tangible personal property for purposes of the retailers’ occupation tax (ROT). See 86 Ill. Adm. Code 130.120.

If you have additional inquiries, you may submit them on the Questions, Comments, or Requests form.