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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.

“General merchandise” is tangible personal property that, when sold at retail, is taxed at a higher rate than certain types of food, drugs, and medical appliances. It does not include real property.

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

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