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“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.
Sales and use taxes apply to most leased or rented tangible personal property.
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. For detailed information, see the instructions for Form ST-1, Sales and Use Tax and E911 Surcharge Return, for the applicable reporting period, available on our Sales and Use Tax Forms index page.
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You may access additional information by searching the entire Illinois Department of Revenue website.
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