Agencies
Services
2022 Sales Tax Letter Rulings
| Ruling | Date | Subject | Synopsis |
| ST 22-0001-GIL |
01/04/2022 |
Service Occupation Tax |
This letter discusses the Service Occupation Tax. 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST-22-0002-GIL |
02/15/2022 | 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 130.2010. (This is a GIL.) |
| ST-22-0003-GIL |
02/08/2022 |
Motor Fuel |
No person shall act as a distributor of motor fuel, supplier of special fuel, or receiver of fuel in Illinois without first applying for and obtaining a license from the Department. See 86 Ill. Adm. Code 500.201. (This is a GIL.) |
| ST-22-0004-GIL |
02/23/2022 |
Liquor Tax |
Under Article VII-A of the Liquor Control Act of 1934 (235 ILCS 5/1-1 et seq.), every warehouseman in Illinois who stores any alcoholic liquors for compensation shall make application to the Department for a Certificate of Registration for each location where alcoholic liquors are stored. See 86 Ill. Adm. Code 420.120. (This is a GIL). |
| ST-22-0005-GIL |
03/15/2022 |
Leasing |
Lessors of automobiles for initial lease periods in excess of one year are subject to Use Tax liability on the purchase price of those automobiles even if the lease agreements provide for renewal options of less than those initial lease periods. See 86 Ill.Adm. Code 130.2010. (This is a GIL.) |
| ST-22-0006-GIL | 04/12/2022 | Retailers' Occupation Tax | Effective January 1, 2020, qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Department of Commerce and Economic Opportunity, whether that tangible personal property is purchased by the owner, operator, or tenant of the data center or by a contractor or subcontractor of the owner, operator, or tenant is exempt from sales and use taxes. 35 ILCS 130/2-5(44); 86 Ill. Adm. Code 130.1957 (This is a GIL.) |
| ST-22-0007-GIL | 05/17/2022 | 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 et seq. (This is a GIL.) |
| ST-22-0008-GIL | 05/17/2022 | Miscellaneous | This letter concerns returns of merchandise. See 86 Ill. Adm. Code 130.401(b). (This is a GIL.) |
| ST-22-0009-GIL | 06/07/2022 | Interstate Commerce | Sales of motor vehicles made into interstate commerce, per the provisions of 86 Ill. Adm. Code 130.605(b)(1), are not subject to Retailers' Occupation Tax. (86 Ill. Adm. Code 130.605) (This is a GIL.) |
| ST-22-0010-GIL | 06/07/2022 | Service Occupation Tax | The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State based on the tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST-22-0011-GIL | 06/07/2022 | Sale at Retail | If an item is an item substantially similar to stock or standard items, even though custom-made, it would be subject to Retailers' Occupation Tax, as is the case with tailor-made clothing, draperies, etc. See 35 ILCS 120/1. (This is a GIL..) |
| ST-22-0012-GIL | 06/21/2022 | Public Utility Tax | This letter discusses the Electricity Excise Tax Law, the Public Utilities Revenue Law, and the Energy Assistance charge. See 35 ILCS 620, 35 ILCS 640, and 305 ILCS 20. (This is a GIL.) |
| ST-22-0013-GIL | 06/21/2022 | Food | This letter discusses the State tax rate applicable to sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST-22-0014-GIL | 04/14/2022 | Miscellaneous | This letter responds to an annual survey. (This is a GIL.) |
| ST-22-0015-GIL | 07/06/2022 | 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. In Illinois, Use Tax is 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. Admin 130.101 and 86 Ill. Adm. Code 150.101. (This is a GIL.) |
| ST-22-0016-GIL | 07/06/2022 | Motor Fuel | The Department has no authority to compel the seller to file a claim for credit. Whether the seller files a claim for credit with the Department is a private business matter. See Ill. Adm. Code 130.1501. (This is a GIL.) |
| ST-22-0017-GIL | 07/06/2022 | Vehicle Use Tax | This letter discusses whether a transfer of a motor vehicle qualifies as a business reorganization for purposes of the Vehicle Use Tax. 625 ILCS 5/3-1001. (This is a GIL.) |
| ST-22-0018-GIL | 07/13/2022 | Automobile Rental Tax | Persons who are engaged in the business of renting automobiles in Illinois under rental terms of one year or less are subject to the Automobile Renting Occupation and Use Tax set for at 35 ILCS 155/1 et seq. See 86 Ill. Admin. Code 180.101. (This is a GIL.) |
| ST-22-0019-GIL | 07/19/2022 | Construction Contractor | A contractor who plants trees pursuant to a conservation plan agreement is subject to Use Tax. See Ill. Adm. Code 130.1940. (This is a GIL.) |
| ST-22-0020-GIL | 08/31/2022 | Miscellaneous | This letter responds to an annual survey. (This is a GIL.) |
| ST-22-0021-GIL | 10/04/2022 | Motor Vehicles | This letter responds to a survey concerning taxation of vehicles. (This is a GIL. ) |
| ST-22-0022-GIL | 10/13/2022 | Sale At Resale | Persons engaged in the business of selling meals to purchasers for use or consumption incur Retailers' Occupation Tax liability on their receipts from those sales. See 86 Ill. Adm. Code 130.2145. (This is a GIL.) |
| ST-22-0023-GIL | 10/19/2022 | Computer Software | This letter discusses the taxability of computer software licenses and maintenance agreements. See 86 Ill. Adm. Code 130.1935 and 86 Ill. Adm. Code 140.301. (This is a GIL. ) |
| ST-22-0024-GIL | 11/04/2022 | Use Tax | When a serviceman purchases at retail from an unregistered, out-of-State supplier tangible personal property that the serviceman does not transfer to service customers, but instead uses or consumes in Illinois, the serviceman must self-assess Use Tax on that tangible personal property and remit Use Tax to the Department, with credit allowed for any tax properly due and paid to another state. See 86 Ill. Adm. Code 140.126(c) and 86 Ill. Adm. 150.310(a)(3). (This is a GIL.) |
| ST 22-0025-GIL | 12/07/2022 | Rolling Stock | If an air carrier carries persons or property for hire in interstate commerce under the authority of its Part 135 certificate (Part 135 of the Federal Aviation Regulations; 14 C.F.R. Part 135), that operation may be included in the trips or miles that qualify the aircraft to meet the definition of “use as rolling stock moving in interstate commerce.” See 35 ILCS 120/2-51; 86 Ill. Adm. Code 130.340. (This is a GIL.) |
| ST-22-0026-GIL | 11/02/2022 | Sale For Resale | This letter discusses the Department’s regulation for sales of containers, wrapping and packing materials and related products as set forth at 86 Ill. Adm. Code 130.2070. (This is a GIL.) |
| ST-22-0027-GIL | 12/02/2022 | Computer Software | A provider of software as a service is acting as a serviceman. If the provider does not transfer any tangible personal property to the customer, then the transaction generally would not be subject to Retailers’ Occupation Tax, Use Tax, Service Occupation Tax, or Service Use Tax. If the provider transfers to the customer an API, applet, desktop agent, or a remote access agent to enable the customer to access the provider’s network and services, it appears the subscriber is receiving computer software that is subject to tax. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST 22-0028-GIL | 12/07/2022 | Motor Fuel Tax | A licensed distributor or supplier may make tax free sales of motor fuel, with respect to which he is otherwise required to collect the tax, when a sale of dyed diesel fuel is made by the licensed distributor or supplier to the end user of the fuel who is not a licensed distributor or a licensed supplier for non-highway purposes and the fuel is delivered or dispensed in the manner provided in the statute. See 35 ILCS 505/6(7); 35 ILCS 505/6a(5); and 86 Ill. Adm. Code 500.210(g). (This is a GIL.) |
| ST-22-0029-GIL | 11/22/2022 | Service Occupation Tax | Under the Service Occupation Tax Act, businesses providing services (i.e. servicemen) are taxed on tangible personal property transferred as an incident to sales of service. Tangible personal property that is transferred to the service customer may result in either Service Occupation Tax liability or Use Tax liability for the serviceman depending upon the serviceman’s activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
Private Letter Rulings
| Ruling | Date | Subject | Synopsis |
| ST-22-0001-PLR | 01/06/2022 | Service Occupation Tax | The Service Occupation Tax is a tax imposed upon servicemen engaged in the business of making sales of service in this State, based on the tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code Part 140. (This is a PLR.) |
| ST-22-0002-PLR |
02/01/2022 |
Automobile Renting Tax |
When a car rental facilitation company operates a peer-to-peer motor vehicle sharing platform it is acting as a marketplace facilitator under marketplace facilitator provisions of the Automobile Renting Occupation and Use Tax Act, as incorporated from the Retailers' Occupation Tax Act. 35 ILCS 155/3, incorporating 35 ICLS 120/2(c) as fully as if set forth therein. (This is PLR.)When a car rental facilitation company operates a peer-to-peer motor vehicle sharing platform it is acting as a marketplace facilitator under marketplace facilitator provisions of the Automobile Renting Occupation and Use Tax Act, as incorporated from the Retailers' Occupation Tax Act. 35 ILCS 155/3, incorporating 35 ICLS 120/2(c) as fully as if set forth therein. (This is a PLR.) |
| ST-22-0003-PLR | 04/12/2022 | Enterprise Zones | Under the Enterprise Zone building materials exemption, a deduction from Illinois Retailers' Occupation Tax liability exists for gross receipts from retail sales of materials that will be incorporated, by remodeling, rehabilitation, or new construction, into real estate located in an enterprise zone established by a county or municipality under the Illinois Enterprise Zone Act. (See 35 ILCS 120/5k and 86 Ill. Adm. Code 130.1951(e).) (This is a PLR.) |
| ST-22-0004-PLR | 04/12/2022 | Retailers' Occupation Tax | If a transaction does not involve the transfer of any tangible personal property to the customer, then it generally would not be subject to Retailers' Occupation Tax, Use Tax, Service Occupation Tax, or Service Use Tax. 86 Ill. Adm. Code 130.101; 86 Ill. Adm. Code 140.101. (This is a PLR.) |
| ST-22-0005-PLR | 05/03/2022 | Local Taxes | The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer's business. 86 Ill. Adm. Code 270.115. (This is a PLR.) |
| ST-22-0006-PLR | 06/07/2022 | Service Occupation Tax | This letter discusses "de minimis" servicemen who incur Service Occupation Tax on their cost price as well as the computation of the cost ratio. See 86 Ill. Adm. Code 140.105; 86 Ill. Adm. Code 140.106. (This is a PLR.) |