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2023 Sales Tax Letter Rulings

Ruling Date Subject Synopsis
ST 23-0001-GIL
 02/01/2023 Leasing
 Information regarding sales tax liabilities involved in a lease transaction may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) 
ST-23-0002-GIL
 02/07/2023 Computer Software This letter discusses computer software and digital information. See 86 Ill. Adm. Code 130.1935 and 86 Ill. Adm. Code 130.2105. (This is a GIL). 
ST-23-0003-GIL
 02/08/2023 Hotel Operators' Occupation Tax Gross receipts from the rentals of rooms to "permanent residents" are not subject to Hotel Operators' Occupation Tax liability. A "permanent resident" is any person who has occupied or has the right to occupy any room or rooms in a hotel for at least 30 consecutive days. 35 ILCS 145/2(5), 3(f); 86 Ill. Adm. Code 480.101, 105. (This is a GIL.)
ST-23-0004-GIL
 02/14/2023 Not-for-Profit Organizations
 This letter discusses purchases and sales by not-for-profit organizations. See 35 ILCS 105/3-5(4), 86 Ill. Adm. Code 130.2005, and 86 Ill. Adm. Code 130.2007.(This is a GIL). 
​ST-23-0005-GIL
 ​03/21/2023
 ​Motor Fuel
 This letter discusses the requirements of refund claims for taxes paid on fuel which was used for nontaxable purposes. 86 Ill. Adm. Code 500.235. (This is a GIL.)
​ST-23-0006-GIL 03/30/2023​ Miscellaneous ​This letter responds to an annual survey. (This is a GIL.)
ST-23-0007-GIL 04/20/2023 Computer Software This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-23-0008-GIL 05/02/2023 Automobile Renting Tax This letter discusses the renting of automobiles by dealers in Illinois under rental terms of one year or less that are subject to the Automobile Renting Occupation and Use Tax. 35 ILCS 155/1 et seq; 86 Ill. Adm. Code 180.101. (This is a GIL).
ST-23-0009-GIL 05/04/2023 Statute of Limitations Except in the case of a fraudulent return or the failure to file a return, the statute of limitations under the Retailers’ Occupation Tax Act for the Department to issue a notice of tax liability is 3 to 3.5 years from when the taxable gross receipts were received. Under the Use Tax Act, the statute of limitations runs from when the tax is due and is modified to 6 to 6.5 years in the case of non-filers. 86 Ill. Adm. Code 130.815. (This is a GIL).
ST-23-0010-GIL 05/05/2023 Miscellaneous ​This letter responds to an annual survey. (This is a GIL.)
ST-23-0011-GIL 05/08/2023 Computer Software This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-23-0012-GIL 05/09/2023 Food This letter discusses the State tax rate applicable to the sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.) 
ST-23-0013-GIL 05/10/2023 Interstate Commerce / Sale for resale This letter discusses sales in interstate commerce that originate in Illinois to locations outside Illinois never to return. Appropriate documentation must be obtained in support of sales in interstate commerce and for resale. See 86 Ill. Adm. Code 130.605 and 130.1405. (This is a GIL). 
ST-23-0014-GIL 05/23/2023 Nexus Generally, an out-of-State retailer with an ongoing physical presence in Illinois is a "retailer maintaining a place of business in this State" under Section 2 of the Use Tax Act, 35 ILCS 105/2. 86 Ill. Adm. Code 150.201 (This is a GIL). 
ST-23-0015-GIL 05/26/2023 Automobile Renting Tax The sale of a motor vehicle that is used for automobile renting, as defined in the Automobile Renting Occupation and Use Tax Act, 35 ILCS 155/1 et seq., is exempt from tax under the Retailers’ Occupation Tax Act and Use Tax Act. 35ILCS 120/2-5(5); 35 ILCS 105/3-5(5). (This is a GIL). 
ST-23-0016-GIL 05/30/2023 Interstate Commerce This letter discusses the component of interstate commerce involving shipment/delivery on sales by remote retailers to purchasers in Illinois. (86 Ill. Adm. Code 130.605; 86 Ill. Adm. Code 131) (This is a GIL) 
ST-23-0017-GIL 05/31/2023 Miscellaneous ​This letter responds to an annual survey. (This is a GIL.)
ST-23-0018-GIL 06/02/2023 Computer Software This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-23-0019-GIL 07/05/2023 Construction Contractors This letter discusses the tax liabilities for a construction contractor that is a combination contractor and retailer. When a construction contractor permanently affixes tangible personal property to real property, the contractor is deemed the end user of that tangible personal property. As the end user, the contractor incurs Use Tax on the cost price of that tangible personal property. However, if the construction contractor provided its supplier with a certificate of resale and then sells at retail tangible personal property over-the counter, the contractor must pay Retailers’ Occupation Tax and collect Use Tax from its customer. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) 
ST-23-0020-GIL 07/05/2023 Automobile Renting Occupation and Use Tax This letter discusses the renting of automobiles by dealers in Illinois under rental terms of one year or less that are subject to the Automobile Renting Occupation and Use Tax. 35 ILCS 155/1 et seq; 86 Ill. Adm. Code 180.101. (This is a GIL).
ST-23-0021-GIL 07/05/2023 Miscellaneous Beginning January 1, 2024, the exemption for materials, parts, equipment, components, and furnishings incorporated into or upon an aircraft as part of the modification, refurbishment, completion, replacement, repair, or maintenance of the aircraft is expanded to include aircraft engines and power plants and no longer requires persons claiming the exemption to (i) hold an Air Agency Certificate and be empowered to operate an approved repair station by the Federal Aviation Administration, (ii) have a Class IV Rating, and (iii) conduct operations in accordance with Part 145 of the Federal Aviation Regulations. See 35 ILCS 120/2-5(40). (This is a GIL.)
ST-23-0022-GIL 07/12/2023 Computer Software This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-23-0023-GIL 07/21/2023 Gross Receipts Costs of doing business are an element of the retailer's gross receipts subject to tax even if separately stated on the bill to the customer. See 86 Ill. Adm. Code 130.410. (This is a GIL.)
ST-23-0024-GIL 07/27/2023 Signs/Construction Contractors When signs are permanently affixed to real estate, the tax consequences attributable to construction contractors apply. (86 Ill. Adm. Code 130.2155; 86 Ill. Adm. Code 130.1940) (This is a GIL.)
ST-23-0025-GIL 08/01/2023 Enterprise Zones This letter discusses the enterprise zone building materials exemption. 35 ILCS 120/5k; 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST-23-0026-GIL 08/01/2023 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-23-0027-GIL 08/16/2023 Miscellaneous This letter responds to an annual survey. (This is a GIL.)
ST-23-0028-GIL 08/30/2023 Hotel Operators’ Occupation Tax In computing the Hotel Operators’ Occupation Tax, the amounts collected by the hotel operator under each of the Hotel Operators’ Occupation Tax, the Municipal Hotel Operators’ Occupation Tax, and the Illinois Sports Facilities Tax must be included in the taxable gross rental receipts for each of the other taxes. See 35 ILCS 145/3, 65 ILCS 5/8-3-13, 70 ILCS 210/13(c), and 70 ILCS 3205/19. (This is a GIL.)
ST-23-0029-GIL 09/25/2023 Construction Contractors Where it is impractical, at the time of purchase, for a contractor to determine how the materials purchased will be used (i.e., either incorporated into real estate or sold over the counter), the contractor may provide its supplier with a certification that the contractor is purchasing all materials for resale purposes and will assume responsibility for reporting and paying the proper tax upon the item’s disposition. Sales of materials to construction contractors for incorporation into real estate owned by exclusively charitable, religious, or educational institutions or organizations, or for incorporation into real estate owned by governmental bodies, may be purchased using the exempt organization’s E-number. See 86 Ill. Adm. Code 130.2075(b). (This is a GIL.)
ST-23-0030-GIL 10/10/23 Electricity Excise Tax A person that operates an EV charging station selling electricity at retail to consumers is the last supplier engaged in delivering electricity is the delivering supplier for purposes of the Law. Such persons must register with the Department and collect and remit the Electricity Excise Tax to the Department based on kilowatt-hours used or consumed by customers. 35 ILCS 640. (This is a GIL.)
ST-23-0031-GIL 10/10/2023 Use Tax When a company ships tangible personal property that is purchased outside the state to Illinois customers for their use, the company owes Use Tax on the company's cost price of the tangible personal property. However, if tax was properly due and paid in another state on the tangible personal property shipped into Illinois, then the company may credit the amount of that tax paid on its return in determining its Illinois Use Tax liability. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL.)
ST-23-0032-GIL 11/01/2023 Motor Vehicles This letter responds to a survey concerning taxation of vehicles. (This is a GIL.)
ST-23-0033-GIL 11/02/2023 Computer Software This letter discusses computer software. 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-23-0034-GIL 11/07/2023 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-23-0035-GIL 11/16/2023 Local Taxes The occupation of selling is comprised of the composite of many activities extending and establishing where “the taxable business of selling is being carried on” requires a fact-specific inquiry into the composite of selling activities that comprise the retailer’s business. 86 Ill. Adm. Code 270.115. (This is a GIL)
ST-23-0036-GIL 11/16/2023 Motor Fuel Tax This letter discusses the Motor Fuel Tax Law. See 86 Ill. Adm. Code 500. (This is a GIL).
ST-23-0037-GIL 11/17/2023 Retailers' Occupation Tax This letter provides information regarding Retailers’ Occupation Tax collection obligation of Marketplace Facilitators. See 86 Ill. Adm. Code 131. (This is a GIL.)

Private Letter Rulings

Ruling Date Subject Synopsis
ST-23-0001-PLR
 02/07/2023 Occasional Sale A transaction for sale of business assets made entirely through a private broker qualified for the occasional sale exemption. See 86 Ill. Adm. Code 130.110.(This is a PLR.) 
ST-23-0002-PLR 04/04/2023 Exempt Organization Universities may make tax-free sales of meals to residential students who use “dining dollars” purchased as part of a mandatory meal plan at university operated dining locations open to the general public, but only if there is an auditable and verifiable record of food sales to each of those students. See 86Ill. Adm. Code 130.2005. (This is a PLR.) 
ST-23-0003-PLR 06/02/2023 Manufacturing Machinery & Equipment A cold storage process required to maintain a manufactured product at a specific temperature, can qualify for the exemption. See 86 Ill. Adm. Code 130.330. (This is a PLR.)
ST-23-0004-PLR 07/19/2023 Sale of Service A de minimis serviceman who is not registered as a retailer under Section 2a of the Retailers’ Occupation Tax and is not required to be registered under Section 2a of the Retailers’ Occupation Tax owes Use Tax on the cost price of tangible personal property transferred incident to sales of service. See 86 Ill. Adm. Code 140.108. (This is a PLR.)
ST-23-0005-PLR 08/02/2023 Penalties This letter discusses application of the $100 Uniform Penalty and Interest Act penalty for failure to file zero liability transaction reporting returns (e.g., ST-556 and ST-556-LSE). See 35 ILCS 735/3-3(a-15) and 35 ILCS 120/3. (This is a PLR.)