Skip to main content
Sign Up For Updates

2024 Sales Tax Letter Rulings

Ruling Date Subject Synopsis
ST 24-0001-GIL
 01/04/2024  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. Only those who are licensed in Illinois as a distributor of motor fuel or a supplier of special fuel may sell dyed diesel fuel for non-highway purposes. 86 Ill. Adm. Code 500.210(g). (This is a GIL.)
ST-24-0002-GIL
 01/29/2024 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. For purposes of jurisdictional questions for the County Motor Fuel Tax Law and the Municipal Motor Fuel Tax Law, the provisions of 86 Ill. Adm. Code 270.115, which are not incompatible, shall apply. See 86 Ill. Adm. Code 695.115; 86 Ill. Adm. Code 696.115. (This is a GIL)
ST-24-0003-GIL
 01/31/2024 Machinery and Equipment This letter discusses the manufacturing machinery and equipment exemption. 35 ILCS 120/2-5(14); 35 ILCS 120/2-45; 86 Ill. Adm. Code 130.330. (This is a GIL.)
ST-24-0004-GIL
 02/01/2024 Telecommunications Excise Tax  This letter discusses dark fiber. See 35 ILCS 630/2. (This is a GIL.)
​ST-24-0005-GIL
 ​01/29/2024 Computer Software If a transaction for the licensing of computer software meets all of the criteria provided in 86 Ill. Adm. Code 130.1935(a)(1), neither the transfer of the software nor the subsequent software updates will be subject to retailers’ occupation tax. An end user license agreement which does not contain the signature of both the licensor and licensee would not meet the requirements of Section 130.1935(a)(1). See 86 Ill. Adm. Code 130.1935. (This is a GIL)
​ST-24-0006-GIL 02/07/2024 Computer Software ​This letter discusses computer software. 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-24-0007-GIL 02/16/2024 Enterprise Zone This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)This letter discusses the enterprise zone building materials exemption. 35 ILCS 120/5k; 86 Ill. Adm. Code 130.1951. (This is a GIL.)
ST-24-0008-GIL 02/29/2024 Exempt Organizations This letter discusses sales to exempt organizations. See 86 Ill. Adm. Code 130.2007; 86 Ill. Adm. Code 130.2081. (This is a GIL.)
ST-24-0009-GIL 03/07/2024 Motor Fuel Tax This letter discusses claims for refunds for fuel usage for refrigeration units on trucks that share a common fuel supply. 35 ILCS 505/13; 86 Ill. Adm. Code 500.523(j)(6). (This is a GIL.)
ST-24-0010-GIL 03/12/2024 Retailers’ Occupation Tax This letter discusses discounts and coupons. See 86 Ill. Adm. Code 130.2125. (This is a GIL.)
ST-24-0011-GIL 03/12/2024 Gross Receipts “Gross receipts” means all the consideration actually received by the seller, except traded-in tangible personal property where the item that is traded-in is of like kind and character as that which is being sold. 86 Ill. Adm. Code 401 & 425. (This is a GIL.)
ST-24-0012-GIL 03/22/2024 Service Use Tax Out-of-State servicemen making sales of service to Illinois purchasers from locations outside Illinois may be required to register with the Department and collect and remit Service Use Tax on those sales. See 86 Ill. Adm. Code 160.115; 35 ILCS 110/2. (This is a GIL.)
ST-24-0013-GIL 03/22/2024 Medical Devices A medical appliance is an item that directly substitutes for a malfunctioning part of the human body. Products that qualify as medical appliances are taxed at a lower State tax rate of 1% plus any applicable local taxes. 35 ILCS 120/2-10; 35 ILCS 120/14; 86 Ill. Adm. Code 130.311. (This is a GIL). 
ST-24-0014-GIL 03/27/2024 Remote Retailers If a remote retailer is no longer required to remit State and local retailers’ occupation taxes, it must redetermine, on a rolling quarterly basis, whether it is obligated to once more begin remitting State and local retailers’ occupation taxes. For each quarter ending on the last day of March, June, September, and December, the remote retailer must examine its sales for the immediately preceding 12-month period to determine whether it met either of the tax remittance thresholds in 86 Ill. Adm. Code 131.115(a)(1). If it met either of those thresholds during that 12-month lookback period, it must remit State and local retailers’ occupation taxes for the following 12-month period. At the end of that 12-month period, it must examine its sales to determine if it must continue to remit tax. See 86 Ill. Adm. Code 131.115(e). (This is a GIL.)
ST-24-0015-GIL 03/27/2024 Food, Drugs and Medical Appliances This letter discusses the rules regarding the taxability of drugs and medical appliances. See 86 Ill. Adm. Code 130.311. (This is a GIL.)
ST-24-0016-GIL 3/27/2024 Food This letter discusses the State tax rate applicable to the sales of food. 35 ILCS 120/2- 10; 86 Ill. Adm. Code 130.310. (This is a GIL.)
ST-24-0017-GIL 04/04/2024 Computer Software If transactions for the licensing of computer software meet all of the criteria provided in subsection (a)(1) of Section 130.1935, neither the transfer of the software nor the subsequent software updates will be subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) 
ST-24-0018-GIL 04/05/2024 Miscellaneous This letter discusses digital photography. See 86 Ill. Adm. Code 130.2000 and 86 Ill. Adm. Code 140.101. (This is a GIL.)
ST-24-0019-GIL 04/22/2024 Mandatory Service Charge Mandatory gratuity charges which are separately stated and paid directly by a retailer to its service employees are not subject to tax provided that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting, or cleaning up the food or beverage function with respect to which the service charge is imposed. See 86 Ill. Admin. Code 130.120(r); 86 Ill. Admin. Code 130.2145(d). (This is a GIL.)
ST-24-0020-GIL 04/24/2024 Construction Contractors An item becomes realty after installation if it is physically affixed to the realty and the party affixing the item intends to make it a part of the realty. See 86 Ill. Adm.Code 130.2075. (This is a GIL.)
ST-24-0021-GIL 04/30/2024 Tobacco Products Tax Act Only persons meeting the definition of “distributor” or “retailer” are required to obtain licenses under the Act. See 35 ILCS 145/10-20 and 10-21. (This is a GIL.)
ST-24-0022-GIL 05/21/2024 Sale At Retail Sales of intangible personal property are not taxable under the Retailers’ Occupation Tax Act. 86 Ill. Adm. Code 130.120. (This is a GIL.) 
ST-24-0023-GIL 06/04/2024 Food and Medicine. This letter discusses the State tax rate applicable to sales of food and medicine. 35 ILCS 120/2-10; 86 Ill. Adm. Code 130.310, 311. (This is a GIL.)
ST-24-0024-GIL 06/04/2024 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-24-0025-GIL 06/11/2024 Sales of Service Retailers’ Occupation Tax and Use Tax do not apply to sales of service. A call answering service does not meet the definition of a marketplace facilitator. (86 Ill. Adm. Code 131.130(a)). (This is a GIL)
ST-24-0026-GIL 08/06/2024 Food, Drugs, & Medical Appliances This letter discusses radiopharmaceuticals and contrast media. 86 Ill. Adm. Code 130.311. (This is a GIL.)
ST-24-0027-GIL 09/04/2024 Use Tax To prevent actual or likely multistate taxation, to the extent an Illinois purchaser has properly paid tax at a rate of 6.25% or greater in another state with respect to the sale, purchase, or use of that property, no additional Use Tax is owed to Illinois on such purchase. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL.)
ST-24-0028-GIL 09/10/2024 Manufacturing Machinery And Equipment Exemption Machinery or equipment used primarily in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease that is made apart from or as an incident to the sellers engaging in the service occupation of producing machines, tools, dyes, jigs, patterns, gauges, or other similar items of no commercial value on special order for a particular purchaser is exempt from Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.330(a). (This is a GIL.)
ST-24-0029-GIL 09/11/2024 Computer Software This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)
ST-24-0030-GIL 09/11/2024 Computer Software This letter discusses computer software license agreements. See 86 Ill. Adm. Code 130.1935. (This is a GIL.)

 

Private Letter Rulings

Ruling Date Subject Synopsis
ST-24-0001-PLR 03/07/2024 Cigarette Tax Act A licensed distributor may affix tax stamps to original packages of cigarettes purchased or obtained by a procurement affiliate who is a licensed distributor, who is under the same common ownership, and who purchased or obtained the cigarettes directly from an out-of-State manufacturer holding a permit under Section 4b of the Cigarette Tax Act. See 86 Ill. Adm. Code 440.50; 35 ILCS 130/3. (This is a PLR.)
ST-24-0002-PLR 09/17/2024 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 PLR.)
ST-24-0003-PLR 09/26/2024 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 PLR.)