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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.)
       

 

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.)