Agencies
Services
2010 Sales Tax Letters Rulings
General Information Letters
| Ruling | Date
|
Subject | Synopsis |
|---|---|---|---|
| ST 10-0128-GIL | 12/27/2010 | Claims For Credit | Illinois allows a credit against Illinois Use Tax liability for tax that has been properly paid to another State. See 86 Ill. Adm. Code 150.310(a)(3). (This is a GIL.) |
| ST 10-0127-GIL | 12/27/2010 | Food | Effective September 1, 2009, "soft drinks" mean non-alcoholic beverages that contain natural or artificial sweeteners; but "soft drinks" do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume. See 35 ILCS 120/2-10. (This is a GIL.) |
| ST 10-0126-GIL | 12/27/2010 | Graphic Arts | The Department’s rules regarding the Graphic Arts Machinery and Equipment Exemption are set forth at 86 Ill. Adm. Code 130.325. (This is a GIL.) |
| ST 10-0125-GIL | 12/27/2010 | Gross Receipts | This letter discusses the tax consequence of reward credits. See 86 Ill. Adm. Code 130.401(c). (This is a GIL.) |
| ST 10-0124-GIL | 12/22/2010 | Service Occupation Tax | Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service.. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST 10-0123-GIL | 12/22/2010 | Construction Contractors | A construction contractor who sells tangible personal property that is not permanently affixed or incorporated into a structure and remains tangible personal property incurs Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1940. (This is a GIL.) |
| ST 10-0122-GIL | 12/22/2010 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his or her activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 10-0121-GIL | 12/22/2010 | Miscellaneous | If no tangible personal property is transferred to customers, then no Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax Act, or Service Use Tax liability would be incurred on the sales to those customers. See 86 Ill. Adm. Code 130.301. (This is a GIL.) |
| ST 10-0120-GIL | 12/21/2010 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/1 et seq. (This is a GIL.) |
| ST 10-0119-GIL | 12/21/2010 | Manufacturing Machinery & Equipment | This letter describes the Manufacturing Machinery and Equipment Exemption and the Manufacturer’s Purchase Credit. See 86 Ill. Adm. Code 130.330 and 130.331. (This is a GIL.) |
| ST 10-0118-GIL | 12/20/2010 | Medical Appliances | This letter concerns the low 1% State rate of tax applicable to drugs, medicines and medical appliances. See, 86 Ill. Adm. Code 130.311. (This is a GIL.) |
| ST 10-0117-GIL | 12/15/2010 | Exempt Organizations | This letter concerns the documentation to be retained by retailers making sales to exempt organizations holding an E-number. See 86 Ill. Adm. Code 130.2005. (This is a GIL) |
| ST 10-0115-GIL | 12/15/2010 | Delivery Charges | Charges designated as delivery or transportation charges are not taxable if it can be shown that they are both agreed to separately from the selling price of the tangible personal property which is sold and that such charges are actually reflective of the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 10-0114-GIL | 12/15/2010 | Gross Receipts | This letter discusses the tax consequence of reward credits. See 86 Ill. Adm. Code 130.401(c). (This is a GIL.) |
| ST 10-0113-GIL | 12/14/2010 | Computer Software | This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 10-0112-GIL | 12/14/2010 | Gross Receipts | This letter concerns retailer discounts. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) |
| ST 10-0111-GIL | 12/14/2010 | 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 10-0110-GIL | 11/05/2010 | Leasing | Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 10-0109-GIL | 12/10/2010 | Returns | A manufacturer or wholesaler whose products are sold by numerous distributors in Illinois may assume the responsibility of collecting and remitting Retailers’ Occupation Tax on behalf of all sales made by those distributors under the provisions of 86 Ill. Adm. Code 130.550. See 86 Ill. Adm. Code 130.550. (This is a GIL.) |
| ST 10-0108-GIL | 12/10/2010 | Returns | A manufacturer or wholesaler whose products are sold by numerous distributors in Illinois may assume the responsibility of collecting and remitting Retailers’ Occupation Tax on behalf of all sales made by those distributors under the provisions of 86 Ill. Adm. Code 130.550. See 86 Ill. Adm. Code 130.550. (This is a GIL.) |
| ST 10-0107-GIL | 12/10/2010 | Sale For Resale | This letter concerns sales for resale. See 86 Ill. Adm. Code 130.1401. (This is a GIL.) |
| ST 10-0106-GIL | 11/05/2010 | Drugs | This letter concerns the low 1% State rate of tax applicable to drugs, medicines and medical appliances. See, 86 Ill. Adm. Code 130.311. (This is a GIL.) |
| ST 10-0105-GIL | 10/29/2010 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/1 et seq. (This is a GIL.) |
| ST 10-0104-GIL | 10/29/2010 | Automobile Renting 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 forth at 35 ILCS 155/1 et seq. See 86 Ill. Adm. Code 180.101. (This is a GIL.) |
| ST 10-0103-GIL | 10/29/2010 | Computer Software | This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 10-0102-GIL | 10/28/2010 | Sale For Resale | This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 10-0101-GIL | 10/27/2010 | Enterprise Zones | NOTE: This letter has been revoked by ST 11-0060-GIL. This letter discusses various enterprise zone exemptions. See 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 10-0100-GIL | 10/27/2010 | Motor Vehicles | This letter responds to a survey concerning taxation of vehicles and updates answers to a previous survey. See 86 Ill. Adm. Code 130.605, 150.310, 150.315, 151.101 et seq., and 180.101 et seq. (This is a GIL.) |
| ST 10-0099-GIL | 10/27/2010 | Sale For Resale | This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 10-0098-GIL | 10/26/2010 | Service Occupation Tax | Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred incident to a sale of service. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST 10-0097-GIL | 10/26/2010 | Food, Drugs & Medical Appliances | This letter concerns the low 1% State rate of tax applicable to food, drugs and medical appliances. See 86 Ill. Adm. Code 130.310 and 130.311. (This is a GIL.) |
| ST 10-0096-GIL | 10/14/2010 | Hotel Operators’ 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. See 86 Ill. Adm. Code 480.101. (This is a GIL.) |
| ST 10-0095-GIL | 10/12/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.311(d). (This is a GIL.) |
| ST 10-0094-GIL | 10/12/2010 | Leasing | Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL.) |
| ST 10-0093-GIL | 10/11/2010 | Use Tax | A person who purchases tangible personal property for the purpose of giving it away makes a taxable use of the property and incurs Use Tax upon such purchase. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.) |
| ST 10-0092-GIL | 10/07/2010 | Delivery Charges | Charges designated as delivery or transportation charges are not taxable if it can be shown that they are both agreed to separately from the selling price of the tangible personal property which is sold and that such charges are actually reflective of the costs of shipping. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 10-0091-GIL | 10/07/2010 | Miscellaneous | The Department will not approve the accuracy of private legal publications. (This is a GIL.) |
| ST 10-0090-GIL | 10/07/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.311(d). (This is a GIL.) |
| ST 10-0089-GIL | 10/05/2010 | Computer Software | This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 10-0088-GIL | 09/30/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0087-GIL | 09/30/2010 | 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 10-0086-GIL | 09/30/2010 | Drugs | A medicine or drug is “any pill, powder, potion, salve, or other preparation intended by the manufacturer for human use and which purports on the label to have medicinal qualities.” See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 10-0085-GIL | 09/30/2010 | Trade-Ins | Sections 130.425 and 130.455 of the Department’s Administrative Rules governing the Retailers’ Occupation Tax Act contain no requirement that the traded-in tangible personal property had to be originally purchased in this State or that the original purchase was subject to Retailers’ Occupation Tax or Use Tax liability. See 86 Ill. Adm. Code 130.425 and 130.455. (This is a GIL.) |
| ST 10-0084-GIL | 09/30/2010 | Farm Machinery & Equipment | Even though sales may be at retail, the Illinois Retailers' Occupation Tax does not apply to farm machinery and equipment, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily in production agriculture or State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL.) |
| ST 10-0083-GIL | 09/09/2010 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is a GIL.) |
| ST 10-0082-GIL | 09/08/2010 | Leasing | Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 10-0081-GIL | 09/08/2010 | Hotel Operators’ 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. See 86 Ill. Adm. Code 480.101. (This is a GIL.) |
| ST 10-0080-GIL | 09/02/2010 | Local Taxes | If a sale is made in a jurisdiction that imposes a local tax, that tax will be incurred. In situations in which both the sale and the location of the property being sold at the time of the sale are outside of the State of Illinois, such sales would only be subject to the Illinois Use Tax at the rate of 6.25%. See 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 10-0079-GIL | 08/30/2010 | Food | This letter discusses the State tax rates applicable to sales of food. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 10-0078-GIL | 08/27/2010 | Food | This letter provides a brief summary of when the high rate of tax for food and the low rate of tax for food apply. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 10-0077-GIL | 08/23/2010 | Computer Software | This letter concerns the taxation of computer software transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 10-0076-GIL | 08/16/2010 | Gross Receipts | If a seller receives a reimbursement or rebate for a discount, the amount of that reimbursement or rebate is considered part of the gross receipts received by the seller and is subject to Retailers' Occupation Tax. If a seller provides a discount to a purchaser and does not receive a reimbursement or rebate for that discount, only the (discounted) amount received by the seller is taxable. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) |
| ST 10-0075-GIL | 08/16/2010 | Use Tax | Auto repairmen and body shops incur Illinois Use Tax liability when purchasing consumable supplies such as sand paper and masking tape. See 86 Ill. Adm. Code 150.101. (This is a GIL.) |
| ST 10-0074-GIL | 08/13/2010 | Telecommunications Excise Tax | Section 4 of the Telecommunications Excise Tax provides that the tax is not imposed “on the act or privilege [of originating or receiving telecommunications] to the extent such act or privilege may not, under the Constitution and statutes of the United States, be made the subject of taxation by the State.” To the extent to which consular officials enjoy tax exemption pursuant to the Vienna Convention on Diplomatic and Consular Relations, the Illinois Telecommunications Excise Tax should not be imposed by carriers who are otherwise required to collect the tax. (This is a GIL). |
| ST 10-0073-GIL | 08/11/2010 | Gross Receipts | The standard method of reporting receipts from sales is to report on a gross receipts basis, that is to report when payments are actually received. See 86 Ill. Adm. Code 130.401(a). (This is a GIL.) |
| ST 10-0072-GIL | 08/11/2010 | Trade-Ins | In order to properly take a trade-in deduction, the item being traded-in must be of like kind and character as that which is being sold. See 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 10-0071-GIL | 08/11/2010 | Miscellaneous | This letter references an earlier letter (ST 10-0017-GIL) regarding the Use Tax. 86 Ill. Adm. Code 150.305(c). (This is a GIL.) |
| ST 10-0070-GIL | 08/10/2010 | Exempt Organizations | Exclusively religious, educational, or charitable organizations that have been given E numbers by the Department are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2005. (This is a GIL.) |
| ST 10-0069-GIL | 08/10/2010 | Service Occupation Tax | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST 10-0068-GIL | 08/10/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0067-GIL | 08/10/2010 | 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 10-0066-GIL | 08/10/2010 | Construction Contractors | 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. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST 10-0065-GIL | 08/05/2010 | 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. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 10-0064-GIL | 08/05/2010 | Sale For Resale | This letter addresses sales for resale. See 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 10-0063-GIL | 08/05/2010 | Exempt Organizations | Governmental units incur Retailers Occupation Tax liability when selling tangible personal property to the public for use or consumption. The only exception is the sale of an item by a governmental unit in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL.) |
| ST 10-0062-GIL | 08/04/2010 | Miscellaneous | This letter responds to an annual survey. See 86 Ill. Adm. Code, Parts 130, 140, 150 and 160. (This is a GIL.) |
| ST 10-0061-GIL | 08/03/2010 | 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 10-0060-GIL | 08/03/2010 | Use Tax | This letter discusses the Interstate Commerce exemption. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST 10-0059-GIL | 08/03/2010 | Telecommunications Excise Tax | Persons who provide satellite television services, including basic network channels, premium channels, pay per view movies, sporting events, etc., are generally not subject to the Telecommunications Excise Tax liability. See 35 ILCS 630/1 et. seq. (This is a GIL.) |
| ST 10-0058-GIL | 07/30/2010 | Farm Machinery & Equipment | The sale of certain types of tangible personal property used in production agriculture is not subject to Illinois Retailers’ Occupation Tax and Use Tax. See 35 ILCS 120/2-5(2). (This is a GIL.) |
| ST 10-0057-GIL | 07/29/2010 | Local Tax | An item that is exempt from the State Retailers’ Occupation Tax or Service Occupation Tax as a sale for resale, is also exempt from the tax imposed under the County School Facility Occupation Tax Law as a sale for resale. See 86 Ill. Adm. Code 130.210(c). (This is a GIL.) |
| ST 10-0056-GIL | 07/29/2010 | Service Occupation Tax | Sellers of special order machines are considered to be engaged primarily in a service occupation, rather than being engaged in the business of selling tangible personal property, if the test set out in 86 Ill. Adm. Code 130.2115(b) is met. See 86 Ill. Adm. Code 130.2115. (This is a GIL.) |
| ST 10-0055-GIL | 07/27/2010 | Miscellaneous | This letter rescinds the General Information Letter issued May 5, 2010 (ST 10-0039-GIL) effective July 27, 2010. (This is a GIL.) |
| ST 10-0054-GIL | 06/11/2010 | Medical Appliances | Medicines and medical appliances are not taxed at the general State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 10-0053-GIL | 06/07/2010 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/1 et seq. (This is a GIL.) |
| ST 10-0052-GIL | 06/04/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0051-GIL | 06/04/2010 | Returns | Illinois retailers are required to file returns by specific statutory deadlines. 35 ILCS 120/3. 86 Ill. Adm. Code 130.501. (This is a GIL.) |
| ST 10-0050-GIL | 06/03/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0049-GIL | 06/03/2010 | Occasional Sale | A person does not incur Retailers' Occupation Tax liability on the gross receipts from an isolated or occasional sale. See 86 Ill. Adm. Code 130.110. (This is a GIL.) |
| ST 10-0048-GIL | 06/02/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0047-GIL | 05/28/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 10-0046-GIL | 05/27/2010 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his or her activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 10-0045-GIL | 05/20/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 10-0044-GIL | 05/18/2010 | Governmental Bodies | This letter references the Department’s rules regarding sales to governmental bodies. See 86 Ill. Adm. Code 130.2007. (This is a GIL.) |
| ST 10-0043-GIL | 05/18/2010 | Gross Receipts | See 86 Ill. Adm. Code 130.2125(e). The taxation of automobile dealer incentives will depend upon whether the dealer receives a payment from a source other than the purchaser that is conditioned upon the retail sale of an automobile. (This is a GIL.) |
| ST 10-0042-GIL | 05/14/2010 | Service Occupation Tax | If no tangible personal property is transferred to the customer, then no Illinois Retailers’ Occupation Tax or Service Occupation Tax would apply. See 86 Ill. Adm. Code Parts 130 and 140. (This is a GIL.) |
| ST 10-0041-GIL | 05/14/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 10-0040-GIL | 05/14/2010 | Food | Effective September 1, 2009, "soft drinks" mean non-alcoholic beverages that contain natural or artificial sweeteners; but "soft drinks" do not include beverages that contain milk or milk products, soy, rice or similar milk substitutes, or greater than 50% of vegetable or fruit juice by volume. See 35 ILCS 120/2-10. (This is a GIL.) |
| ST 10-0039-GIL | 05/05/2010 | Miscellaneous | Note: This letter was rescinded by ST 10-0055 GIL: Fuel and petroleum products sold to or used by an air common carrier, certified by the carrier to be used for consumption, shipment, or storage in the conduct of its business as an air common carrier, for a flight destined for or returning from a location or locations outside the United States without regard to previous or subsequent domestic stopovers is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.321. (This is a GIL.) |
| ST 10-0038-GIL | 04/28/2010 | Gross Receipts | When an item of tangible personal property is sold at retail and includes a core charge, the full retail selling price of the item, including the core charge, is subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 10-0037-GIL | 04/26/2010 | Service Occupation Tax | Under the Service Occupation Tax, servicemen are taxed on tangible personal property transferred as an incident of the sale of service. Servicemen do not incur Service Occupation Tax liability on property that they resell as an incident to a sale of service under an agreement by which the servicemen are obligated to make physical delivery of the goods from a point in Illinois to a point outside Illinois, not to be returned to a point within Illinois, provided that such delivery is actually made. See, 86 Ill. Adm. Code 140.501. (This is a GIL.) |
| ST 10-0036-GIL | 04/23/2010 | Exempt Organizations | Governmental units incur Retailers Occupation Tax liability when selling tangible personal property to the public for use or consumption. The only exception is the sale of an item by a governmental unit in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL.) |
| ST 10-0035-GIL | 04/19/2010 | Construction Contractors | 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. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST 10-0034-GIL | 04/16/2010 | Gross Receipts | Illinois Retailers' Occupation Tax is imposed upon gross receipts from the sale meals by caterers. See 86 Ill. Adm. Code 130.2145. (This is a GIL.) |
| ST 10-0033-GIL | 04/06/2010 | Construction Contractors | 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. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST 10-0032-GIL | 04/01/2010 | Delivery Charges | The Department’s regulation on the treatment of transportation and delivery charges under the Retailers’ Occupation Tax Act may be found at 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 10-0031-GIL | 04/01/2010 | Miscellaneous | This letter concerns returns of merchandise. See 86 Ill. Adm. Code 130.401(b). (This is a GIL.) |
| ST 10-0030-GIL | 03/31/2010 | Manufacturing Machinery & Equipment | The manufacturing machinery and equipment exemption does not apply to refrigeration machinery or equipment used by non-manufacturers, such as wholesale food and produce distributors. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 10-0029-GIL | 03/31/2010 | Machinery & Equipment Exemption | This letter concerns applicability of the machinery and equipment exemption to a sublessee-manufacturer situation. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 10-0028-GIL | 03/31/2010 | Leasing | Information regarding sales tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 10-0027-GIL | 03/31/2010 | Use Tax | A person who purchases tangible personal property for the purpose of giving it away makes a taxable use of the property and incurs Use Tax upon such purchase. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.) |
| ST 10-0026-GIL | 03/31/2010 | Farm Machinery & Equipment | The sale of certain types of tangible personal property used in production agriculture is not subject to Illinois Retailers’ Occupation Tax and Use Tax. See 35 ILCS 120/2-5(2). (This is a GIL.) |
| ST 10-0025-GIL | 03/31/2010 | Manufacturing Machinery & Equipment | Mold release agents generally do not qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 10-0024-GIL | 03/30/2010 | 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 10-0023-GIL | 03/30/2010 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 10-0022-GIL | 03/30/2010 | Motor Fuel Tax | This letter describes documentation requirements under the Motor Fuel Tax Law. See 86 Ill. Adm. Code 500.335, 500.340 and 500.345. (This is a GIL.) |
| ST 10-0021-GIL | 03/19/2010 | Gross Receipts | If a retailer accepts a coupon for which he will receive full or partial reimbursement, the value of that reimbursement must be included in the retailer's "gross receipts" that are subject to Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.2125 (This is a GIL.) |
| ST 10-0020-GIL | 03/19/2010 | Exempt Organizations | Exclusively religious, educational, or charitable organizations that have an exemption number issued by the Department are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2005. (This is a GIL.) |
| ST 10-0019-GIL | 03/19/2010 | Rolling Stock Exemption | This letter concerns the rolling stock exemption. See 86 Ill. Adm. Code Section 130.340. (This is a GIL.) |
| ST 10-0018-GIL | 03/15/2010 | Leasing | Information regarding the tax liabilities in lease situations may be found at 86 Ill. Adm. Code 130.220 and 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 10-0017-GIL | 03/12/2010 | Use Tax | A person who purchases tangible personal property for the purpose of giving it away makes a taxable use of the property and incurs Use Tax upon such purchase. See 86 Ill. Adm. Code 150.305(c). (This is a GIL.) |
| ST 10-0016-GIL | 03/03/2010 | Sale For Resale | This letter describes the standard drop-shipment scenario and certificates of resale. 86 Ill. Adm. Code 130.225. (This is a GIL.) |
| ST 10-0015-GIL | 03/02/2010 | Watercraft Use Tax | The Watercraft Use Tax is a privilege tax imposed on the privilege of using, in this State, watercraft acquired by gift, transfer, or non-retail purchase after September 1, 2004. 86 Ill. Adm. Code 153.105. (This is a GIL.) |
| ST 10-0014-GIL | 03/02/2010 | Gross Receipts | Illinois Retailers' Occupation Tax is imposed upon gross receipts from the sale of tangible personal property to end-users and no deductions shall be taken by a taxpayer from gross receipts on account of the cost of the property sold, the cost of materials used, labor costs, or any other expense whatsoever. See 86 Ill. Adm. Code 130.410. (This is a GIL.) |
| ST 10-0013-GIL | 03/02/2010 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service, this will result in either Service Occupation tax liability or Use Tax liability for the serviceman depending upon his or her activities. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 10-0012-GIL | 03/01/2010 | Gross Receipts | This letter discusses sales of prescription drugs by servicemen. See 86 Ill. Adm. Code Part 140. (This is a GIL.) |
| ST 10-0011-GIL | 02/26/2010 | Gross Receipts | If a seller receives a reimbursement or rebate for a discount, the amount of that reimbursement or rebate is considered part of the gross receipts received by the seller and is subject to Retailers' Occupation Tax. If a seller provides a discount to a purchaser and does not receive a reimbursement or rebate for that discount, only the (discounted) amount received by the seller is taxable. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) |
| ST 10-0010-GIL | 02/26/2010 | Nexus | This letter discusses nexus. See Quill Corp. v. North Dakota, 112 S.Ct. 1904 (1992). (This is a GIL.) |
| ST 10-0009-GIL | 02/25/2010 | Sale For Resale | This letter discusses the requirements for Certificates of Resale. See 5 ILCS 175/5-120 and 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 10-0008-GIL | 02/25/2010 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/1 et seq. (This is a GIL.) |
| ST 10-0007-GIL | 02/25/2010 | Use Tax | Persons who provide cleaning or janitorial services and use cleaning supplies as part of those services incur Use Tax liability on the cost price of those cleaning supplies. See, generally, 86 Ill. Adm. Code 150.101 (This is a GIL.) |
| ST 10-0006-GIL | 02/25/2010 | 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. See 86 Ill. Adm. Code 130.101. (This is a GIL.) |
| ST 10-0005-GIL | 02/24/2010 | Miscellaneous | Information or data that is electronically downloaded is not considered the transfer of tangible personal property in this State. See 86 Ill. Adm. Code 130.2105. (This is a GIL.) |
| ST 10-0004-GIL | 02/24/2010 | Hotel Operators' Tax | Under the Hotel Operators' Occupation Tax, hotel is defined to mean any building in which the public may for consideration obtain sleeping accommodations. See 86 Ill. Adm. Code 480.101. (This is a GIL.) |
| ST 10-0003-GIL | 01/29/2010
|
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 10-0002-GIL | 01/12/2010
|
Food | This letter provides a brief summary of when the high rate of tax for food and the low rate of tax for food apply. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 10-0001-GIL | 01/12/2010
|
Construction Contractors | 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. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
Private Letter Rulings
| Ruling |
Date
|
Subject | Synopsis |
|---|---|---|---|
| ST 10-0007-PLR | 10/13/2010 | Aircraft Use Tax | This letter concerns a change in registration of an aircraft due to the merger of a corporation into a limited liability company under the provisions of the Business Corporation Act. See 86 Ill. Adm. Code 152.101 and 805 ILCS 5/11.39 and 11.50. (This is a PLR.) |
| ST 10-0006-PLR | 09/30/2010 | Sale For Resale | This letter addresses a sale for resale situation. See 86 Ill. Adm. Code 130.1405. (This is a PLR.) |
| ST 10-0005-PLR | 08/09/2010 | Telecommunications Excise Tax | This letter concerns the taxation of air-to-ground telecommunications. See 35 ILCS 630/1 et seq. (This is a PLR.) |
| ST 10-0004-PLR | 07/16/2010 | Sale For Resale | This letter concerns sales for resale. See 86 Ill. Adm. Code 130.1401, et seq. and Dearborn Wholesale Grocers, Inc. v. Whitler, 82 Ill.2d 471 (1980). (This is a PLR.) |
| ST 10-0003-PLR | 03/26/2010 | 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. (This is a PLR.) |
| ST 10-0002-PLR | 03/08/2010 | Miscellaneous | If a retailer accepts a return of merchandise and provides the customer with a full or partial refund, the retailer should refund all of the tax to the customer from the original sale. See 86 Ill. Adm. Code 130.401(b). (This is a PLR.) |
| ST 10-0001-PLR |
01/12/2010
|
Food, Drugs & Medical Appliances | Medicines and medical appliances are not taxed at the normal State rate of 6.25%. These items are taxed at a lower State rate of 1%. See 86 Ill. Adm. Code 130.310(c). (This is a PLR). |