Agencies
Services
2019 Sales Tax Letter Rulings
General Information Letters
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 19-0001-GIL |
01/08/2019 | Exempt Organizations | Exclusively religious, educational, or charitable organizations 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 19-0002-GIL | 02/27/2019 | Retailers' Occupation Tax | Illinois Retailers' Occupation and Use Taxes do not apply to sales of service that do not involve the transfer of tangible personal property to customers. See 86 Ill. Adm. Code 130.101 and 150.101. (This is a GIL.) |
| ST 19-0003-GIL |
02/27/2019 | 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 GIL.) |
| ST 19-0004-GIL |
02/28/2019 | Food | Food items for immediate consumption are subject to the higher tax rate. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 19-0005-GIL |
02/28/2019 | Nexus |
This letter responds to a questionnaire regarding nexus. See South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). (This is a GIL) |
| ST 19-0006-GIL |
03/06/2019 | Computer Software | This letter discusses computer software. See 86 Ill. Adm. Code130.1935. (This is a GIL.) |
| ST 19-0007-GIL |
03/20/2019 | Computer Software | This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 19-0008-GIL |
04/04/2019 |
Miscellaneous |
This letter discusses the Prepaid Wireless 9-1-1 Surcharge Act. 50 ILCS 753. (This is a GIL.) |
| ST 19-0009-GIL |
04/29/2019 | Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code130.1935. (This is a GIL.) |
| ST 19-0010-GIL |
04/29/2019 |
Food, Drugs & Medical Appliances |
CBD products sold primarily for internal human consumption may qualify for the low State rate of tax. 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 19-0011-GIL |
06/06/2019 |
Telecommunications |
The state government exemption in the Telecommunications Excise Tax Act applies to the 50 states. 35 ILCS 630/2. (This is a GIL.) |
| ST 19-0012-GIL |
07/08/2019 |
Construction Contractors |
Persons who sell signs may incur a Retailers’ Occupation Tax, Service Occupation Tax or Use Tax liability, depending upon the circumstances of the particular sale. See 86 Ill. Adm. Code 130.2155 (Tax Liability of Sign Vendors); 86 Ill. Adm. Code 140.101 (Basis and Rate of the Service Occupation Tax); 86 Ill. Adm. Code 130.1940 (Construction Contractors and Real Estate Developers) and 86 Ill. Adm. Code 130.2075 (Sales To Construction Contractors, Real Estate Developers and Speculative Builders). (This is a GIL.) |
| ST 19-0013-GIL |
07/15/2019 |
Miscellaneous |
This letter discusses the Parking Excise Tax Act. 35 ILCS 525/ (This is a GIL.) |
| ST 19-0014-GIL |
07/11/2019 |
Rolling Stock |
Under the rolling stock exemption, the Retailers' Occupation Tax does not apply to sales to owners, lessors, or shippers of tangible personal property that is utilized by interstate carriers for hire for use as rolling stock moving in interstate commerce. See 35 ILCS 120/2-5(13). (This is a GIL.) |
| ST 19-0015-GIL |
07/15/2019 | Miscellaneous |
A person purchasing a motor vehicle from the federal government should file a RUT-50, Private Party Vehicle Use Tax Transaction. 625 ILCS 5/3-1001. (This is a GIL.) |
| ST 19-0016-GIL |
08/09/2019 | Miscellaneous |
This letter discusses the Parking Excise Tax Act. 35 ILCS 525/. (This is a GIL.) |
| ST 19-0017-GIL |
08/27/2019 | Telecommunications Excise Tax |
This letter discusses the taxability of telecommunications services provided to inmates. 35 ILCS 630/5. (This is a GIL.) |
| ST 19-0018-GIL |
09/05/2019 | Use Tax |
This provides information regarding Use Tax Collection operation of Marketplace facilitators under P.A. 101-0009. (This is a GIL.) |
| ST 19-0019-GIL |
09/27/2019 |
Manufacturing Machinery & Equipment |
Beginning on July 1, 2019, the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property purchased on or after July 1, 2019. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 19-0020-GIL |
10/04/2019 | Rolling Stock |
Flights in foreign commerce qualify as flights in interstate commerce for the purpose of the rolling stock exemption. See 35 ILCS 120/2-5(13) and 35 ILCS 120/2-51(e). (This is a GIL.) |
| ST 19-0021-GIL |
01/04/2019 | Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code130.1935. (This is a GIL.) |
| ST 19-0022-GIL |
12/04/2019 | Delivery Charges |
This letter discusses transportation and delivery charges. See 86 Ill. Adm. Code 130.415. (This is a GIL.) |
| ST 19-0023-GIL |
12/04/2019 | Manufacturing Machinery & Equipment |
Beginning on July 1, 2019, the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property purchased on or after July 1, 2019. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 19-0024-GIL |
01/04/2019 |
Food |
Alcoholic beverages, soft drinks, candy, and food that is prepared for immediate consumption are taxed at the regular sales tax rate of 6.25%, plus any applicable local taxes. Generally, a 1% sales tax rate, plus any applicable local taxes, is applied to food for human consumption that is to be consumed off the premises where it is sold. (This is a GIL.) |
| ST 19-0025-GIL |
12/04/2019 | Manufacturing Machinery & Equipment |
Beginning on July 1, 2019, the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property purchased on or after July 1, 2019. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 19-0026-GIL |
12/04/2019 |
Miscellaneous |
Generally, membership fees are not part of the gross receipts that are subject to Retailers' Occupation Tax liability. The Retailers' Occupation Tax does not apply to sales of intangibles. (This is a GIL.) |
| ST 19-0027-GIL |
12/04/2019 |
Telecommunications |
The state government exemption in the Telecommunications Excise Tax Act applies to the 50 states. 35 ILCS 630/2. (This is a GIL.) |
| ST 19-0028-GIL |
12/05/2019 |
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) and 86 Ill. Adm. Code 130.305. (This is a GIL.) |
| ST 19-0029-GIL |
12/06/2019 |
Construction Contractors |
Persons who sell signs may incur a Retailers' Occupation Tax, Service Occupation Tax or Use Tax liability, depending upon the circumstances of the particular sale. See 86 Ill. Adm. Code 130.2155 (Tax Liability of Sign Vendors); 86 Ill. Adm. Code 140.101 (Basis and Rate of the Service Occupation Tax); 86 Ill. Adm. Code 130.1940 (Construction Contractors and Real Estate Developers) and 86 Ill. Adm. Code 130.2075 (Sales To Construction Contractors, Real Estate Developers and Speculative Builders). (This is a GIL.) |
| ST 19-0030-GIL |
12/06/2019 | 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 19-0031-GIL |
12/06/2019 |
Computer Software |
If the transfer of computer software is made pursuant to a perpetual license that contains the 5 elements of a non-taxable license of computer software set forth in Section 130.1935(a)(1), the transaction is not a rental or lease. It is considered a non-taxable license of computer software. (This is a GIL.) |
| ST 19-0032-GIL |
12/09/2019 | Manufacturing Machinery & Equipment |
July 1, 2019, includes production related tangible personal property. Consumables used in a manufacturing process in a manufacturing facility are considered production related tangible personal property. Oxygen is often used as a consumable supply in a production-related manufacturing process. If this is the case, it would qualify for the expanded manufacturing and assembling machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 19-0033-GIL |
12/09/2019 | Manufacturing Machinery & Equipment |
Beginning on July 1, 2019, the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property purchased on or after July 1, 2019. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 19-0034-GIL |
12/09/2019 | Manufacturing Machinery & Equipment |
Beginning on July 1, 2019, the manufacturing and assembling machinery and equipment exemption includes production related tangible personal property purchased on or after July 1, 2019. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 19-0035-GIL |
12/10/2019 | 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 19-0036-GIL |
11/05/2019 | Vehicle Use Tax |
Article X of Chapter 3 of the Illinois Vehicle Code imposes a tax on the privilege of using a motor vehicle in this State that is acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001. (This is a GIL) |
| ST 19-0037-GIL |
12/13/2019 |
Telecommunications Excise Tax |
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.) |
Private Letter Rulings
| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 19-0001-PLR |
01/10/2019 | Sale At Retail | The sale of comic books which are published at least bi-annually is exempt from Retailers Occupation Tax under the newsprint and ink exemption. However, a comic book sold as a collector item rather than as newsprint and ink in its initial sale, will be subject to Retailers' Occupation Tax based upon the gross receipts from the sale. See 86 Ill. Adm. Code 130.1910. (This is a PLR.) |
| ST 19-0002-PLR |
07/08/2019 | 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 19-0003-PLR |
07/08/2019 | Agents |
An auctioneer acting on behalf of an unknown or undisclosed principal is responsible for Retailers’ Occupation Tax on the gross receipts from the sale. However, if the auctioneer is acting on behalf of a known or disclosed principal, the sale of tangible personal property is taxable to the principal and not the auctioneer if the principal is a retailer of the tangible personal property being sold at the auction. See 86 Ill. Adm. Code 130.1915. (This is a PLR). |
| ST 19-0004-PLR |
12/04/2019 |
Miscellaneous |
This letter discusses the Prepaid Wireless 9-1-1 Surcharge Act. 50 ILCS 753. |