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2021 Sales Tax Letter Rulings
General Information Letters
| Ruling | Date | Subject | Synopsis |
| ST 21-0001-GIL |
01/15/2021 |
Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 21-0002-GIL |
01/15/2021 |
Manufacturing Machinery & Equipment |
Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption is available for chemicals used in the manufacturing process that are production related. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 21-0003-GIL |
01/28/2021 |
Retailers' Occupation Tax |
Sales made on a marketplace are not considered isolated or occasional sales. See 86 Ill. Adm. Code 131.145(j). (This is a GIL.) |
| ST 21-0004-GIL |
01/28/2021 |
Interstate Commerce/Sale for Resale |
Under the Retailers' Occupation Tax Act, a seller's drop shipment to a freight forwarder who arranges for property to be delivered outside of the United States not to return to the United States, and a seller's drop shipment of property to a customer in Illinois for resale are not subject to sales tax. Appropriate documentation must be obtained in support of either applicable exemption. See 86 Ill. Adm. Code 130.605 and 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
| ST 21-0005-GIL |
01/28/2021 |
Retailers' Occupation Tax and Use Tax |
This letter discusses remote retailers. 86 Ill. Adm. Code 131. (This is a GIL.) |
| ST 21-0006-GIL |
01/28/2021 |
Sale at Retail |
The sale of legal tender, currency, medallions, or gold or silver coinage issued by the State of Illinois, the government of the United States of America, or the government of any foreign country, and bullion are exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.1910. (This is a GIL.) |
| ST 21-0007-GIL |
01/28/2021 |
Interstate Commerce |
A boat dealer selling a boat to an out-of-state customer picking up the boat in Illinois is subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST 21-0008-GIL |
01/28/2021 |
Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 21-0009-GIL |
02/04/2021 |
Medical Appliance |
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 rate of 1% plus any applicable local taxes. See 86 Ill. Adm. Code 130.311. (This is a GIL). |
| ST 21-0010-GIL |
03/09/2021 |
Manufacturers |
This letter concerns electricity and gas services to manufacturers. See 86 Ill. Adm. Code Parts 130.330. (This is a GIL.) |
| ST 21-0011-GIL |
03/11/2021 |
Telecommunications |
This letter discusses telecommunications services. 35 ILCS 630/. (This is a GIL.) |
| ST 21-0012-GIL |
03/11/2021 |
Interstate Commerce |
This letter discusses sales in interstate commerce that originate in Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST 21-0013-GIL |
03/11/2021 |
Service Occupation Tax |
If no tangible personal property is transferred to the customer, then no Illinois Retailers' Occupation Tax, Use Tax, Service Occupation Tax, or Service Use Tax would apply. See 86 Ill. Adm. Code Parts 130, 140, 150, and 160. (This is a GIL.) |
| ST 21-0014-GIL |
03/11/2021 |
Farm Machinery and Equipment |
Corrugated plastic pipe and other water management products used in production agriculture for drainage are not considered equipment under the farm machinery and equipment exemption. See 86 Ill. Adm. Code 130.305 (This is a GIL.) |
| ST 21-0015-GIL |
04/01/2021 |
Parking Excise Tax |
The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer's business. 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 21-0016-GIL |
04/01/2021 |
Retailers' Occupation Tax |
This letter concerns the 6.25% State rate of tax applicable to soft drinks. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 21-0017-GIL |
04/13/2021 |
Telecommunications Excise Tax |
In general, Voice Over Internet Protocol ("VOIP") is telecommunications subject to tax within the meaning of "Telecommunications" and "Gross Charges" pursuant to The Telecommunications Excise Tax, 35 ILCS 630/2; the Telecommunications Infrastructure Maintenance Fee, 35 ILCS 635/10; and the Simplified Municipal Telecommunications Tax Act, 35 ILCS 636/5-7. (This is a GIL.) |
| ST 21-0018-GIL |
04/22/2021 |
Local Taxes |
The occupation of selling is comprised of the composite of many activities extending from the preparation for, and the obtaining of, orders for goods to the final consummation of the sale by the passing of title and payment of the purchase price. Thus, establishing where "the taxable business of selling is being carried on" requires a fact-specific inquiry into the composite of activities that comprise the retailer's business. 86 Ill. Adm. Code 270.115. (This is a GIL.) |
| ST 21-0019-GIL |
04/27/2021 |
Motor Vehicles |
The $10,000 cap on the trade-in credit allowed for the trade-in of first division motor vehicles does not apply to boats. See 35 ILCS 120/1 and 86 Ill. Adm. 130.425. (This isa GIL.) |
| ST 21-0020-GIL |
05/25/2021 |
Manufacturing Machinery and Equipment |
Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption is available for blasting agents, high explosives, detonators, lead-in line and blasting machines used in the extractive process of quarrying if they are used primarily to manufacture or assemble tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330.(This is a GIL.) |
| ST 21-0021-GIL |
05/26/2021 |
Occasional Sales |
Isolated or occasional sales of tangible personal property at retail by persons who do not hold themselves out as being engaged (or who do not habitually engage) in selling such tangible personal property at retail do not constitute engaging in the business of selling such tangible personal property at retail. See86 Ill. Adm. Code 130.110. (This is a GIL.) |
| ST 21-0022-GIL |
05/06/2021 |
Computer Software |
This letter discusses computer software. 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 21-0023-GIL |
07/08/2021 |
Governmental Bodies |
This letter discusses tax exempt sales to contractors that has entered into a construction contracts with a governmental body. See 86 Ill. Adm. Code 130.2075(d). (This is a GIL.) |
| ST 21-0024-GIL |
07/08/2021 |
Interstate Commerce | This letter discusses sales into foreign commerce. See 86 Ill. Adm. Code 130.605. (This is a GIL.) |
| ST 21-0025-GIL |
07/27/2021 |
Use Tax |
This letter discusses the Rental Purchase Agreement Occupation and Use Tax(35 ILCS 180/1 et seq.); the demonstration use exemption from the Use Tax Act (86 Ill. Adm. Code 150.306); and sourcing of State and local Retailers' Occupation Tax (86 Ill. Adm. Code 270.115). (This is a GIL.) |
| ST 21-0026-GIL |
07/29/2021 |
Retailers' Occupation Tax |
This provides information regarding Retailers' Occupation Tax Collection operation of Marketplace Facilitators. See 86 Ill. Adm. Code 131. (This is a GIL.) |
| ST 21-0027-GIL |
07/29/2021 |
Miscellaneous |
This letter responds to an annual survey. (This is a GIL.) |
| ST 21-0028-GIL |
07/29/2021 | Farm machinery and Equipment |
The Retailers' Occupation Tax does not apply to farm machinery and equipment that is used or leased for use primarily (over 50% of the time) in production agriculture or for use in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 21-0029-GIL |
08/16/2021 |
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 21-0030-GIL |
08/19/2021 |
Interstate Commerce |
Foreign commerce sales. Retailers' Occupation Tax does not apply where sellers ship goods by carrier or by mail, according to the terms of agreements with purchasers, and the seller delivers the goods from a point within Illinois to a point outside Illinois and the goods are not to be returned to Illinois. See 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 21-0031-GIL |
08/24/2021 |
Leasing |
Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. As end users of tangible personal property located in Illinois, lessors owe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.2010. (This is a GIL.) |
| ST 21-0032-GIL |
08/24/2021 |
Retailers' Occupation Tax |
This letter discusses marketplace facilitators. See 86 Ill. Adm. Code 131.130. (This is a GIL.) |
| ST 21-0033-GIL |
08/04/2021 |
Retailers' Occupation Tax |
This letter concerns the 6.25% State rate of tax applicable to soft drinks. See 86 Ill. Adm. Code 130.310. NOTE: This letter supersedes ST 21-0016-GIL. (This is a GIL.) |
| ST 21-0034-GIL |
09/07/2021 | Motor Vehicles |
The sale of a first division motor vehicle to an Indiana resident who takes delivery in Illinois but will register the motor vehicle in Indiana is subject to Illinois Retailers' Occupation Tax and Use Tax, including the $10,000 cap on the deduction allowed for the value of the trade-in of a first division motor vehicle when calculating the tax. See 35 ILCS 120/2-5(25-5)) and 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 21-0035-GIL |
09/09/2021 |
Use Tax |
If a retailer engages in some selling activities in a taxing jurisdiction in this State, but that retailer's predominant selling activities are outside the State, the retailer's obligation to collect and remit taxes on Illinois sales is governed by the Illinois Use Tax Act. See 86 Ill. Adm. Code 270.115(b)(7). (This is a GIL.) |
| ST 21-0037-GIL |
07/30/2021 |
Interstate Commerce |
This letter discusses the component of interstate commerce involving shipment/delivery on sales by remote retailers to purchasers in Illinois. (86 Ill. Admin. Code 130.605; 86 Ill. Adm. Code 131) (This is a GIL) |
| ST 21-0038-GIL |
09/02/2021 | Motor Vehicles |
Public Act 101-31 amended the definition of "selling price" in the Retailers' Occupation Tax Act and the Use Tax Act to provide that, "beginning January 1, 2020, 'selling price' includes the portion of the value of or credit given for traded-in motor vehicles of the First Division as defined in Section 1-146 of the Illinois Vehicle Code of like kind and character as that which is being sold that exceeds $10,000." See 35 ILCS 105/2, 35 ILCS 120/1, and 86 Ill. Adm. Code 130.425. (This is a GIL.) |
| ST 21-0039-GIL |
09/13/2021 |
Service Occupation Tax |
This letter discusses the taxation of seminar materials provided by a serviceman registered pursuant to Section 2a of the Retailers' Occupation Tax. 86 Ill. 140.129. (This is a GIL.) |
| ST 21-0040-GIL |
09/17/2021 |
Electricity Excise Tax |
A person that operates a EV charging station selling electricity is a delivering supplier, must register with the Department, and collect and remit the Electricity Excise Tax based on kilowatt-hours used or consumed by customers. 35 ILCS 640. (This is a GIL.) |
| ST 21-0042-GIL |
08/06/2021 |
Miscellaneous |
This letter responds to an annual survey. (This is a GIL.) |
| ST 21-0043-GIL |
10/21/2021 | Enterprise Zone |
Under the Enterprise Zone building materials exemption, a deduction from Illinois Retailers' Occupation Tax liability exists for gross receipts from retail sales of building materials that will be incorporated into real estate as part of a building project for which an Enterprise Zone Building Materials Exemption Certificate (Exemption Certificate) has been issued to the purchaser by the Department. 35 ILCS 120/5k(a) (This is a GIL) |
| ST 21-0044-GIL |
11/09/2021 |
Miscellaneous | This letter responds to an annual survey. (This is a GIL.) |
| ST 21-0045-GIL |
11/16/2021 |
Computer Software | This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 21-0046-GIL |
11/16/2021 |
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 21-0047-GIL |
11/23/2021 |
Construction Contractor | 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 21-0048-GIL |
11/23/2021 |
Exempt Organizations |
This letter discusses the sales tax liabilities of dining facilities operated by schools. See 86 Ill. Adm. Code 130.2005. (This is a GIL.) |
| ST 21-0049-GIL |
11/30/2021 | Service Occupation Tax | This letter discusses the Service Occupation Tax. 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 21-0050-GIL |
11/30/2021 |
Computer Software |
This letter discusses the taxability of computer software. 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 21-0051-GIL |
12/07/2021 |
Service Occupation Tax | This letter discusses the Service Occupation Tax. 86 Ill. Adm. Code 140.101. (This is a GIL.) |
Private Letter Rulings
| Ruling | Date | Subject | Synopsis |
| ST 21-0001-PLR |
03/11/2021 | Food |
Food items for immediate consumption are subject to the higher tax rate. See 86 Ill. Adm. Code 130.310. (This is a PLR.) |
| ST 21-0002-PLR |
04/07/2021 |
Retailers' Occupation Tax |
Fresh culinary herb plants sold for the purpose of human consumption are subject to the low rate of Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.310. (This is a PLR.) |
| ST 21-0003-PLR |
04/21/2021 |
Parking | This letter discusses the exemption from Parking Excise Tax when parking in a parking area or garage operated by the State, State universities created by statute, or a unit of local government, e.g., counties, municipalities, townships, and special districts. See 86 Ill. Adm. Code 195.115(b). (This is a PLR.) |
| ST 21-0005-PLR |
09/09/2021 |
Manufacturing Machinery and Equipment | Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipment exemption is available for blasting agents, high explosives, detonators, lead-in line and blasting machines used in the extractive process of quarrying if they are used primarily to manufacture or assemble tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a PLR.) |
| ST 21-0006-PLR |
09/09/2021 | Service Occupation Tax | This letter discusses the application of Service Occupation Tax when a serviceman does not separately state the price for tangible personal property transferred incident to service. 86 Ill. Adm. Code 140.106. (This is a PLR.) |
| ST 21-0007-PLR |
09/13/2021 |
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 21-0008-PLR |
11/23/2021 |
Computer Software | This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a PLR.) |
| ST 21-0014-PLR |
04/12/2021 |
Use Tax |
This letter discusses leases to governmental bodies and the temporary storage exemption. See 35 ILCS 105/3-5(23) and 3-55(e). (This is a PLR.) |