Agencies
Services
2020 Sales Tax Letter Rulings
General Information Letters
| Ruling | Date | Subject | Synopsis |
| ST 20-0001-GIL |
01/17/2020 | Parking Excise Tax |
This letter discusses the Parking Excise Tax. See 86 Ill. Adm. Code 196. (This is a GIL.) |
| ST 20-0002-GIL |
1/21/2020 |
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 20-0003-GIL |
02/28/2020 |
Gross Receipts |
Caterers incur Retailers' Occupation Tax liability on their entire gross receipts from sale, without deductions on account of overhead costs, such as charges for linens, dishes, flowers or delivery. (This is a GIL.) |
| ST 20-0004-GIL |
01/29/2020 |
Exempt Organizations |
This letter determines that an educational institution that provides optometry services as part of its curriculum does not incur tax on the transfer of tangible personal property incident to the providing of that service. See generally 86 Ill. Adm. Code 130.2005. (This is a PLR.) |
| ST 20-0005-GIL |
02/06/ 2020 |
Sale at Retail |
Persons who permanently affix modular homes to real estate act as construction contractors and incur Use Tax liability on their cost price of the tangible personal property they physically incorporate into real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL). |
| ST 20-0006-GIL |
02/10/2020 |
Leasing |
Lessors of tangible personal property, including motor vehicles, 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 130.220 and 86 Ill. Adm. Code 130.2013. (This is a GIL.) |
| ST 20-0007-GIL |
03/03/2020 |
Retailers' Occupation Tax |
This letter discusses the Retailers' Occupation Tax and Use Tax liability. See 86 Ill. Adm. Code 150.130. (This is a GIL.) |
| ST 20-0008-GIL |
04/21/2020 |
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 20-0009-GIL |
06/09/2020 |
Computer Software |
This letter discusses open source software. 35 ILCS 120/2-25. (This is a GIL.) |
| ST 20-0010-GIL |
06/19/2020 |
Aircraft Use Tax |
This letter concerns the tax liabilities involving the purchase of a homebuilt aircraft kit. See 86 Ill. Adm. Code 152.101. (This is a GIL). |
| ST 20-0011-GIL |
06/24/2020 |
Enterprise Zones |
This letter discusses the enterprise building materials exemption. 86 Ill. Adm. Code 130.1951. (This is a GIL.) |
| ST 20-0012-GIL |
06/24/2020 |
Motor Vehicle |
The sale of a vehicle that has previously been modified to make it usable by a disabled person is subject to Retailers' Occupation Tax liability on the entire selling price of the vehicle at the general merchandise rate (6.25% plus any applicable local tax). See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 20-0013-GIL |
07/27/2020 |
Use Tax |
This letter discusses out-of-state and remote retailers. 86 Ill. Adm. Code 150.803; 35 ILCS 120/2. (This is a GIL) |
| ST 20-0014-GIL |
09/30/2020 |
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 20-0015-GIL |
09/30/2020 |
Food, Drugs, & Medical Appliances |
This letter discusses food products made from industrial hemp. 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 20-0016-GIL |
02/20/2020 |
Gross Receipts |
This letter explains the taxation of transportation and delivery charges applied to deliveries of rock (see 86 Ill. Adm. Code 130.415). This is a GIL. |
| ST 20-0017-GIL |
05/18/2020 |
Miscellaneous |
This letter responds to an annual survey. (This is a GIL.) |
| ST 20-0018-GIL |
09/28/2020 |
Miscellaneous |
This letter responds to an annual survey. (This is a GIL.) |
| ST 20-0019-GIL |
10/02/2020 |
Retailers' Occupation Tax |
This letter discusses purchases of tangible personal property by the federal government that are exempt from use tax pursuant to federal law. 35 ILCS 120/2-5(16). (This is a GIL.) |
| ST 20-0020-GIL |
10/02/2020 |
Hotel Operators' Tax |
This letter discusses the Hotel Operators' Tax Act. See 86 Ill. Adm. Code 480.101. (This is a GIL.) |
| ST 20-0021-GIL |
10/02/2020 |
Enterprise Zones | Sales of tangible personal property to be used or consumed in the operation of pollution control facilities located in an enterprise zone and certified by the Department of Commerce and Economic Opportunity are exempt from the tax imposed by the Retailers' Occupation Tax Act. See 35 ILCS 120/1e. and 1f. (This is a GIL.) |
| ST 20-0022-GIL |
10/02/2020 |
Construction Contractors |
This letter discusses construction contractors. 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL.) |
| ST 20-0023-GIL |
10/01/2020 |
Nexus |
This letter discusses nexus. See South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). See 86 Ill. Adm. Code 150.803. This is a GIL |
| ST 20-0024-GIL |
10/06/2020 |
Sale for Resale |
This letter addresses sales for resale and drop shipments. See 86 Ill. Adm. Code 130.1405 and 86 Ill. Adm. Code 130.225. (This is a GIL.) |
| ST 20-0025-GIL |
10/08/2020 |
Retailers' Occupation Tax | This letter discusses Section 2-5(40) of the Retailers' Occupation Tax Act. 35 ILCS 120/2-5(40). (This is a GIL.) |
| ST 20-0026-GIL |
10/09/2020 |
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 130.2075. (This is a GIL.) |
| ST 20-0027GIL |
10/14/2020 |
Manufacturing Machinery & Equipment |
This letter discusses the manufacturing machinery and equipment exemption and production related tangible personal property. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 20-0028-GIL |
10/20/2020 |
Construction Contractors |
This letter discusses the rules regarding sales of tangible personal property to construction contractors for incorporation into real estate owned by a governmental entity. See 86 Ill. Adm. Code 130.1940, 86 Ill. Adm. Code 130.2075(d). |
| ST 20-0029-GIL |
10/20/2020 |
Nexus |
This letter discusses nexus. See South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018). See 86 Ill. Adm. Code 150.803. This is a GIL |
| ST 20-0030-GIL |
10/06/2020 |
Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code 130.1935(a)(1). (This is a GIL.) |
| ST 20-0031-GIL |
11/09/2020 |
Nexus |
This letter discusses nexus. See South Dakota v. Wayfair, Inc., 138 S. Ct. 2080 (2018); 86 Ill. Adm. Code 150.803. (This is a GIL.) |
| ST 20-0032-GIL |
11/09/2020 |
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 20-0033-GIL |
11/10/2020 |
Medical Appliances |
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 20-0034-GIL |
11/16/2020 |
Leases |
The State of Illinois taxes leases differently for Retailers' Occupation Tax and Use Tax purposes than the majority of other states. 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. The State of Illinois imposes no tax on lease receipts. Consequently, lessees incur no tax liability. See 86 Ill. Adm. Code 130.220. (This is a GIL.) |
| ST 20-0035-GIL |
10/01/2020 |
Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 20-0036-GIL |
12/10/2020 |
Use Tax |
This letter concerns the interim use exemption. See 86 Ill. Adm. Code 150.306. (This is a GIL.) |
| ST 20-0037-GIL |
12/21/2020 |
Sale at Retail |
In general, in cases where leased property is lost or destroyed, if a lessor is not engaged in the business of selling tangible personal property to others for use or consumption and loss of the leased property occurs during the course of the lease agreement, then the lessee's payment of the stipulated loss value of the property on the date of loss, and the conveyance to lessee of all of lessor's right, title, and interest in the leased property, will not subject the transaction to Retailers' Occupation Tax. See 86 Ill. Amd. Code 130.2013(e). (This is a GIL.) |
| ST 20-0038-GIL |
12/28/2020 |
Service Occupation Tax |
This letter discusses the Service Occupation Tax. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 20-0039-GIL |
12/09/2020 |
Governmental Bodies |
Equipment and materials purchased by a contractor in order to fulfill its contract with a unit of government are subject to Illinois Use Tax even if ownership of the equipment is ultimately transferred to the government. (This is a GIL.) |
| ST 20-0040-GIL |
12/10/2020 |
Motor Fuel Tax |
Based on the plain statutory language, distributors are required to include natural gasoline in returns filed with the Department. See 35 ILCS 505/5. (This is a GIL.) |
| ST 20-0041-GIL |
12/10/2020 | Motor Fuel Tax |
A licensed distributor of motor fuel in Illinois may make tax free sales of motor fuel when the sale is made to the federal government or its instrumentalities. See 35 ILCS 505/6 and 86 Ill. Adm. Code 500.210(c). This is a GIL. |
| ST 20-0042-GIL |
12/21/2020 |
Parking Excise Tax |
This letter discusses the Parking Excise Tax. 35 ILCS 525; 86 Ill. Adm. Code 195. (This is a GIL.) |
| ST 20-0043-GIL |
12/29/2020 |
Sale for Resale | This letter discusses the requirements for Certificates of Resale. 86 Ill. Adm. Code 130.1405. (This is a GIL.) |
Private Letter Rulings
| Ruling | Date | Subject | Synopsis |
| ST 20-0001-PLR |
01/28/2020 | 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 PLR). |
| ST 20-0002-PLR |
03/03/2020 |
Sale for Resale |
This letter discusses certificates of resale. See 86 Ill. Adm. Code 130.1405. (This is a PLR.) |
| ST 20-0003-PLR |
06/03/2020 |
Parking Excise Tax |
This letter discusses the taxability of commercial leases under the Parking Excise Tax. 86 Ill. Adm. Code 195.115(f). (This is a PLR.) |
| ST 20-0004-PLR |
06/10/2020 |
Computer Software |
This letter discusses computer software. See 86 Ill. Adm. Code 130.1935. (This is a PLR.) |
| ST 20-0005-PLR |
09/03/2020 |
Machinery and Equipment |
This letter discusses the machinery and equipment exemption. 35 ILCS 120/2-5(14); 86 Ill. Adm. Code 130.330(a). (This is a PLR.) |
| ST 20-0006-PLR |
10/08/2020 | Exempt Organizations |
This letter determines that an educational institution that provides optometry services as part of its curriculum does not incur tax on the transfer of tangible personal property incident to the providing of that service. See generally 86 Ill. Adm. Code 130.2005. (This is a PLR.) |
| ST 20-0007-PLR |
10/27/2020 |
Motor Fuel Tax |
A licensed motor fuel distributor may make tax free sales of motor fuel with respect to which he is otherwise required to collect the motor fuel tax when a sale of dyed diesel fuel is made to someone other than a licensed distributor or a licensed supplier for non-highway purposes and the fuel is delivered from a vehicle designed for the specific purpose of such sales (i) directly into a stationary bulk storage tank that displays the notice required by Section 4f of this Act, or (ii) directly into the fuel supply tanks of non-highway vehicles that are not required to be registered for highway use. See 35 ILCS 505/6(7); 86 Ill. Adm. Code 500.210(g). (This is a PLR.) |
| ST 20-0008-PLR |
12/17/2020 |
Claims for Credit |
A retailer is relieved from liability for any tax that becomes due and payable if the tax is represented by amounts that are found to be worthless or uncollectible, have been charged off as bad debt on the retailer's books and records in accordance with generally accepted accounting principles, and have been claimed as a deduction pursuant to section 166 of the Internal Revenue Code on the income tax return filed by the retailer. See 86 Ill. Adm. Code 130.1960(d) and 35 ILCS 120/6d. (This is a PLR.) |
| ST 20-0009-PLR |
12/10/2020 |
Service Occupation Tax |
Multi-service situations exist where a primary serviceman subcontracts work to a secondary serviceman. See 86 Ill. Adm. Code 140.145. (This is a PLR.) |