| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 99-0432-GIL | 12/30/1999 | Interstate Commerce | When a sale is conducted in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, the gross receipts are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 99-0431-GIL | 12/30/1999 | Pollution Control Faciities | No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335(a) of the Department's rules. (This is a GIL). |
| ST 99-0430-GIL | 12/30/1999 | Sale of Service | The purchase of tangible personal property that is transferred to service customers may result in either Service Occupation Tax liability or Use Tax liability for the servicemen, depending upon which tax base the servicemen choose to calculate their liability. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 99-0429-GIL | 12/30/1999 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0428-GIL | 12/30/1999 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 1940 and 130.2075. (This is a GIL). |
| ST 99-0427-GIL | 12/30/1999 | 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 GIL). |
| ST 99-0426-GIL | 12/30/1999 | Sale of Service | Sellers of personalized business calling cards, letterheads, envelopes, labels, name plates, badges, medallions and the like do not incur Retailers’ Occupation Tax liability on their receipts from such sales because they are engaged in a service occupation in producing or procuring custom-ordered items that have no commercial value to others. If the items produced, however, have intrinsic usefulness and so have commercial value to persons other than the customer, they are subject to Retailers’ Occupation Tax. See 86 Ill. Adm. Code 130.1995. (This is a GIL). |
| ST 99-0425-GIL | 12/30/1999 | Motor Fuel Tax | Under the Motor Fuel Tax Law, a tax is imposed upon the use of motor fuel upon Illinois highways by commercial motor vehicles. 35 ILCS 505/13a (1998 State Bar Edition). Such Motor Fuel Use Tax is not a tax that is collected or withheld by a taxpayer from another person nor is it a tax for which an amount is required to be collected or withheld by a taxpayer from another person. The Motor Fuel Use Tax is directly remitted by taxpayers to the Department. As such, the Motor Fuel Use Tax is not a trust tax. (This is a GIL). |
| ST 99-0424-GIL | 12/30/1999 | Nexus | An out-of-State retailer maintaining a place of business in this State is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0423-GIL | 12/30/1999 | Gross Receipts | The proceeds of mandatory service charges separately stated on customers’ bills for the purchase and consumption of food and beverages purchased at retail from a retailer are exempt from tax to the extent that the proceeds of the service charge are in fact turned over as tips or as a substitute for tips to the employees who participate directly in preparing, serving, hosting or cleaning up the food and beverage function with respect to which the service charge is imposed. See 35 ILCS 120/2-5(15) (1998 State Bar Edition). (This is a GIL). |
| ST 99-0422-GIL | 12/29/1999 | Pollution Control Facilities | No transactions are exempt on the basis of the pollution control exemption unless certifications are obtained as described in 86 Ill. Adm. Code 130.335. (This is a GIL). |
| ST 99-0421-GIL | 12/29/1999 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0420-GIL | 12/29/1999 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0419-GIL | 12/29/1999 | Gross Receipts | In computing Retailers' Occupation Tax liability, 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 99-0418-GIL | 12/29/1999 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0417-GIL | 12/29/1999 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0416-GIL | 12/29/1999 | Gross Receipts | Retailers' Occupation Tax applies to the total selling price of tangible personal property. No deduction from the tax base is allowed for costs of doing business such as labor or service expenses. See 86 Ill. Adm. Code 130.410. (This is a GIL). |
| ST 99-0415-GIL | 12/29/1999 | Interstate Commerce | When a sale is conducted in which the seller is obligated, under the terms of an agreement with the purchaser, to make delivery of the property from a point in this State to a point outside this State, not to be returned to this State, provided that such delivery is actually made, the gross receipts are not subject to tax. See 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 99-0414-GIL | 12/29/1999 | Food | Soft drinks do not include coffee, tea, non-carbonated water, various milk products, drinks containing 50% or more natural fruit or vegetable juice, powdered drink mixes or concentrated and reconstituted fruit juices. See Section 130.310 (b)(5). (This is a GIL). |
| ST 99-0413-GIL | 12/29/1999 | Sale at Resale | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 (1998 State Bar Edition). (This is a GIL). |
| ST 99-0412-GIL | 12/29/1999 | Miscellaneous | Public Act 91-941 changed the thresholds, beginning October 1, 2000, for quarter monthly payments and payments required to be made through the use of electronic funds transfer regarding liabilities under the Use Tax Act, the Retailers Occupation Tax Act, the Service Occupation Tax Act, and the Service Use Tax Act. See P.A. 91-941. (This is a GIL). |
| ST 99-0411-GIL | 12/28/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0410-GIL | 12/28/1999 | Pollution Control Facilities | Illinois does have a pollution control facilities exemption. See 86 Ill. Adm. Code 130.335. (This is a GIL). |
| ST 99-0409-GIL | 12/28/1999 | 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 GIL). |
| ST 99-0408-GIL | 12/28/1999 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0407-GIL | 12/28/1999 | Returns | If a taxpayer that is paying on the gross sales (accrual) basis wishes to change to the gross receipts basis, it must notify Department processing personnel in writing of the proposed change. See 86 Ill. Adm. Code 130.401. (This is a GIL). |
| ST 99-0406-GIL | 12/28/1999 | Food | Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310(b)(1). (This is a GIL). |
| ST 99-0405-GIL | 12/28/1999 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0404-GIL | 12/28/1999 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0403-GIL | 12/28/1999 | Automobile Renting Tax | Effective July 20, 1999, the Automobile Renting Occupation and Use Tax Act excludes from tax any receipts received by an automobile dealer from a manufacturer or service contract provider for reimbursement of that automobile dealer’s cost in providing loaner automobiles. See Public Act 91-0193. (This is a GIL). |
| ST 99-0402-GIL | 12/27/1999 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL). |
| ST 99-0401-GIL | 12/27/1999 | Hotel Operators' Tax | This letter responds to a questionnaire. (This is a GIL). |
| ST 99-0400-GIL | 12/27/1999 | Sale for Resale | Certificates of Resale are valid if they contain the information set forth in 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 99-0399-GIL | 12/23/1999 | Miscellaneous | If a retailer collects more tax from a customer than is due, the overcollection must be returned to that customer. If the overcollection is not returned to the customer, it must be paid to the Department as an overcollection. (This is a GIL.) |
| ST 99-0398-GIL | 12/23/1999 | Temporary Storage | The temporary storage exemption is available for tangible personal property which is “acquired outside this State and which subsequent to being brought into this State and stored here temporarily, is used solely outside this State or is physically attached to or incorporated into other tangible personal property that is used solely outside this State, or is altered by converting, fabricating, manufacturing, printing, processing or shaping, and, as altered, is used solely outside this State.” 86 Ill. Adm. Code 150.310(a)(4). (This is a GIL). |
| ST 99-0397-GIL | 12/23/1999 | Medical Appliances | A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See Section 130.310. (This is a GIL). |
| ST 99-0396-GIL | 12/23/1999 | Service Occupation | 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 GIL). |
| ST 99-0395-GIL | 12/22/1999 | Use Tax | Section 10 of the Use Tax Act, 35 ILCS 105/10 provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return (Form RUT- 25, Motor Vehicle Use Tax Return) with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. (This is a GIL). |
| ST 99-0394-GIL | 12/22/1999 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 99-0393-GIL | 12/21/1999 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed on the act or privilege of originating or receiving intrastate or interstate telecommunications by a person in this State at the rate of 7% of the gross charges purchased at retail from a retailer by such person. (This is a GIL.) |
| ST 99-0392-GIL | 12/21/1999 | Construction Contractors | Persons who permanently affix tangible personal property to real estate, thereby making improvements to real estate, are considered to be construction contractors. In Illinois, construction contractors are deemed to be the users of the items that they permanently affix to realty and owe Use Tax on the cost price of the tangible personal property that they so affix to real estate. See 86 Ill. Adm. Code 130.2075. (This is a GIL). |
| ST 99-0391-GIL | 12/21/1999 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively charitable, religious, or educational receive a tax exemption identification number. Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes, and retailers do not incur Retailers' Occupation Tax on such sales. See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0390-GIL | 12/21/1999 | Medical Appliances | In general, mastectomy products, such as breast prosthetics, may qualify for the lower rate of tax if they are used to substitute for a malfunctioning part of the body. However, breast implants that are merely cosmetic in nature and are not used to substitute for a malfunctioning part of the body do not qualify for the lower rate of tax. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0389-GIL | 12/21/1999 | Electricity Excise Tax | Under the Electricity Excise Tax Law, in conjunction with federal law, the Department may request information it deems necessary before it will grant a certificate of registration. See 35 ILCS 640/2-10 (1998 State Bar Edition). (This is a GIL). |
| ST 99-0388-GIL | 12/21/1999 | Construction Contractors | In Illinois, construction contractors are deemed the end users of tangible personal property that is purchased for incorporation into real property. As end users of such tangible personal property, contractors incur a Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 99-0387-GIL | 12/21/1999 | Nexus | A “retailer maintaining a place of business in Illinois” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0386-GIL | 12/21/1999 | Sale of Service | Persons who transfer tangible personal property incident to providing service under separate maintenance agreements or service contracts are acting as servicemen and incur Use Tax liability based upon their cost price of tangible personal property transferred incident to the completion of the maintenance agreements. See 86 Ill. Adm. Code 140.301(b)(3). (This is a GIL). |
| ST 99-0385-GIL | 12/21/1999 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code 150.201(i) is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0384-GIL | 12/21/1999 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, charitable, or a governmental body receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0383-GIL | 12/21/1999 | Service Occupation Tax | If maintenance agreements are sold separately from tangible personal property, the sale of the agreement is not a taxable transaction. However, when maintenance services or parts are provided under the maintenance agreement, the company providing the maintenance or repair will be acting as a service provider under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 99-0382-GIL | 12/20/1999 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL). |
| ST 99-0381-GIL | 12/10/1999 | Exempt Organizations | In order to qualify as an exclusively charitable organization, the organization must be organized and operated for charitable purposes. |
| ST 99-0380-GIL | 12/03/1999 | Leasing | For purposes of the Illinois sales tax laws, lessors of tangible personal property under true leases are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0379-GIL | 12/02/1999 | Miscellaneous | This letter discusses taxation of sale/leaseback transactions. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 99-0378-GIL | 12/02/1999 | Service Occupation Tax | Sales of service are governed by the provisions of the Service Occupation Tax Act. (See, 35 ILCS 115/1 et seq.). (This is a GIL.) |
| ST 99-0377-GIL | 12/01/1999 | Delivery Charges | Charges for shipping are gross receipts subject to ROT unless they are agreed to separate and apart from the selling price of the items being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 99-0376-GIL | 12/01/1999 | Construction Contractors | Persons who permanently affix tangible personal property to real estate act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 99-0375-GIL | 12/01/1999 | Gross Receipts | The Retailers’ Occupation Tax Act imposes a tax on persons engaged in this State in the business of selling tangible personal property to purchasers for use or consumption and is measured by the seller’s gross receipts from sales made in the course of such business. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 99-0374-GIL | 11/30/1999 | 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 86 Ill. Adm. Code 495. (This is a GIL). |
| ST 99-0373-GIL | 11/30/1999 | Sale at Retail | Retailers' Occupation Tax and Use Tax only apply to situations where tangible personal property is transferred. 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 99-0372-GIL | 11/30/1999 | 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 99-0371-GIL | 11/30/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0370-GIL | 11/30/1999 | Newsprint Ink | Sales of newspapers and magazines are not subject to Retailers' Occupation Tax. See the enclosed copy of 86 Ill. Adm. Code 130.2105. (This is a GIL). |
| ST 99-0369-GIL | 11/30/1999 | Construction Contractors | Construction contractors are deemed end users of tangible personal property purchased for incorporation into real property and incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 99-0368-GIL | 11/30/1999 | Telecommunications Excise Tax | Generally, persons who provide subscribers access to the Internet ("ISPs") and who do not, as part of that service, charge customers for the line or other transmission charges which are used to obtain access to the Internet, are not considered to be telecommunications retailers. See 86 Ill. Adm. Code 495.100. (This is a GIL). |
| ST 99-0367-GIL | 11/30/1999 | Rolling Stock | Retailers' Occupation Tax does not apply to sales of tangible personal property to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 99-0366-GIL | 11/30/1999 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident of their sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 99-0365-GIL | 11/29/1999 | Electricity Excise Tax | “Demand charges” are generally part of the purchaser’s “purchase price” for electricity or electric service that is used for calculating the purchaser’s Electricity Excise Tax liability on purchases from municipal systems. See 35 ILCS 640/2-4(b). (This is a GIL.) |
| ST 99-0364-GIL | 11/29/1999 | Nexus | This letter sets out the guidelines concerning different types of retailers in order to determine whether the retailer should collect Illinois Use Tax. See, 86 Ill. Adm. Code 150.201. (This is a GIL.) |
| ST 99-0363-GIL | 11/29/1999 | Computer Software | If transactions for the licensing of computer software, including canned software, meet all of the criteria provided in Section 130.1935(a)(1), 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 99-0362-GIL | 11/29/1999 | Food | Tax shall be imposed at the rate of 1% on food prepared for immediate consumption and transferred incident to a sale of service subject to the Service Occupation Tax Act or the Service Use Tax Act by an entity licensed under the Hospital Licensing Act or the Nursing Home Care Act. See 35 ILCS 115/3-10 (1998 State Bar Edition). (This is a GIL). |
| ST 99-0361-GIL | 11/29/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0360-GIL | 11/29/1999 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive exemption identification numbers (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0359-GIL | 11/29/1999 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 99-0358-GIL | 11/29/1999 | Cigarette Tax | No stamp or imprint may be affixed to, or made upon, any package of cigarettes unless that package complies with all requirements of the federal Cigarette Labeling and Advertising Act, 15 U.S.C. 1331 and following, for the placement of labels, warnings, or any other information upon a package of cigarettes that is sold within the United States. See 35 ILCS 130/3. (This is a GIL). |
| ST 99-0357-GIL | 11/29/1999 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0356-GIL | 11/24/1999 | Miscellaneous | Sales that do not involve the transfer of tangible personal property are not subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 99-0355-GIL | 11/24/1999 | Sale for Resale | Certificates of Resale must contain the information set forth in 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 99-0354-GIL | 11/23/1999 | Pollution Control Facilities | Equipment whose primary purpose is to confer an economic benefit does not qualify for the pollution control facilities exemption. See the enclosed copy of 86 Ill. Adm. Code 130.335. (This is a GIL). |
| ST 99-0353-GIL | 11/22/1999 | Prepaid Sales Tax | Section 2d of the Retailers' Occupation Tax Act requires persons engaged in the business of selling motor fuel at retail to prepay a portion of the Retailers' Occupation Tax to his distributor or supplier. See, 86 Ill. Adm. Code 130.551. (This is a GIL.) |
| ST 99-0352-GIL | 11/18/1999 | Nexus | Determinations regarding nexus are very fact specific and cannot be addressed the context of a General Information Letter. See generally the enclosed copy of 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 99-0351-GIL | 11/12/1999 | Nexus | A “retailer maintaining a place of business in Illinois,” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0350-GIL | 11/12/1999 | Local Taxes | For the purpose of determining the local governmental unit whose tax is applicable, a retail sale, by a producer of coal or other mineral mined in Illinois, is a sale at retail at the place where the coal or other mineral mined in Illinois is extracted from the earth. 86 Ill Adm. Code 270.115(g)(1). (This is a GIL). |
| ST 99-0349-GIL | 11/10/1999 | Hotel Operators' Tax | Counties are given the authority to impose a County Hotel Operators’ Occupation Tax. See 55 ILCS 5/5-1030. (This is a GIL). |
| ST 99-0348-GIL | 11/10/1999 | Medical Appliances | A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0347-GIL | 11/10/1999 | Tax Collection | Section 3 of the Retailers’ Occupation Tax Act, 35 ILCS 120/3, grants the Department discretion to make collection of Retailers' Occupation Tax upon demand of concessionaires at special exhibitions. The statute does not mandate that the Department collect the tax in this way at all events, but provides for discretionary authority to collect the tax when it is determined that there is a significant risk of loss of revenue to the State of Illinois. In cases where the Department does not collect tax at an event, merchants should file their returns as usual. (This is a GIL). |
| ST 99-0346-GIL | 11/10/1999 | Nexus | An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL). |
| ST 99-0345-GIL | 11/09/1999 | 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 GIL). |
| ST 99-0344-GIL | 11/09/1999 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, charitable, or a governmental body receive an exemption identification number (an "E" number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0343-GIL | 11/09/1999 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0342-GIL | 11/09/1999 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of the property to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0341GIL | 11/09/1999 | Medical Appliances | Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower rate of 1%. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0340-GIL | 11/09/1999 | Nexus | A “retailer maintaining a place of business in Illinois,” as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0339-GIL | 11/09/1999 | Cigarette Tax | The amount of cigarette tax imposed by the Act shall be separately stated, apart from the price of the goods, by both distributors and retailers, in all advertisements, bills and sales invoices. See 86 Ill. Adm. Code 440.10(h). (This is a GIL). |
| ST 99-0338-GIL | 11/09/1999 | Construction Contractors | Construction contractors incur Retailers' Occupation Tax liability when they engage in selling of tangible personal property to purchasers without permanently affixing the tangible personal property to real estate. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 99-0337-GIL | 11/08/1999 | Trade-Ins | 86 Ill. Adm. Code 130.445(d) states that advanced trade-in credits are not transferable. (This is a GIL). |
| ST 99-0336-GIL | 11/08/1999 | Food, Drugs and Medical Appliances | 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(c)(1). (This is a GIL). |
| ST 99-0335-GIL | 11/08/1999 | Miscellaneous | This letter describes the requirements for Certificates of Resale and for farm machinery and equipment exemption certificates. See 86 Ill. Adm. Code 130.1405 and 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 99-0334-GIL | 11/08/1999 | Computer Software | The application of the Retailers’ Occupation Tax to sales of computer software is set forth at 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0333-GIL | 11/08/1999 | Graphic Arts Machinery and Equipment | P.A.–941 amended the definition of graphic arts machinery and equipment to mean “…printing, including ink jet printing, by one or more of the processes described in Groups 323110 through 323110…Groups 511110 through 511199…and Group 512230…of the North American Industry Classification System…” (This is a GIL). |
| ST 99-0332-GIL | 11/08/1999 | Use Tax | Under the Use Tax Act, a tax is imposed upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL). |
| ST 99-0331-GIL | 11/08/1999 | Leasing | In Illinois, lessors of tangible personal property under a true lease, except for automobiles leased for terms of one year or less, are considered to be the end users of the property to be leased. As the end users of tangible personal property located in Illinois, lessors incur Use Tax on the lessors' cost price of the property. See 86 Ill. Adm. Code 130.220 and 130.2010. (This is a GIL). |
| ST 99-0330-GIL | 11/08/1999 | Food | Generally, if vitamins or dietary supplements are intended by the manufacturer for human use and purport on the label to have medicinal qualities, such vitamins or dietary supplements are considered to be drugs and are taxed at the low rate of tax. However, since not many vitamins or dietary supplements are likely to have medicinal claims, the vitamins may be considered to be a food. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0329-GIL | 11/08/1999 | Vehicle Use Tax | Under the Illinois Vehicle Code, a flat tax rate of $15 is imposed for each motor vehicle acquired in a transaction when a motor vehicle which has once been subjected to the Retailers’ Occupation Tax or Use Tax is transferred in connection with the organization, reorganization, dissolution, or partial liquidation of an incorporated or unincorporated business wherein the beneficial ownership is not changed. See 625 ILCS 5/3-1001. (This is a GIL). |
| ST 99-0328-GIL | 11/08/1999 | Miscellaneous | The Telecommunications Municipal Infrastructure Maintenance Fee Act provides that the term “telecommunications” does not include the purchase of telecommunications by a telecommunications service provider for use as a component part of the service provided by him or her to the ultimate retail consumer who originates or terminates the end-to-end communications. See 35 ILCS 635/10(b). (This is a GIL). |
| ST 99-0327-GIL | 11/04/1999 | Gross Receipts | Handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL). |
| ST 99-0326-GIL | 11/03/1999 | Newsprint and Ink | Sales of newspapers and magazines are not subject to sales tax in Illinois. See 86 Ill. Adm. Code 130.2105. (This is a GIL.) |
| ST 99-0325-GIL | 10/25/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0324-GIL | 10/25/1999 | 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 99-0323-GIL | 10/22/1999 | 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 99-0322-GIL | 10/21/1999 | 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. 35 ILCS 630/3 (1996 State Bar Edition). (This is a GIL). |
| ST 99-0321-GIL | 10/20/1999 | Medical Appliances | A medical appliance is defined as an item that is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0320-GIL | 10/20/1999 | Telecommunications Excise Tax | Retailers that purchase telecommunications units from telephone service providers and sell them at retail to their customers present situations similar to hotels who sell telecommunications services. See 86 Ill. Adm. Code 495.100. (This is a GIL). |
| ST 99-0319-GIL | 10/19/1999 | Nexus | When an out-of-State mail order company has any representative in Illinois performing a function that aids or enhances the mail order sales, then the company has nexus and is required to register as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.201(i) and 150. 801(c). (This is a GIL). |
| ST 99-0318-GIL | 10/18/1999 | Construction Contractors | Under Illinois law, persons who take tangible personal property and permanently affix it to real estate in Illinois act as construction contractors and incur Use Tax liability on their cost price of tangible personal property they physically incorporate into realty. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 99-0317-GIL | 10/18/1999 | 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 99-0316-GIL | 10/18/1999 | Food, Drugs and Medical Appliances | 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 99-0315-GIL | 10/18/1999 | Manufacturer's Purchase Credit | Purchasers of manufacturing machinery and equipment that qualifies for the manufacturing machinery and equipment exemption earn a credit in an amount equal to a fixed percentage of the tax which would have been incurred under the Use Tax or Service Use Tax. 35 ILCS 105/3-85; 35 ILCS 110/3-70. (This is a GIL). |
| ST 99-0314-GIL | 10/18/1999 | Nexus | A “retailer maintaining a place of business in Illinois,” defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0313-GIL | 10/18/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0312-GIL | 10/18/1999 | Hotel Operators' Tax | The only exemptions available to hotel operators are for rentals to permanent residents and to certain diplomatic personnel. Permanent residents are persons who occupy or have the right to occupy such rooms for at least thirty consecutive days. See 86 Ill. Adm. Code 480.101(a)(1). (This is a GIL). |
| ST 99-0311-GIL | 10/13/1999 | Construction Contractors | In Illinois, construction contractors are deemed end users of tangible personal property purchased for incorporation into real property. As end users of such tangible personal property, contractors incur Use Tax liability for such purchases based upon the cost price of the tangible personal property. See 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL). |
| ST 99-0310-GIL | 10/13/1999 | Liquor Tax | The Liquor Control Act of 1934 ("Act") imposes a tax upon the privilege of engaging in business as a manufacturer or as an importing distributor of alcoholic liquor. See 235 ILCS 5/8-1 et seq. (1996 State Bar Edition). (This is a GIL). |
| ST 99-0309-GIL | 10/12/1999 | Sale for Resale | Illinois Retailers’ Occupation and Use Taxes do not apply to the sale of tangible personal property for purposes of resale in any form as tangible personal property. See 86 Ill. Adm. Code 130.120(c). (This is a GIL). |
| ST 99-0308-GIL | 10/12/1999 | Food, Drugs and Medical Appliances | 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 99-0307-GIL | 10/12/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0306-GIL | 10/12/1999 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to be exclusively religious, educational, or charitable, receive an exemption identification number (an “E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0305-GIL | 10/07/1999 | Use Tax | Section 10 of the Use Tax Act, 35 ILCS 105/10 (1996 State Bar Edition), provides that a purchaser of a motor vehicle from an out-of-State retailer shall file a return (Form RUT-25, Motor Vehicle Use Tax Return) with the Department and remit the proper amount of tax due on the selling price of the motor vehicle within 30 days after such motor vehicle is brought into this State for use. Illinois will give a credit for taxes properly due and paid in another state. See 86 Ill. Adm. Code 150.310. (This is a GIL). |
| ST 99-0304-GIL | 10/06/1999 | Manufacturer's Purchase Credit | The State of Illinois provides a manufacturer's purchase credit in addition to the exemption for manufacturing machinery and equipment. See 86 Ill. Adm. Code 130.331. (This is a GIL). |
| ST 99-0303-GIL | 10/06/1999 | Telecommunications Excise Tax | This letter describes the application of Telecommunications Excise Tax and Telecommunications Municipal Infrastructure Maintenance Fees to prepaid phone cards. See 86 Ill. Adm. Code 495.110. (This is a GIL). |
| ST 99-0301-GIL | 09/30/1999 | Miscellaneous | This letter discusses taxation of electronic commerce transactions. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 99-0300-GIL | 09/30/1999 | Manufacturing Machinery and Equipment | Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0299-GIL | 09/30/1999 | 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 99-0298-GIL | 09/30/1999 | Temporary Storage | Temporary storage is not applicable in transactions where there is Retailers’ Occupation Tax liability because the exemption is limited to situations where the only liability that can be involved is Use Tax. See 86 Ill. Adm. Code 150.310. (This is a GIL). |
| ST 99-0297-GIL | 09/29/1999 | Food, Drugs and Medical Appliances | 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 99-0296-GIL | 09/29/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0295-GIL | 09/29/1999 | Medical Appliances | A medical appliance is defined as an item that 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 99-0294-GIL | 09/27/1999 | Food, Drugs, and Medical Appliances | 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 99-0293-GIL | 09/27/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0292-GIL | 09/27/1999 | Rolling Stock | The Retailers’ Occupation Tax Act provides an exemption for tangible personal property sold to interstate carriers for hire for use as rolling stock moving in interstate commerce or to lessors of such interstate carriers. See 35 ILCS 120/2-5(12) and (13) (1996 State Bar Edition). (This is a GIL). |
| ST 99-0291-GIL | 09/27/1999 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption is available for machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0290-GIL | 09/24/1999 | Food, Drugs, and Medical Appliances | 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 99-0289-GIL | 09/24/1999 | Food, Drugs, and Medical Appliances | 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 99-0288-GIL | 09/24/1999 | Food | Food is defined as any solid, liquid, powder or item intended by the seller primarily for human internal consumption, whether simple, compound or mixed, including foods such as condiments, spices, seasonings, vitamins, bottled water and ice. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0287-GIL | 09/24/1999 | Governmental Bodies | Pursuant to 86 Ill. Adm. Code 130.2080 sales of tangible personal property made to governmental bodies (Federal, State, local, or foreign) are not subject to Retailers' Occupation Tax. (This is a GIL). |
| ST 99-0286-GIL | 09/23/1999 | Exempt Organizations | Organizations that qualify as exclusively religious, charitable, or educational can apply to the Illinois Department of Revenue to obtain tax exemption identification (an "E" number) numbers. These numbers establish that the Department recognizes said organizations as exempt from incurring Use Tax when purchasing tangible personal property in furtherance of their organizational purposes. See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0285-GIL | 09/22/1999 | 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 130.220. (This is a GIL). |
| ST 99-0284-GIL | 09/22/1999 | Bulk Sales | Special procedures exist for the successor to minimize exposure from the predecessor. These procedures are described in subparts (a)(4) and (b) of 86 Ill. Adm. Code 130.1701. The notice of sale/purchase of business assets must be reported to the Department on Form NUC-542A no later than 10 days after the sale or transfer. (This is a GIL). |
| ST 99-0283-GIL | 09/22/1999 | Gross Receipts | Gross receipts are defined as all the consideration actually received by the seller, except traded-in tangible personal property. See 86 Ill. Adm. Code 130.425. (This is a GIL). |
| ST 99-0282-GIL | 09/21/1999 | Rolling Stock | The Retailers' Occupation Tax Act provides an exemption for tangible personal property sold to interstate carriers for hire for use as rolling stock moving in interstate commerce or to lessors of such interstate carriers. See 35 ILCS 120/2-5(12) and (13) (1996 State Bar Edition). (This is a GIL). |
| ST 99-0281-GIL | 09/17/1999 | Gross Receipts | As a technical proposition, handling charges represent a retailer’s cost of doing business, and are consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code 130.410. (This is a GIL). |
| ST 99-0280-GIL | 09/17/1999 | Farm Machinery and Equipment | Even though sales may be at retail, the Illinois Retailers’ Occupation Tax does not apply to sales of machinery and equipment used primarily in production agriculture or in State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 99-0279-GIL | 09/17/1999 | Farm Machinery and Equipment | Consumable supplies do not qualify for exemption on the basis of the Farm Machinery & Equipment exemption. See 86 Ill. Adm. Code 130.305(k). (This is a GIL). |
| ST 99-0278-GIL | 09/17/1999 | Manufacturer's Purchase Credit | The Manufacturer's Purchase Credit may be used to satisfy Use Tax or Service Use Tax liability incurred on the purchase of qualifying production related tangible personal property. See 86 Ill. Admin. Code 130.331. (This is a GIL). |
| ST 99-0277-GIL | 09/15/1999 | Leasing | The State of Illinois taxes leases differently for Retailers' Occupation Tax and Use Tax purposes than the majority of other states. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0276-GIL | 09/13/1999 | Leasing | The State of Illinois taxes leases differently for Retailers' Occupation Tax and Use Tax purposes than the majority of other states. See Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0275-GIL | 09/09/1999 | Computer Software | Illinois law imposes Retailers' Occupation Tax (sales tax) upon persons who sell computer software at retail. Computer software means a set of statements, data, or instructions to be used directly or indirectly in a computer in order to bring about a certain result in any form in which those statements, data, or instructions may be embodied, transmitted, or fixed, by any method now known or hereafter developed, regardless of whether the statements, data, or instructions are capable of being perceived by or communicated to humans, and includes prewritten or canned software that is held for repeated sale or lease, and all associated documentation and materials, if any, whether contained on magnetic tapes, discs, cards, or other devices or media (35 ILCS 120/2-25). (This is a GIL). |
| ST 99-0274-GIL | 09/07/1999 | Bingo | The Bingo License and Tax Act (“Act”) (230 ILCS 25/1 et seq.) requires that any bona fide religious, charitable, labor, fraternal, youth athletic, senior citizen, educational, or veterans’ organization organized in Illinois be licensed in order to conduct bingo games. (This is a GIL). |
| ST 99-0273-GIL | 09/07/1999 | Sale for Resale | Generally, hotels in Illinois incur a Use Tax liability upon items of tangible personal property, such as toiletries, they purchase for the purpose of supplying to guests, whether these items are automatically placed into the guest rooms or are available at the front desk or lobby area. (See 35 ILCS 105/1 et seq.) (This is a GIL). |
| ST 99-0272-GIL | 09/07/1999 | Hotel Operators' Tax | The Hotel Operators' Occupation Tax Act imposes a tax upon persons engaged in the business of renting, leasing or letting rooms in a hotel. See 86 Ill. Adm. Code 480.101. (This is a GIL). |
| ST 99-0271-GIL | 09/03/1999 | Use Tax | The Use Tax Act, 35 ILCS 105/1 et seq., imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. (This is a GIL). |
| ST 99-0270-GIL | 09/03/1999 | Farm Machinery and Equipment | Gross receipts from proceeds from the sale of semen used for artificial insemination of livestock for direct agricultural production are exempt from taxation. 35 ILCS 120/2-5(26) (1996 State Bar Edition). (This is a GIL). |
| ST 99-0269-GIL | 09/02/1999 | Medical Appliances | Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower rate of 1%. See the enclosed copy of 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0268-GIL | 09/01/1999 | Farm Machinery and Equipment | This letter rescinds part of letter ruling, ST 90-0414, concerning whether ear tags used to identify livestock can qualify for the Farm Machinery & Equipment Exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 99-0267-GIL | 09/01/1999 | Farm Machinery and Equipment | This letter describes some of the items that qualify for the Farm Machinery & Equipment Exemption . See Ill. Adm. Code 130.305. (This is a GIL). |
| ST 99-0266-GIL | 09/01/1999 | Penalties | Penalties can only be abated by the Director on recommendation from the Board of Appeals. (This is a GIL.) |
| ST 99-0265-GIL | 08/31/1999 | Public Utility Taxes | The Illinois Department of Revenue does not administer the tax on electricity set forth in the Illinois Municipal Code, 65 ILCS 5/8-11-2. (This is a GIL). |
| ST 99-0264-GIL | 08/30/1999 | Delivery Charges | Charges for shipping are gross receipts subject to ROT when they are part of the selling price of the tangible personal property being sold. See, 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 99-0263-GIL | 08/27/1999 | Telecommunications Excise Tax | Sellers that purchase telecommunications units from telephone service providers and sell them at retail to their customers are required to collect the Illinois Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.110. (This is a GIL). |
| ST 99-0262-GIL | 08/26/1999 | Construction Contractors | The specific tax liability of modular or manufactured home dealers depends upon whether they act as retailers or construction contractors in their transactions. See 86 Ill. Adm. Code 130.2075. (This is a GIL). |
| ST 99-0261-GIL | 08/26/1999 | Leasing | In determining whether agreements with fixed purchase options are conditional sales or true leases, the Department would look to see if the agreement also contained language that guaranteed that the equipment was sold at the end of the term. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 99-0260-GIL | 08/25/1999 | Local Taxes | The most important element of selling is the seller's acceptance of the purchase order. Consequently, if a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. Please see 86 Ill. Adm. Code 270.115 (This is a GIL). |
| ST 99-0259-GIL | 08/10/1999 | Pollution Control Facilities | In general, air and water treatment equipment can qualify for the pollution control exemption so long as their primary purpose is treating or disposing of pollutants in the air or water which if remaining in the air or water without such treatment or disposal, would be offensive to human, plant, or animal life or to property. See the enclosed copy of 86 Ill. Adm. Code 130.335. (This is a GIL). |
| ST 99-0258-GIL | 08/03/1999 | Manufacturing Machinery & Equipment | Machinery and equipment used primarily (over 50% of the time) in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease are exempt from Retailers' Occupation Tax. Supplies, such as consumables, do not qualify for the manufacturing machinery and equipment exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL.) |
| ST 99-0257-GIL | 08/03/1999 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal property transferred as an incident to sales of service. See the enclosed copy of 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 99-0256-GIL | 08/02/1999 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.) |
| ST 99-0255-GIL | 08/02/1999 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL.) |
| ST 99-0254-GIL | 07/30/1999 | Sale For Resale | A Certificate of Resale must contain the items of information set out in 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 99-0253-GIL | 07/30/1999 | Nexus | A "retailer maintaining a place of business in Illinois" as defined in 86 Ill. Adm. Code 150.201(i), is required to register with the State as an Illinois Use Tax collector. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 99-0252-GIL | 07/30/1999 | Interstate Commerce | A sale is taxable even though a purchaser that receives physical possession of the property in this State, transports or sends the property out of this State for use outside the State or for use in the conduct of interstate commerce. See 86 Ill. Adm. Code 130.605(a)(2). (This is a GIL). |
| ST 99-0251-GIL | 07/30/1999 | Vehicle Use Tax | The Vehicle Use Tax is imposed on the privilege of using, in this State, any motor vehicle as defined in Section 1-146 of the Code acquired by gift, transfer, or purchase. 625 ILCS 5/3-1001 (1996 State Bar Edition). (This is a GIL.) |
| ST 99-0250-GIL | 07/29/1999 | Food | Food that is to be consumed off the premises where it is sold (other than alcoholic beverages, soft drinks, and food which has been prepared for immediate consumption), and prescription and non-prescription medicines, drugs, and various medical appliances are taxed at the State rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 99-0249-GIL | 07/29/1999 | Hotel Operators' Tax | The Hotel Operators' Occupation Tax Act does not include any provision for the exemption of exclusively religious, charitable, or educational organizations, or for governments or their agencies. See 86 Ill. Adm. Code 480.101. (This is a GIL). |
| ST 99-0248-GIL | 07/29/1999 | Oil Field Equipment | Chemicals used in a water injection system do not qualify for the oil field exploration, drilling, and production equipment exemption. See 86 Ill. Adm. Code 130.345. (This is a GIL). |
| ST 99-0247-GIL | 07/29/1999 | Local Taxes | If a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will be incurred. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 99-0246-GIL | 07/29/1999 | Manufacturing Machinery and Equipment | Asphalt manufacturing equipment does not qualify for the Manufacturing Machinery and Equipment Exemption unless that machinery and equipment is used primarily (over 50 percent of the time) in the manufacturing of asphalt for wholesale or retail sale. Asphalt manufacturing equipment used to manufacture asphalt which the owner primarily will use to satisfy his own obligations under a construction contract does not qualify for the exemption. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0245-GIL | 07/29/1999 | Sale For Resale | This letter sets forth how a standard drop-shipment transaction is treated in Illinois for Retailers’ Occupation Tax and Use Tax purposes. See 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 99-0244-GIL | 07/27/1999 | Food, Drugs & Medical Appliances | Generally, if vitamins or dietary supplements are intended by the manufacturer for human use and purport on the label to have medicinal qualities, such vitamins or dietary supplements are considered to be drugs and are taxed at the low rate of tax. However, since not many vitamins or dietary supplements are likely to have medicinal claims, the vitamins may be |
| ST 99-0243-GIL | 07/26/1999 | Pollution Control Facilities | Air cleaners may qualify for the pollution control exemption if their primary purpose is to eliminate, prevent or reduce air pollution. See Section 130.335. (This is a GIL.) |
| ST 99-0242-GIL | 07/26/1999 | Telecommunications Excise Tax | "Gross charges" means the amount paid for the act or privilege of originating or receiving telecommunications in this State and for all services and equipment provided in connection therewith by a retailer, valued in money whether paid in money or otherwise, including cash, credits, services and property of every kind or nature, and shall be determined without any deduction on account of the cost of such telecommunications, the cost of materials used, labor or service costs or any other expense whatsoever. See 86 Ill. Adm. Code 495.100. (This is a GIL). |
| ST 99-0241-GIL | 07/26/1999 | Trade-Ins | 86 Ill. Adm. Code 130.445(d) states that advanced trade-in credits are not transferable. (This is a GIL). |
| ST 99-0240-GIL | 07/26/1999 | Manufacturing Machinery & Equipment | Gloves do not qualify for the Manufacturing Machinery and Equipment Exemption.. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0239-GIL | 07/26/1999 | 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 of tangible personal property by a governmental unit in the performance of its governmental function. See 86 Ill. Adm. Code 130.2055. (This is a GIL). |
| ST 99-0238-GIL | 07/26/1999 | Leasing | This letter answers a number of questions concerning the taxation of different lease charges and fees. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 99-0237-GIL | 07/26/1999 | Public Utility Taxes | This letter discusses issues regarding Gas Revenue Tax and Electricity Excise Tax. See 86 Ill. Adm. Code 470.101. (This is a GIL). |
| ST 99-0236-GIL | 07/26/1999 | Service Occupation Tax | If tangible personal property is transferred incident to a sale of service, this will result in either Service Occupation Tax liability or Use Tax liability for the serviceman. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 99-0235-GIL | 07/23/1999 | Gross Receipts | Any payment on the purchase price of an item being sold must be reported as gross receipts for Illinois sales tax purposes when the item that is being sold has been identified to a contract under the standards set forth in Section 2-501 of the Uniform Commercial Code, 810 ILCS 5/2-501 (1996 State Bar Edition). See 86 Ill. Adm. Code 130.430. (This is a GIL). |
| ST 99-0234-GIL | 07/23/1999 | Returns | In the case of any retailer who ceases to engage in a kind of business which makes him responsible for filing Illinois sales tax returns, such retailer shall file a final return pursuant to 86 Ill. Adm. Code 130.520. (This is a GIL). |
| ST 99-0233-GIL | 07/23/1999 | Rolling Stock Exemption | The Retailers’ Occupation Tax does not apply to sales of tangible personal to interstate carriers for hire for use as rolling stock moving in interstate commerce or lessors under leases of one year or longer executed or in effect at the time of purchase to interstate carriers for hire for use as rolling stock moving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 99-0232-GIL | 07/22/1999 | Use Tax | The Use Tax is a privilege tax imposed on the privilege of using, in this State, any kind of tangible personal property that is purchased anywhere at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL). |
| ST 99-0231-GIL | 07/22/1999 | Returns | The Department may approve taxpayers' use of certain computer-generated returns. (This is a GIL). |
| ST 99-0230-GIL | 07/22/1999 | Electricity Excise Tax | The Electricity Excise Tax Law, effective August 1, 1998, imposes a tax upon the privilege of using in this State electricity purchased for use or consumption and not for resale, other than by municipal corporations owning and operating a local transportation system for public service. See 35 ILCS 640/1 et seq. (This is a GIL). |
| ST 99-0229-GIL | 07/21/1999 | Cigarette Tax | Under the Cigarette Tax Act, it is unlawful for any person to engage in the business as a distributor of cigarettes in this State without first having obtained a license or permit from the Department. Except when the applicant is the manufacturer, no distributor’s license shall be issued to an applicant unless he presents the Department with satisfactory proof in writing that he will be able to buy cigarettes directly from at least 3 major cigarette manufacturers. See 86 Ill. Adm. Code 440.50. (This is a GIL). |
| ST 99-0228-GIL | 07/21/1999 | Cigarette Tax | Under the Cigarette Tax Act, it is unlawful for any person to engage in the business as a distributor of cigarettes in this State without first having obtained a license or permit from the Department. Except when the applicant is the manufacturer, no distributor’s license shall be issued to an applicant unless he presents the Department with satisfactory proof in writing that he will be able to buy cigarettes directly from at least 3 major cigarette manufacturers. See 86 Ill. Adm. Code 440.50. (This is a GIL). |
| ST 99-0227-GIL | 07/14/1999 | Telecommunications Excise Tax | The Telecommunications Excise Tax Act imposes a tax on the act or privilege of originating or receiving intrastate or interstate telecommunications by persons in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers by such persons, 35 ILCS 630/3 and 4. (This is a GIL.) |
| ST 99-0226-GIL | 07/14/1999 | Miscellaneous | This letter responds to a questionnaire. (This is a GIL). |
| ST 99-0225-GIL | 07/14/1999 | Nexus | An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL). |
| ST 99-0224-GIL | 07/14/1999 | Nexus | An Illinois retailer is one who either accepts purchase orders in the State of Illinois or maintains an inventory in Illinois and fills Illinois orders from that inventory. The Illinois retailer is liable for Retailers' Occupation Tax on gross receipts from sales and must collect the corresponding Use Tax incurred by purchasers. (This is a GIL). |
| ST 99-0223-GIL | 07/13/1999 | Miscellaneous | This letter responds to an annual survey. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 99-0222-GIL | 07/13/1999 | 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 99-0221-GIL | 07/13/1999 | Use Tax | The Use Tax Act imposes a tax upon the privilege of using in this State tangible personal property purchased at retail from a retailer. See 35 ILCS 105/3 (1996 State Bar Edition) (This is a GIL). |
| ST 99-0220-GIL | 07/13/1999 | Telecommunications Excise Tax | Retailers that purchase telecommunications units from telephone service providers and sell them at retail to their customers present situations similar to hotels who sell telecommunications services. See Section 495.100 (This is a GIL). |
| ST 99-0219-GIL | 07/13/1999 | 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 GIL). |
| ST 99-0218-GIL | 07/13/1999 | Delivery Charges | In general, shipping and handling or delivery charges are includable in the gross receipts subject to tax unless the buyer and seller agree upon such charges separately from the selling price of the tangible personal property which is sold. In addition, such charges must be reflective of the costs of shipping and delivery. To the extent that these charges exceed the costs of shipping, they are subject to tax. See 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 99-0217-GIL | 07/13/1999 | Construction Contractors | Construction contractors that make improvements to real estate by taking materials off the market and permanently affixing them to real estate owe Use Tax on the cost price of those materials. See 86 Ill. Adm. Code 130.2075. (This is a GIL). |
| ST 99-0216-GIL | 07/13/1999 | Manufacturing Machinery and Equipment | This letter discusses application of the manufacturing machinery and equipment exemption to CAD/CAM systems. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 99-0215-GIL | 07/13/1999 | Exempt Organizations | Organizations that have secured tax exemption identification numbers from the Department are exempt from Use Tax when purchasing tangible personal property for use in furtherance of organizational purposes, and retailers do not incur Retailers' Occupation Tax on such sales. It is important to note that only sales of tangible personal property invoiced to and paid by the organization itself are exempt, and sales to individual members of the organization are taxable. See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 99-0214-GIL | 07/13/1999 | Gross Receipts | An itemized “into-plane” fee for pumping aviation fuel into aircraft is deductible from gross receipts if it is part of a delivery charge that is agreed to separate and apart from the selling price of the fuel. See 86 Ill. Adm. Code 130.415. (This is a GIL). |
| ST 99-0213-GIL | 07/13/1999 | Tax Increment Financing | The Department does not enforce violations of the Tax Increment Allocation Redevelopment Act. (This is a GIL). |
| ST 99-0212-GIL | 07/13/1999 | 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 99-0211-GIL | 07/12/1999 | Use Tax | A credit for Use Tax is provided for tangible personal property that is acquired outside this State and caused to be brought into this State by a person who has already paid a tax in another State in respect to the sale, purchase, or use of that property, to the extent of the amount of the tax properly due and paid in the other State See the enclosed copy of 86 Ill. Adm. Code 150.310. (This is a GIL). |