| Ruling | Date | Subject | Synopsis |
|---|---|---|---|
| ST 00-0297-GIL | 12/22/2000 | 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, or any other cost of doing business. See 86 Ill. Adm. Code 130.410. (This is a GIL). |
| ST 00-0296-GIL | 12/21/2000 | Manufacturing Machinery and Equipment | Machinery or equipment used to transport work in progress, or semifinished goods, between plants does not qualify for the manufacturing machinery and equipment exemption.. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 00-0295-GIL | 12/20/2000 | Construction Contractors | Construction contractors who 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 00-0294-GIL | 12/15/2000 | Telecommunications Excise Tax | Charges for automated information retrieval or data processing are not taxable under the Telecommunications Excise Tax. See 86 Ill. Adm. Code 495.100(c). (This is a GIL). |
| ST 00-0293-GIL | 12/15/2000 | 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 00-0292-GIL | 12/15/2000 | Sale for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL). |
| ST 00-0291-GIL | 12/14/2000 | Miscellneous | Manufacturers, importers and wholesalers may enter into agency agreements with the Department, whereby they register, file returns and remit sales tax on behalf of retailers selling their products. See 86 Ill. Adm. Code Section 130.550. (This is a GIL). |
| ST 00-0290-GIL | 12/14/2000 | 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 00-0289-GIL | 12/14/2000 | Construction Contractors | A person who permanently affixes building materials to real estate is deemed to be a construction contractor. In Illinois, construction contractors are deemed to be the end users of the tangible personal property they permanently affix to real estate and incur Use Tax liability based on the cost price of the building materials so purchased. (This is a GIL.) |
| ST 00-0288-GIL | 12/14/2000 | Sale for Resale | Retailers' Occupation Tax applies to the receipts of sales to persons who engage in the business of selling steam to purchasers for use or consumption and not for resale. 86 Ill. Adm. Code 130.2156(a). (This is a GIL.) |
| ST 00-0287-GIL | 12/13/2000 | Exempt Organizations | This letter discusses the applicability of the Vehicle Use Tax, 625 ILCS 5/3-1001, to Federal Credit Unions under 12 U.S.C. 1768. (This is a GIL). |
| ST 00-0286-GIL | 12/12/2000 | Sale of Service | If a charge is being made only for the transmission of electronic information, apart from a charge for canned computer software, no tangible personal property is being transferred and no Illinois sales tax or service tax would be incurred. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0285-GIL | 12/12/2000 | Local Taxes | The Department looks to Section 270.115 as guidance in determining the situs of the retail purposes. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 00-0284-GIL | 12/11/2000 | Construction Contractors | Under Illinois law, persons who affix tangible personal property to real estate in Illinois act as construction contractors and incur Use Tax liability on their cost price of that tangible personal property. 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.) |
| ST 00-0283-GIL | 12/11/2000 | Gross Receipts | A caterer's charges for wait staff, equipment rental, linen and delivery are to be included in his gross receipts and are fully taxable. These are costs of doing business, which are never deductible from gross receipts when calculating Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.410. (This is a GIL). |
| ST 00-0282-GIL | 12/07/2000 | Food, Drugs and Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL). |
| ST 00-0281-GIL | 12/07/2000 | Use Tax | The Use Tax Act imposes a tax upon the privilege of using in this State tangible personal property purchased anywhere at retail from a retailer. See 86 Ill. Adm. Code 150.101. (This is a GIL). |
| ST 00-0280-GIL | 12/07/2000 | Rolling Stock Exemption | Motor vehicles, as defined in Section 1-146 of the Illinois Vehicle Code, trailers, as defined in Section 1-209 of the Illinois Vehicle Code, and all property purchased for the purpose of being attached to those motor vehicles or trailers as a part thereof, will qualify for the Rolling Stock Exemption if they carry persons or property for hire in interstate commerce on 15 or more occasions in a 12- month period. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 00-0279-GIL | 12/06/2000 | Manufacturing Machinery and Equipment | This letter describes how the Manufacturing Machinery and Equipment Exemption and Manufacturer’s Purchase Credit applies in regards to ready-mix concrete batch plants and ready-mix concrete trucks. See 86 Ill. Adm. Code 130.330 and 130.331. (This is a GIL). |
| ST 00-0278-GIL | 12/06/2000 | Computer Software | The sale of canned software to Illinois users is considered to be the taxable sale of tangible personal property regardless of the form in which it is transferred or transmitted, including tape, disc, card, electronic means or other media. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0277-GIL | 12/06/2000 | Leasing | 86 Ill. Adm. Code Section 130.2010(a), sets out the factors to be considered in determining whether a transaction is a lease or a conditional sales contract for purposes of the Retailers' Occupation Tax Act. (This is a GIL.) |
| ST 00-0276-GIL | 12/06/2000 | Miscellaneous | The Department authorizes wholesalers whose products are sold at retail by numerous distributors to assume responsibility for accounting and paying to the Department all tax accruing under the Retailers' Occupation Tax with respect to such sales. See, 86 Ill. Adm. Code 130.550 (this is a GIL). |
| ST 00-0275-GIL | 12/05/2000 | Use Tax | Out-of-State sellers who fall under the definition of a "retailer maintaining a place of business in this State" must register to collect Illinois Use Tax from Illinois customers and remit that tax to the Department. See 86 Ill. Adm. Code Sec. 150.201(i) and 150.801(c). (This is a GIL). |
| ST 00-0274-GIL | Voided | Voided | |
| ST 00-0273-GIL | Voided | Voided | |
| ST 00-0272-GIL | 12/05/2000 | Sale for Resale | The information required to be contained on a Certificate of Resale is set out at 86 Ill. Adm. Code 130.1405(b). (This is a GIL.) |
| ST 00-0271-GIL | 11/30/2000 | Miscellaneous | This letter discusses sales tax on various electro-optical distribution exchange services. See 35 ILCS 120/1 et seq. (This is a GIL.) |
| ST 00-0270-GIL | 11/29/2000 | Delivery Charges | 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 00-0269-GIL | 11/29/2000 | 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 00-0268-GIL | 11/29/2000 | Delivery Charges | Whether shipping or freight charges may be deducted by retailers in calculating Retailers' Occupation Tax liability depends not upon the separate billing of such freight or delivery charges but upon whether the charges are included in the selling prices of the property or are contracted for separately by purchasers and retailers. See 86 Ill. Adm. Code 130.450. (This is a GIL.) |
| ST 00-0267-GIL | 11/28/2000 | Rolling Stock Exemption | 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) (1998 State Bar Edition). (This is a GIL.) |
| ST 00-0266-GIL | 11/28/2000 | Sale for Resale | Illinois law requires a Certificate of Resale to contain the information set out in 86 Ill. Adm. Code 130.1405(b). (This is a GIL.) |
| ST 00-0265-GIL | 11/28/2000 | Construction Contractors | Contractors who physically incorporate tangible personal property into real estate owned by holders of “E” numbers can purchase such property tax-free by providing their suppliers with the certification described in Section 130.2075(d)(4), as well as the “E” number of the group into whose real estate that property will be incorporated. (This is a GIL.) |
| ST 00-0264-GIL | 11/27/2000 | Computer Software | If transactions for the licensing of computer software meet all of the criteria provided in 86 Ill. Adm. Code Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL.) |
| ST 00-0263-GIL | 11/27/2000 | Medical Appliances | Medicines and medical appliances are not taxed at the normal rate of 6.25%. These items are taxed at a lower State rate of 1% plus the applicable local tax rate. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 00-0262-GIL | 11/27/2000 | Computer Software | If transactions for the licensing of computer software meet all of the criteria provided in Section 130.1935(a)(1), neither the transfer of the software or the subsequent software updates will be subject to Retailers’ Occupation Tax. (This is a GIL.) |
| ST 00-0261-GIL | 11/27/2000 | Construction Contractor | 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. 86 Ill. Adm. Code 130.1940 and 130.2075. (This is a GIL.) |
| ST 00-0260-GIL | 11/21/2000 | Computer Software | Generally, sales of “canned” computer software are taxable retail sales in Illinois. However, if the computer software consists of custom computer programs, then the sales of such software may not be taxable retail sales. See 86 Ill. Adm. Code 130.1935(c). (This is a GIL.) |
| ST 00-0259-GIL | 11/21/2000 | Manufacturer's Purchase Credit | The State of Illinois provides a manufacturer’s purchase credit in addition to the exemption for manufacturing machinery and equipment. 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 00-0258-GIL | 11/21/2000 | Miscellaneous | This letter answers whether a list of items is subject to sales/use tax in Illinois. (This is a GIL.) |
| ST 00-0257-GIL | 11/21/2000 | Manufacturing Machinery and Equipment | The Retailers' Occupation Tax does not apply to sales of machinery and equipment used primarily 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 00-0256-GIL | 11/21/2000 | Sale of Service | The sale of service that is accompanied by the incidental transfer of tangible personal property would be subject to liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 00-0255-GIL | 11/21/2000 | Manufacturing Machniery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery and equipment exemption extends to machinery and equipment that is 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 00-0254-GIL | 11/21/2000 | Miscellaneous | All information received by the Department from returns filed under the Retailers’ Occupation Tax Act, or from any investigation conducted under the Act, shall be confidential, except for official purposes. See 35 ILCS 120/11. (This is a GIL.) |
| ST 00-0253-GIL | 11/20/2000 | Rolling Stock Exemption | Effective August 14, 1999, motor vehicles, trailers, and property attached to those motor vehicles and trailers must carry persons or property for hire in interstate commerce on 15 or more occasions within a 12-month period to qualify for the Rolling Stock Exemption. See 86 Ill. Adm. Code 130.340. (This is a GIL.) |
| ST 00-0252-GIL | 11/16/2000 | Construction Contractors | Construction contractors who physically incorporate tangible personal property into real estate owned by exempt organizations, such as governmental bodies, that hold tax exempt “E” numbers, can purchase such tangible personal property tax-free by providing their suppliers with the certification described in Section 130.2075(d), as well as the “E” number of the group into whose real estate that property will be incorporated. (This is a GIL.) |
| ST 00-0251-GIL | 11/15/2000 | Exempt Organizations | Sales to exempt organizations of tangible personal property required to be registered with an agency of this State may be made tax exempt even if a member of the organization is listed along with the exempt organization on the application for title. See 86 Ill. Adm. Code 130.2005 and 130.2007. This letter rescinds General Information Letter ST 96-0040. (This is a GIL.) |
| ST 00-0250-GIL | 11/14/2000 | Computer Software | Sales of canned computer software are subject to Retailers' Occupation Tax. See, Section 130.1935. (This is a GIL.) |
| ST 00-0249-GIL | 11/08/2000 | Cigarette Tax | Under the Cigarette Tax Act, it is unlawful for any person to sell or distribute in this State any cigarettes the package of which bears any statement, label, stamp, sticker, or notice indicating that the manufacturer did not intend the cigarettes to be sold, distributed, or used in the United States, including but not limited to labels stating "For Export Only", "U.S. Tax Exempt", "For Use Outside U.S.", or similar wording. See 86 Ill. Adm. Code 440.50. (This is a GIL.) |
| ST 00-0248-GIL | 11/08/2000 | Use ax | The cost of the fabrication labor on pipes, as well as the cost of the pipes would be included in the Use Tax base of a construction contractor permanently installing custom-made piping as part of a construction contract. See 35 ILCS 105/3-10. (This is a GIL.) |
| ST 00-0247-GIL | 11/08/2000 | Sale for Resale | To be valid in Illinois a Certificate of Resale must contain the items of information listed in 86 Ill. Adm. Code 130.1405(b) (This is a GIL.) |
| ST 00-0246-GIL | 11/08/2000 | 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 00-0245-GIL | 11/06/2000 | Medical Appliance | A Dental Crown would qualify as a medical appliance because it substitutes for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310. (This is a GIL.) |
| ST 00-0244-GIL | 10/05/2000 | Service Occupation Tax | Unregistered de minimis servicemen must either pay Use Tax to their suppliers or self-assess and remit Use Tax to the Department when making purchases from unregistered out-of-State suppliers. See 86 Ill. Adm. Code 140.101(f). (This is a GIL). |
| ST 00-0243-GIL | 10/31/2000 | Exempt Organizations | Organizations that make application to the Department and are determined to be exclusively religious, educational, or charitable receive an exemption identification number. Organizations that have exemption identification numbers are allowed to engage in a very limited amount of retail selling without incurring Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.2005. (This is a GIL). |
| ST 00-0242-GIL | 10/31/2000 | Sale at Retail | Persons who sell signs that have commercial value (i. e., value to persons other than the purchasers thereof) incur Retailers’ Occupation Tax (sales tax) liability when making such sales, even if such signs are produced on special order for the purchaser. See 86 Ill. Adm. Code 130.2155. (This is a GIL). |
| ST 00-0241-GIL | 10/30/2000 | Agents | An auctioneer acting on behalf of an unknown or undisclosed principal is responsible for Retailers’ Occupation Tax on the gross receipts from the sale. However, if the auctioneer is acting on behalf of a known or disclosed principal, the sale of tangible personal property is taxable to the principal and not the auctioneer if the principal is a retailer of the tangible personal property being sold at the auction. See 86 Ill. Adm. Code 130.1915. (This is a GIL). |
| ST 00-0240-GIL | 10/30/2000 | Certificate of Registration | The Department’s regulations at 86 Ill. Adm. Code 700.340 provide that “[t]he term willful means a voluntary, conscious and intentional act on the part of the officer or employee. (This is a GIL). |
| ST 00-0239-GIL | 10/27/2000 | Motor Fuel Tax | This letter distinguishes retailers of motor fuel from distributors, receivers, and suppliers. See 35 ILCS 505/1 et seq. and 86 Ill. Adm. Code Part 500. (This is a GIL). |
| ST 00-0238-GIL | 10/26/2000 | Telecommunications Excise Tax | The Telecommunications Excise Tax Act, found at 35 ILCS 630/1 et seq., imposes a tax upon the act or privilege of originating or receiving in the State of Illinois interstate telecommunications by a person in Illinois at the rate of 7% of the gross charge for such telecommunications purchased at retail from a retailer by such person. See, 35 ILCS 630/4. (This is a GIL). |
| ST 00-0237-GIL | 10/26/2000 | Delivery Charges | Mail order delivery charges are considered separately agreed upon service charges so long as the mail order form requires a separate charge for delivery and so long as the charges designated as transportation or delivery, or shipping and handling, charges are actually reflective of the costs of such shipping, transportation or delivery. See 86 Ill. Adm. Code 130.415(d). (This is a GIL). |
| ST 00-0236-GIL | 10/26/2000 | Food | A dietary supplement could classify as a food taxed at the reduced rate of tax if it is not considered sold for immediate or on-site consumption after application of the criteria detailed in 86 Ill. Adm. Code 130.310. See 86 Ill. Adm. Code 130.310 (This is a GIL). |
| ST 00-0235-GIL | 10/26/2000 | Sale at Retail | Used tires allegedly given away with only charges for labor in removing the used tires from the wheels of salvaged vehicles are considered sales at retail. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 00-0234-GIL | 10/26/2000 | Miscellaneous | The Department has no statutory authority to waive the mandatory Electronic Funds Transfer requirements contained in Section 3 of the Retailers' Occupation Tax Act. See 35 ILCS 120/3. (This is a GIL). |
| ST 00-0233-GIL | 10/26/2000 | 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 00-0232-GIL | 10/26/2000 | Sale for Resale | The sale of tangible personal property for the purpose of resale is not taxable so long as the purchaser provides the seller with a Certificate of Resale in accordance with 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 00-0231-GIL | 10/25/2000 | Exempt Organizations | Organizations that are exclusively religious, educational, or charitable can make application to the Department for exemption identification numbers required to make tax-free purchases of tangible personal property for use or consumption. See 86 Ill. Adm. Code 130.2005. (This is a GIL). |
| ST 00-0230-GIL | 10/25/2000 | Products of Photoprocessing | In transactions in which products of photoprocessing are sold in conjunction with other services, if a charge for the photoprocessing component is not separately stated, tax is imposed on 50% of the entire selling price unless the sale is made by a professional photographer, in which case tax shall be imposed on 10% of the entire selling price of the products of photoprocessing. See 86 Ill. Adm. Code 130.2000. (This is a GIL). |
| ST 00-0229-GIL | 10/24/2000 | 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. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 00-0228-GIL | 10/20/2000 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege of originating or receiving intrastate or interstate telecommunications in Illinois at the rate of 7% of the gross charges for such telecommunications purchased at retail from retailers. See 35 ILCS 630/3 and 630/4. (This is a GIL). |
| ST 00-0227-GIL | 10/19/2000 | 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 00-0226-GIL | 10/19/2000 | Certificate of Registration | Section 2a of the Retailers’ Occupation Tax Act, 35 ILCS 120/2a, provides that the application for a certificate of registration be signed and verified and include the name and social security number of the applicant. 86 Ill. Adm. Code 130.701. (This is a GIL). |
| ST 00-0225-GIL | 10/19/2000 | 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. 35 ILCS 105/3. See 86 Ill. Adm. Code 150.101. (This is a GIL). |
| ST 00-0224-GIL | 10/19/2000 | Miscellaneous | The Department has no statutory authority to waive the mandatory Electronic Funds Transfer requirements contained in Section 3 of the Retailers' Occupation Tax Act. See 35 ILCS 120/3. (This is a GIL). |
| ST 00-0223-GIL | 10/19/2000 | Motor Fuel | Heating oil that is not delivered directly into the fuel supply tanks of motor vehicles does not qualify for the reduced rate of sales tax on motor fuel. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 00-0222-GIL | 10/19/2000 | Sale at Retail | When persons sell seeds to purchasers who will sow the seeds to raise prairie grasses that they will use and not resell, such vendors are engaged in the business of selling tangible personal property for use or consumption and are required to remit ROT on such sales. See 86 Ill. Adm. Code 130.2110. (This is a GIL). |
| ST 00-0221-GIL | 10/19/2000 | Manufacturing Machinery and Equipment | The Manufacturing Machinery and Equipment Exemption is not available for machinery or equipment used by retailers at retail locations for preparing individual orders to an individual retail customer’s specifications because such operations are not commonly regarded as manufacturing. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 00-0220-GIL | 10/18/2000 | Gross Receipts | When an item of tangible personal property is sold at retail and includes a core charge, the full retail selling price of the item, including the core charge, is subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.425. (This is a GIL). |
| ST 00-0219-GIL | 10/18/2000 | 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 (“E” number) and are also allowed to engage in a very limited amount of retail selling without incurring Retailers’ Occupation Tax liability. See 86 Ill. Adm. Code 130.2005. (This is a GIL). |
| ST 00-0218-GIL | 10/18/2000 | Sale for Resale | This letters discusses issues regarding when printers of carded packaging may provide their suppliers with Certificates of Resale for purchases of tangible personal property that they will transfer to customers. See 86 Ill. Adm. Code 130.2070, 86 Ill. Adm. Code 130.2000 and 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0217-GIL | 10/18/2000 | Nexus | This letter outlines the principles of nexus and discusses applicability of local sales taxes. See 86 Ill. Adm. Code 270.115. (This is a GIL). |
| ST 00-0216-GIL | 10/18/2000 | Sale of Service | Sales of services that are accompanied with the transfer of tangible personal property is subject to liability under the Service Occupation Tax Act. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0215-GIL | 10/17/2000 | Local Taxes | In general, the imposition of the various local sales taxes in Illinois takes effect when “selling” occurs in a jurisdiction imposing a tax. See 86 Ill. Adm. Code 270.115(b). (This is a GIL). |
| ST 00-0214-GIL | 10/16/2000 | Construction Contractors | Contractors that make improvements to real estate by taking materials off the market and permanently affixing them to real estate in Illinois owe Use Tax on the cost price of those materials. See 86 Ill. Adm. Code 130.1940. (This is a GIL). |
| ST 00-0213-GIL | 10/11/2000 | Claims for Credit | If a customer provides an Exemption or Resale Certificate after a sale where tax was paid, the seller may file a claim for credit with the Department. See 86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 00-0212-GIL | 10/05/2000 | Temporary Storage | Temporary storage is not applicable to 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. 86 Ill. Adm. Code 150.310. (This is a GIL) |
| ST 00-0211-GIL | 10/05/2000 | Enterprise Zones | The enterprise zone building materials exemption allows retailers located in the municipality or unincorporated area of a county that established an enterprise zone to make tax-free sales of building materials that will be incorporated into real estate located in the enterprise zone. See 86 Ill. Adm. Code 130.1951. (This is a GIL). |
| ST 00-0210-GIL | 10/05/2000 | Computer Software | Retailers' Occupation Tax is imposed upon persons selling canned computer software at retail. See 35 ILCS 120/2. (This is a GIL). |
| ST 00-0209-GIL | 10/05/2000 | Leasing | Lease agreements that contain purchase options that are equal to the fair market value of the tangible personal property at the end of the lease term are considered true leases, and the lessors incur Use Tax liability on their cost price of tangible personal property purchased for rental purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 00-0208-GIL | 10/05/2000 | Miscellaneous | A legal settlement is not generally considered a transfer or sale of tangible personal property in this State and would not be subject to either Retailers' Occupation Tax or Use Tax liability. See 35 ILCS 120/2. (This is a GIL). |
| ST 00-0207-GIL | 10/05/2000 | Gross Receipts | When an item of tangible personal property is sold at retail and includes a core fee, the full retail selling price of the item, including the core fee, is subject to Retailers' Occupation Tax liability. See 86 Ill. Adm. Code 130.401 and 130.425. (This is a GIL). |
| ST 00-0206-GIL | 10/04/2000 | Computer Software | Custom computer programs prepared to the special order of the customer are not subject to tax under the Retailers’ Occupation Tax, Use Tax, Service Occupation Tax or Service Use Tax where certain elements are present. 86 Ill. Adm. Code 130.1935(c) (This is a GIL) |
| ST 00-0205-GIL | 10/04/2000 | Federal Excise Tax | Federal taxes are deductible from gross receipts for purposes of calculating Retailers’ Occupation Tax (sales tax) when the seller is required by federal law to collect such taxes from his customers and to remit such taxes directly to the federal government. Please refer to 86 Ill. Adm. Code 130.445. (This is a GIL). |
| ST 00-0204-GIL | 10/03/2000 | Cigarette Tax | It is the duty of each distributor to collect the tax from the retailer at or before the time of the sale, to affix the required stamps and to remit the tax collected from retailers to the Department. See 86 Ill. Adm. Code 440.10. (This is a GIL). |
| ST 00-0203-GIL | 09/18/2000 | Telecommunications Excise Tax | Gross charges subject to Telecommunications Excise Tax liability do not include charges paid by inserting coins in coin-operated telecommunication devices. See 35 ILCS 630/2(a)(8). (This is a GIL). |
| ST 00-0202-GIL | 09/12/2000 | 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 00-0201-GIL | 09/11/2000 | 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 00-0200-GIL | 09/11/2000 | Miscellaneous | This letter responds to survey related to sales of computer software. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0199-GIL | 09/11/2000 | Use Tax | In general, retailers are required to show Use Tax collected as a separate item on invoices issued to customers. See 86 Ill. Adm. Code 150.401. (This is a GIL). |
| ST 00-0198-GIL | 09/11/2000 | Farm Machinery and Equipment | Taxpayers who use GATORS and MULES in a qualifying manner may claim the farm machinery and equipment exemption. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 00-0197-GIL | 09/11/2000 | Miscellaneous | While water is not subject to Retailers’ Occupation Tax when sold by a water company through a series of continuous mains to customers, (see 86 Ill. Adm. Code 130.2055, enclosed) gross receipts from retail sales “over-the-counter” of water are subject to tax. (This is a GIL). |
| ST 00-0196-GIL | 09/11/2000 | 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 00-0195-GIL | 09/05/2000 | Manufacturing Machinery and Equipment | Machinery and equipment that are used primarily in the manufacturing or assembling of tangible personal property for wholesale or retail sale or lease is exempt from Retailers' Occupation Tax. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 00-0194-GIL | 09/01/2000 | Farm Machinery and Equipment | Repair or replacement parts, necessary for the operation of the machine used in production agriculture or in State or Federal agricultural programs, qualify for the farm machinery and equipment exemption. See, 86 Ill. Adm. Code 130.305(l). (This is a GIL). |
| ST 00-0193-GIL | 08/31/2000 | Use Tax | Retailers shall state the Use Tax, whenever possible and practicable, as a distinct and separate item apart from the selling price of the tangible personal property. See 86 Ill. Adm. Code 150.401. (This is a GIL). |
| ST 00-0192-GIL | 08/30/2000 | Use Tax | Section 3 of the Illinois Use Tax Act, 35 ILCS 105/3, 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 00-0191-GIL | 08/29/2000 | Claim for Credit | Only persons who have actually paid taxes to the Department can file claims for credit. See 86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 00-0190-GIL | 08/29/2000 | Automobile Renting Tax | Persons engaged in the business of renting automobiles in Illinois under least terms of one year or less are subject to the Automobile Renting Occupation and Use Tax. See 86 Ill. Adm. Code Section 180.101. (This is a GIL) |
| ST 00-0189-GIL | 08/29/2000 | 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 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0188-GIL | 08/28/2000 | Electricity Excise Tax | Sales to the Federal Government are not taxable under the Electricity Excise Tax Law by virtue of the Supremacy Clause of the United States Constitution. See 35 ILCS 640/2-4. (This is a GIL). |
| ST 00-0187-GIL | 08/28/2000 | Food, Drugs & Medical Appliances | A natural dietary supplement could classify as a food taxed at the low rate of tax if it is not sold for immediate or on-site consumption. It could also classify as a drug taxed at the lower rate if the dietary supplement purports to have medicinal qualities. See 86 Ill. Adm. Code Section 130.310. (This is a GIL). |
| ST 00-0186-GIL | 08/28/2000 | Service Occupation Tax | Service Occupation Tax liability is incurred when tangible personal property is transferred incident to sales of service. See, 86 Ill. Adm. Code 140.101. (This is a GIL.) |
| ST 00-0185-GIL | 08/28/2000 | Pollution Control Facilities | Air purification equipment can qualify as a pollution control facility if its primary purpose is to treat and reduce air pollutants. The seller of pollution control equipment must obtain a signed statement from the purchaser certifying the equipment will be used as a pollution control facility in order for the seller to be relieved of the duty to collect and remit tax on the sale. See 86 Ill. Adm. Code Section 130.335(a) (This is a GIL). |
| ST 00-0184-GIL | 08/28/2000 | Sale for Resale | Nonreusable tangible personal property sold to food and beverage vendors, including persons engaged in the business of operating restaurants, cafeterias or drive-ins, is a sale for resale when it is transferred to customers in the ordinary course of business as part of the sale of food or beverages and is used to deliver, package, or consume food or beverages, regardless of where consumption of the food or beverage occurs. See 86 Ill. Adm. Code Section 130.2070. (This is a GIL). |
| ST 00-0183-GIL | 08/28/2000 | Repairs | This letter discusses the taxability of maintenance agreements. See 86 Ill. Adm. Code 140.301. (This is a GIL). |
| ST 00-0182-GIL | 08/28/2000 | Motor Fuel Tax | Section 13 of the Motor Fuel Tax Law, 35 ILCS 505/13 (1998 State Bar Edition), provides, in part, that no claim based upon the use of undyed diesel fuel shall be allowed except for undyed diesel fuel used by a commercial vehicle, as that term is defined in Section 1-111.8 of the Illinois Vehicle Code, for any purpose other than operating the commercial vehicle upon the public highways and unlicensed commercial vehicles operating on private property. See 86 Ill. Adm. Code 500.235. (This is a GIL). |
| ST 00-0181-GIL | 08/28/2000 | Graphic Arts | Under P.A. 91-541, digital printing equipment can qualify for the Graphic Arts Machinery and Equipment exemption from sales tax. (This is a GIL). |
| ST 00-0180-GIL | 08/28/2000 | Construction Contractors | This letter discusses taxation of sellers/installers of wall-to-wall carpeting. See 86 Ill. Adm. Code 130.1940 and 86 Ill. Adm. Code 130.2075. (This is a GIL). |
| ST 00-0179-GIL | 08/25/2000 | Gross Receipts | Federal taxes are not deductible from gross receipts for purposes of computing sales tax when the incidence of the tax falls upon the manufacturer, wholesaler, or importer. See 86 Ill. Adm. Code 130.445. (This is a GIL). |
| ST 00-0178-GIL | 08/25/2000 | Computer Software | This letter discusses taxation of installation and travel charges related to the installation of computer equipment. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0177-GIL | 08/25/2000 | Enterprise Zones | This letter discusses whether Combustion Turbine Generators ("CTGs") can qualify as building materials for purposes of the enterprise zone building materials exemption from sales tax. See 86 Ill. Adm. Code 130.1951. (This is a GIL). |
| ST 00-0176-GIL | 08/25/2000 | 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 00-0175-GIL | 08/25/2000 | Gross Receipts | A caterer's charges for wait staff, equipment rental, linen and delivery are includable in his gross receipts and are fully taxable. These are simply costs of doing business, which are never deductible from gross receipts. (This is a GIL)(See 86 Ill. Adm. Code 130.410). |
| ST 00-0174-GIL | 08/25/2000 | Miscellaneous | This letter describes the issuance of Private Letter Rulings. See, 2 Ill. Adm. Code 1200.110. (This is a GIL.) |
| ST 00-0173-GIL | 08/24/2000 | Computer Software | In Illinois, the transfer of canned computer software is subject to Retailers' Occupation Tax and Use Tax, regardless of the form in which it is transferred or transmitted. See, 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 00-0172-GIL | 08/24/2000 | Returns | Manufacturers, importers and wholesalers may enter into agency agreements with the Department, whereby they register, file returns and remit sales tax on behalf of retailers selling their products. See, 86 Ill. Adm. Code Section 130.550 (This is a GIL). |
| ST 00-0171-GIL | 08/22/2000 | Computer Software | Sales of canned computer software are taxable retail sales. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0170-GIL | 08/21/2000 | Occasional Sale | When persons sell tangible personal property which they are not otherwise engaged in the business of selling, such transactions may be occasional sales not subject to ROT. See 86 Ill. Adm. Code 130.110. (This is a GIL.) |
| ST 00-0169-GIL | 08/18/2000 | Miscellaneous | This letter responds to a request for tax publications. (This is a GIL). |
| ST 00-0168-GIL | 08/16/2000 | Farm Machinery and Equipment | Even though sales may be at retail, the Illinois Retailers' Occupation Tax does not apply to farm machinery and equipment, both new and used, including that manufactured on special order, certified by the purchaser to be used primarily in production agriculture or State or federal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 00-0167-GIL | 08/16/2000 | Newsprint & Ink | Gross receipts from the sales of magazines are not subject to sales tax. See 86 Ill. Adm. Code 130.2105(a)(2). (This is a GIL.) |
| ST 00-0166-GIL | 08/10/2000 | Miscellaneous | Public Act 91-541 became effective on August 13, 1999 and changed the threshold requirements for mandatory payments by use of electronic funds transfer (EFT) and mandatory quarter monthly payments for Retailers' Occupation Tax and related liabilities. See Public Act 91-541 and 35 ILCS 120/3. (This is a GIL). |
| ST 00-0165-GIL | 08/10/2000 | Sale at Retail | Public Act 91-0872, effective July 1, 2000, amended the Retailers' Occupation Tax Act by providing that, beginning on July 1, 2000 and through December 31, 2000, the Retailers' Occupation Tax imposed upon motor fuel and gasohol is at the rate of 1.25%. See 86 Ill. Adm. Code 130.101 (Emergency). (This is a GIL). |
| ST 00-0164-GIL | 08/09/2000 | Medical Appliances | A medical appliance is defined as an item which is intended by its manufacturer for use in directly substituting for a malfunctioning part of the body. See 86 Ill. Adm. Code 130.310(c). (This is a GIL.) |
| ST 00-0163-GIL | 08/08/2000 | Electricity Excise Tax | This letter discusses application of the Electricity Excise Tax to municipal corporations owning and operating a local transportation system for public use. See, 35 ILCS 640/2-4. (This is a GIL.) |
| ST 00-0162-GIL | 08/08/2000 | Computer Software | The taxation of software is discussed in regulations found at 86 Ill. Adm. Code 130.1935. (This is a GIL.) |
| ST 00-0161-GIL | 08/04/2000 | 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 00-0160-GIL | 08/02/2000 | Miscellaneous | Illinois enacted the Tobacco Product Manufacturers’ Escrow Act (Public Act 91-0041), effective June 30, 1999. (This is a GIL). |
| ST 00-0159-GIL | 07/31/2000 | Claims for Credit | This letter describes the Department’s current proposed amendments to its rules regarding bad debts in relation to sales of motor vehicles. See 86 Ill. Adm. Code 130.1960. (This is a GIL). |
| ST 00-0158-GIL | 07/28/2000 | Delivery Charges | Shipping and handling charges separately contracted for and not included in the selling price are not considered in the computation of the sales tax liability. Mail order shipping and handling charges are separately agreed upon service charges so long as the mail order form requires a separate charge for the shipping and handling charges and the charges are reflective of the actual cost of the shipping and handling. See 86 Ill. Admin. Code 130.415. (This is a GIL). |
| ST 00-0157-GIL | 07/27/2000 | 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 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0156-GIL | 07/27/2000 | Construction Contractors | This letter discusses the tax liability incurred by companies that place towers and grids on buildings for communications purposes. (See, 86 Ill. Adm. Code 130.2075)(This is a GIL.) |
| ST 00-0155-GIL | 07/26/2000 | Construction Contractors | Contractors, as defined in 86 Ill. Adm. Code 130.1940, who make improvements to real estate by taking tangible personal property off the market and permanently affixing it to real estate owe Use Tax on the cost price of such tangible personal property. (This is a GIL). |
| ST 00-0154-GIL | 07/26/2000 | Telecommunications Excise Tax | This letter discusses the taxability of “incentive credits” under the Telecommunications Excise Tax Act. 35 ILCS 630/1 et seq. (This is a GIL). |
| ST 00-0153-GIL | 07/24/2000 | Miscellaneous | This letter responds to an annual survey. See 86 Ill. Adm. Code 130.101. (This is a GIL). |
| ST 00-0152-GIL | 07/20/2000 | Manufacturer's Purchase Credit | Manufacturer's Purchase Credit is non-transferable and may not be used to satisfy the tax liability of any taxpayer other than the manufacturer that earned the credit. See Section 130.331(b)(2) and 35 ILCS 105/3-85. (This is a GIL). |
| ST 00-0151-GIL | 07/20/2000 | Telecommunications Excise Tax | Under the Telecommunications Excise Tax Act, gross charges do not include charges for customer equipment, including such equipment that is leased or rented by the customer from any source, wherein such charges are disaggregated and separately identified from other charges. See 86 Ill. Adm. Code 495.100. (This is a GIL). |
| ST 00-0150-GIL | 07/20/2000 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax at the rate of 6.25% upon persons engaged in the business of selling at retail tangible personal property. 35 ILCS 120/2 and 2-10 (1998 State Bar Edition). (This is a GIL). |
| ST 00-0149-GIL | 07/20/2000 | Certificate of Registration | Businesses are required to obtain certificates of registration from theDepartment in order to lawfully sell tangible personal property at retail inthis State. See 35 ILCS 120/2a. (This is a GIL). |
| ST 00-0148-GIL | 07/19/2000 | Returns | This letter rescinds a prior General Information Letter written on July 17,2000 and describes the procedure for reporting deductions relating torefunds of tax given to customers for returned merchandise. See 86 Ill.Adm. Code 130.401. (This is a GIL). |
| ST 00-0147-GIL | 07/19/2000 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege oforiginating or receiving intrastate or interstate telecommunications inIllinois at the rate of 7% of the gross charges for such telecommunicationspurchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is aGIL). |
| ST 00-0146-GIL | 07/18/2000 | Motor Fuel Tax | Persons operating diesel powered recreational-type watercraft upon thewaters of this State must use undyed (“clear”) diesel fuel for all suchoperations and pay the Motor Fuel Tax. 35 ILCS 505/2. (This is a GIL). |
| ST 00-0145-GIL | 07/17/2000 | Telecommunications Excise Tax | Determinations regarding nexus are very fact specific and cannot beaddressed in the context of a General Information Letter. See 86 Ill.Adm. Code 495.110. (This is a GIL). |
| ST 00-0144-GIL | 07/17/2000 | Nexus | Determinations regarding nexus are very fact specific and cannot beaddressed in the context of a General Information Letter. See 86 Ill.Adm. Code 495.110. (This is a GIL). |
| ST 00-0143-GIL | 07/17/2000 | Claims for Credit | Section 6 of the Retailers' Occupation Tax Act provides a credit, withoutfiling a formal claim with the Department, against a retailer’s taxliability to the extent that the retailer paid an amount equivalent toretailers' occupation tax or has paid use tax in error to his or her vendoror vendors of tangible personal property purchased for resale. See 35ILCS 120/6. See 86 Ill. Adm. Code 130. (This is a GIL). |
| ST 00-0142-GIL | 07/17/2000 | Use Tax | This letter describes how Use Tax in incurred on explosives used by a companythat provides a “shot service.” See 86 Ill. Adm. Code 150.101. (This isa GIL). |
| ST 00-0141-GIL | 07/17/2000 | Service Occupation Tax | Tangible personal property transferred incident to sales of service, thiswill result in either Service Occupation Tax liability or Use Tax liabilityfor the servicemen. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0140 GIL | 07/17/2000 | C.O.A.D. | In Illinois, if a machine qualifies as a coin-operated amusement device or aredemption machine, its operation does not violate the Criminal Code so longas it is licensed and operated in compliance with the Coin-OperatedAmusement Device and Redemption Machine Tax Act. See 35 ILCS 510. (Thisis a GIL). |
| ST 00-0139-GIL | 07/17/2000 | Service Occupation Tax | If tangible personal property is transferred incident to sales of service,this will result in either Service Occupation Tax liability or Use Taxliability for the servicemen depending upon which tax base the servicemenchoose to calculate their tax liability.. See 86 Ill. Adm. Code 140.101.(This is a GIL). |
| ST 00-0138-GIL | 07/17/2000 | Returns | This letter describes the procedure for claiming credit for refunds of taxto customers. See 35 ILCS 120/6a. (This is a GIL). |
| ST 00-0137-GIL | 07/17/2000 | Enterprise Zones | The Retailers' Occupation Tax Act provides, in part, that all tangiblepersonal property to be used or consumed within an enterprise zone in theprocess of the manufacturing or assembly of tangible personal property forwholesale or retail sale or lease if used or consumed at a facility which isa Department of Commerce and Community Affairs certified business andlocated in a county of more than 4,000 persons and less than 45,000 personsis exempt from the Retailers' Occupation Tax. See 86 Ill. Adm. Code130.1951. (This is a GIL). |
| ST 00-0136-GIL | 07/17/2000 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangiblepersonal property transferred as an incident to sales of service. See 86Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0135-GIL | 07/17/2000 | Leasing | This letter answers questions concerning the taxation of different leasecharges. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 00-0134-GIL | 07/17/2000 | Delivery Charges | In general, shipping and handling or delivery charges are includable in thegross receipts subject to tax unless the buyer and seller agree upon suchcharges separately from the selling price of the tangible personal propertywhich is sold. In addition, such charges must be reflective of the costs ofshipping and delivery. To the extent that these charges exceed the costs ofshipping, they are subject to tax. See 86 Ill. Adm. Code 130.415. (This isa GIL). |
| ST 00-0133-GIL | 07/17/2000 | Food | Sales of food by restaurants are subject to Retailers’ Occupation Tax. 35ILCS 120/2 (1998 State Bar Edition). (This is a GIL). |
| ST 00-0132-GIL | 07/17/2000 | Exempt Organizations | While the sale of tangible personal property at retail by exclusivelyreligious, educational or charitable organizations is generally subject toRetailer’s Occupation Tax, there are three limited exceptions. See 86 Ill.Adm. Code 130.2005(a)(2-4). (This is a GIL). |
| ST 00-0131-GIL | 07/17/2000 | Agricultural Producers and Products | Farm chemicals include chemical products used in production agriculture, theproducts of which are to be sold, or in the production or care of animalsthat are to be sold or the products of which are to be sold. See 86 Ill.Adm. Code 130.1955. (This is a GIL). |
| ST 00-0130-GIL | 07/17/2000 | Food | Persons engaged in the business of selling meals to purchasers for use orconsumption incur Retailers’ Occupation Tax liability on their grossreceipts from such sales. See 86 Ill. Adm. Code 130.2145. (This is a GIL). |
| ST 00-0129-GIL | 07/17/2000 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege oforiginating or receiving intrastate or interstate telecommunications inIllinois at the rate of 7% of the gross charges for such telecommunicationspurchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is aGIL). |
| ST 00-0128-GIL | 07/11/2000 | Use Tax | Out-of-State sellers with Illinois nexus are required to collect Use Taxfrom their Illinois customers. (This is a GIL.) |
| ST 00-0127-GIL | 06/30/2000 | Gross Receipts | The federal excise tax on diesel fuel, imposed at the producer, importer or manufacturer level,is properly included in the selling price of the fuel for Illinois Retailers’ Occupation Taxcalculation purposes. See 86 Ill. Adm. Code 130.445. (This is a GIL). |
| ST 00-0126-GIL | 06/30/2000 | Manufacturing Machinery and Equipment | Under the Retailers' Occupation Tax Act, the manufacturing machinery and equipmentexemption extends to machinery and equipment that is used primarily (over 50% of the time) inthe manufacturing or assembling of tangible personal property for wholesale or retail sale orlease. See 86 Ill. Adm. Code 130.330. (This is a GIL). |
| ST 00-0125-GIL | 06/30/2000 | Computer Software | Sales of “canned” computer software are taxable retail sales in Illinois whether purchased offthe shelf or downloaded over the Internet. See 86 Ill. Adm. Code 130.1935. (This is a GIL). |
| ST 00-0124-GIL | 06/30/2000 | Leasing | In Illinois, lessors of tangible personal property under a true lease, except for automobilesleased for terms of one year or less, are considered to be the end users of the property to beleased. See 86 Ill. Adm. Code Sections 130.220 and 130.2010. (This is a GIL). |
| ST 00-0123-GIL | 06/30/2000 | Delivery Charges | As a technical proposition, handling charges represent a retailer’s cost of doing business, andare consequently always included in gross charges subject to tax. See, 86 Ill. Adm. Code130.410. (This is a GIL). |
| ST 00-0122-GIL | 06/30/2000 | Service Occupation Tax | Repairs made under a safety related recall are not taxable and this is true whether themanufacturer makes the repairs or pays someone else to make the repairs. (This is a GIL). |
| ST 00-0121-GIL | 06/30/2000 | Service Occupation Tax | The purchase of tangible personal property that is transferred to the service customer mayresult in either Service Occupation Tax liability or Use Tax liability for the servicemendepending upon which tax base the servicemen choose to calculate their tax liability. See 86Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0120-GIL | 06/30/2000 | Nexus | This letter describes the basic guidelines that may be used to determine whether a sellerwould be considered “an Illinois retailer” subject to Retailers’ Occupation Tax liability or "aretailer maintaining a place of business in Illinois" subject to Use Tax collection duties fromtheir Illinois customers. See 86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 00-0119-GIL | 06/30/2000 | Rolling Stock Exemption | Effective August 14, 1999, motor vehicles, trailers, and property attached to those motorvehicles and trailers must carry persons or property for hire in interstate commerce on 15 ormore occasions within a 12- month period to qualify for the exemption. See 35 ILCS 120/2-51and 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 00-0118-GIL | 06/30/2000 | Food, Drugs and Medical Appliances | Food which is to be consumed off the premises where it is sold (other than alcoholicbeverages, soft drinks, and food which has been prepared for immediate consumption), andprescription and non-prescription medicines, drugs, and various medical appliances are taxedat the State rate of 1% plus applicable local taxes. See 86 Ill. Adm. Code 130.310. (This isa GIL). |
| ST 00-0117-GIL | 06/30/2000 | Exempt Organizations | Organizations that make application to the Department of Revenue and are determined to beexclusively religious, educational, charitable, or a governmental body receive an exemptionidentification number (“E” number). See 86 Ill. Adm. Code 130.2007. (This is a GIL). |
| ST 00-0116-GIL | 06/30/2000 | Sale for Resale | This letter responds to questions regarding the certifications necessary to document sales forresale associated with a drop shipment situation. See 86 Ill. Adm. Code 130.1405. (This isa GIL). |
| ST 00-0115-GIL | 06/30/2000 | Sale for Resale | This letter sets out the certifications necessary to document sales for resale associated with astandard drop-shipment situation. See 86 Ill. Adm. Code 130.1405. (This is a GIL). |
| ST 00-0114-GIL | 06/29/2000 | Nexus | A “retailer maintaining a place of business in Illinois,” as defined in 86 Ill. Adm. Code150.201(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 00-0113-GIL | 06/29/2000 | Service Occupation Tax | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal propertytransferred incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0112-GIL | 06/29/2000 | Nexus | Whether a retailer is subject to Illinois Retailers' Occupation Tax (sales tax) liability or isrequired to collect Illinois Use Tax from its Illinois customers will depend on if that retailer hassufficient “nexus” with the State of Illinois so that the retailer will be subject to Illinois law. See86 Ill. Adm. Code 150.801. (This is a GIL). |
| ST 00-0111-GIL | 06/28/2000 | Local Taxes | The Department looks to 86 Ill. Adm. Code 270.115 as guidance in determining the situs of theretail sale for Retailers’ Occupation Tax and Home Rule Municipal Retailers’ Occupation Taxpurposes. (This is a GIL). |
| ST 00-0110-GIL | 06/28/2000 | Telecommunications Excise Tax | The Telecommunications Excise Tax is imposed upon the act or privilege oforiginating or receiving intrastate or interstate telecommunications inIllinois at the rate of 7% of the gross charges for such telecommunicationspurchased at retail from retailers. See 86 Ill. Adm. Code 495. (This is aGIL). |
| ST 00-0109-GIL | 06/27/2000 | Exempt Organizations | The certification required to be made by a contractor purchasing buildingmaterials for incorporation into real estate owned by an exempt organizationunder a contract with that exempt organization is set out at 86 Ill. Adm.Code 130.2075(d)(4). (This is a GIL). |
| ST 00-0108-GIL | 06/21/2000 | Manufacturing Machinery and Equipment | Under the Retailers' Occupation Tax Act, the manufacturing machinery andequipment exemption extends to machinery and equipment that is usedprimarily (over 50% of the time) in the manufacturing or assembling oftangible personal property for wholesale or retail sale or lease. See 86Ill. Adm. Code 130.330. (This is a GIL). |
| ST 00-0107-GIL | 06/21/2000 | Manufacturing Machinery and Equipment | Under the Retailers’ Occupation Tax Act, the manufacturing machinery andequipment exemption is available for machinery and equipment used primarily(over 50% of the time) in the manufacturing or assembling of tangiblepersonal property for wholesale or retail sale or lease. See 86 Ill. Adm.Code 130.330. (This is a GIL). |
| ST 00-0106-GIL | 06/15/2000 | Manufacturing Machinery and Equipment | When determining whether a piece of equipment qualifies for themanufacturing machinery and equipment exemption, the requirements of 86 Ill.Adm. Code 130.330 must be met. (This is a GIL). |
| ST 00-0105-GIL | 06/13/2000 | Sale at Retail | Persons who engage in the business of selling monuments, grave markers andthe like to purchasers for use or consumption and not for resale incurRetailers' Occupation Tax liability on their receipts from such sales. See86 Ill. Adm. Code 130.2130. (This is a GIL). |
| ST 00-0104-GIL | 06/08/2000 | Nexus | A business may have nexus with a state, even though it does not have aretail operation in that state. 86 Ill. Adm. Code 150.201(i). (This is aGIL). |
| ST 00-0103-GIL | 06/06/2000 | Interstate Commerce | When the seller is obligated, under the terms of an agreement with thepurchaser, to make delivery of the property from a point in this State to apoint outside this State, not to be returned to this State, provided thatsuch delivery is actually made, the gross receipts are not subject to tax.See subsection (b) of 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 00-0102-GIL | 06/28/2000 | Medical Appliances | A medical appliance is an item that is intended by its manufacturer for usein directly substituting for a malfunctioning part of the body and thatpurports on the label to have medicinal qualities. See 86 Ill. Adm. Code130.310. (This is a GIL). |
| ST 00-0101-GIL | 05/31/2000 | Coins & Precious Metals | Legal tender, currency, medallions, or gold or silver coinage issued by the State of Illinois, thegovernment of the United States of America or the government of any foreign country andbullion are exempt from Retailers' Occupation Tax and Use Tax liability.. See 86 Ill. Adm.Code 130.120(cc). (This is a GIL). |
| ST 00-0100-GIL | 05/25/2000 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code150.201(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 00-0099-GIL | 05/25/2000 | Miscellaneous | Illinois does not impose a tax on personal property. (This is a GIL). |
| ST 00-0098-GIL | 05/25/2000 | Miscellaneous | 86 Ill. Adm. Code 130.550 explains how manufacturers, importers or wholesalers can enterinto an "agency agreement" with the Department, whereby they register, file returns and remitRetailers' Occupation Tax on behalf of their local distributors. (This is a GIL). |
| ST 00-0097-GIL | 05/24/2000 | Governmental Bodies | As explained in Section 480.101(b)(3), hotel operators incur tax on room rentals to entities thatwould otherwise be exempt from sales tax (i.e., entities such as exclusively charitable,religious, or educational groups, or governmental bodies that possess Illinois exemptionidentification numbers). (This is a GIL). |
| ST 00-0096-GIL | 05/24/2000 | Construction Contractors | This letter explains the liabilities of persons selling and installing carpeting by tacklessapplication. See, 130.1940. (This is a GIL.) |
| ST 00-0095-GIL | 05/23/2000 | Rolling Stock | The rolling stock exemption is available to interstate carriers for hire for use as rolling stockmoving in interstate commerce. See 86 Ill. Adm. Code 130.340. (This is a GIL). |
| ST 00-0094-GIL | 05/17/2000 | Interstate Commerce | Retailers' Occupation Tax does not apply where the seller is obligated, under the terms of hisagreement with the purchaser, to make physical delivery of the goods from a point in Illinois toa point outside Illinois, not to be returned to a point within Illinois, provided that such delivery isactually made. See 86 Ill. Adm. Code 130.605. (This is a GIL). |
| ST 00-0093-GIL | 05/17/2000 | Hotel Operators' Tax | The Hotel Operators’ Occupation Tax Act imposes a tax upon persons engaged in thebusiness of renting, leasing or letting rooms in a hotel in Illinois. See 86 Ill. Adm. Code480.101. (This is a GIL). |
| ST 00-0092-GIL | 05/17/2000 | Miscellaneous | All information received by the Department from returns filed under this Act, or from anyinvestigation conducted under this Act, shall be confidential, except for official purposes. 35ILCS 120/11. (This is a GIL). |
| ST 00-0091-GIL | 05/16/2000 | Claims for Credit | In the case of installment sales, the duty to pay the Retailers' Occupation Tax is not passed onto the purchasers of the paper, it remains with the retailers who sold the tangible personalproperty at retail. This is the legal consequence of the fact that the Retailers' Occupation Taxis an occupation tax imposed upon retailers for the privilege of engaging in the occupation ofretailing. (This is a GIL). |
| ST 00-0090-GIL | 05/16/2000 | Sale of Service | Under the Service Occupation Tax Act, servicemen are taxed on tangible personal propertytransferred as an incident to sales of service. See 86 Ill. Adm. Code 140.101. (This is a GIL). |
| ST 00-0089-GIL | 05/16/2000 | Nexus | A “retailer maintaining a place of business in Illinois” as described in 86 Ill. Adm. Code150.201(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 00-0088-GIL | 05/05/2000 | Pollution Control Facilities | Purchasers of pollution control facilities must comply with the certification requirements ofsubsection (a) of Section 130.335, otherwise the sale of such pollution control facilities issubject to tax. (This is a GIL). |
| ST 00-0087-GIL | 04/21/2000 | Service Occupation Tax | The transfer of tangible personal property results in Service Occupation Tax liability rather thanRetailers' Occupation Tax liability where the purchaser employs the seller primarily for itsengineering skill to design and produce the property on special order, where the property hasuse or value only for the specific purpose for which it was produced and where the propertyhas use or value only to the purchaser. See 86 Ill. Adm. Code 130.2115. (This is a GIL). |
| ST 00-0086-GIL | 04/20/2000 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of theproperty to be leased. As end users of tangible personal property located in Illinois, lessorsowe Use Tax on their cost price of such property. See 86 Ill. Adm. Code 130.220. (This is aGIL). |
| ST 00-0085-GIL | 04/19/2000 | Local Taxes | If a purchase order is accepted in a jurisdiction that imposes a local tax, that tax will beincurred. See 86 Ill. Adm. Code 270.115(b). (This is a GIL). |
| ST 00-0084-GIL | 04/12/2000 | Sale at Retail | The Retailers' Occupation Tax Act imposes a tax upon persons engaged in the business ofselling tangible personal property at retail. 35 ILCS 120/2 (1998 State Bar Edition). (This is aGIL). |
| ST 00-0083-GIL | 04/10/2000 | Farm Machinery and Equipment | The Retailers’ Occupation Tax does not apply to farm machinery and equipment that is used orleased for use primarily (over 50% of the time) in production agriculture or for use in State orfederal agricultural programs. See 86 Ill. Adm. Code 130.305. (This is a GIL). |
| ST 00-0082-GIL | 04/06/2000 | Use Tax | Retailers are prohibited from advertising or holding out that they will absorb the purchaser'sUse Tax obligation. See 86 Ill. Adm. Code 150.515. (This is a GIL). |
| ST 00-0081-GIL | 04/06/2000 | Use Tax | Retailers are prohibited from advertising or holding out that they willabsorb the purchaser's Use Tax obligation. See 86 Ill. Adm. Code 150.515.(This is a GIL). |
| ST 00-0080-GIL | 04/06/2000 | Claim for Credit | If a taxpayer pays an amount of tax under the Retailers' Occupation Tax Act that is not due,either as a result of a mistake of fact or an error of law, the taxpayer may file a claim for creditwith the Department. See 86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 00-0079-GIL | 04/06/2000 | Exempt Organizations | Sales to a governmental body are subject to tax unless the governmental body has an activeexemption identification "E" number. See the 86 Ill. Adm. Code 130.2080. (This is a GIL). |
| ST 00-0078-GIL | 03/23/2000 | Claims for Credit | No credit can issue unless the claimant shows that it has borne the burden of the tax or hasunconditionally repaid the amount of the tax to the customer from whom it was collected. See86 Ill. Adm. Code 130.1501. (This is a GIL). |
| ST 00-0077-GIL | 03/22/2000 | Leasing | Lessors of tangible personal property under true leases in Illinois are deemed end users of theproperty to be leased. See 86 Ill. Adm. Code 130.220. (This is a GIL). |
| ST 00-0076-GIL | 03/22/2000 | Pollution Control Facilities | No transactions are exempt on the basis of the pollution control exemption unless certificationsare obtained as described in 86 Ill. Adm. Code 130.335(a) of the Department's rules. (This is aGIL). |
| ST 00-0075-GIL | 03/21/2000 | Leasing | Lease agreements that contain purchase options that are equal to the fair market value of the tangible personal property at the end of the lease term are considered true leases, and the lessors incur Use Tax liability on their cost price of tangible personal property purchased for rental purposes. See 86 Ill. Adm. Code 130.2010. (This is a GIL). |
| ST 00-0074-GIL | 03/20/2000 | Request for Information | Due to confidentiality requirements under Illinois law, the Department will not disseminate information regarding individual taxpayers. 35 ILCS 120/11. (This is a GIL). |