PIO-101, Illinois Sales & Use Tax Matrix

Effective June 28, 2024

PIO-101 (R-06/24) Printed by authority of the state of Illinois, electronic only, one copy. Page 1 of 33

Illinois Sales & Use Tax Matrix

Index

Illinois Department of Revenue

Page

Introduction ........................................................................................................................................................................... 2

Retailer Types, Tax Collection Obligations, and Key Dates .............................................................................................. 2

Taxability of Tangible Personal Property ............................................................................................................................ 3

High Rate of Tax

Low Rate of Tax

Local Taxes and Tax Rate Finder

Illinois Sales & Use Tax Matrix – Common Transactions .................................................................................................. 4

Illinois Sales & Use Tax Matrix – Special Situations and Exemptions ............................................................................. 21

Illinois Sales & Use Tax Matrix – References to Other Taxes and Returns ..................................................................... 31

The information in this document is current as of the effective date listed. The contents of this document are informational only and do not

take the place of statutes, rules and regulations, or court decisions.

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 2 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Illinois Sales & Use Tax Matrix

Introduction

In Illinois, occupation and use taxes are collectively referred to as “sales tax.” The Retailers’ Occupation Tax Act imposes a tax upon persons engaged in this State in the

business of selling tangible personal property at retail to purchasers for use or consumption. 35 ILCS 120/1, et seq.; 86 Ill. Adm. Code 130/101 et seq. T

he Use Tax Act

imposes use tax on the privilege of using, in this State, any kind of tangible personal property purchased anywhere at retail from a retailer. 35 ILCS 105/1, et seq.; 86 Ill.

Adm. Code 150.101 et seq. In addition to the state Retailers’ Occupation tax, local retailers’ occupation taxes are authorized by statute and administered by the Illinois

Department of Revenue (“IDOR”). There are, however, no local use taxes on general merchandise administered by IDOR.

Retailer Types, Tax Collection Obligations, and Key Dates

A “retailer maintaining a place of business in this State,” that is located outside of this State and that has nexus, is required to register with IDOR to collect and remit use

tax on purchases made by Illinois purchasers.

• Until October 1, 2018, an out of state retailer established nexus through a physical presence in Illinois (see 35 ILCS 105/2).

• Effective October 1, 2018, and through December 31, 2020, out of state retailers without a physical presence meeting certain economic or transactional

thresholds fell within the definition of a “retailer maintaining a place of business in this state” and were required to register with IDOR to collect and remit Illinois

Use Tax on sales to Illinois purchasers (see Public Act 100-0587 and 86 Ill. Adm. Code 150.803).

• Effective January 1, 2020, through December 31, 2020, a marketplace facilitator meeting certain economic or transactional thresholds fell within the definition

of a “retailer maintaining a place of business in the state” and was required to register as a marketplace facilitator with IDOR to collect and remit Illinois Use Tax

on sales to Illinois purchasers made through the marketplace on behalf of marketplace sellers and on its own sales (see Public Acts 101-0009 and 101-0604

and 86 Ill. Adm. Code 150.804). If a marketplace facilitator, marketplace seller, or out of state retailer makes sales to Illinois purchasers from inventory in Illinois

or otherwise engages in the occupation of selling tangible personal property in Illinois, then they will be required to remit Illinois Retailers’ Occupation Tax (ROT)

and applicable local retailers’ occupation taxes on those sales.

• Effective January 1, 2021, Public Acts 101-31 and 101-604 (Leveling the Playing Field for Illinois Retail Act) implemented a series of structural changes to the

Illinois sales tax laws that changed the liabilities of many types of retailers, as follows:

o R

emote retailers (i.e., retailers with no physical presence in Illinois) who meet certain economic or transactional thresholds incur state and local

retailers’ occupation tax using destination sourcing for sales made to Illinois purchasers. A marketplace seller that makes sales over a marketplace that

meets either of the tax remittance thresholds and makes sales outside of that marketplace may also be considered a remote retailer.

o Marketplace facilitators incur state and local retailers’ occupation tax using destination sourcing for sales made over the marketplace on behalf of

marketplace sellers to Illinois purchasers.

o Marketplace facilitators incur state and local retailers’ occupation tax using origin sourcing for their own sales that are either fulfilled from inventory

located in Illinois or for which selling activities otherwise occur in Illinois (see 86 Ill. Adm. Code 270.115

) and they incur state and local retailers'

occupation tax using destination sourcing for all of its other sales.

o O

ut-of-state sellers with a physical presence in Illinois incur a use tax collection obligation for sales they make outside Illinois and ship or deliver to

Illinois purchasers. However, these sellers incur state and local retailers’ occupation taxes using origin sourcing for sales for which their selling

activities occur in Illinois (see 86 Ill. Adm. Code 270.115

). If such sellers also make sales over a marketplace, they are considered marketplace sellers

and the marketplace facilitator will incur state and local retailers’ occupation tax liability based on destination sourcing for these sales.

o I

llinois retailers, including brick and mortar retailers, incur no state or local retailers’ occupation taxes for sales made over a marketplace when the

marketplace facilitator assumes the state and local retailers’ occupation tax liability based on destination sourcing.

o Illinois retailers, including brick and mortar retailers, incur state and local retailers’ occupation taxes based on origin sourcing for sales made in Illinois.

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 3 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Illinois Sales & Use Tax Matrix

Taxability of Tangible Personal Property

In using this matrix, the presumption is that tangible personal property is taxable unless there is an exemption. Most of the exemptions from tax are use-based (e.g.,

conditioned on the purchaser using the tangible personal property in a specific manner). A few items are exempt based on the nature of product (e.g., feminine hygiene

products). Other exemptions are based on the status of the purchaser (e.g., charitable, religious, and educational organizations). Purchasers claiming a use-based

exemption must provide the retailer with required documentation. Status-based exemptions must be documented by providing the retailer with an exemption identification

number (“E-number”) issued by IDOR to the exempt entity.

High Rate of Tax

Illinois has two tax rates. The rate for general merchandise is 6.25% (high rate).

Low Rate of Tax

The preferential rate for qualifying food, drugs, and medical appliances is 1% (low rate).

Local Taxes and Tax Rate Finder

There are numerous locally imposed retailers’ occupation taxes on general merchandise administered by IDOR. The only locally imposed retailers’ occupation taxes on

qualifying food, drugs, and medical appliances administered by IDOR are in transportation districts. There are no local use taxes on general merchandise administered

by IDOR. Tax rates are subject to change twice a year on January 1 and July 1. To determine the effective rate of tax for a specific location, use the Tax Rate Finder

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 4 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Illinois Sales & Use Tax Matrix – Common Transactions

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1001

Farm machinery and

equipment

Exempt

Exempt when used primarily (more than 50% of the time) in production

agriculture, see regulation. Valid exemption certificate is required. See

Form

ST-587, Equipment Exemption Certificate.

86 Ill. Adm.

Code

130.305

1002

Food, sold for consumption

off the premises – excluding

candy, soft drinks,

cannabis-infused foods,

and alcohol

Taxable Low Rate

With respect to food for human consumption that is to be consumed off the

premises where it is sold (other than alcoholic beverages, food consisting of or

infused with adult use cannabis, soft drinks, candy and food that has been

prepared for immediate consumption), the tax is imposed at the rate of 1%

(low rate).

Food sold for consumption off the premises includes grocery items and

packaged foods but does not include candy (see ID 1003), soft drinks (see ID

1004), cannabis-infused foods (see ID 1002.2), and alcohol (see ID 1008).

Most food prepared to order for takeout or delivery does not qualify for the low

rate (see ID 1002.1).

86 Ill. Adm.

Code

130.310

and

130.1905

1002.1

Food, sold for consumption

on the premises/immediate

consumption

Taxable High Rate

Food sold for consumption on the premises or for immediate consumption

includes, but is not limited to, the following: all hot foods, most food prepared

to a customer order, drinks prepared for individual consumption, including

such food sold for takeout or delivery. Most grocery delivery items qualify for

the low rate (see ID 1002).

86 Ill. Adm.

Code

130.310

1002.2

Adult use cannabis and

cannabis-infused foods

Taxable High Rate

The reduced rate does not extend to adult use cannabis or food consisting of

or infused with adult use cannabis. All adult use cannabis (e.g., cannabis

flower, concentrate, cannabis-infused products) is taxed at the high rate.

86 Ill. Adm.

Code

130.310

1003 Candy

Taxable High Rate

Candy is defined as a preparation of sugar, honey, or other natural or artificial

sweeteners in combination with chocolate, fruits, nuts, or other ingredients or

flavorings in the form of bars, drops, or pieces. “Candy” does not include any

preparation that contains flour or requires refrigeration.

86 Ill. Adm.

Code

130.310

1004 Soft drinks Taxable High Rate

Soft drinks are defined as nonalcoholic beverages that contain natural or

artificial sweeteners. “Soft drinks” do not include beverages that contain milk or

milk products, soy, rice, or similar milk substitutes, or greater than 50% of

vegetable or fruit juice by volume.

86 Ill. Adm.

Code

130.310

1005 Drop shipments

Taxable

A retailer having tangible personal property drop shipped from a supplier to an

Illinois purchaser would be required to remit tax from that Illinois purchaser.

Retailers must provide a valid Certificate of Resale (Form CRT-61) to their

Illinois suppliers to document purchases for resale. See regulation for further

information regarding documentation.

86 Ill. Adm.

Code

130.225

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 5 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1006

Tangible personal property

sold for resale

Non-

Taxable

The sale of tangible personal property to a purchaser for the purpose of resale

in any form as tangible personal property, to the extent not first subjected to a

use for which it was purchased, is not subject to tax. Such sales for resale

cannot be made tax-free unless the purchaser (except in the case of an out-of-

state purchaser who will always resell and deliver the property to purchasers

outside Illinois) has an active registration number or active resale number from

IDOR and gives such number to suppliers in connection with certifying to any

supplier that any sale to such purchaser is nontaxable because of being a

purchase for resale. See Form CRT-61

86 Ill. Adm.

Code

130.210

130.215, and

130.1405

1007 Occasional sales

Non-

Taxable

Persons who make isolated or occasional sales of tangible personal property do

not incur tax liability. For example, if retailers sell tangible personal property,

which they do not normally engage in selling, such as machinery or other

capital assets they no longer use in their business and no longer need, they are

not required to remit tax. This applies even if they may be required to make a

considerable number of sales to dispose of the tangible personal property

because persons making such sales are not considered to be in the business of

selling tangible personal property at retail. Effective January 1, 2021, all sales

made through a marketplace constitute retail sales by the marketplace facilitator

and do not qualify as occasional sales.

86 Ill. Adm.

Code

130.110

and

131.140

1008 Wine, alcoholic beverages Taxable High Rate

Alcohol may not be shipped into Illinois, except for sales of wine by Direct Wine

Shippers. Direct Wine Shippers are required to obtain a license from the Illinois

Liquor Control Commission to ship into Illinois. Until January 1, 2021, Direct

Wine Shippers were required to register with IDOR to collect and remit Illinois

Use Tax even if they were below the tax remittance thresholds for the number

of transactions or amount of Illinois sales. Effective January 1, 2021, Direct

Wine Shippers who meet either of the tax remittance thresholds are required to

remit retailers’ occupation tax on sales to Illinois purchasers at the destination

rate, in addition to any liquor taxes. Direct Wine Shippers who do not meet a

threshold must continue to collect and remit Illinois Use Tax.

235 ILCS

5/5-1(r)

; 86

Ill. Adm.

Code Part

131;

130.310;

130.2060;

and

Part 420

1009 Coffee/tea/milk Taxable Low Rate

Brewed unsweetened black coffee or tea, and any drinks that contain milk or

milk products, soy, rice, or similar milk substitutes are not considered soft drinks

and are taxed at the low rate. However, all coffee, tea, cappuccino, or other

drinks prepared by the retailer for individual consumption, whether hot or cold,

are subject to the high rate of tax.

86 Ill. Adm.

Code

130.310

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 6 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1010

Prescription and

nonprescription medicine

and drugs

Taxable Low Rate

Nonprescription and prescription medicines and drugs are subject to the low

rate of tax. Nonprescription medicines and drugs that fall within the definition of

“grooming and hygiene products” do not qualify for the low rate of tax for

medicines and drugs.

86 Ill. Adm.

Code 130.311

1010.1 Medical Cannabis Taxable Low Rate

Medical cannabis means cannabis and its constituent cannabinoids, such as

tetrahydrocannabinol (THC) and cannabidiol (CBD), are used as an herbal

remedy or therapy to treat a registered patient’s disease or alleviate symptoms.

See ID 1010.

410 ILCS

130/1 et seq

35 ILCS

120/2-10

1011 Dietary supplements Taxable Low Rate Vitamins and supplements are taxable at the low rate.

86 Ill. Adm.

Code 130.311

1012 Medical appliances Taxable Low Rate

A medical appliance is an item that is used to directly substitute for a

malfunctioning part of the human body (e.g., restorative breast implants, heart

pacemakers, artificial limbs, dental prosthetics, crutches and orthopedic braces,

dialysis machines, wheelchairs, mobility scooters, mastectomy forms and bras,

sleep apnea devices, hearing aids, eyeglasses, contact lenses, and orthodontic

braces). Items that do not directly substitute for a malfunctioning part of the

human body (e.g., cosmetic breast implants, nebulizers) do not qualify as

medical appliances.

86 Ill. Adm.

Code 130.311

1013

Medical devices used for

cancer treatment with

prescription

Taxable Low Rate

Products classified as Class III medical devices by the United States Food and

Drug Administration that are used for cancer treatment pursuant to a

prescription, as well as any accessories and components related to those

devices qualify for the low rate of tax.

86 Ill. Adm.

Code

130.311

1014

Diabetic treatment,

specified items

Taxable Low Rate

Insulin, blood sugar testing materials, syringes, and needles used by human

diabetics qualify for the low rate of tax.

86 Ill. Adm.

Code 130.311

1015 Feminine hygiene products Exempt

Tampons, menstrual pads, and menstrual cups are exempt from tax until

December 31, 2026.

86 Ill. Adm.

Code 130.311

1016 Diapers (infant) Taxable High Rate

Baby diapers are taxable at the high rate of tax. See also Grooming and

hygiene products (ID 1020).

86 Ill. Adm.

Code 130.311

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 7 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1017 Diapers (adult) Taxable High Rate

Adult diapers are taxable at the high rate of tax. See also Grooming and

hygiene products (ID 1020).

86 Ill. Adm.

Code 130.311

1018 Infant formula Taxable Low Rate

Infant formula, whether prescription or not, is food for consumption off the

premises and is taxable at the low rate.

86 Ill. Adm.

Code 130.310

and 130.311

1019

Breast pumps, breast

pump collection and

storage supplies, and

breast pump kits

Exempt

Effective July 1, 2022, breast pumps, breast pump collection and storage

supplies, and breast pump kits are exempt from Sales and Use tax. See

statutory provision and regulations for definition.

35 ILCS

120/2-5(46)

and

86 Ill. Adm.

Code 130.120

1020

Grooming and hygiene

products

Taxable High Rate

Grooming products include, but are not limited to shampoos and hair products,

shaving creams and lotions, deodorants, moisturizers, condoms, baby and

adult diapers, and contact lens solution.

86 Ill. Adm.

Code 130.311

1021

Graphic arts machinery

and equipment used

primarily in graphic arts

production

Exempt

The graphic arts machinery and equipment exemption is included in the

manufacturing machinery and equipment exemption beginning July 1, 2017.

“Graphic arts production” means the production of tangible personal property

for wholesale or retail sale or lease by means of printing (including ink jet

printing). See statutory reference for NAICS codes specifying the exempt types

of printing. Graphic arts production does not include (i) the transfer of images

onto paper or other tangible personal property by means of photocopying or (ii)

final printed products in electronic or audio form, including the production of

software or audiobooks. Persons engaged primarily in the business of printing

or publishing newspapers or magazines that qualify as newsprint and ink are

deemed to be engaged in graphic arts production. See Form ST-587

35 ILCS

120/2-5, 2-45

and 120/2-30;

and

86 Ill. Adm.

Code

130.2000

130.325, and

130.330

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 8 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1022

Manufacturing machinery

and equipment

Exempt

Machinery and equipment used primarily (over 50%) in the manufacturing or

assembling of tangible personal property for wholesale or retail sale or lease is

exempt from tax. Software used to operate exempt manufacturing machinery

and equipment used in the process of manufacturing or assembling tangible

personal property for wholesale or retail sale or lease qualifies for the

exemption. Production related tangible personal property includes all tangible

personal property used or consumed in a production related process by a

manufacturer in a manufacturing facility in which a manufacturing process takes

place or by a graphic arts producer in graphic arts production qualifies for the

exemption. Production related tangible personal property that is used or

consumed in research and development regardless of use within or without a

manufacturing or graphic arts production facility also qualifies for the exemption.

See Form ST-587

35 ILCS

120/2-25, 45

and 86 Ill.

Adm. Code

130.330

1023 Antiques, curios, artwork Taxable High Rate

86 Ill. Adm.

Code

130.1910

1024

Collector coins which are

legal tender

Exempt

Sale of legal tender, currency, medallions, and gold or silver coinage, issued by

the State of Illinois, the government of the United States, or government of a

foreign country, and bullion are exempt. Coins incorporated into jewelry are

taxable.

86 Ill. Adm.

Code

130.1910

and

ST-16-0017-

GIL

1025

Postage stamps, US,

cancelled

Taxable High Rate

86 Ill. Adm.

Code

130.1910

1026 Postage stamps, foreign Taxable High Rate

86 Ill. Adm.

Code

130.1910

1027

Postage stamps, US, valid,

with purchase price of 50%

or more of face value

Taxable High Rate

Uncanceled postage sold for an amount that exceeds the face value of the

stamp by 50% or more is subject to tax.

86 Ill. Adm.

Code

130.1910

1028

Postage stamps, US, valid,

with purchase price of less

than 50% of face value

Non-

Taxable

86 Ill. Adm.

Code

130.1910

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 9 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1029

Auctioneers and agents

PRIOR to January 1, 2021

In-State Auctioneers and agents

If an in-state auctioneer or agent acts for an unknown or undisclosed principal,

the auctioneer or agent is deemed to be the seller and is required to remit

Retailers’ Occupation Tax. If an in-state auctioneer or agent acts on behalf of a

disclosed principal, the disclosed principal is considered the seller and is

responsible for remitting the tax. In this case, the auctioneer or agent is not

responsible for remitting tax, because the disclosed principal is liable for any tax

due. For sourcing of sales, see, e.g., 86 Ill. Adm. Code 270.115

Out-of-State Auctioneers and agents

Effective January 1, 2020, through December 31, 2020, an out-of-state

auctioneer that meets a tax remittance threshold is considered a marketplace

facilitator and must collect and remit Use Tax on all sales made to Illinois

purchasers. If an out-of-state auctioneer does not meet a tax remittance

threshold, it is not considered a marketplace facilitator. An out-of-state

auctioneer that does not meet a tax remittance threshold but otherwise has

nexus with Illinois, is required to collect and remit Use Tax on sales to Illinois

purchasers using the disclosed/undisclosed rules of an in-state auctioneer or

agent.

However, if the item sold is located in Illinois, or if the selling otherwise

occurs in Illinois for a transaction, (see, e.g., 86 Ill. Adm. Code 270.115

), the

out-of-state auctioneer will incur Retailers’ Occupation Tax at the rate in effect

at the Illinois location of the item, or the location in Illinois where the selling

otherwise occurs. Auction sales of tangible personal property that is required to

be titled or registered with an agency of this state, including motor vehicles,

watercraft, aircraft, and trailers are taxed at registration. See ID 1030 for

information auctioneers and agents on and after January 1, 2021.

86 Ill. Adm.

Code

130.1915

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 10 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1030

Auctioneers and

agents

ON and AFTER

January 1, 2021

Effective January 1, 2021 – Auctioneers meeting either of the tax remittance

thresholds are marketplace facilitators operating a marketplace and, therefore, all

their sales are subject to Retailers’ Occupation Tax. Auction sales of tangible

personal property that is required to be titled or registered with an agency of this

state, including motor vehicles, watercraft, aircraft, and trailers are taxed at

registration. If an auctioneer makes a sale on behalf of a marketplace seller that is

identified to the purchaser (e.g., a marketplace seller that is disclosed), the

auctioneer will incur Retailers’ Occupation Tax at the rate in effect at the location

where the tangible personal property is shipped or delivered or at which possession

is taken by the purchaser (destination rate). If an auctioneer makes a sale on behalf

of a marketplace seller that is not identified to the purchaser on the marketplace

(e.g., a marketplace seller that is not disclosed), then, for tax remittance purposes,

the auctioneer is considered the seller and is required to file its own return, separate

from the returns for sales made by identified marketplace sellers, and pay taxes to

IDOR on that sale. In the latter case, if the item sold is located in Illinois, or if the

selling otherwise occurs in Illinois for that sale (see 86 Ill. Adm. Code 270.115

), the

auctioneer will incur Retailers’ Occupation Tax at the rate in effect at the Illinois

location of the item, or the location in Illinois where the selling otherwise occurs

(origin rate). If the item is not located in Illinois and the selling does not otherwise

occur in Illinois, the auctioneer will incur Retailers’ Occupation Tax at the rate in

effect at the location where the tangible personal property is shipped or delivered or

at which possession is taken by the purchaser. Rules at 86 Ill. Adm. Code

130.1915

provide specific guidance on when a marketplace seller is disclosed or undisclosed.

Effective August 27, 2021 – The term “marketplace facilitator” does not include

any person licensed under the Auction License Act. This exemption does not apply

to any person who is an Internet auction listing service, as defined by the Auction

License Act.

Effective February 1, 2022 – Sales of tangible personal property that is required to

be titled or registered with an agency of the State of Illinois, including motor

vehicles, watercraft, aircraft, and trailers, that are made over a marketplace to

purchasers in Illinois are sourced the same as all other sales made over a

marketplace to purchasers in Illinois. See 86 Ill. Adm. Code 131.130(c). For sales

made by a marketplace facilitator on behalf of marketplace sellers, taxes apply at

the location to which the titled or registered item is shipped or delivered, or the

location in Illinois where the purchaser takes possession of the titled or registered

item. For a transaction in which an Illinois purchaser travels to an out-of-state

location to take possession of an item that is required to be titled or registered with

an agency of the State of Illinois, the sale is sourced out of state. In this case, only

Use Tax is incurred. See ID 1029 for information on auctioneers and agents prior to

January 1, 2021.

86 Ill. Adm.

Code

130.1915

and

FY 2022-05

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 11 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1031

Computer software –

canned software

Taxable High Rate

Canned software (pre-written software) which is intended for general or repeated

use, regardless of the form in which it is transmitted, including electronic means

(e.g., downloaded), is subject to tax. This includes the purchase of mobile apps

and games where the purchaser receives software by download. Computer

software provided through a cloud-based delivery system – a system in which

computer software is never downloaded onto a client’s computer and is only

accessed remotely – is not subject to tax. Purchases made within software or while

playing a game (such as in-app add-ons) are subject to tax and are taxable at the

time of purchase.

86 Ill. Adm.

Code

130.1935

and

ST-21-0008-

PLR

1032

Computer software –

custom software

Non-

Taxable

Custom software requires an analysis of the purchaser’s needs by the vendor and

adaption for use in a specific work environment (e.g., a particular make and model

of a computer using a specified input or output device). Custom software results

from real and substantial changes to the operational coding to meet individualized

requirements. The selection of pre-written or canned programs or program

modules assembled by the vendor into a software package does not constitute

custom software unless real and substantial changes are made to the programs or

creation of program interfacing logic. See regulation.

86 Ill. Adm.

Code

130.1935

1033

Computer software –

licensed software

Non-

Taxable

Licenses for computer software are not subject to tax if all the following conditions

are met:

1. it is evidenced by a written agreement signed by the licensor and the

purchaser;

2. it restricts the purchaser's duplication and use of the software;

3. it prohibits the purchaser from licensing, sub-licensing or transferring the

software to a third party (except to a related party) without the permission

and continued control of the licensor;

4. the licensor has a policy of providing another copy at minimal or no charge

if the purchaser loses or damages the software, or of permitting the

licensee to make and keep an archival copy, and such policy is either

stated in the license agreement, supported by the licensor’s books and

records, or supported by a notarized statement made under penalties of

perjury by the licensor; and

the purchaser must destroy or return all copies of the software to the licensor at the

end of the license period. This provision is deemed to be met, in the case of a

perpetual license, without being set forth in the license agreement.

86 Ill. Adm.

Code

130.1935

1034

Construction

contractors and real

estate developers –

when selling tangible

property with or

without installation

Taxable High Rate

Construction contractors must remit tax when they engage in selling tangible

personal property with or without installation, so long as it remains tangible

personal property and is not permanently affixed to real estate (e.g., gas or electric

ranges, stoves, washing machines, dryers, refrigerators, furniture, furnishings,

drapes, or non-permanent flooring).

86 Ill. Adm.

Code

130.1940

and

CA-2015-14

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 12 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1035

Landscape contractors

and nurserymen when

selling tangible personal

property

Taxable High Rate

Nurserymen or landscapers must remit tax when they sell shrubbery, trees, and

similar items to purchasers for use or consumption, and do not, as part of the

transaction, plant the items in the ground.

86 Ill. Adm.

Code 130.1940

and 130.1965

1036 Farm chemicals Exempt

Farm chemicals include any chemical product used in production agriculture, the

products of which are to be sold, or in the production or care of animals that are

to be sold or the products of which are to be sold. Examples of exempted items

are stock sprays, disinfectants and the like, stock tonics, serums, vaccines,

poultry remedies and other medicinal preparations and conditioners, water

purifying products, insecticides, weed killers, and the like.

86 Ill. Adm.

Code 130.1955

1037 Florists – Out of State

Non-

Taxable

When a florist receives instructions from another florist located either within or

outside of Illinois for the delivery of flowers, the receiving florist will not be held

liable for tax with respect to any receipts which may be realized from the

transaction.

86 Ill. Adm.

Code

130.1965(b)(3)

1037.1 Florist – In State Taxable High Rate

With orders taken by an Illinois florist and transmitted to a second florist located

either within or outside of Illinois for the delivery of flowers, the sending florist will

be held liable for tax with respect to the total amount collected from customers,

except for the cost of the message conveying delivery instructions where this

item is charged for separately from the selling price of the flowers.

86 Ill. Adm.

Code

130.1965(b)(2)

1038

Pets, including horses,

fish, birds, insects,

dogs, cats, hamsters,

lizards, and other

animals

Taxable High Rate

Persons who are in the business of selling pets, animals, horses, fish, birds,

insects, and the like are required to remit tax.

86 Ill. Adm.

Code 130.1971

and CA-2011-10

1039

Animals purchased for

the purpose of breeding

and sale of offspring

Non-

Taxable

To be non-taxable, the purchaser must be engaged in the business of breeding

and selling offspring. Examples include, but are not limited to, purchases of dogs

used in breeding to produce puppies for sale and purchases of semen used for

artificial insemination of livestock for direct agricultural production.

86 Ill. Adm.

Code 130.1971

130.210, and

130.2100

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 13 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1040

Suppliers to operators

of games of chance

Taxable High Rate

Persons engaged in selling tangible personal property to operators of raffles,

punch boards, mechanical gambling devices and other games of chance, for

disposition to players during the operation of such games of chance, are

engaged in the business of selling tangible personal property and must remit tax.

86 Ill. Adm.

Code 130.1975

1041 Optometrists Taxable High Rate

When an optometrist makes sales of spectacles, frames or mountings without

examination or treatment of the eyes, nonprescription sunglasses, cleaning

solutions, field glasses, opera glasses, and other tangible personal property, tax

is required to be remitted.

86 Ill. Adm.

Code 130.1980

1042

Pawnbrokers – sales of

unredeemed property

Taxable High Rate

In the case of a pawner or pledger who does not redeem the property pledged or

pawned within the specified statutory time, such property is generally forfeited to

the pawnbroker, to whom title to the property passes at the time of such

forfeiture. Where pawnbrokers thereafter engage in the business of selling such

articles for use or consumption, they are required to remit tax.

86 Ill. Adm.

Code 130.1985

1043

Personalized tangible

personal property –

items which maintain

inherent commercial

value

Taxable High Rate

Items that have intrinsic usefulness and general utility and so have commercial

value, even after personalization, are subject to tax. This is also true even if the

items are produced only upon receipt of an order (e.g., thermometers, pencils,

pens, mirrors, silverware, notebooks, diaries, baby books, guest registers and

other similar books of general utility for the recording of information, brief cases,

wallets, toys, paper weights, pins and other jewelry, watches, rulers, match

books, playing cards, blotters, calendars, bags, and other fairly standard salable

containers, napkins, dishes [whether made from paper or some other material],

handkerchiefs, and other articles of merchandise which bear the name,

monogram, or trademark of the purchaser or of some other person, or which

bear advertising inscriptions of the purchaser or some other persons).

86 Ill. Adm.

Code 130.1995

1044

Personalized tangible

personal property –

items which have no

commercial value

Non-

Taxable

Items that have no commercial value to anyone other than the purchaser for

whom it is produced (e.g., personalized business calling cards, greeting cards,

letterheads, envelopes, labels, name plates, badges, and medallions) are not

subject to Retailers’ Occupation Tax.

86 Ill. Adm.

Code 130.1995

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 14 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1045

Prepaid calling

arrangements

Taxable High Rate

“Prepaid telephone calling arrangements” means the right to exclusively purchase

telephone or telecommunications services that must be paid for in advance and

enable the origination of one or more intrastate, interstate, or international

telephone calls or other telecommunications using an access number, an

authorization code, or both, whether manually or electronically dialed, for which

payment to a retailer must be made in advance, provided that, unless recharged,

no further service is provided once that prepaid amount of service has been

consumed.

35 ILCS

105/3

and 3-27;

35 ILCS

120/2(a)

; and

ST-15-0006-

PLR

1046

Printed materials –

standard stock or items

which serve the

function of standard

stock sold at retail

Taxable High Rate

Taxable materials include stock or standard items sold for use and consumption

(e.g., legal forms, stock or standard greeting cards, pictures, or other items that

are stocked for sale or generally offered for sale to the public).

86 Ill. Adm.

Code 130.2000

1047

Printed materials –

custom stock

Non-

Taxable

Non-taxable materials include material printed in accordance with copy supplied

to the printer by the purchaser or otherwise printed in accordance with the

purchaser’s specifications and special order. Printed materials generally mean

sales by persons engaged in graphic arts production as long as items so

produced do not serve substantially the same function as stock or standard items

of tangible personal property sold at retail. Examples include personalized items,

such as wedding invitations or holiday cards.

86 Ill. Adm.

Code 130.2000

1048

Products of

photoprocessing

Taxable High Rate

For purposes of the tax imposed on photographs, negatives, and positives,

photoprocessing includes, but is not limited to, developing films, positives and

negatives, transparencies, tinting, coloring, and making and enlarging prints. For

example, a photographer develops exposed film and transfers negatives and

prints to a consumer. Tax is collected on the entire bill. Photoprocessing does not

include products of photoprocessing produced for use in motion pictures for public

commercial exhibition, color separation, typesetting, and platemaking by

photographic means in the graphic arts industry, and does not include any

procedure, process, or activity connected with the creation of the images on the

film from which the negatives, positives, or photographs are derived. The sale of

items produced by digital photography is not a sale of products of

photoprocessing.

86 Ill. Adm.

Code

130.2000

1049

Leases of tangible

personal property

(excluding vehicles) –

True Lease

Taxable

Generally, a true lease has no buyout provision. If a buyout provision does exist, it

must be a buyout option based on fair market value to remain a true lease. For a

true lease, the lessor is considered the end user and must pay Use Tax at the

time of purchase based on the cost price of the tangible personal property

purchased for lease to an Illinois lessee. The tax rate due will vary based on the

type of tangible personal property being leased.

86 Ill. Adm.

Code

130.2013

and

130.220

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 15 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1050

Leases of tangible

personal property

(excluding vehicles) –

Conditional Sales

Agreement

Taxable

A lease is considered a conditional sales agreement if, at the initiation of the lease,

the lessor is guaranteed that the tangible personal property will be sold. A conditional

sale usually has a nominal or “one dollar” purchase option at the close of the lease

term. The tax is due from a conditional sale when each periodic payment is made.

The lessor remits Retailers’ Occupation Tax on all receipts of a conditional sale when

the tangible personal property is leased to an Illinois lessee. The tax rate due will vary

based on the type of tangible personal property being leased.

86 Ill. Adm.

Code

130.2013

and

130.220

1051

Picture-framers – selling

frames at retail

Taxable High Rate

Picture framers incur tax liability when they sell frames at retail, even though they

make such picture frames only upon receipt of a customer order. This is true even

though the picture framer installs, in such frame, a picture belonging to his purchaser.

86 Ill. Adm.

Code

130.2025

1052

Registered pharmacists

and druggists – sales of

tangible personal

property other than

drugs and medicines

Taxable

Sales of merchandise, such as thermometers, cleaning supplies, makeup,

sunglasses, candy, and soft drinks are taxable at the high rate. See IDs 1002 through

1004 and IDs 1010 through 1020.

86 Ill. Adm.

Code

130.2035

1053 Clothing Taxable High Rate

86 Ill. Adm.

Code

130.2040

1054 Clothing – custom made Taxable High Rate

There is no deduction for the cost of labor involved in producing the finished item for

sale, even when separately stated.

86 Ill. Adm.

Code

130.2040

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 16 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1055 Motor fuel Taxable High Rate

Sales of motor fuels, including gasoline, gasohol, and aviation fuel are subject to tax.

As of December 31, 2018, biodiesel blends of less than 10% are fully taxable.

Biodiesel blends of more than 10% but no more than 99% biodiesel, are 100%

exempt from Use Tax until December 31, 2023.

Effective January 1, 2024, and on or before December 31, 2030, the taxation of

biodiesel, renewable diesel and biodiesel blends shall be as provided in Section 3-5.1

of the Use Tax Act (see 35 ILCS 105/3-5.1

Majority blended ethanol, as defined in Section 3-44 of the Use Tax Act, is exempt

from the Retailers’ Occupation Tax on the proceeds of sales made on or before

December 31, 2028.

With respect to gasohol, as defined in Section 3-40 of the Use Tax Act, effective

January 1, 2024, the Retailers’ Occupation Tax applies to 90% of the proceeds of

sales made on or before December 31, 2028.

With respect to mid-range ethanol blends, as defined in Section 3-44.3 of the Use Tax

Act, the Retailers’ Occupation Tax applies to 80% of the proceeds of sales made on

or after January 1, 2024, and on or before December 31, 2028.

Exemptions are reported on Schedule A, Deductions, on Form ST-1

, Sales and Use

Tax and E911 Surcharge Return. Use Tax for Aviation Fuel is reported on Form ST-

70 filed through MyTax Illinois.

35 ILCS

105/3-5.1

and 120/2-

10;

86 Ill. Adm.

Code

130.2060

and 86 Ill.

Adm. Code

Part 500

;

and P.A.

103-0009

1056 Cigarettes Taxable High Rate

Cigarettes (and little cigars) are subject to tax. Sales of cigarettes into Illinois are also

subject to the Cigarette Use Tax. See Excise Tax Rates and Fees

86 Ill. Adm.

Code

130.2060

and 86 Ill.

Adm. Code

Parts

440,

450, and

660

1057

Cigars, pipe tobacco,

and other tobacco

products

Taxable High Rate

Tobacco products are subject to tax. Tobacco products sold in Illinois are also subject

to Tobacco Products Tax. See Excise Tax Rates and Fees

86 Ill. Adm.

Code

130.2060

and

86 Ill. Adm.

Code

Part

660

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 17 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID* Description Taxable Rate** Explanation References

1058

Containers, utensils,

wrapping and packing

materials and related

products – sold for

resale

Non-

Taxable

Includes sales to restaurants and vendors who then transfer the containers to

purchasers in the regular course of business: plastic cups, plates, napkins, boxes,

sleeves, straws, and other similar items.

86 Ill. Adm.

Code

130.2070

1059

Containers, utensils,

wrapping and packing

materials and related

products – sold for use

Taxable High Rate

Sales of paper napkins, drinking straws, paper cups, and paper plates to operators of

office buildings, hotels, and the like for the use of their employees, tenants, or guests

are taxable retail sales. Paper towels and toilet tissues are deemed to be sold for use

or consumption when sold to a purchaser for use in connection with the conduct of his

business and not for resale as such.

86 Ill. Adm.

Code

130.2070

1060

Sales to banks, savings

and loan associations,

and credit unions –

exempt under federal

law

Exempt

Sales of tangible personal property for use or consumption to federally chartered

credit unions, the Federal National Mortgage Association (Fannie Mae), Farm Credit

Banks, and Federal Home Loan Banks that are exempt under federal law are not

subject to tax. See Sales to purchasers exempt from use tax by federal law (ID 3027).

35 ILCS

120/2-5 (16)

1061

Sales to banks, savings

and loan associations,

and credit unions – not

exempt under federal

law

Taxable

Retail sales to national banks, state-chartered banks, federally chartered savings and

loan associations and other privately-owned financial institutions are subject to tax.

This includes sales of building materials and fixtures to construction contractors for

incorporation into real estate owned by banks and savings and loan associations.

86 III Adm.

Code

130.2085

1062

Sales by banks, savings

and loan associations,

and credit unions

Taxable

State-chartered banks and both federally- and state-chartered savings and loan

associations which engage in selling tangible personal property at retail must remit

tax.

86 Ill. Adm.

Code

130.2085

1063

Sales to railroad

companies

Taxable

86 Ill. Adm.

Code

130.2090

1064

Gasohol, coal, coke, fuel

oil, biodiesel, biofuel,

and other combustibles

Taxable High Rate

See also Motor fuel (ID 1055) for exemptions related to majority blended ethanol,

biodiesel, renewable diesel, and biodiesel blends.

86 Ill. Adm.

Code

130.2095

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 18 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID* Description Taxable Rate** Explanation References

1065

Feeds – used or

consumed

Taxable

High

Rate

The sale of feeds for use in feeding horses, livestock, or poultry, which are not resold

but are used, employed, or consumed, for purposes other than sale at market (or for

breeding animals whose offspring will be sold) constitutes a “sale at retail” which is

subject to tax.

86 Ill. Adm.

Code

130.2100

1066

Feeds – sold for

livestock which is for

sale at market or for

producing dairy or eggs

Non-

Taxable

Feeds sold for feeding livestock or poultry for marketing, or for producing dairy

products or eggs for marketing, are not a sale for use or consumption. Such sales of

feeds are deemed to be sales, for purposes of resale, of the property which, “as an

ingredient or constituent goes into and forms a part of tangible personal property,

subsequently the subject of a ‘sale at retail.’”

86 Ill. Adm.

Code

130.2100

1067 Floor coverings Taxable

High

Rate

See regulation for exceptions.

86 Ill. Adm.

Code

130.2101

1068

Books, sheet music,

musical recordings

(CDs and other media)

Taxable

High

Rate

Does not include digital transfers. See Digital books, digital music, and other digital

media (see ID 1069).

86 Ill. Adm.

Code

130.2105

1069

Digital books, digital

music, and other digital

media

Non-

Taxable

Information or data that is downloaded electronically, such as downloaded books,

musical recordings, digital photographic files, newspapers, or magazines does not

constitute the transfer of tangible personal property and is not subject to Use Tax.

Sales of downloads of computer software are generally taxable. See Computer

software (see IDs 1031 through 1033).

86 Ill. Adm.

Code

130.2105

1070

Newspapers and

magazines

Non-

Taxable

The newsprint and ink exemption applies to newspapers and magazines. See the

regulation to determine whether a publication qualifies as a newspaper or magazine

according to the newsprint and ink exemption.

86 Ill. Adm.

Code

130.2105

1071

Seeds and fertilizer –

resale

Exempt

Seeds and fertilizers that are used in producing agricultural products for sale are

exempt. See Form CRT-61

86 Ill. Adm.

Code

130.2110

1072

Seeds and fertilizer –

not for resale

Taxable

High

Rate

Seeds and fertilizers that are not used in production agriculture are not exempt (e.g.,

seeds or fertilizer for lawns or home or private gardens).

86 Ill. Adm.

Code

130.2110

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 19 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID* Description Taxable Rate** Explanation References

1073

Machinery, tools, and

special-order items

Taxable

High

Rate

Sales of machinery and tools not made on special order are sales of tangible

personal property and are subject to tax. Machinery and tools produced on order that

serve the same function as a standard item or that are an alteration of a standard

item are still subject to tax.

86 Ill. Adm.

Code

130.2115

1074

Machinery, tools, and

special-order items -

when considered a sale

of service

Non-

Taxable

Special orders of machinery and tools “of use or value only to the purchaser” (e.g.,

tools, dies, jigs, patterns, gauges, models, exhibits, and the like) are not taxable if

they meet the criteria listed in the regulation. See regulation. However, these items

may be subject to Service Occupation Tax.

86 Ill. Adm.

Code

130.2115

1075

Curtains, blinds,

awnings, shades,

screen doors, window

screens, storm doors

and storm windows,

slipcovers, floor

coverings, and other

similar items made to

order

Taxable

High

Rate

Items that are produced on special order and serve substantially the same function

as stock or standard items of tangible personal property sold at retail (with or without

installation by the seller) are taxable. When these items are sold with installation as a

permanent fixture into real estate by a construction contractor, the construction

contractor incurs Use Tax liability as the end user before it is incorporated into real

estate.

86 Ill. Adm.

Code

130.2140

1076

Vendors of memorial

stones and monuments

Taxable

High

Rate

Persons who engage in the business of selling monuments, grave markers, and the

like to purchasers for use or consumption, and not for resale, incur tax liability on

their receipts from such sales whether such items are sold as stock or standard

items, or whether such items are produced on special order by the seller for the

purchaser. Such items, when produced on special order, serve substantially the

same function as stock or standard items that are sold at retail.

86 Ill. Adm.

Code

130.2150

1077

Signs – with

commercial value

Taxable

High

Rate

Signs which have use or value, even when produced on special order, are subject to

tax. Examples: “Parking”, “Real Estate”, or computerized signs that can be

programmed with inputs (but without a personalized casing).

86 Ill. Adm.

Code

130.2155

1078

Signs – with value only

to purchaser

Non-

Taxable

Tax is not imposed on signs which have value only to the purchaser; however, these

signs may be subject to Service Occupation Tax.

86 Ill. Adm.

Code

130.2155

1079 Steam Taxable

High

Rate

Steam sold for use or consumption is subject to tax when the condensate is not

returned to the retailer. See regulation.

86 Ill. Adm.

Code

130.2156

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 20 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Common Transactions

ID*

Description

Taxable

Rate**

Explanation

References

1080

Tangible personal

property employed for

premiums, advertising,

prizes, etc.

Taxable

High

Rate

Tangible personal property sold to purchasers who give such property away for

premiums, advertising, prizes, or for any other reason, apart from their sale of other

tangible personal property or service (e.g., calendars, coffee mugs, and pens which

are sold to a dealer who gives the items away as part of a sales promotion or

advertising campaign, apart from the dealer’s sale of other tangible personal property

or service) is subject to tax.

86 Ill. Adm.

Code

130.2160

1081

Veterinarians – retail

sales of drugs and

medical devices

Taxable

High

Rate

See regulation.

86 Ill. Adm.

Code

130.2165

1082

Veterinarians – sales of

non-medical items

including combs,

brushes, clippers, name

tags, non-medicated

shampoo, leashes,

collars, toys, and waste

handling products

Taxable

High

Rate

See regulation.

86 Ill. Adm.

Code

130.2165

1083

Sales of coupon books,

gift certificates, and gift

cards

Non-

Taxable

See regulation.

86 Ill. Adm.

Code

130.2125

1084 Data Centers Exempt

Qualified tangible personal property used in the construction and operation of a data

center that has been granted a certificate of exemption by DCEO, whether the

tangible personal property is purchased by the owner, operator, or tenant of the data

center or by a contractor of the owner, operator, or tenant, is exempt from tax.

86 Ill. Adm.

Code

130.1957

1085 Rolling Stock Exempt

Notwithstanding the fact that the sale is at retail, the Retailers' Occupation Tax does

not apply to sales of tangible personal property to owners, lessors, or shippers of

tangible personal property that is utilized by interstate carriers for hire for use as

rolling stock moving in interstate commerce as long as so used by the interstate

carriers for hire. 35 ILCS 120/2-5(13). See Forms RUT-7

, Rolling Stock Certification

for Motor Vehicles and Trailers (and Repair and Replacement Parts) Purchased on

or after August 24, 2017, and

RUT-7-A, Rolling Stock Certification for Aircraft,

Watercraft, Limousines, and Rail Carrier Items.

86 Ill. Adm.

Code

130.340

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 21 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Illinois Sales & Use Tax Matrix – Special Situations and Exemptions

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3002

Coupons – retailer

receives full or partial

reimbursement

Taxable

If a retailer allows a purchaser a discount from the selling price based on a discount

coupon for which the retailer will receive full or partial reimbursement (from a

manufacturer, distributor, or other source), the retailer must remit tax on the

receipts received from the purchaser including the amount of any coupon

reimbursement.

86 Ill. Adm.

Code

130.2125

3003

Coupons – retailer

receives no

reimbursement

Non-

Taxable

If a retailer allows a purchaser a discount from the selling price based on a discount

coupon for which the retailer receives no reimbursement from any source, the

amount of the discount may be excluded from the selling price. Only the receipts

received by the retailer from the purchaser, not including the value of the coupon,

are subject to tax.

86 Ill. Adm.

Code

130.2125

3004

Community water supply,

tangible personal

property used in

construction or

maintenance

Exempt

Tangible personal property used in the construction or maintenance of a community

water supply, as defined under Section 3.145 of the Environmental Protection Act,

that is operated by a not-for-profit corporation that holds a valid water supply permit

issued under Title IV of the Environmental Protection Act is exempt. To document

the exemption, the retailer must obtain from the purchaser a copy of the Certificate

of Eligibility for Sales Tax Exemption issued by the not-for-profit corporation that

operates the community water supply. The Certificate of Eligibility for Sales Tax

Exemption must be obtained at the time of sale.

86 Ill. Adm.

Code

130.1934

3005

Low sulfur dioxide

emission coal-fueled

devices

Exempt

Purchases of low sulfur dioxide emission coal-fueled devices are exempt from tax.

This exemption extends to and includes the purchase of such a device, or materials

to construct such a device which are physically incorporated into the device, by a

contractor who retransfers the device to his purchaser in fulfillment of a contract to

furnish such a device to, and install it for, his purchaser.

86 Ill. Adm.

Code

130.335

3006

Coal exploration, mining,

off highway hauling,

processing, maintenance,

and reclamation

equipment

Exempt

Exemption applies until July 1, 2028.

86 Ill. Adm.

Code

130.350 and

35 ILCS

120/2-5(21)

3007

Aggregate exploration,

mining, off highway

hauling, processing,

maintenance, and

reclamation equipment

Exempt

Exemption applies until July 1, 2028.

86 Ill. Adm.

Code

130.351

and

35 ILCS

120/2-5(21)

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 22 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3008

Sales to governmental

bodies, foreign

diplomats, and consular

personnel

Exempt See regulations.

86 Ill. Adm.

Code

130.2080

3009

Tangible personal

property used or

consumed in Enterprise

Zones by certified

businesses or by High

Impact businesses

Exempt

Exemptions include tangible personal property used or consumed in: graphic arts

production within Enterprise Zones located in a county of more than 4,000 persons

and less than 45,000 persons, the process of manufacturing and assembly within

Enterprise Zones or by High Impact Businesses, and the operation of pollution

control facilities located within Enterprise Zones. The purchaser must provide the

retailer with current certificate of eligibility issued by the Department of Commerce

and Economic Opportunity (DCEO) and a written statement of exemption signed by

the certified business. See regulations.

86 Ill. Adm.

Code

130.1946

130.1947,

and

130.1948

3010

Building materials

exemptions – incentive

zones

Exempt

Exemptions include sales of building materials incorporated into the South

Suburban Airport, the Illiana Expressway, Real Estate within Enterprise Zones, a

High Impact Business, a Redevelopment Project within an Intermodal Terminal

Facility Area, and Real Estate within River Edge Redevelopment Zones. At the time

of purchase, the purchaser must provide the retailer with a valid exemption

certificate in the contractor’s or subcontractor’s name. It is the responsibility of the

retailer to verify the validity of the exemption certificate received using IDOR’s

verification page. If the exemption certificate is not valid at the time of purchase, the

contractor is not able to make tax-exempt purchases at that time. The contractor

must contact the Zone Administrator to be added to the approved list of contractors

and to be issued an exemption number by IDOR prior to making tax-exempt

purchases. See regulations and

Form EZ-1, Certificate of Exempt Purchase for

Building Materials.

86 Ill. Adm.

Code

130.1949

130.1950,

130.1951,

130.1952,

130.1953,

and

130.1954

3010.1

Building materials

exemption – microchips

and semiconductor

manufacturing

MICRO Act

Exempt

Effective April 19, 2022, each retailer who makes a sale of building materials that

will be incorporated into real estate in a qualified facility for which a certificate of

exemption has been issued by the Department of Commerce and Economic

Opportunity (“DCEO”) under Section 110-105 of the Manufacturing Illinois Chips for

Real Opportunity (MICRO) Act, may deduct receipts from such sales when

calculating any State or local use and occupation taxes. No retailer who is eligible

for the deduction or credit under Section 5k of the MICRO Act related to enterprise

zones or Section 5l of the MICRO Act related to High Impact Businesses for a given

sale shall be eligible for the deduction or credit authorized under Section 5n for that

same sale. See Form EZ-1

, Certificate of Exempt Purchase for Building Materials.

35 ILCS

120/5n

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 23 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3010.2

Utility tax exemptions

– microchips and

semiconductor

manufacturing

MICRO Act

Exempt

Effective April 19, 2022:

For Telecommunications Excise Tax, gross charge does not include charges to

business enterprises certified under the MICRO Act. 35 ILCS 630/2(a)(5.1)

For Electricity Excise Tax, tax is not imposed for use of electricity at a project site

that is certified for tax exemption under the MICRO Act. The exemption shall be no

more than 10 years. 35 ILCS 640/2-4(e)

A public utility shall not charge customers, who are certified by the DCEO under

Section 110-95 of the MICRO Act an additional charge equal to the total amount of

tax imposed under Section 2 of the Gas Revenue Tax Act, to the extent of such

exemption and during the period in which such exemption is in effect. 220 ILCS

5/9-

222.

P.A. 102-

0700,

Article 110,

Section

110-95

3010.3

Building materials

exemption – Reimagining

Energy and Vehicles in

Illinois (REV) Act

Exempt

Each retailer who makes a sale of building materials that will be incorporated into a

REV Illinois Project for which a certificate of exemption has been issued by the

Department of Commerce and Economic Opportunity (“DCEO”) under Section 105

of the REV Act, may deduct receipts from such sales when calculating any State or

local use and occupation taxes. No retailer who is eligible for the deduction or credit

under Section 5k of the Retailers’ Occupation Tax (ROT) Act related to enterprise

zones or 5l of the ROT Act related to High Impact Businesses for a given sale shall

be eligible for the deduction or credit authorized under Section 5m for the same

sale. See Form EZ-1

, Certificate of Exempt Purchase for Building Materials.

35 ILCS

120/5m

P.A. 102-

1125

effective

February 3,

2023

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 24 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3010.4

Utility tax exemptions –

REV Illinois

Exempt

For Telecommunications Excise Tax, gross charge does not include charges to

businesses certified by the DCEO under Section 95 of the REV Act to the extent

and during the period of time specified by the DCEO. See 35 ILCS 630/2(a)(5)

For Electricity Excise Tax, tax is not imposed for use of electricity at a REV Illinois

project site that is certified by the DCEO for tax exemption under Section 95 of the

REV Act. The exemption shall be no more than 10 years. 35 ILCS 640/2-4(d)

For Gas Revenue Tax, a public utility shall not charge customers, who are certified

by the DCEO under Section 95 of the REV Act, an additional charge equal to the

total amount of tax imposed under Section 2 of the Gas Revenue Tax Act, to the

extent of such exemption and during the period in which such exemption is in

effect. 220 ILCS 5/9-222

. The DCEO will determine the period during which the

exemption is in effect, which shall not exceed 10 years from the date of the

taxpayer's initial receipt of certification from the DCEO. 20 ILCS

686/95.

P.A. 102-

669

effective

November

16, 2021

P.A. 102-

1125

effective

February 3,

2023

3011 Donations

Tax is incurred when donating tangible personal property. The donor who

purchases property and gives it away makes a taxable use of the property when

making such gift. See regulation.

86 Ill. Adm.

Code

150.305

3012 Federal taxes

A person computing tax liability may deduct from gross receipts an amount

equivalent to taxes which are paid to the federal government if required by federal

law to collect such taxes from purchasers and remit taxes directly to the federal

government. Federal excise taxes imposed upon the manufacture or production of

tangible personal property, and Federal processing taxes, compensating taxes,

importation taxes and taxes on floor stocks are not deductible. See regulation.

86 Ill. Adm.

Code

130.445

3012.1

State and local taxes –

when included in the

selling price and basis

for tax

Generally, when a tax is imposed on the retailer, importer, manufacturer, and not

the consumer directly, the tax is included in the selling price when calculating

Retailers' Occupation Tax or Use Tax. In computing Retailers’ Occupation Tax

liability, no amount may be deducted from gross receipts from retail sales of

alcoholic beverages to cover the taxes which have been paid by manufacturers or

importing distributors of alcoholic beverages under the Liquor Control Act of 1934.

In the case of cigarettes, the amount represented by the State Cigarette Tax or

Cigarette Use Tax should be included in arriving at the net taxable selling price. If a

home rule jurisdiction, such as Chicago, imposes a cigarette tax, the amount of

such local cigarette tax is included the selling price when computing tax.

86 Ill. Adm.

Code

130.2060

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 25 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3012.2

State and local taxes –

when not included in the

selling price and basis

for tax

When a tax is imposed on a consumer, the tax is not includable in gross receipts

subject to state tax. In addition, gross receipts do not include any charges that are

added to prices on account of the seller’s tax liability under any local occupation tax

administered by IDOR. Persons who sell motor fuel for use or consumption may

deduct, from their gross receipts from such sales, the Illinois Motor Fuel Tax

collected with respect to such sales, because the Illinois Motor Fuel Tax is on the

consumer and is not considered to be a part of the “selling price” of the motor fuel.

County Motor Fuel Taxes imposed under the County Motor Fuel Tax Law are

includable in gross receipts subject to Retailers’ Occupation Tax. Cook County

Motor Fuel Tax is imposed upon the consumer and is therefore deductible from

gross receipts.

86 Ill. Adm.

Code

130.2060

3013

Transportation and

delivery charges – when

taxable

Taxable

If the transportation/delivery charge is not separately stated to the purchaser, or if

the charge is separately stated and the purchaser does not have the option to

obtain the property in any manner except by payment of the transportation and

delivery charge to the retailer (e.g., no option to pick up or no offer for free or

qualified free transportation or delivery), then the transportation/delivery charge is

considered part of the taxable purchase price. Costs incurred by the retailer in

moving property to some point from which the property will be delivered or shipped

to the purchaser, or picked up by the purchaser, are not outgoing transportation

and delivery charges; they are part of the retailer's costs of doing business. Any

amounts the retailer charges a purchaser for moving the property cannot be

deducted from the gross receipts of that sale. For applicable rate, see regulations.

86 Ill. Adm.

Code

130.415

3014

Transportation and

delivery charges – when

not taxable

Non-

Taxable

If the transportation/delivery charge is separately stated to the purchaser, and the

purchaser has the option to obtain the property in any manner except by payment

of the transportation and delivery charge to the retailer (e.g., has the option to pick

up or has an offer for free or qualified free transportation or delivery), then the

transportation/delivery charge is not taxable.

86 Ill. Adm.

Code

130.415

3015 Traded-in property

Non-

Taxable

Selling price means the consideration for a sale valued in money whether received

in money or otherwise, including cash, credits, or traded in property. Only if the

traded in property is of like kind and character as the property being sold may it be

used as a deduction from the selling price of the property sold.

86 Ill. Adm.

Code

130.425

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 26 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3016

Deposit or prepayment

on purchase price

Taxable High Rate

If a buyer in a sale at retail makes a binding commitment to purchase (the tangible

personal property identified in the contract is subject to binding commitment) any

payment on the purchase price is subject to tax. The giving of the binding purchase

order by the purchaser, identification of the tangible personal property, and the

making of a payment on the price are sufficient to establish that a sale is intended

for the purpose of determining that the seller has received taxable “gross receipts.”

86 Ill. Adm.

Code

130.430

3017

Installation, alteration,

and special service

charges – when taxable

Taxable High Rate

When installation, alteration, and service charges are not separately agreed upon

and separately stated (see regulation), they are considered part of the selling price

and subject to tax.

86 Ill. Adm.

Code

130.450

3018

Installation, alteration,

and special service

charges – when non-

taxable

Non-

Taxable

When installation, alteration, and service charges are separately agreed upon and

separately stated (see regulation), they are considered services and are not subject

to tax.

86 Ill. Adm.

Code

130.450

3019

Sales to nonprofit arts or

cultural organizations

Exempt

If an organization qualifies, IDOR will issue an E-number that the organization must

provide to vendors. Sales to such organizations are not taxable provided the

organization supplies the valid E-number to the vendor at the time of purchase.

Nonprofit arts and cultural organizations are required to obtain this number before

they can make tax-free purchases.

86 Ill. Adm.

Code

130.2004

and

130.2081

3020

Sales by exclusively

charitable, religious, or

educational

organizations

Taxable

There are very limited circumstances when these types of organizations are not

subject to tax.

86 Ill. Adm.

Code

130.2005(a)

(3)

3021

Sales of tangible items by

schools – soft drinks,

candy, popcorn, vending

machine sales, and

bookstore sales

Taxable High Rate Schools must collect tax on sales of tangible property.

86 Ill. Adm.

Code

130.2005

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 27 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3022

Sales to lodges, nonprofit

associations, nonprofit

corporations, labor

unions, civic clubs, and

patriotic organizations

Taxable

Purchasers must qualify as a government entity or an exclusively religious,

charitable, or educational organization to qualify to receive a Sales Tax

Exemption Number from IDOR. To make a tax-free purchase the purchaser must

present a valid E-number to the retailer at the time of purchase. Non-profit status

with the IRS is not sufficient to qualify for a Sales Tax Exemption without other

consideration.

86 Ill. Adm.

Code

130.2005

and

130.2081

3023

Sales by governmental

bodies other than the

federal government

Taxable High Rate

State and local governments, or any agency or instrumentality of any such

governmental body, must remit tax when engaging in the selling of tangible

personal property at retail to the public other than in the performance of a

governmental function.

86 Ill. Adm.

Code

130.2055

3023.1

Sales by or on behalf of

the State Treasurer

Exempt

Effective May 27, 2022, tangible personal property sold by or on behalf of the

State Treasurer pursuant to the Revised Uniform Unclaimed Property Act are

exempt.

35 ILCS

105/3-5(41)

35 ILCS

110/3-5(32)

35 ILCS

115/3-5(33)

35 ILCS

120/2-5(46)

and

P.A. 102-1026

3024

Sales to purchasers

performing contracts

with governmental

bodies

Exempt

Generally, a government contractor who purchases items to fulfill his obligations

under a contract with a governmental unit purchases those items for use and

must remit tax. However, if the contract with the governmental unit explicitly

requires the contractor to sell those items to the governmental unit, the purchase

of those items by the contractor can be structured as purchases for the purpose

of resale to the governmental unit if certain conditions are met. To be exempt,

there must be a contract between the purchaser and the governmental body that

requires the purchaser to transfer the tangible personal property to the

governmental body immediately upon or after the completion of the contract.

86 Ill. Adm.

Code

130.2076

130.2080, and

130.2081

3025

Sales to governmental

bodies

Exempt

Sales of tangible personal property made to a governmental body (federal, state,

local or foreign) are exempt from the tax only if the governmental body has a

valid E-number issued by IDOR and it provides this valid E-number to the retailer

at the time of purchase, who records the number instead of collecting the tax.

86 Ill. Adm.

Code

130.2080,

130.2081, and

150.332

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 28 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3026 Aircraft refurbishment Exempt

Beginning January 1, 2010, and continuing through December 31, 2029,

materials parts, equipment, components, and furnishings incorporated into or

upon an aircraft as part of the modification, refurbishment, completion,

replacement, repair, or maintenance of the aircraft are exempt from tax. This

exemption includes consumable supplies used in the modification, refurbishment,

completion, replacement, repair, and maintenance of aircraft. However, until

January 1, 2024, this exemption excludes any materials, parts, equipment,

components, and consumable supplies used in the modification, replacement,

repair, and maintenance of aircraft engines or power plants, whether such

engines or power plants are installed or uninstalled upon any such aircraft.

“Consumable supplies” include, but are not limited to, adhesive, tape, sandpaper,

general purpose lubricants, cleaning solution, latex gloves, and protective films.

Beginning January 1, 2010 and through December 31, 2023, this exemption

applies only to the sale of qualifying tangible personal property to persons who

modify, refurbish, complete, replace, or maintain an aircraft and who: (i) hold an

Air Agency Certificate and are empowered to operate an approved repair station

by the Federal Aviation Administration; (ii) have a Class IV Rating; and (iii)

conduct operations in accordance with Part 145 of the Federal Aviation

Regulations. The exemption does not include aircraft operated by a commercial

air carrier providing scheduled passenger air service pursuant to authority issued

under Part 121 or Part 129 of the Federal Aviation Regulations.

Beginning January 1, 2024 and through December 31, 2029, this exemption

applies only to the use of qualifying tangible personal property by: (A) persons

who modify, refurbish, complete, repair, replace, or maintain, and who (i) hold an

Air Agency Certificate and are empowered to operate an approved repair station

by the Federal Aviation Agency, (ii) have a Class IV rating, and (iii) conduct

operations in accordance with Part 145 of the Federal Aviation Regulations; and

(B) persons who engage in the modification, refurbishment, repair, and

maintenance of aircraft engines or power plants without regard to whether or not

those persons meet the qualifications of item (A).

86 Ill. Adm.

Code

130.120,

P.A.

103-0009,

and

35 ILCS

120/2-5(40)

3027

Sales to purchasers

exempt from use tax by

federal law

Exempt

If the purchaser is exempt from use tax by operation of federal law, then tangible

personal property sold to a purchaser is exempt from Illinois tax (both Use Tax

and Retailers’ Occupation Tax).

35 ILCS

120/2-5(16)

and

86 Ill. Adm.

Code

130.120(s)

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 29 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3027.1

Sales to active duty

military personnel

Exempt

Beginning January 1, 2024, tangible personal property purchased by an active

duty member of the armed forces of the United States who presents a valid

military identification and purchases the property using a form of payment where

the federal government is the payor. The armed forces member must complete,

at the point of sale, Form ST-590-M, Certificate of Eligibility for Military Purchase

Exemption, documenting that the transaction is eligible for the exemption. The

retailer must keep the form as documentation of the exempt for not less than 6

years. Armed forces means U.S. Army, Navy, Air Force, Marine Corps, and

Coast Guard.

P.A. 103-0009

3028 Interstate commerce Exempt

Sales of tangible personal property made by Illinois businesses when the

property is shipped or delivered by those Illinois businesses to a location outside

Illinois and is not returned to Illinois for use are exempt. This exemption does not

apply to sales made by Illinois businesses to an out-of-state buyer who takes

possession of items in Illinois.

86 Ill. Adm.

Code

130.605

3029

Licensed not-for-profit

daycare center

Exempt

Purchases by a licensed not-for-profit daycare are exempt when a valid “E-

number” is provided at the time of purchase. See ID 3030.

Information

for exclusively

charitable,

religious, or

educational

organizations;

governmental

bodies; and

certain other

tax-exempt

organizations

(PIO-37

) and

35 ILCS

120/2h

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 30 of 33

**To determine the effective rate of tax for a specific location, use the Tax Rate Finder.

Special Situations and Exemptions

ID*

Description

Taxable

Rate**

Explanation

References

3030

Exclusively charitable,

religious, educational, or

governmental

organizations – “E”

numbers

Exempt

An organization must be

• not-for-profit, and

• organized and operated exclusively for charitable, religious,

educational, or governmental purposes,

to qualify for the exemption from state and local sales tax (“E”-number) which

allows an organization to buy items tax-free. Illinois has its own criteria for

determining eligibility. The criteria are governed by the Retailers' Occupation

Tax Act for sales tax exemptions. Sales tax exemptions are given to

• Churches

• Exclusively charitable organizations

• Licensed not-for-profit day care centers

• Not-for-profit organizations that are operated primarily for arts or

cultural purposes

• Qualifying senior citizen organizations

• Schools

• State, local, and federal governments

Note: A charitable organization isn’t necessarily qualified because it has a

charter from the Secretary of State’s office designating it as a not-for-profit

corporation, or an exemption from federal taxes under Section 501(c)(3) of the

Internal Revenue Code. Although the information is relevant, it doesn’t prove

the charitable nature of the organization.

When selling tangible personal property at retail to members, guests or others,

organizations with E-numbers are liable for Retailers’ Occupation Tax with

certain limited exceptions. See 86 Ill. Adm. Code 130.2005 for the limited

exceptions.

Information for

exclusively

charitable,

religious, or

educational

organizations;

governmental

bodies; and

certain other

tax-exempt

organizations

(PIO-37

)

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 31 of 33

Illinois Sales & Use Tax Matrix – References to Other Taxes and Returns

References to Other Taxes and Returns

ID* Description Explanation Reference

4001 Automobile rental

Sales tax is not incurred on automobile rentals for a period of 1 year or less. See regulations for

Automobile Renting Occupation Tax.

86 Ill. Adm. Code

Part 180

4002 Aviation fuel

Sales of aviation fuel are reported on Form ST-70 filed through MyTax Illinois

. Sales of aviation fuel

should be included on Form ST-1, Line 1, Total Receipts and then deducted on Form ST-1, Schedule

A, line 16 with description “Sales of Aviation Fuel.”

FY 2018-16 and

Form ST-70

Instructions

4003

Dry cleaning and laundry

services

Dry cleaning and laundry services are not subject to sales tax. See Dry-Cleaning Solvent Tax and Dry-

Cleaning Operator’s License Fee.

415 ILCS 135/60

to 135/80

4004 Motor vehicles Marketplace facilitators and remote retailers are required to remit tax on titled or registered vehicles.

86 Ill. Adm. Code

130.111,

130.540,

131.110,

131.130,

and 150.705

4005

Illinois

Telecommunications

Access Corporation

(ITAC) Assessment

The Illinois Telecommunications Access Corporation (ITAC) Assessment is a charge imposed on the

consumer, to be collected by sellers, when a retail transaction takes place which includes prepaid

wireless telecommunications service. The ITAC Assessment must be collected on the same

transactions as the Prepaid Wireless E911 Surcharge. See the ITAC assessment page on our website

for specific information.

Remote retailers are required to collect and remit this assessment on any sale of prepaid wireless

service. Marketplace facilitators are not required to collect and remit the ITAC assessment; however,

marketplace sellers may be liable for this assessment.

220 ILCS 5/13-

703

and

86 Ill. Adm. Code

131.107

4006

Prepaid Wireless E-911

Surcharge

The Prepaid Wireless E911 Surcharge is a charge imposed on the consumer and collected by retailers

when a retail transaction takes place that includes prepaid wireless telecommunications service. It is

reported on Form ST-1. Retailers are required to collect the surcharge.

Use the Tax Rate Database,

available on our website at tax.illinois.gov to determine the current rate.

See the Prepaid Wireless E911

Surcharge page on our website for specific information.

Remote retailers who meet a tax remittance threshold are required to collect and remit this surcharge

on any sale of prepaid wireless service. Marketplace facilitators are not required to collect and remit the

surcharge; however, marketplace sellers may be liable for the surcharge.

50 ILCS 753/15

ST-15-0008-PLR,

and

86 Ill. Adm. Code

131.107

4007 Sales of wireless services See Telecommunications Excise Tax Act. Sales of wireless service are not subject to sales tax.

35 ILCS 630/1, et

seq.

4008 Telecommunications

See Telecommunications Excise Tax Act

. Sales of telecommunications service are not subject to sales

tax.

35 ILCS 630/1, et

seq.

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 32 of 33

References to Other Taxes and Returns

ID* Description Explanation Reference

4009

Watercraft and aircraft –

sales

Effective February 1, 2022, marketplace facilitators and remote retailers are required to collect and

remit tax on aircraft and certain watercraft that is titled or registered with an Illinois agency.

86 Ill. Adm. Code

130.111

130.540,

131.110,

131.130,

and 150.705

4010 Rounding Rule

To round you must

• drop amounts under 50 cents and

• increase amounts of 50 to 99 cents to the next dollar.

For example, $1.49 becomes $1 and $2.50 becomes $3. If you need to add two or more amounts to

figure the amount to enter on a line, include cents when adding the amounts and round only the total.

35 ILCS 120/3

4011 Tire User Fee

Any person who sells or delivers tires at retail in Illinois must collect the fee. The fee is imposed on:

• new and used tires for vehicles in which persons or property may be transported or drawn upon

a highway, as defined in the Illinois Vehicle Code, Section 1-217;

• aircraft;

• special mobile equipment (such as street sweepers, road construction and maintenance

machinery); and

• implements of husbandry (farm wagons and combines).

See the Tire User Fee page on our website for specific information.

415 ILCS

5/53 - 5/55.15

4012

Metropolitan Pier and

Exposition (MPEA)

Authority Food and

Beverage Tax

A retailers’ occupation tax imposed on sales within Chicago’s Metropolitan Pier and Exposition

Authority (MPEA) boundaries on the gross receipts from the sale of

• food, alcoholic beverages, and soft drinks sold for consumption on the premises; and

• food, alcoholic beverages, and soft drinks sold for consumption off-the-premises by retailers

whose primary gross receipts are from food, soft drink, and alcoholic beverages prepared for

immediate consumption.

See the Metropolitan Pier and Exposition Authority Food and Beverage Tax page on our website for

more information. The MPEA Food and Beverage Tax does not apply to remote retailers. Marketplace

facilitators, e.g., food-delivery services, such as, Door Dash and Grub Hub, are liable, effective October

1, 2021, for the MPEA Food and Beverage Tax based on their agreement with the food and beverage

establishment.

70 ILCS

210/13(b)

and

86 Ill. Adm. Code

131.107

Effective June 28, 2024

PIO-101 (R-06/24) *ID column is a unique numerical identifier for each item to be used by programmers. Page 33 of 33

References to Other Taxes and Returns

ID* Description Explanation Reference

4013

Chicago Home Rule

Municipal Soft Drink

Retailers’ Occupation Tax

The Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax is imposed on persons who

sell canned or bottled soft drinks at retail in Chicago including

• in-state retailers located in the city of Chicago;

• out-of-state retailers with selling activity in the city of Chicago (i.e. physical presence, see, e.g.,

86 Ill. Adm. Code 270.115) OR with sales of inventory located in the city of Chicago;

• remote retailers without physical presence or inventory in Illinois who meet or exceed a tax

remittance threshold and make sales to purchasers in the city of Chicago (effective October 1,

2021);

• marketplace facilitators whose marketplace meets or exceeds a tax remittance threshold and

who make sales over the marketplace to purchasers in the city of Chicago on behalf of

marketplace sellers (effective October 1, 2021); and

• marketplace facilitator’s own sales (effective October 1, 2021) when:

o they are making sales fulfilled from inventory located in Chicago, or the selling

activities otherwise occur in Chicago or

o they meet or exceed a tax remittance threshold, the selling activity is conducted

outside Illinois, and they are shipping a soft drink to an address located in the city of

Chicago.

“Soft drinks” include, but are not limited to:

• soda;

• sport or energy drink;

• sweetened tea;

• waters containing natural or artificial sweeteners;

• beverages containing 50 percent or less fruit or vegetable juice; and

• all other preparations commonly known as soft drinks.

See the Chicago Home Rule Municipal Soft Drink Retailers’ Occupation Tax page for more information.

65 ILCS

5/8-11-6b

86 Ill. Adm. Code

131.107(c)(1)(B)

The information in this document is current as of the effective date listed. The contents of this document are informational only and do not take the place of statutes, rules

and regulations, or court decisions.