Part 130: RETAILERS' OCCUPATION TAX

Section 130.1954 Sales of Building Materials Incorporated into Real Estate within River Edge Redevelopment Zones a) River Edge Redevelopment Zone − In General 1) Effective July 12, 2006, each retailer that makes a qualified sale of building materials to be incorporated into real …

Section 130.1955 Farm Chemicals a) Vendors of farm chemicals are exempt from Retailers' Occupation Tax on their receipts from such sales. [35 ILCS 120/2-5(a)] b) Farm chemicals include any chemical product used in production agriculture, the products of which are to be sold, or i…

Section 130.1956 Dentists a) When Liable For Tax When dentists sell items of tangible personal property, such as mouthwash, toothpaste, dental floss, and the like, to purchasers for use or consumption apart from their rendering of service as dentists, they incur Retailers' Occupa…

Section 130.1957 Tangible Personal Property Used in the Construction or Operation of Data Centers a) Effective January 1, 2020, qualified tangible personal property used in the construction or operation of a data center that has been granted a certificate of exemption by the Depa…

Section 130.1958 Sales of Building Materials to be Incorporated into Real Estate in a Qualified Facility under the Manufacturing Illinois Chips for Real Opportunity (MICRO) Act a) Each retailer who makes a sale of building materials that will be incorporated into real estate in a…

Section 130.1959 Sales of Building Materials to be Incorporated into a REV Illinois Project under the Reimagining Energy and Vehicles in Illinois Act a) Each retailer who makes a sale of building materials that will be incorporated into a REV Illinois Project for which a certific…

Section 130.1960 Finance Companies and Other Lending Agencies – Installment Contracts – Bad Debts a) Lending Agencies – When Liable For Tax Finance companies and other lending agencies are not relieved from liability for tax in cases in which they engage in the business of sellin…

Section 130.1961 Sales of Building Materials to be Incorporated into Real Estate at a Quantum Computing Campus a) Each retailer who makes a qualified sale of building materials to be incorporated into real estate at a quantum computing campus certified by the Department of Commer…

Section 130.1965 Florists and Nurserymen a) Florists – When Liable For Tax Florists are engaged in the business of selling tangible personal property at retail and are liable for payment of the Retailers' Occupation Tax measured by receipts from sales of flowers, wreaths, bouquet…

Section 130.1970 Hatcheries a) When Liable for Tax 1) Sales of baby chicks that are purchased for the buyer's consumption and are consumed by such buyer and not subsequently resold on the market, constitute retail sales, the receipts from which are subject to the Retailers' Occup…

Section 130.1971 Sellers of Pets and the Like a) Sellers of Pets and the Like, Including Horses, Fish, Birds, and Insects – When Liable For Tax When persons who are in the business of selling pets, animals, horses, fish, birds, insects and the like sell those items (whether alive…

Section 130.1975 Operators of Games of Chance and Their Suppliers a) Operators Of Games Of Chance Persons who engage in conducting raffles or other games of chance are not engaged in the business of selling tangible personal property at retail to the extent of such activities and…

Section 130.1980 Optometrists and Opticians a) Optometrists – When Liable for Tax When optometrists sell tangible personal property to purchasers for use or consumption apart from their rendering of service as optometrists, they incur retailers' occupation tax liability. This is …

Section 130.1985 Pawnbrokers a) Pawnbrokers Primarily In Service Occupation Pawnbrokers are primarily engaged in the business of lending money for the repayment of which they accept tangible personal property from the pawner or pledgor as security. b) When Liable For Tax In case …

Section 130.1990 Peddlers, Hawkers, and Itinerant Vendors a) When Liable For Tax 1) Persons who transport a supply of tangible goods from place to place, whether upon trucks, wagons or otherwise, exposing such goods for sale, soliciting and negotiating sales, and immediately deli…

Section 130.1995 Personalizing Tangible Personal Property a) When The Tax Applies 1) 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…

Section 130.2000 Persons Engaged in the Printing, Graphic Arts or Related Occupations, and Their Suppliers a) Classification of Businesses Falling into the classification of persons engaged in the graphic arts or related occupations are printers, book binders, typographers, portr…

Section 130.2004 Sales to Nonprofit Arts or Cultural Organizations a) Between August 6, 1999 and June 30, 2001, notwithstanding the fact that sales may be at retail, the Retailers' Occupation Tax does not apply to sales of tangible personal property to a not-for-profit arts or cu…

Section 130.2005 Persons Engaged in Nonprofit Service Enterprises and in Similar Enterprises Operated as Businesses, and Suppliers of Such Persons a) Sales by Nonprofit Service Organizations Effective August 1, 1961, nonprofit country clubs, boat clubs, employees' clubs or organi…

Section 130.2006 Sales by Teacher-Sponsored Student Organizations a) Sales by teacher-sponsored student organizations affiliated with an elementary or secondary school located in Illinois are exempt from Retailers' Occupation Tax. (Ill. Rev. Stat. 1983, ch. 120, par. 441) b) "A t…

Section 130.2007 Exemption Identification Numbers a) Tax-exempt Purchases On and after July 1, 1987, an entity which would otherwise qualify for tax-exempt status on its purchases of tangible personal property for use or consumption (refer to Section 130.2005 and Section 130.2080…

Section 130.2008 Sales by Nonprofit Service Enterprises a) The Retailers' Occupation Tax does not apply to some sales of merchandise by nonprofit organizations whose main purpose is to benefit persons who are 65 years of age or older. These organizations are called "service enter…

Section 130.2009 Personal Property Purchased Through Certain Fundraising Events for the Benefit of Certain Schools a) Beginning January 1, 2000, the Retailers' Occupation Tax does not apply to the sale of personal property, including food, purchased through fundraising events for…

Section 130.201 The Test of a Sale at Retail a) Sale at Retail 1) "Sale at retail" means any transfer of the ownership of, the title to, and on and after January 1, 2025, the possession or control of, the right to possess or control, or a license to use tangible personal property…

Section 130.2010 Persons Who Rent or Lease the Use of Tangible Personal Property to Others a) Persons Who Rent or Lease the Use of Tangible Personal Property to Others – When Liable For Retailers' Occupation Tax – Conditional Sales If persons who are engaged in the business of se…

Section 130.2011 Sales to Persons Who Lease Tangible Personal Property to Exempt Hospitals – Obsolete beginning January 1, 2025 a) Effective January 1, 1996 through December 31, 2000, and on and after August 2, 2001, sales of computers and communications equipment utilized for an…

Section 130.2012 Sales to Persons Who Lease Tangible Personal Property to Governmental Bodies a) Effective January 1, 1996 through December 31, 2000, and on and after August 2, 2001, sales of tangible personal property to a lessor who leases that property to a governmental body a…

Section 130.2013 Persons in the Business of Both Renting and Selling Tangible Personal Property – Tax Liabilities, Credit a) Purchases of Tangible Personal Property for Rental 1) Purchases of Tangible Personal Property for Rental - Applicable on and after the January 1, 2025 Chan…

Section 130.2015 Persons Who Repair or Otherwise Service Tangible Personal Property a) Persons Who Service or Repair Tangible Personal Property – When Liable For Retailers' Occupation Tax 1) When persons who service or repair tangible personal property sell tangible personal prop…

Section 130.2020 Physicians and Surgeons a) When Liable for Tax When physicians or surgeons sell items of tangible personal property such as medical bracelets, crutches, wheelchairs, first-aid kits, and the like, to purchasers for use or consumption apart from their rendering of …

Section 130.2025 Picture-Framers a) When Liable For Tax Picture-framers incur Retailers' Occupation Tax liability when they sell frames at retail, even though they make such picture frames only upon receipt of orders therefor. This is true even though the picture-framer installs,…

Section 130.2030 Public Amusement Places a) When Liable For Tax If, auxiliary to the operation of places of public amusement, persons sell refreshments, beverages or other tangible personal property to purchasers for use or consumption, they are, to this extent, engaged in the bu…

Section 130.2035 Registered Pharmacists and Druggists a) When Liable For Tax When registered pharmacists or druggists sell drugs or medicines "over-the-counter" to purchasers for use or consumption apart from their filling of the prescription of a licensed physician or other pers…

Section 130.2040 Retailers of Clothing a) When Liable For Tax Persons who engage in the business of selling clothing to purchasers for use or consumption and not for resale incur Retailers' Occupation Tax liability when making such sales whether such clothing is sold as a stock o…

Section 130.2045 Retailers on Premises of the Illinois State Fair, County Fairs, Art Shows, Flea Markets and the Like a) When Liable For Tax Every person (including nonprofit service organizations as well as other persons) engaging in the sale of any tangible personal property fo…

Section 130.205 Sales for Transfer Incident to Service a) Sales of tangible personal property to a purchaser, who transfers the ownership of, the title to, or, on and after January 1, 2025, the possession or control of, the right to possess or control, or a license to use the tan…

Section 130.2050 Sales and Gifts By Employers to Employees a) When Liable For Retailers' Occupation Tax 1) Where a manufacturer or other employer, who is engaged in a commercial enterprise, sells tangible personal property to its employees for use or consumption, such manufacture…

Section 130.2055 Sales by Governmental Bodies a) Sales by the State of Illinois and by Local Governments in Illinois Effective August 1, 1961, the State of Illinois or any local governments in Illinois, or any agency or instrumentality of any such governmental body, incurs Retail…

Section 130.2060 Sales of Alcoholic Beverages, Motor Fuel and Tobacco Products a) Retailers' Occupation Tax on Retail Sales of Alcoholic Beverages Persons engaged in the business of selling alcoholic beverages to purchasers for use or consumption are required to remit retailers' …

Section 130.2065 Sales of Automobiles for Use In Demonstration (Repealed) (Source: Repealed at 24 Ill. Reg. 15104, effective October 2, 2000)

Section 130.2070 Sales of Containers, Wrapping and Packing Materials and Related Products a) Definition When used in this Section, the term "containers" includes all containers, wrapping and packing materials, bags, twines, container handles, wrapping papers, gummed tapes, cellop…

Section 130.2075 Sales To Construction Contractors, Real Estate Developers and Speculative Builders a) Sales to Construction Contractors, Real Estate Developers and Speculative Builders – When Taxable and When Not Taxable 1) Persons who engage in selling tools, equipment, fuel, s…

Section 130.2076 Sales to Purchasers Performing Contracts with Governmental Bodies a) Generally, a government contractor who purchases items to fulfill his obligations under a contract with a governmental unit purchases those items for use. See, U.S. v. New Mexico, 455 U.S. 720, …

Section 130.2080 Sales to Governmental Bodies, Foreign Diplomats and Consular Personnel a) Exemption Identification Number. On and after January 1, 2015, except as provided in subsections (b) and (c), sales of tangible personal property made to a governmental body (federal, State…

Section 130.2081 Tax-Free Purchases By Exempt Entities, Their Employees and Representatives, and Documenting Sales to Exempt Entities, Their Employees and Representatives a) Gross receipts from proceeds from the sale of the following tangible personal property are exempt from the…

Section 130.2085 Sales to or by Banks, Savings and Loan Associations and Credit Unions a) Sales to Banks, Etc. 1) Retail sales to national banks, State-chartered banks, Federally-chartered savings and loan associations, and other privately-owned financial institutions are subject…

Section 130.2090 Sales to Railroad Companies When persons who are engaged in the business of selling equipment, supplies or other tangible personal property sell any such tangible personal property to railroad companies for use or consumption, such persons are required to remit R…