Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.140 - Other Examples of Taxable Transactions

Current through Register Vol. 48, No. 28, July 12, 2024
a) Sales of metal, wood, rubber and other
				ingredients by special tool, die, pattern and machinery producers who
				incorporate them into such products in such a manner as to be exempt from the
				Retailers' Occupation Tax Act, if the products are produced for users and
				delivered in Illinois (see Section
				140.101(g),
				Service Occupation Tax);
b) sales
				of bandages*, medicines*, drugs* and other tangible personal property by
				doctors to patients as an incident to the furnishing of professional services
				in Illinois;
c) sales of
				medicines*, drugs*, dentures*, materials for fillings and other tangible
				personal property by dentists to patients as an incident to the furnishing of
				professional services in Illinois;
d) sales of arch supports*, trusses*,
				braces*, etc., by chiropodists, osteopaths and chiropractors as an incident to
				the furnishing of licensed services in Illinois;
e) sales of collar supports, coat hangers,
				suit bags, paper, string, shirtboards, and other tangible personal property by
				laundries and dry cleaners as an incident to the furnishing of laundering and
				cleaning services in Illinois;
f)
				sales of paper bags, wrapping paper, string and other tangible personal
				property as an incident to the furnishing of wrapping services in
				Illinois;
g) sales of hair tonic
				and oil, pomades, powders, dyes, lotions, creams and other similar tangible
				personal property by barbers and beauticians as an incident to the furnishing
				of services in Illinois in such a way that the property remains on the person
				of the customer of the barber or beautician;
h) sales of eyeglasses* and frames* by
				optometrists and oculists to customers as an incident to the furnishing of
				licensed services in Illinois; however, when the optometrist or oculist
				purchases the eyeglasses or frames in finished form from an optician, so that
				the optometrist or oculist has subcontracted a portion of his service work to
				the optician thus giving rise to a multi-service situation, see Section
				140.145 of this
				Subpart;
i) sales of book binding
				by bookbinders and other tangible personal property by graphic arts servicemen
				in Illinois as an incident to the furnishing of services;
j) sales of paint, wax, undercoating, oil,
				grease, filters, parts and other similar tangible personal property by
				automobile servicemen or other servicemen as an incident to the furnishing of
				services in Illinois;
k) sales of
				wax and shoe polish by shoe shiners as an incident to the furnishing of shoe
				shining services;
l) sales of
				repair parts, repair materials and other tangible personal property by persons
				who repair, remodel or recondition tangible personal property for others, as an
				incident to their furnishing of service to their customers; however, such
				purchases of repair parts and repair materials are not taxable when made by a
				railroad which will dispose of such parts or materials on a nonprofit basis by
				installing them, as a repairman, in cars belonging to another railroad at
				interchange points in connection with the interchange of traffic;
m) sales of food, medicine* and other
				tangible personal property by business-operated hospitals and sanitaria or by
				licensed business-operated nursing homes as an incident to rendering hospital
				or nursing service in Illinois to patients;
n) transfers of prizes by theaters as an
				incident to service;
o) transfers
				of embalming fluid by funeral directors as an incident to their providing of an
				embalming service to others;
p)
				transfers of dye as an incident to rendering service by persons engaged in the
				service occupation of dyeing clothing for users;
q) sales of tangible personal property by
				sign makers as an incident to rendering service in the production of signs
				which are special enough to be exempt from the Retailers' Occupation Tax under
				Section 130.2155 of the Retailers'
				Occupation Tax (86 Ill. Adm. Code 130);
r) sales made by servicemen as an incident to
				sales of service to national banks or State-chartered banks or to Federal or
				State savings and loan associations, and sales made by State-chartered banks or
				Federal and State savings and loan associations as an incident to sales of
				service. Sales by national banks as an incident to sales of service are also
				subject to Service Occupation Tax. Servicemen are not liable for Service
				Occupation Tax on tangible personal property transferred incident to sales of
				service to a purchaser who is exempt from the tax imposed by the Act by
				operation of federal law [35 ILCS
				115/3-5(31) ];
s) transfers of fertilizers, pesticides and
				lawn care chemicals incident to service provided under contracts to maintain
				lawns, trees, shrubs and other plants.
t) The foregoing examples are illustrative,
				but not exhaustive.
AGENCY NOTE: Items with asterisks (*) are subject to 1%
					 rate only.