Illinois Administrative Code › Title 86 - REVENUE › Part 140 - SERVICE OCCUPATION TAX › Subpart A - NATURE OF TAX › Section 140.125 - Examples of Nontaxability

Current through Register Vol. 48, No. 28, July 12, 2024
The tax does not apply to:
a) sales of intangible personal
				property;
b) sales of real
				property;
c) sales of personal
				services as such;
d) sales of
				tangible personal property which come within the protection of the Commerce
				Clause of the Constitution of the United States (see Subpart E of this
				Part);
e)
personal property
				sold by a corporation, society, association, foundation, institution, or
				organization, other than a limited liability company, that is organized and
				operated as a not-for-profit service enterprise for the benefit of persons 65
				years of age or older if the personal property was not purchased by the
				enterprise for the purpose of resale by the enterprise
(Section 3-5(1)
				of the Act);
f) the retail selling
				of tangible personal property which is taxable under the Retailers' Occupation
				Tax Act [35
				ILCS 120 ] or the Use Tax Act [35 ILCS
				105 ];
g)
				a sale of tangible personal property for the purpose of resale apart from the
				purchaser's engaging in a service occupation, made in compliance with Section
				2c of the Retailers' Occupation Tax Act (Section 2 of the Act);
h) sales of tangible personal property as an
				incident to sales of service:
1)
to
				or by any corporation, society, association, foundation or institution
				organized and operated exclusively for charitable, religious or educational
				purposes
(Section 2(c) of the Act), in accordance with the provisions
				of 86 Ill. Adm. Code 130.2005, which is effective as
				if fully set forth in this subsection (h)(1);
2)
to or by any corporation, society,
				association, foundation or institution operated primarily for the recreation of
				persons aged 55 years or older which has no compensated officers or
				employees
, in accordance with the provisions of 86 Ill. Adm. Code
				130.2005, which is effective as if fully set forth in this subsection (h)(2)
				(Section 2(c) of the Act);
3)
to or by any governmental body
(Section 2(c) of the Act), in
				accordance with the provisions of 86 Ill. Adm. Code
				130.2055 and
				130.2080, which are effective as
				if fully set forth in this subsection (h)(3);
4)
to a not-for-profit Illinois
				county fair association for use in conducting, operating or promoting the
				county fair
(Section 3-5(2) of the Act);
5)
to any not-for-profit arts or
				cultural organization that has received an exemption under Section 501(c)(3) of
				the Internal Revenue Code
(26 U.S.C. 501)
and that is
				organized and operated primarily for the presentation or support of arts or
				cultural programming, activities, or services.
These organizations
				include, but are not limited to, music and dramatic arts organizations such as
				symphony orchestras and theatrical groups, arts and cultural service
				organizations, local arts councils, visual arts organizations, and media arts
				organizations. (Section 3-5 of the Act)
In order to qualify for exemption, all the above listed
				  organizations (and on and after July 1, 2001, those described in subsection
				  (h)(5)) must have been issued an active exemption identification number by the
				  Department;