IL ST 22-0014-GIL Sales & Use Tax 2022-04-14

What are Illinois's official answers to a comprehensive national multistate survey covering sales tax nexus, economic nexus thresholds, remote-seller/service-provider activities, refund claims, voluntary disclosure agreements, and local sales taxes?

Short answer: Illinois bases sales/use tax nexus on BOTH physical and economic presence, with the economic threshold set at $100,000 or more in cumulative Illinois gross receipts OR 200 or more separate Illinois transactions in a 12-month period (35 ILCS 120/2(b)-(c)); Illinois requires vendors who obtain a tax refund to repay it to the purchasers who bore it (via an unconditional promissory note) and does NOT let purchasers seek sales tax refunds directly from the state; Illinois offers a voluntary disclosure program but generally excludes issues already missed on an audit; and local sales taxes in Illinois may be administered by the state, by the locality, or both depending on the specific local tax (Chicago, for example, administers its own Use Tax).

Apply this to your situation

This page answers the general question as of 2022. Ezel answers yours, under current Illinois tax law, with citations.

Disclaimer: This is an official Illinois Department of Revenue General Information Letter (GIL), issued under 2 Ill. Adm. Code 1200.120. A GIL merely directs a taxpayer to the relevant Department regulations or other sources of information; it is NOT a statement of Department policy and is NOT binding on the Department. Taxpayer-identifying details are redacted. This summary is informational only and is not legal or tax advice. Consult a licensed Illinois tax professional about your specific situation.

About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official state tax ruling. The original ruling (linked on this page as a PDF) is the authoritative source for any reliance.

View original ruling (PDF)

Plain-English summary

This is by far the largest "Miscellaneous" survey-response GIL in Illinois's letter-ruling archive: a large national tax publisher's comprehensive annual "Survey of State Tax Departments," structured as a huge multi-tab spreadsheet with hundreds of narrow yes/no/citation questions across five sections (I. Sales Tax Policies, II. Sales Tax Nexus-Creating Activities, III. Refund Claims, IV. Voluntary Disclosure Agreements, V. Local Sales Taxes). The Department's actual response was simply "please see the attached Excel spreadsheet" -- so the bulk of this document (over 2,000 extracted lines) is that spreadsheet's raw question-and-answer grid, not a written narrative ruling. Because of its sheer size and row-by-row spreadsheet format, this summary highlights the clearest, most broadly useful answers rather than reproducing every individual checkbox -- readers who need Illinois's answer to a specific, narrower survey question (e.g., a particular trade-show or cloud-computing fact pattern in Section II) should consult the original PDF directly.

Nexus and economic nexus (Section I): Illinois's sales/use tax nexus rests on statutes 35 ILCS 105/2, 105/2d, and 120/2, implemented through 86 Ill. Adm. Code 131.101 et seq., and is based on BOTH physical and economic presence (not physical presence alone). The economic nexus threshold is $100,000 or more in cumulative Illinois gross receipts, or 200 or more separate transactions into Illinois, tracing back to South Dakota v. Wayfair and Illinois's own pre-Wayfair case Brown's Furniture, Inc. v. Wagner, 171 Ill. 2d 410 (1996). Below that threshold (under $100,000 and under 200 transactions), an out-of-state retailer generally has no nexus-creating obligation under 86 Ill. Adm. Code 131.115.

Remote-seller and service-provider activities (Section II): this section walks through dozens of specific fact patterns -- trade-show attendance, temporary in-state presence, delivering property incidental to a taxable service, and cloud-computing/SaaS access -- most of which the Department answered "No Response" or left blank in the underlying spreadsheet rather than giving an affirmative yes/no for every scenario. For service providers and cloud computing specifically, the Department pointed to 86 Ill. Adm. Code 140.101(a) and 140.125 (tangible personal property incidental to a taxable service) and 86 Ill. Adm. Code 130.1935 and 150.201 plus Illinois Private Letter Ruling ST 17-0006 (8/14/2017) for canned-software/cloud-computing taxability, rather than answering each individual hypothetical.

Refund claims (Section III): Illinois requires a vendor that obtains a sales/use tax refund to actually repay the recovered tax to the purchasers who originally bore it -- and specifically requires an UNCONDITIONAL promissory note for this purpose (not merely a note conditioned on the Department's ultimate refund decision). Illinois does NOT allow purchasers to seek a sales tax refund directly from the state for tax over-collected and remitted by their vendor; the purchaser's remedy runs through the vendor. See 86 Ill. Adm. Code 130.1501.

Voluntary disclosure agreements (Section IV): Illinois currently offers a voluntary disclosure program (86 Ill. Adm. Code 210.126), but generally does NOT allow issues already missed on a prior audit to be folded into a voluntary disclosure agreement.

Local sales taxes (Section V): Illinois local jurisdictions do impose their own sales taxes, and administration varies by the specific local tax -- some are administered by the state, some by the locality itself, and some jointly ("depends on the local tax"; Chicago, for example, administers its own Use Tax separately from the state). Local retailers' occupation taxes that the Department itself administers follow the same exemptions, credits, deductions, and administrative procedures as the State Retailers' Occupation Tax (see 86 Ill. Adm. Code 220.215, 230.115, 270.115, 280.115, 320.115, 330.115, 370.115, 380.115, 395.115, and 396.115, and Publication ST-2 for the list of Department-administered local taxes). A February 2021 Compliance Alert separately addresses local taxes NOT administered by the Department that marketplace facilitators must still collect and remit.

Throughout the survey, the Department repeatedly points back to one master reference -- Illinois General Information Letter 21-GC-0001 (Feb. 4, 2021) -- as its baseline explanation of nexus and marketplace-facilitator rules, suggesting that letter is a useful primary source for anyone researching Illinois nexus in depth.

What this means for you

Remote sellers and multistate operators

If your only connection to Illinois is remote sales, you generally don't owe Illinois sales/use tax registration unless you cross $100,000 in cumulative Illinois gross receipts or make 200 or more separate Illinois transactions in a 12-month period -- Illinois nexus is not physical-presence-only. If you're below both thresholds, most of the narrow trade-show/temporary-presence/cloud-computing scenarios surveyed here did not get an affirmative "yes" answer from the Department, but always check the specific fact pattern in the original PDF if it matters to your situation.

SaaS, cloud computing, and other service providers

The Department didn't walk through every cloud-computing hypothetical in this survey, instead pointing to its existing canned-software regulations (86 Ill. Adm. Code 130.1935, 150.201) and a 2017 private letter ruling (ST 17-0006) as the governing framework -- consult those sources directly for your specific delivery model.

Businesses seeking a sales/use tax refund

If you're a vendor recovering an Illinois sales/use tax refund on behalf of customers who bore the tax, be ready to actually repay them using an unconditional promissory note, not one conditioned on the Department's refund decision. If you're the end purchaser who was over-charged, you generally cannot go directly to the Department for a refund -- you need your vendor to pursue it.

Businesses considering Illinois's voluntary disclosure program

Illinois's voluntary disclosure program is available, but don't expect to fold in an issue that a prior Illinois audit already caught -- that issue generally isn't eligible for VDA treatment.

Multi-location retailers and Illinois local-tax questions

Don't assume Illinois's local sales taxes are handled uniformly -- some are state-administered, some are locality-administered (Chicago's own Use Tax being a notable example), and some are joint, so confirm the administering authority for each specific local tax that applies to your locations.

Common questions

Q: Is Illinois sales/use tax nexus based only on physical presence?
A: No. Illinois nexus is based on BOTH physical and economic presence. The economic threshold is $100,000 or more in cumulative Illinois gross receipts, or 200 or more separate Illinois transactions, in a 12-month period.

Q: Can a purchaser who was overcharged sales tax get a refund directly from the Illinois Department of Revenue?
A: No, according to this survey response -- the purchaser's remedy is through the vendor, not directly from the state. The vendor, in turn, must actually repay the recovered tax to the purchaser using an unconditional promissory note.

Q: Does Illinois's voluntary disclosure program cover issues already found on an audit?
A: Generally no -- issues missed on a prior audit are not eligible for inclusion in Illinois's voluntary disclosure program according to this response.

Q: Are Illinois local sales taxes always administered the same way?
A: No. Depending on the specific local tax, it may be administered by the state, by the locality itself, or jointly -- for example, Chicago administers its own Use Tax separately from the state.

Q: Does this GIL answer every individual nexus/cloud-computing scenario in detail?
A: No -- the underlying spreadsheet leaves many of the narrower fact-pattern questions in Section II (trade shows, occasional employee visits, specific cloud-computing delivery models) as "No Response" or blank. Anyone relying on Illinois's answer to one of those specific scenarios should check the original PDF directly rather than assume an answer from this summary.

Citations and references

Nexus and economic thresholds:

35 ILCS 105/2, 105/2d, 120/2; 35 ILCS 120/2(b), (c) ($100,000/200-transaction threshold)
86 Ill. Adm. Code 131.101 et seq., 131.115
South Dakota v. Wayfair, Inc.; Brown's Furniture, Inc. v. Wagner, 171 Ill. 2d 410 (1996)

Service providers / cloud computing:

86 Ill. Adm. Code 140.101(a), 140.125
86 Ill. Adm. Code 130.1935, 150.201; Illinois Private Letter Ruling ST 17-0006 (8/14/2017)

Refund claims and voluntary disclosure:

86 Ill. Adm. Code 130.1501 (refund/repayment requirement)
86 Ill. Adm. Code 210.126 (voluntary disclosure program)

Local sales taxes:

86 Ill. Adm. Code 220.215, 230.115, 270.115, 280.115, 320.115, 330.115, 370.115, 380.115, 395.115, 396.115
Illinois Publication ST-2 (list of Department-administered local taxes)

Master reference cited throughout:

Illinois General Information Letter 21-GC-0001 (Feb. 4, 2021)

Source

Original ruling text

ST-22-0014 04/14/2022 MISCELLANEOUS
This letter responds to an annual survey. (This is a GIL)
April 14, 2022
NAME
ADDRESS
Dear NAME:
This letter is in response to your email dated December 13, 2021, in which you requested information. Department of Revenue
(“Department”) regulations require that the Department issue only two types of letter rulings, Private Letter Rulings (“PLRs”) and
General Information Letters (“GILs”). PLRs are issued by the Department in response to specific taxpayer inquiries concerning
the application of a tax statute or rule to a particular fact situation. A PLR is binding against the Department, but only as to the
taxpayer issued the ruling and only to the extent the facts recited in the PLR are correct and complete. The purpose of GILs is to
direct taxpayers to Department regulations or other sources of information regarding the topic about which they have inquired.
GILs do not constitute statements of Department policy that apply, interpret, or prescribe the tax laws, and are not binding on the
Department. See 2 Ill. Admin. Code 1200 for more information. You may access our website at www.tax.illinois.gov to review
regulations, letter rulings, and other types of information relevant to your inquiry. The nature of your inquiry and the information
you have provided require that we respond with a GIL.
In your letter you have stated and made inquiry as follows:
I am writing to ask you to complete the questionnaire for the 2022 BUSINESS Tax Survey of State Tax Departments on
behalf of your state. The survey covers many of the gray areas of state tax law. Your responses will provide useful
guidance for taxpayers in complying with your state’s laws.
Attached is an Excel spreadsheet containing the questions for 2022. Like last year’s questionnaire, this year two columns
of the spreadsheet have all of your state’s responses and comments for 2021. Adjacent columns are there for you to
record your responses and comments for 2022. To avoid any errors, please fill out the 2022 column even if the answer
has not changed from 2021.
If you are adding or revising question specific comments, please use the 2022 comment box that relates to that question
directly. If you are adding or revising a comment that applies to multiple questions or all questions in a category, please
use the 2022 comment box at the end of the category. You can either scroll down for this comment or click the

hyperlinked text in the chart, when available. If you would like to add or change information you have previously recorded
in the comments section, please make those modifications in red font.
Additionally, we ask that you note where you have intentionally left questions blank. We are required to follow-up
regarding any unanswered questions and making note of intentionally unanswered questions allows us to process and
analyze the data faster. This can be accomplished by typing “blank” or “no response” in the answer column or simply
noting in your e-mail that questions were left blank intentionally.
The questionnaire should be completed based on state law as of January 1, 2022.
Some new questions have been added to this year’s questionnaire. The new questions and
subsections are denoted in blue font.
We have also included a new column where you may include feedback or notes on the questions in this year’s
questionnaire. Information included in this column will not be published as part of our survey report. Any feedback you
choose to provide is greatly appreciated and will be incredibly helpful in drafting future versions of our questionnaire.
Please return your questionnaire to us by Feb. 25, 2022. Your completed Excel spreadsheet should be e-mailed to me at
BUSINESS.
Your responses, along with the responses we receive from other states, will be published by BUSINESS, a leading
publisher of international, federal, and state tax analysis. More information about BUSINESS can be found at BUSINESS.
If you have any questions about this or if there is any way I can help you to complete this year’s questionnaire, please
contact me at BUSINESS or PHONE. I look forward to working with you. Thank you.
DEPARTMENT’S RESPONSE:
Please see the 2022 responses and comments on the attached Excel spreadsheet.
I hope this information is helpful. If you require additional information, please visit our website at www.tax.illinois.gov or contact
the Department’s Taxpayer Assistance Division at (800) 732-8866 or (217) 782-3336.
Sincerely,
Thomas Grudichak
Associate Counsel

BUSINESS
2021 SURVEY OF STATE TAX DEPARTMENTS
Section I. Sales Tax Policies

A. Identify any statute, regulation, administrative pronouncement, or
judicial decision that sets forth your state’s sales tax nexus policy

2021
Response

2022
Response

Statute(s) addressing sales tax nexus:

No Response

35 ILCS 105/2, 35 ILCS 105/2d, 35 ILCS 120/2

Regulation(s) addressing sales tax nexus:

No Response

86 Ill. Adm. Code 131.101 et seq .

Administrative pronouncement(s) addressing sales tax nexus:

No Response

Judicial decision(s) addressing sales tax nexus:

No Response

B. Application of Nexus Standards

Your state’s sales tax nexus policy is based only on physical presence.
Your state’s sales tax nexus policy is based only on economic presence. (If "yes,"
please state the dollar and/or transaction threshold for economic nexus in the comment
to this question. If you do not have a set threshold, please explain in the comment to
this question.)

2021
Response

South Dakota v. Wayfair; Brown's Furniture v. Wagner,
171 Ill. 2d 410 (1996).
2021
Comment

2022
Response

No Response

Your state's sales tax nexus policy is based on both physical and economic presence.
(If "yes," please state the dollar and/or transaction threshold for economic nexus in the
comment to this question. If you do not have a set threshold, please explain in the
No Response
comment to this question.)

Yes

2022
Comment

(1) the cumulative gross receipts from sales
of tangible personal property to purchasers in
Illinois are $100,000 or more; or (2) the
retailer enters into 200 or more separate
transactions for the sale of tangible personal
property to purchasers in Illinois. 35 ILCS
120/2(b) and (c)

Comment applicable to all questions in Section I.B.
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 35 ILCS 120/2-(b) and (c); Ill. Dept. of Rev., Informational Bulletin FY 202204 (October 2021)

C. Economic Nexus: Sales Threshold

2021
Response

2021
Comment

2022
Response

2022
Comment

Answer "yes" or "no" to the questions in this section. If your response to question 2 in Part B of Section I is "no," answer "not applicable."
1a. Your state calculates whether or not the economic nexus threshold has been met
based on sales made in the current calendar year.

No Response

1b. Your state calculates whether or not the economic nexus threshold has been met
based on sales made in the previous calendar year.

No Response

1c. Your state calculates whether or not the economic nexus threshold has been met
based on sales made in the immediately preceding 12-month period.

No Response

1d. Your state calculates whether or not the economic nexus threshold has been met
based on sales made in the immediately preceding four quarters.

No Response

Yes

No Response

1e. Your state calculates whether or not the economic nexus threshold has been met
based on sales made over a different period of time. (If "yes," explain in the comment
to this question).
2a. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: wholesale sales (i.e., sales for
resale) delivered into your state.
2b. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: tax-exempt, sales of tangible
personal property delivered into your state (e.g., only sales of exempt medical
products).

86 Ill. Adm. Code 131.120(b)(1).

No Response

2c. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales of taxable services delivered
No Response
into or sourced to your state.
2d. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales of nontaxable services
delivered into or sourced to your state.
2e. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales of items delivered
electronically into your state.
2f. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales of intangible personal
property delivered into your state.

Yes

No Response

2g. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales of digital items accessed via
No Response
the cloud (e.g., SaaS).
2h. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales made through an online
marketplace (e.g., Ebay).

35 ILCS 120/2(b) and (c).

No Response

86 Ill. Adm. Code 131.120(c). Excluded if all
sales are non-taxable. If any taxable sales are
made, exempt sales are included in
determining if the threshold is met. See also
86 Ill. Adm. Code 131.140.
35 ILCS 110/2 "Serviceman maintaining a
place of business in this State."

See taxation of computer software 86 Ill.
Adm. Code 130.1935.

Sales are excluded when the marketplace
facilitator is considered the retailer. See 86 Ill.
Adm. Code 131.120(b)(2).

2i. Your state includes the following type of transaction when determining whether or
not an out-of-state retailer has nexus with your state: sales made by an affiliated
company.

No Response

Comment applicable to all questions in Section I.C.
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 35 ILCS 120/2(b) and (c), 35 ILCS 110/2, 86 Ill. Adm. Code 131.105,
131.120(b);131.140(b).

D. Nexus Enforcement Policies

2021
Response

2021
Comment

2022
Response

2022
Comment

Your state sends a nexus questionnaire to out-of-state retailers that it believes might
be doing business within its borders.

No Response

Your state requires out-of-state retailers to report sales made within the state to the
state tax department.

No Response

Yes

Your state requires out-of-state retailers to notify in-state customers of their
obligation to pay use tax.

No Response

86 Ill.Adm Code 150.130; 86 Ill.Adm Code
No Response 150.135(d); 86 Ill. Adm. Code150.401(b).

No Response

Yes

No Response

Not
Applicable

Your state would find taxable nexus for the entire taxable year (but no more), for an
out-of-state retailer that stops an activity during the tax year that once created nexus
(i.e., trailing nexus).
Your state would find taxable nexus for the entire taxable year, plus an additional
year (and no more), for an out-of-state retailer that stops an activity during the tax year
that once created nexus (i.e., trailing nexus).
Your state would find taxable nexus for the taxable year, plus more than an
additional year, for an out-of-state retailer that stops an activity during the tax year that
once created nexus (i.e., trailing nexus).
Do your answers to questions 4 - 6 on "trailing nexus," depend on the magnitude of
the nexus-creating activity (e.g., three salesperson visits resulting in the sale of a used
car, versus three CEO visits resulting in the sale of a petroleum super tanker)? (If
"yes," explain how long your state would continue to find taxable nexus after the
discontinuation of the nexus-creating activities in the comment to this question.)
Does your state have a time period during which a retailer who has established
nexus with your state must register for sales tax collection? (If "yes," please identify
how long they have to register in the comment to this question.) (BTAX Editor's Note:
The wording to this question was revised to elicit a yes/no response, but the substance
of the question has not changed from 2021.)
Are sellers located outside the United States required to register to collect sales tax
in your state if they meet your state's economic nexus threshold but do not have
physical presence in your state? (If your state does not have an economic nexus
threshold, respond "not applicable.")

86 Ill. Adm. Code 131.115(b); 86 Ill. Adm.
Code 131.135(c) and (d).
86 Ill. Adm. Code 131.115(d) and (e); 86 Ill.
Adm. Code 131.135(c) and (d).
86 Ill. Adm. Code 131.115(d) and (e); 86 Ill.
Adm. Code 131.135(c) and (d).

86 Ill. Adm. Code 131.115(b).
No Response

Yes

86 Ill. Adm. Code 131.115(a).
No Response

Yes

Comment applicable to all questions in Section I.D.
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
Informational Bulletin FY 2022-04 (October 2021). See also "Level the Playing
Field for Illinois Retail Act Resource Page at www.tax.illinois.gov

E. Sales Tax Sourcing and Method of Delivery

2021
Response

2021
Comment

2022
Response

2022
Comment

In transactions that take place across more than one jurisdiction, sourcing rules are used to determine the place of the sale and what jurisdiction is entitled to the tax generated from a
particular transaction. The following questions are aimed at determining your state's sourcing rules for transactions in which either a buyer or seller is located in a different state or local
jurisdiction within your state.

For interstate transactions, does your state use a destination-based sourcing method
in which the location the consumer takes delivery of the tangible personal property is
the place of sale?

No Response

Yes

No Response

Yes

No Response

For intrastate transactions, does your state use an origin-based sourcing method in
which the location the vendor receives the order for the good or service is the place of
sale? (If local sales tax is not imposed in your state, respond "not applicable.")

No Response

For interstate transactions, does your state source services such as repairs of tangible
personal property to the location where the repairs were made?

No Response

For intrastate transactions, does your state use a destination-based sourcing method
in which the location the consumer takes delivery of the tangible personal property is
the place of sale? (If local sales tax is not imposed in your state, respond "not
applicable.")
For interstate transactions, does your state use an origin-based sourcing method in
which the location the vendor receives the order for the good or service is the place of
sale?
For intrastate transactions, does your state source services such as repairs of tangible
personal property to the location where the repairs were made? (If local sales tax is not
No Response
imposed in your state, respond "not applicable.")
For interstate transactions, does your state source services such as repairs of tangible
personal property to the location where the buyer regains possession of the repaired
item?
For intrastate transactions, does your state source services such as repairs of tangible
personal property to the location where the buyer regains possession of the repaired
item? (If local sales tax is not imposed in your state, respond "not applicable.")
Does the method by which canned software is delivered from a remote seller to a
purchaser in your state affect whether the item is taxed as tangible personal property
(e.g., delivered on a DVD or CD ROM versus electronic download)? (If your state
does not tax software, respond "not applicable.")
Are amounts paid by in-state customers to remotely access canned or prewritten
software that is hosted on a server subject to sales or use tax in your state?
11a. Does your state source amounts paid for canned or prewritten software that is
accessed, but not delivered to a customer in your state by the location of the server?

No Response

For sales made by a remote retailer and
marketplace facilitator which meet a
threshold test. 86 Ill. Adm. Code 131.110; 86
Ill. Adm. Code 131.155.
For sales by a marketplace facilitator which
meets a threshold test. 86 Ill. Adm. Code
131.155. For sales by other retailers see 2022
Comment below.
If the sales are made by a remote retailer or
marketplace facilitator which meet a
threshold test. 86 Ill. Adm. Code 131.110; 86
Ill. Adm. Code 131.130.
If the sales are made by a marketplace
facilitator which meet a threshold test. 86 Ill.
Adm. Code 131.130. For sales by other
retailers see 2022 Comment below.

See also 2022 Comment below.
No

No
See also 2022 Comment below.

No Response

No
86 Ill. Adm. Code 130.1935.

No Response

See Illinois Private Ruling Letter 17-GC-0006
(8/14/2017) for questions 10-11d.

11b. Does your state source amounts paid for canned or prewritten software that is
accessed, but not delivered to a customer in your state by the customer’s billing
address?
11c. Does your state source amounts paid for canned or prewritten software that is
accessed, but not delivered to a customer in your state by where the software is used?
11d. Does your state source amounts paid for canned or prewritten software that is
accessed, but not delivered to a customer in your state using a different method than
those described in questions 11a - 11c? (If "yes," explain in the comment to this
question.)
12a. Does your state source amounts paid for digital goods other than software (e.g.,
streaming services), accessed but not downloaded by a customer in your state by the
location of the server? (If your state does not tax digital goods such as streaming
services, respond "not applicable.")
12b. Does your state source amounts paid for digital goods other than software (e.g.,
streaming services), accessed but not downloaded by a customer in your state by the
customer's billing address? (If your state does not tax digital goods such as streaming
services, respond "not applicable.")
12c. Does your state source amounts paid for digital goods other than software (e.g.,
streaming services), accessed but not downloaded by a customer in your state by the
location where the digital goods are used? (If your state does not tax digital goods such
as streaming services, respond "not applicable.")
12d. Does your state source amounts paid for digital goods other than software (e.g.,
streaming services), accessed but not downloaded by a customer in your state using a
method other than those described in questions 12a - 12c? (If your state does not tax
digital goods such as streaming services, respond not applicable.) (If "yes," explain in
the comment to this question.)

No Response

Not
Applicable

No Response

Not
Applicable

No Response

Not
Applicable

No Response

Not
Applicable

13a. Does your state source amounts paid for digital goods other than software (e.g.,
digital music), accessed but not downloaded by a customer in your state by the location
No Response
of the server? (If your state does not tax digital goods such as digital music, respond
"not applicable.")
13b. Does your state source amounts paid for digital goods other than software (e.g.,
digital music), accessed but not downloaded by a customer in your state by the
customer's billing address? (If your state does not tax digital goods such as digital
music, respond "not applicable.")

No Response

13c. Does your state source amounts paid for digital goods other than software (e.g.,
digital music), accessed but not downloaded by a customer in your state by the location
No Response
where the digital goods are used? (If your state does not tax digital goods such as
digital music, respond "not applicable.")
13d. Does your state source amounts paid for digital goods other than software (e.g.,
digital music), accessed but not downloaded by a customer in your state using a
method other than those described in questions 13a - 13c? (If your state does not tax
digital goods such as digital music, respond not applicable.) (If "yes," explain in the
comment to this question).

No Response

Comment applicable to all questions in Section I.E.

Not
Applicable

2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

2022 Comment:
For questions 2,3,4,6,8, See also 86 Ill. Adm. Code 220.215, 230.115, 270.115,
280.115, 320.115, 330.115, 370.115, 380.115, 395.115; 396.115. See also Illinois
General Information Letters 21-GC-0018 (04/22/2021).

F. Sharing Economy

For transactions for the provision of transportation services for passengers that are
arranged by a third party vendor (e.g., Uber or Lyft), does your state impose the tax
collection obligation on the third party vendor?
For transactions for the provision of transportation services for passengers that are
arranged by a third party vendor (e.g., Uber or Lyft), does your state impose the tax
collection obligation on the driver?
For transactions for the provision of short-term accommodations that are facilitated
by a third party (e.g., Airbnb), does your state impose the tax collection obligation on
the third party?
For transactions for the provision of short-term accommodations that are facilitated
by a third party (e.g., Airbnb), does your state impose the tax collection obligation on
the owner of the accommodations?
For transactions for the provision of short-term accommodations that are facilitated
by a third party (e.g., Airbnb), does the taxable price include any fee, commission, or
similar charge paid to the third party?
For transactions for the short-term rental of owners’ vehicles facilitated by a third
party (e.g., GetAround, Turo), does your state impose the tax collection obligation on
the third party?
For transactions for the short-term rental of owners’ vehicles facilitated by a third
party (e.g., GetAround, Turo), does your state impose the tax collection obligation on
the owner of the vehicle?
For transactions for the short-term rental of owners’ vehicles facilitated by a third
party (e.g., GetAround, Turo), does the taxable price include any fee, commission, or
similar charge paid to the third party?
For delivery or errand services that are arranged by a third-party vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state impose the tax collection
obligation on the third-party vendor?
For delivery or errand services that are arranged by a third party vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state impose the tax collection
obligation on the delivery person?
11a. For delivery or errand services that are arranged by a third party-vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state source amounts paid for
deliveries/errands to a customer in your state by the location of the server? (If your
state does not tax such delivery or errand services, respond "not applicable.")

2021
Response

2021
Comment

2022
Response

No Response

Not
Applicable

No Response

Not
Applicable

No Response

Yes

No Response

Not
Applicable

No Response

Yes

No Response

Yes

No Response

Yes

No Response

Yes

No Response

2022
Comment

35 ILCS 120/2; 35 ILCS 155/3;155/4. See
also Illinois Private Ruling Letter 22-0002
(2/1/2022).
If the third party does not qualify as a
marketplace facilitator.

If third party qualifies as a marketplace
facilitator. 35 ILCS 120/2.
If the third party does not qualify as a
marketplace facilitator, collection of tax is the
responsibility of the retailer.
86 Ill. Adm. Code 131.155(b).

No Response

11b. For delivery or errand services that are arranged by a third party-vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state source amounts paid for
deliveries/errands to a customer in your state by the customer's billing address? (If your
No Response
state does not tax digital goods such delivery or errand services, respond "not
applicable.")

86 Ill. Adm. Code 131.155(b).
No

11c. For delivery or errand services that are arranged by a third party-vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state source amounts paid for deliveries
to a customer in your state by the location where the digital goods are used? (If your
state does not tax such delivery or errand services, respond "not applicable.")
11d. For delivery or errand services that are arranged by a third party-vendor (e.g.,
Postmates, Grub Hub, TaskRabbit), does your state source amounts paid for
deliveries/errands to a customer in your state by a customer in your state using a
different method than those described above? (If your state does not tax such delivery
or errand services, respond "not applicable.") (If "yes," explain in the comment to this
question.)

No Response

Not
Applicable

No Response

Not
Applicable

Comment applicable to all questions in Section I.F.
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

2022 Comment:

G. Marketplace Facilitators

Is a marketplace facilitator required to collect sales tax on sales made over its
platform by a marketplace facilitator if the marketplace facilitator has nexus with your
state?
Is a marketplace facilitator required to collect sales tax on sales made over its
platform by an marketplace seller if the marketplace facilitator facilitates sales that
meet or exceed your state’s economic nexus threshold, but the marketplace seller does
not meet or exceed this threshold?
If the answer to questions 1 or 2 is "yes," may marketplace sellers elect to collect
sales tax on their sales made using marketplace platforms, rather than having the tax
collected by the marketplace facilitator?

2021
Response
No Response

2022
Comment

Yes

No Response

Yes

No Response

4b. If a marketplace facilitator's obligation to collect and remit sales tax on marketplace
sales depends on meeting or exceeding your state's economic nexus threshold, is the
threshold calculated based on both sales facilitated on behalf of marketplace sellers and
No Response
sales made by the marketplace facilitator directly? (If your state does not have an
economic nexus threshold, respond "not applicable.")
4c. If a marketplace facilitator's obligation to collect and remit sales tax on marketplace
sales depends on meeting or exceeding your state's economic nexus threshold, is the
threshold calculated based on only sales made directly by the marketplace facilitator?
No Response
(If your state does not have an economic nexus threshold, respond "not applicable.")
4d. If a marketplace facilitator's obligation to collect and remit sales tax on marketplace
sales depends on meeting or exceeding your state's economic nexus threshold, is the
threshold calculated based on a method other than those described above? (If your state
No Response
does not have an economic nexus threshold, respond "not applicable.") (If "yes,"
explain in the comment to this question.)

No Response

6a. If a marketplace facilitator is required to collect and remit sales tax for all sales they
facilitate that are delivered into your state, is the marketplace seller relieved of liability
No Response
for the tax?
6b. If the answer to question 6a is "yes," is there any situation that would shift the
liability back to the marketplace seller? (If "yes," explain in the comment to this
question.)

2022
Response

86 Ill. Adm. Code 131.135.

4a. If a marketplace facilitator's obligation to collect and remit sales tax on marketplace
sales depends on meeting or exceeding your state's economic nexus threshold, is the
threshold calculated based only on sales facilitated on behalf of marketplace sellers?(If
No Response
your state does not have an economic nexus threshold, respond "not applicable.")

Does your state include payment processers, advertisers, and similar entities in its
definition of "marketplace facilitator"?

2021
Comment

No Response

The marketpace facilitators sales are also
included in determining the thresshold. See
86 Ill. Adm Code 131.135(a).

86 Ill. Admn. Code 131.135(a).
Yes

The threshold is determined by sales made
through the marketplace by the marketplace
facilitator and by marketplace sellers. 86 Ill.
Admn. Code 131.135(a).

Yes

86 Ill .Adm. Code 131.105

Requires certification from marketplace
facilitator that it is legally responsible for
payment of tax on marketplace sales. 86 Ill.
Adm. Code 131.145
If incorrect information is provided to the
marketplace facilitator by the remote retailer.
86 Ill. Adm. Code 131.125(f).

7. If marketplace facilitators are required to collect and remit sales tax on behalf of
sellers using their platforms, are the facilitators required to provide an exemption
certificate or any other documentation to the sellers to substantiate that tax was
collected?

If marketplace facilitators are required to collect and remit sales tax on behalf of
sellers using their platforms, are the marketplace sellers required to register with your
state for sales tax purposes? (If "yes," explain in the comment to this question.)
If marketplace facilitators are required to collect and remit sales tax on behalf of
sellers using their platforms, are there any registration, reporting, or other
administrative obligations imposed on the marketplace sellers? (If "yes," explain in the
comment to this question.)

86 Ill. Adm. Code 131.145(f).
No Response

No Response

Comment applicable to all questions in Section I.G.
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

Yes

A marketplace seller shall maintain books and
records for all sales made through a
marketplace in accordance with Section 7 of
ROTA. 35 ILCS 120/2(e).
2022 Comment:

Section II. Sales Tax Nexus Creating Activities
State “yes” or “no” to show whether each of the following activities or relationships performed by an out-of-state corporation would, by itself, create substantial nexus with your state for
purposes of triggering the imposition of sales tax collection requirements on the out-of-state corporation. When determining whether the listed activity/relationship would create substantial
nexus, assume that each item is the only activity/relationship the out-of-state corporation has in your state and that the out-of-state corporation has no property or employees located in your
state. Also assume that the out-of-state retailer has NOT met or exceed any economic nexus thresholds in place.
A “yes” response means that an out-of-state retailer’s performance of the listed activity/relationship would, by itself, create substantial nexus and trigger the imposition of sales tax
collection requirements on the out-of-state retailer. A “no” response means that an out-of-state retailer’s performance of the listed activity/relationship would not, by itself, trigger nexus for
purposes of your state’s sales tax.
For the questions that you believe require more than a “yes” or “no” answer, set forth in the comment section the factors that your state would consider in making a nexus determination.

A. General Activities

The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and reimburses its in-state salespersons for the costs of maintaining an inhome office.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and maintains a bank account in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and maintains a post office box in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and uses local phone numbers in your state, which are forwarded to its
headquarters in another state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and makes sales to customers in your state by means of an 800 telephone
order number and advertises in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and stores inventory in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and at least one employee telecommutes from a home located in your state
and performs back-office administrative business functions, such as payroll,
accounting, or IT assistance, as opposed to direct customer service or other activities
directly related to the employer's commercial business activities.

2021
Response

2021
Comment

2022
Response

No Response

Yes

No Response

Yes

No Response

Yes

2022
Comment

8. The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and delivers merchandise to customers in your state in company-owned
vehicles or by means other than common carrier or the U.S. Postal Service.

The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and delivers merchandise to customers in your state in returnable
containers.

No Response

Yes

No Response

Yes

Comment applicable to all questions in Section II.A
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

B. Remote Sales Exceeding Economic Nexus Thresholds

The out-of-state retailer makes annual sales into your state totaling less than
$100,000. (If yes, please state your state's threshold amount in the comment to this
question.)
The out-of-state retailer makes annual sales into your state totaling $100,000 or
more. (If yes, please state your state's threshold amount in the comment to this
question.)
The out-of-state retailer makes 1 to 199 separate sales into your state. (If yes, please
state your state's threshold amount in the comment to this question.)
The out-of-state retailer makes 200 or more separate sales into your state. (If yes,
please state your state's threshold amount in the comment to this question.)

2021
Response

Assumes the retailer maintains ownership of
the containers.

2021
Comment

2022 Comment:

2022
Response

No Response

Yes

No Response

2022
Comment

86 Ill. Adm. Code 131.115

86 Ill. Adm. Code 131.115
No Response

Comment applicable to all questions in Section II.B
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

Yes

2022 Comment:

C. Temporary or Sporadic Presence
1a. The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and attends or participates in trade shows held in your state, and makes no
sales and takes no orders at the trade show.
1b. The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and attends or participates in trade shows held in your state, and makes
sales and/or accepts orders at the trade show.
1c. The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and attends or participates in trade shows held in your state, and limits trade
show activities in the state to one to five days annually.

The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and sells tangible personal property while temporarily located in your state
for up to three days.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and has employees or representatives occasionally enter the state to meet
with in-state suppliers of goods or services.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and makes remote sales of tangible personal property to state residents and
holds two or more one-day seminars in the state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and makes remote sales of tangible personal property to state residents,
holds two or more one-day seminars in the state, and has its employees visit the state
five times during the year.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and enters your state solely for purposes of conducting disaster relief
operations.

2021
Response

No Response

2021
Comment

2022
Response

Yes

No Response

Yes

No Response

2022
Comment
Unless the safe harbor provision is met. 86 Ill.
Adm. Code 150.802.

Unless the safe harbor provision is met. 86 Ill.
Adm. Code 150.802.

Comment applicable to all questions in Section II.C
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
Trade Show Appearances, 86 Ill. Adm. Code 150.802, see also 86 Ill. Adm. Code
131.105, 150.201; 150.801. Brown's Furniture v. Wagner, 171 Ill. 2d 410 (1996).

D. Activities of Unrelated Parties

The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and hires independent contractors to perform warranty or repair services on
tangible personal property located in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and hires an unaffiliated printer in the state and stores raw materials or
finished goods at the in-state printer's plant.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and hires an unrelated call center or fulfillment center located in your state
to process telephone and electronic orders that primarily derive from out-of-state
customers.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and enters into an advertising contract, including for producing an
infomercial, with a local television station, cable station, radio station, print
publication or electronic publication that is located in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and produces an infomercial that runs on an in-state television channel and
pays commissions to the local TV station based on a percentage of sales to in-state
consumers who made purchases using the phone number or website address displayed
on the “infomercial.”
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and collects delinquent accounts using a collection agency in your state or
hires attorneys or other third parties to file collection suits in courts in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and stores and ships items from an unrelated distribution center located in
your state.

2021
Response

No Response

2021
Comment

2022
Response

2022
Comment

Yes

35 ILCS 105/2
No Response

No Response

Yes

No Response

Yes

No Response

Yes

No Response

Yes

No Response

Yes

Comment applicable to all questions in Section II.D
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
86 Ill. Adm. Code 150.201

2022 Comment:

E. Financial Activities

The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and issues credit cards to customers who reside in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and owns an interest in an investment partnership or LLC that has
operations in your state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and owns a general interest in a partnership that is doing business in your
state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and owns a limited interest in a partnership that is doing business in your
state.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and owns an interest in an LLC that is doing business in your state and is
involved in managing the LLC.
The out-of-state retailer sells tangible personal property to residents in your state
from outside the state (e.g., by telephone, over the internet, via catalog/direct mail, or
otherwise) and owns an interest in an LLC that is doing business in your state, but is
not the managing member or otherwise involved in managing the LLC.

2021
Response

2021
Comment

2022
Response

No Response

Comment applicable to all questions in Section II.E
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 105/2

2022 Comment:

2022
Comment

F. Activities with Affiliates

The out-of-state retailer makes remote sales to residents of your state and owns less
than 5 percent of an in-state affiliate that shares the out-of-state corporation’s logo.
The out-of-state retailer makes remote sales to residents of your state and owns 5
percent or more of an in-state affiliate that shares the out-of-state corporation’s logo.
The out-of-state retailer makes remote sales to residents of your state and accepts
returned items or exchanges items that were purchased from an affiliate's in-state
stores.
The out-of-state retailer makes remote sales to residents of your state and is part of a
controlled group with an affiliated entity that is physically located in your state.

2021
Response

2021
Comment

2022
Response

No Response

Yes

No Response

2022
Comment

Comment applicable to all questions in Section II.F
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 105/2, See 86 Ill. Adm. Code 131.105, 150.201; 150.801.

G. Internet Activities
1a. The out-of-state retailer uses an Internet link or enters into an affiliation linking
arrangement with a third party that is located in your state.
1b. The out-of-state retailer uses an Internet link or enters into an affiliation linking
arrangement with a third party that maintains a website on a server that is located in
your state.

The out-of-state retailer makes remote sales of tangible personal property to
residents in your state from outside the state via a website and enters into an agreement
with residents of your state in which the out-of-state retailer pays commissions or fees
for referrals to the out-of-state retailer’s website. Assume the annual gross receipts
from sales attributable to the arrangements total LESS THAN $10,000.

2021
Response

The out-of-state retailer is an Internet-based retailer with an out-of-state home office
and enters into an agreement with an in-state operator of a website. The website
operator hosts advertisements directing consumers to the website of the out-of-state
retailer, and is paid when a consumer clicks on the advertisement and buys a product
from the out-of-state retailer (per conversion).
6a. The out-of-state retailer makes remote sales of tangible personal property in your
state and owns an Internet server located in your state.
6b. The out-of-state retailer makes remote sales of tangible personal property in your
state and owns an Internet server located in your state and hires third-party technicians
located in your state to keep the server functioning.
6c. The out-of-state retailer makes remote sales of tangible personal property in your
state and leases a third-party's Internet server located in your state. Assume that the
server is used exclusively by the out-of-state retailer.
6d. The out-of-state retailer makes remote sales of tangible personal property in your
state and leases space on a third-party's Internet server located in your state. Assume
that space on the third-party's server is also leased to several other unrelated
businesses.

2022
Response

No Response

The out-of-state retailer makes remote sales of tangible personal property to
residents of your state outside the state via a website and enters into an agreement with
residents of your state in which the out-of-state retailer pays commissions or fees for
referrals to the out-of-state retailer’s website. Assume the out-of-state retailer’s annual No Response
gross receipts from the sales attributable to the arrangements total AT LEAST $10,000.
The out-of-state retailer is an Internet-based retailer with an out-of-state home office
and enters into an agreement with an in-state operator of a website. The website
operator hosts advertisements directing consumers to the website of the out-of-state
retailer, and is paid each time the advertisement is displayed (per impression).

2021
Comment

No Response

2022
Comment

6e. The out-of-state retailer makes remote sales of tangible personal property in your
state and leases space on a third-party's network of Internet servers, some of which are
located in your state. Assume that the out-of-state retailer's data is on the third-party's
Internet server in your state for less than six months during the year.
6f. The out-of-state retailer makes remote sales of tangible personal property in your
state and leases space on a third-party's network of Internet servers, some of which are
located in your state. Assume that the out-of-state retailer's data is on the third-party's
Internet server for more than six months during the year.
6g. The out-of-state retailer makes remote sales of tangible personal property in your
state and does not own or lease property in your state, but pays a web-hosting provider
with a server located in your state to provide the out-of-state retailer web services to
sell products over the Internet.

No Response

Comment applicable to all questions in Section II.G
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 105/2, See also 86 Ill. Adm. Code 131.105, 150.201; 150.801.

H. Activities Related to Digital Property

The out-of-state retailer makes remote sales of digital content, such as e-books,
music, TV shows and movies, that is downloaded by residents of your state.
The out-of-state retailer makes remote sales of digital content, such as e-books,
music, TV shows and movies, that is accessed electronically, but not downloaded, by
residents of your state.

2021
Response

2022
Response

No Response

The out-of-state retailer electronically provides canned software to residents in your
state and then makes remote sales of digital content, such as music and videos, that are
No Response
downloaded by residents of your state.
The out-of-state retailer makes remote sales of canned software to residents in your
state and then sends a representative to customize it to meet the customer's specific
needs.

2021
Comment

No Response

Yes

No Response

The out-of-state retailer owns licenses to canned software that are purchased by
residents of your state.

No Response

The out-of-state retailer licenses to an in-state consumer permission to use its
website for a webinar.

No Response

The out-of-state retailer sells data, such as music files, to residents in your state, and
the data is stored on a server located in your state.

No Response

The out-of-state retailer sells remote access to canned software to customers located
in your state.

No Response

The out-of-state retailer makes remote sales of customized software in your state.
The out-of-state retailer sells digital magazine or newspaper subscriptions from a
remote Internet platform to an in-state user who downloads the material in your state.
The out-of-state retailer makes remote sales of appliances equipped with control
devices from which an in-state user can control the appliance via a remote Internet
platform.
The out-of-state retailer requires visitors to its website to download internet
cookies, or other similar items, onto computers or other electronic devices located in
your state.

2022
Comment

Comment applicable to all questions in Section II.H
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 86 Ill. Adm. Code 130.2105(a); Illinois General Information Letter ST 21-GC0001 (01/15/2021).

I. Distribution and Delivery

2021
Response

2021
Comment

2022
Response

The out-of-state retailer makes remote sales into your state and picks up defective
products or scrap materials in your state in company-owned vehicles.

No Response

Yes

The out-of-state retailer makes remote sales into your state and picks up raw
materials in your state in company-owned vehicles.

No Response

Yes

The out-of-state retailer makes remote sales into your state and travels to or through
your state one to six times per year in company-owned trucks, but does not pick up or
No Response
deliver goods in your state.
The out-of-state retailer makes remote sales into your state and travels to or through
your state more than six times, but no more than 12 times, per year in taxpayer-owned
No Response
trucks, but does not pick up or deliver goods in your state.
The out-of-state retailer makes remote sales into your state and travels to or through
your state more than 12 times per year in taxpayer-owned trucks, but does not pick up
No Response
or deliver goods in your state.
The out-of-state retailer makes remote sales into your state and "back hauls" (i.e.,
picks up shipments at the destination or nearby location for delivery to another point)
in corporate-owned trucks.
The out-of-state retailer makes remote sales into your state and holds title to
electricity flowing through a transmission wire within your state (the transmission
neither originates nor terminates in your state).
The out-of-state retailer makes remote sales into your state and holds title to natural
gas flowing through a pipeline within your state (the natural gas neither originates nor
terminates in your state).
The out-of-state retailer makes remote sales into your state and delivers goods into
your state via contract carrier.

No Response

Yes

No Response

Comment applicable to all questions in Section II.I
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 86 Ill. Adm. Code 131.105; 150.201; 150.810.

2022
Comment

J. Third-Party Solicitation Activities and Attributional Nexus

The out-of-state retailer makes remote sales into your state and hires a third party to
distribute flyers, coupons, and other printed promotional materials.

2021
Response

2021
Comment

2022
Response

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
solicit sales in-person.

No Response

Yes

The out-of-state retailer makes remote sales into your state and hires a third party to
solicit sales by telephone.

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
demonstrate a product in person.

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
negotiate prices to buy.

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
negotiate prices to sell.

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
post informational content on in-state websites or blogs.
No Response

No Response

The out-of-state retailer makes remote sales into your state and hires a third party to
distribute electronic equivalents of flyers, coupons and other printed promotional
materials via e-mail or other electronic means.
The out-of-state retailer makes remote sales into your state and hires a third party to
refer a customer via website or blog click through in exchange for a percentage of the
sale.
The out-of-state retailer makes remote sales into your state and hires a third party to
advertise a product on an in-state website or blog, but with no click through to buy.
The out-of-state retailer makes remote sales into your state and hires a third party to
employ search engine optimization techniques, such as generating targeted
No Response
advertisements based on specific searches.
Comment applicable to all questions in Section II.J
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 105/2.

No Response

2022 Comment:

2022
Comment

K. Transactions Involving Franchise Agreements

The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer owns only intangible property such as trademarks in your state.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer makes one inspection visit to the franchisee's location per year.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer makes two to six inspection visits to the franchisee's location per
year.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer makes more than six inspection visits to the franchisee's location
per year.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer leases machinery and equipment worth $20,000 to the franchisee.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer leases machinery and equipment worth $100,000 to the franchisee.
The out-of-state retailer licenses intangible property to an in-state franchisee and the
out-of-state retailer maintains and repairs the franchisee's equipment in your state.

2021
Response

2021
Comment

The out-of-state retailer repairs tangible personal property in another state and
delivers it by common carrier to an in-state customer (assume the repair services are
taxable in your state).

2022
Comment

No Response
No Response
No Response
No Response
No Response
No Response
No Response
No Response
Yes

See 86 Ill. Adm. Code 130.2010.

Yes

See 86 Ill. Adm. Code 130.2010.

Yes

See 86 Ill. Adm. Code 140.101, for
application of the Service Occupation Tax.

No Response

Comment applicable to all questions in Section II.K
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

L. Service Providers

2022
Response

2021
Response

2021
Comment

2022 Comment:

2022
Response

No Response

The out-of-state retailer provides a taxable service to an in-state customer in which
no part of the service, including the tangible personal property that is incidental to the
performance of the taxable service, is physically transferred to the in-state customer.

No Response

The out-of-state retailer provides a taxable service to an in-state customer in which
tangible personal property that is incidental to the performance of the service is
physically transferred (i.e., by common carrier) to the in-state customer.

No Response

No response

2022
Comment

4. The out-of-state retailer transfers documents that are incidental to the performance
of a taxable service to an in-state customer by electronic means only.

The out-of-state retailer has employees that regularly (e.g.,12 or more times per
year) enter the state to deliver to in-state customers tangible personal property that is
incidental to the performance of a taxable service.
The out-of-state retailer has employees occasionally (e.g., one to 11 times per year)
enter the state to deliver to an in-state customer tangible personal property that is
incidental to the performance of a taxable service.
The out-of-state retailer uses a third party in your state to store tangible personal
property that is transferred by the retailer to in-state customers as an incidental part of
the performance of a taxable service.

No Response

Yes

Comment applicable to all questions in Section II.L
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 115/2 See 86 Ill. Adm. Code 140.101(a); 140.125.

M. Cloud Computing

The out-of-state retailer charges fees to in-state customers for the right to access nondownloadable prewritten software that is hosted on a server in another state.

2021
Response
No Response

The out-of-state retailer charges fees to in-state customers for the right to access nondownloadable prewritten software that is hosted on a server in another state and
No Response
remotely performs a taxable service in your state.
The out-of-state retailer sends an employee to your state to perform an initial setup
and then charges fees to in-state customers for the right to access non-downloadable
prewritten software that is hosted on a server in another state.
The out-of-state retailer hires an independent contractor in your state to provide
training to in-state customers and charges fees to in-state customers for the right to
access non-downloadable prewritten software that is hosted on a server in another
state.
The out-of-state retailer sends an employee in your state to perform an initial set up
and then charges fees to in-state customers for the right to access information on its
website that is hosted on a server in another state.
The out-of-state retailer hires an independent contractor in your state to provide
training to in-state customers and then charges fees for the right to access information
on its website that is hosted on a server in another state.
The out-of-state retailer charges fees to in-state customers for the right to access
information on its website that is hosted on a server in another state and occasionally
(e.g., one to 11 times per year) has employees meet with customers in your state.

No Response

The out-of-state retailer charges fees to in-state customers for the right to access nondownloadable prewritten software that is hosted on a server in another state and
regularly (e.g., 12 or more times per year) has employees meet with customers in your No Response
state.
The out-of-state retailer charges fees to in-state customers for the right to access
information on its website that is hosted on a server in another state and remotely
performs a taxable service in your state.

2022
Response

No Response

The out-of-state retailer charges fees to in-state customers for the right to access nondownloadable prewritten software that is hosted on a server in another state and
occasionally (e.g., one to 11 times per year) has employees meet with customers in No Response
your state.
The out-of-state retailer charges fees to in-state customers for the right to access
information on its website that is hosted on a server in another state.

2021
Comment

No Response

2022
Comment

12. The out-of-state retailer charges fees to in-state customers for the right to access
information on its website that is hosted on a server in another state and regularly (e.g.,
12 or more times per year) has employees meet with customers in your state.

No Response

Comment applicable to all questions in Section II.M
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 86 Ill. Adm. Code 130.1935; 150.201; Illinois Private Ruling Letter ST 170006 (08/14/2017).

N. Registration with State Agencies/Departments

The out-of-state retailer is registered, authorized, certified or qualified by the
Secretary of State, or other similar agency, to transact business in your state as a
foreign corporation.

2021
Response

2021
Comment

2022
Response

No Response

The out-of-state retailer holds a specialty license issued by your state, such as a
specialty insurance license.

No Response

The out-of-state retailer is registered with your state's tax department for payroll tax
purposes.

No Response

The out-of-state retailer is registered with the state agency or department that
regulates or administers workers' compensation.

No Response

The out-of-state retailer is registered with your state as a government vendor or
contractor.

No Response

The out-of-state retailer holds a general business license issued by your state.

Comment applicable to all questions in Section II.N
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 86 Ill. Adm. Code 150.201.

2022 Comment:

2022
Comment

O. Drop Shipment Transactions
1a. The out-of-state retailer is a manufacturer that ships tangible personal property via
common carrier to in-state customers based on orders received from a distributor, and
the distributor has nexus with your state.
1b. The out-of-state retailer is a manufacturer that ships tangible personal property via
common carrier to in-state customers based on orders received from a distributor, and
the distributor does not have nexus with your state.
2a. The out-of-state retailer is a distributor that uses an in-state manufacturer, who acts
as a fulfillment agent in your state, to pack and ship orders via common carrier to instate customers, and the manufacturer holds title to the inventory until the retailer
directs the manufacturer to ship the order.
2b. The out-of-state retailer is a distributor that uses an in-state manufacturer, who acts
as a fulfillment agent in your state, to pack and ship orders via common carrier to instate customers, and the retailer holds title to the inventory until the retailer directs the
manufacturer to ship the order.
3a. The out-of-state retailer is a distributor that contracts with an in-state manufacturer
to perform an order fulfillment service on the retailer's behalf in which the
manufacturer accepts phone and mail orders addressed to the retailer, processes
payments made payable to the retailer and packages and ships inventory via common
carrier to the retailer's customers, and the manufacturer holds title to the inventory
prior to shipment.
3b. The out-of-state retailer is a distributor that contracts with an in-state manufacturer
to perform an order fulfillment service on the retailer's behalf in which the
manufacturer accepts phone and mail orders addressed to the retailer, processes
payments made payable to the retailer and packages and ships inventory via common
carrier to the retailer's customers, and the retailer holds title to the inventory prior to
shipment.

2021
Response

2021
Comment

2022
Response
No Response

No Response
No Response
No Response
No Response
No Response
Yes
No Response
Yes
No Response

Yes
No Response

4a. The out-of-state retailer is a distributor that contracts with an in-state manufacturer
to accept and process product returns on the retailer's behalf, including evaluating
products for defects, crediting the customer and maintaining the product inventory, and
No Response
the retailer charges product return inventory back to the manufacturer such that the
manufacturer owns the returned inventory.

Yes

4b. The out-of-state retailer is a distributor that contracts with an in-state manufacturer
to accept and process product returns on the retailer's behalf, including evaluating
products for defects, crediting the customer and maintaining the product inventory, and
No Response
the retailer retains ownership of the product return inventory.

Yes

Comment applicable to all questions in Section II.O
2021 Comment:
2022 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
35 ILCS 105/2 et seq; 86 Ill. Adm. Code 130.225.

2022
Comment

Section III. Refund Claims
A. Refund Claims

Your state requires vendors who seek refunds of tax collected and remitted to refund
the tax recovered to their purchasers who incurred the refunded tax.
Your state requires vendors who seek refunds of tax collected and remitted to
establish a liability to refund the tax recovered their purchasers who incurred the tax,
i.e. through the issuance of a conditional promissory note and then refund the tax
recovered in satisfaction of the issued promissory notes. (The promissory note must be
conditioned on recovery of tax from the Department in the event the Department
denies the refund.)
Your state permits purchasers to seek sales tax refunds directly from the state for
over-collected tax remitted by their vendors.

2021
Response
No Response

2021
Comment

2022
Response

2022
Comment

Yes
Need unconditional promissory note.

No Response

Comment applicable to all questions in Section III.A
2021 Comment:
IL: See Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).
See 86 Ill. Adm. 130.1501

2022 Comment:

Section IV. Voluntary Disclosure Agreements
2021
Response

2021
Comment

NEW

Yes

If your state does not currently offer a voluntary disclosure program, has it done so
in the past?

NEW

Not
Applicable

Would issues missed on an audit qualify for inclusion in your state’s voluntary
disclosure program?

NEW

Does your state allow taxpayers to obtain longer retrospective periods than the
standard period provided by the voluntary disclosure program? (If yes, please explain
how a taxpayer can request a longer period in the comment box for this question.)

NEW

No Response

NEW

No Response

NEW

No Response

NEW

No Response

A. Voluntary Disclosure Agreements

Does your state currently offer a voluntary disclosure program?
Would the following prior contact from your state’s revenue or tax department (or
similar) disqualify a taxpayer from participating in your state’s voluntary disclosure
program: obtaining a nexus survey from your department?
Would the following prior contact from your state’s revenue or tax department (or
similar) disqualify a taxpayer from participating in your state’s voluntary disclosure
program: receiving a question from an outsourced contractor regarding potential
liability for a specific tax or for unclaimed property?
Would the following prior contact from your state’s revenue or tax department (or
similar) disqualify a taxpayer from participating in your state’s voluntary disclosure
program: receiving a use tax question generated by the audit of a seller from which the
taxpayer purchased something?
2021 Comment:

2022
Response

Comment applicable to all questions in Section IV.A

2022
Comment

2022 Comment:

See Ill. Adm. Code 210.126.

NEW

Section V. Local Sales Taxes
A. Local Sales Taxes

Do local jurisdictions in your state impose their own sales tax? (If no, respond “not
applicable” to questions 2 through 9.)
Are local sales taxes administered by your state?
Are local sales taxes administered by the locality?
Are local sales taxes administered by both the state and the locality?

2021
Response

2021
Comment

2022
Response

No Response

Yes

No Response

Yes

No Response

Yes

No Response

Yes

Are local sales tax jurisdictions required to follow the same nexus standards used for
state sales tax purposes?
No Response

No Response

2022
Comment

Depends on the local tax.
Depends on the local tax.
Depends on the local tax. For example,
Chicago adminiters its own Use Tax.

6. Are local sales tax jurisdictions required to follow the same definitions of products
and services used for state sales tax purposes?

Are local sales tax audits conducted by your state?
If an out-of-state retailer establishes nexus with your state, does it automatically
establish nexus with every local taxing jurisdiction within your state?
If an out-of-state retailer establishes nexus with one local jurisdiction within your
state, does it automatically establish nexus with every local taxing jurisdiction within
your state?

No Response

Yes

No Response

Depends on the local tax.

Comment applicable to all questions in Section V.A
2021 Comment:
2022 Comment:
IL: Local retailers' occupation taxes imposed by local governments and that are administered by the
Local retailers' occupation taxes that are administered by the Department are subject
Department follow the same rules for exemptions, credits, and other administrative procedures as the to the same applicable definitions, deductions, exemptions, credits and
State Retailers' Occupation Tax. For a list of local taxes administered by the Department, see
administrative proceedures. See also 86 Ill. Adm. Code 220.215, 230.115, 270.115,
Publication ST-2. The Department released a Compliance Alert in February 2021 that discusses taxes 280.115, 320.115, 330.115, 370.115, 380.115, 395.115; 396.115.
that are not administered by the Department that marketplace facilitators are liable for collecting and
remitting to local jurisdictions. The Compliance Alert can be found on the Department's website. See
Ill. Dept. of Rev., Illinois General Information Letter 21-GC-0001 (Feb 4, 2021).

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