Did Illinois confirm a print broker's de minimis serviceman status, 50%-of-bill method, and interstate-commerce exemption for direct mail?

Plain-English summary

The Department did not confirm any of the print broker's three requested positions. It declined to issue a Private Letter Ruling on whether the broker was properly classified as a de minimis serviceman, could use 50% of its entire customer bill as the Service Occupation Tax base, and qualified for the interstate-commerce exemption on direct-mail work performed in Illinois and mailed around the country.

The GIL instead provided the governing framework. When a service transfers tangible personal property, a serviceman's liability could be handled in four ways:

1. Service Occupation Tax on the separately stated selling price of the property transferred;
2. Service Occupation Tax using 50% of the entire service bill when the property's selling price was not separately stated, never below cost;
3. Service Occupation Tax on cost price for a registered de minimis serviceman; or
4. Use Tax on cost price for a de minimis serviceman not otherwise required to register.

A serviceman generally qualified as de minimis when the annual aggregate cost of transferred property was less than 35% of annual service gross receipts. The threshold was 75% for pharmacists and persons engaged in graphic-arts production. A de minimis determination was annual, not transaction-by-transaction.

For printing, special-order or custom print items generally fell under Service Occupation Tax, while items of general utility serving substantially the same function as stock or standard goods generally fell under Retailers' Occupation Tax. Personalized products could still be general-utility merchandise in the examples listed by the regulation.

The letter also says qualifying servicemen could claim the interstate-commerce exemption and other Service Occupation Tax exemptions, but it did not apply that rule to the requester's direct-mail facts.

What this means for you

A print broker needed to classify what it sold, calculate the annual property-cost ratio, identify its registration status, choose a tax method authorized for that status, and analyze the delivery facts for any interstate-commerce exemption. Subcontracting printing or fulfillment also raised the primary/secondary-serviceman rules in Regulation 140.145. This GIL supplied the framework but approved none of the requester's conclusions.

Common questions

Q: Did the Department approve the 50%-of-the-bill method?
A: No. It described when that method can apply but declined to confirm the requester's election.

Q: What was the de minimis threshold for graphic-arts servicemen?
A: Transferred-property cost below 75% of annual gross receipts from service transactions; the general threshold was 35%.

Q: Did the Department grant the interstate-commerce exemption for the direct mail?
A: No. It said qualifying servicemen may claim the exemption but did not determine whether the described transactions qualified.

Subject

Service Occupation Tax

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2011.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2011/st-11-0047.pdf

Original ruling text

ST 11-0047-GIL 06/22/2011 SERVICE OCCUPATION TAX
This letter concerns tax imposed on tangible personal property transferred incident to sales of
service. See 86 Ill. Adm. Code Part 140. (This is a GIL.)

June 22, 2011

Dear Xxxxx:
This letter is in response to your letter dated May 3, 2011, in which you request information.
The Department issues two types of letter rulings. Private Letter Rulings (“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 on the Department, but only as to the taxpayer
who is the subject of the request for ruling and only to the extent the facts recited in the PLR are
correct and complete. Persons seeking PLRs must comply with the procedures for PLRs found in the
Department’s regulations at 2 Ill. Adm. Code 1200.110. The purpose of a General Information Letter
(“GIL”) is to direct taxpayers to Department regulations or other sources of information regarding the
topic about which they have inquired. A GIL is not a statement of Department policy and is not
binding on the Department. See 2 Ill. Adm. Code 1200.120. 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:
Our client, TAXPAYER, has requested that FIRM represent it in requesting a private
letter ruling on specific issues surrounding the application of service occupation tax
(‘SOT’) and its complement the service use tax (‘SUT’) to certain transactions.
Enclosed please find an executed Power of Attorney Form IL 2848. We are requesting
a ruling for the issues and transactions described herein as it applies to the period
January 1, 2010 to date, as well as to current transactions.
Prior to issuing this private letter ruling request, the issues to be addressed in this letter
were presented to the Illinois Informal Conference Board (‘ICB’) under a prior audit.
The ICB ruled in favor of the taxpayer, however, since the ICB rulings are not binding on
future audits we are requesting [sic] private letter ruling.
In accordance with Illinois Administration [sic] Code 1200.110, we affirm that there is
neither an audit ongoing nor litigation pending with the Illinois Department of Revenue.
To the best of our knowledge and to the knowledge of the taxpayer, the Department has
not previously ruled on the same or a similar issue for the taxpayer or a predecessor,
nor has the taxpayer or any representatives previously submitted the same or a similar
issue to the Department but withdrew it before a letter ruling was issued.

In the event the State issues a ruling that is published or otherwise made known to the
public, we request that the State remove or modify any identifying characteristics of
facts about the taxpayer or any of the other parties mentioned in our request.
Company Background:
TAXPAYER is a print broker headquartered in the STATE. TAXPAYER’s final products
sold to its customers consist of items such as letterhead, folders, paper stock, business
cards, card stock, notepads, pens, etc. These products have been personalized to
include customer logos and/or other identifying marks.
TAXPAYER has established a physical presence in Illinois through the existence of
offices, a warehouse and various company personnel. The Taxpayer is currently
registered as a de minimis serviceman for Illinois sales tax purposes. Therefore,
TAXPAYER is subject to the service occupation tax and its complement the service use
tax.
Illinois Activity and Facts:
Illinois Administration [sic] Code 35 Sections 115/3-10 provides that a serviceman can
elect to be subject to SOT on the selling price of the tangible personal property
transferred incident to a sale of service. A serviceman can be considered a ‘de minimis
serviceman’ if the sales of a service in which the aggregate annual cost price of tangible
personal property is less than thirty-five percent (35%) of the aggregate annual total
gross receipts from all sales of service.
A separate provision exists with a threshold of 75% for servicemen engaged in the
business of graphic arts production TAXPAYER considers it engaged in the graphic
arts. The Company’s financial statements indicate that its aggregate cost of goods sold
is less than the 75% threshold required to be a de minimis serviceman engaged in
graphic arts production. Therefore, TAXPAYER has registered as a de minimis
serviceman in Illinois. In addition to registering as a de minimis serviceman, the
Taxpayer has chosen to handle its SOT liability by using the “traditional” method. This
method provides that Illinois sales tax is applied to 50% of the entire invoice issued to
its customers.
Also, TAXPAYER has customers with whom it contracts for the custom manufacture
and mailing of direct mail pieces. The customers are not located in Illinois and are
therefore not registered for sales tax purposes in Illinois. These contracts are executed
at TAXPAYER’s headquarters in CITY/STATE. Pursuant to these types of contracts,
TAXPAYER coordinates the custom manufacture of these direct mail pieces which are
personalized to include the customer’s name and logo. TAXPAYER will also coordinate
the fulfillment function which includes personalizing, bursting, trimming, bagging,
tagging, sorting and mailing.
While these contracts are executed in STATE, fulfillment of the contracts takes place in
Illinois. In Illinois TAXPAYER engages the services of third party Illinois printers and
third party Illinois fulfillment houses. The mailers are mailed throughout the United
States with only a small percentage of them being mailed to Illinois addresses, if any.
TAXPAYER’s customer relies upon them to contract with all third parties and coordinate
the entire process. At no time is TAXPAYER’s customer contracting either directly or
indirectly with any of the third parties. Additionally, TAXPAYER’s customer exercises

no direct control over the selection of the subcontractors or the work the subcontractors
will perform.
Rulings Requested:
TAXPAYER is seeking the following rulings from the State of Illinois with regard to its
registration for Illinois’s [sic] service occupation tax and its complement the service use
tax:
1.

Confirmation that the classification as a de minimis serviceman for Illinois
service occupation tax and its complement service use tax purposes as
distinguished in 86 Illinois Administration [sic] Code 130.2000 – ‘Persons
Engaged in the Printing, Graphic Arts or Related Occupations’ is
appropriate.

2.

As a result of the de minimis serviceman classification TAXPAYER has
elected the ‘traditional’ method of reporting its SOT liability based upon
50% of its entire service bill to its customer. TAXPAYER is seeking
affirmation that this election is appropriate based on its classification.

3.

TAXPAYER seeking [sic] a ruling on the applicability of the Illinois interstate [sic] commerce exemption as described in Illinois Regulation Section
130.605 to the direct mail transactions described in the above section
entitled ‘Illinois Activity and Facts’.

Discussion:
The Taxpayer has taken the position that based on its activities within Illinois, they
qualify to be registered as a serviceman and meet the threshold to be considered a de
minimis serviceman. Additionally, TAXPAYER asserts that the Illinois inter-state [sic]
commerce exemption is an applicable exemption to be applied to its transactions. The
discussion below further explains and supports the Taxpayer’s position.
De minimis Classification
It is the Taxpayer’s position that the determination of whether it should be registered as
a retailer or serviceman can be made within the context of 86 Illinois Administration [sic]
Code 130.2000 – ‘Persons Engaged in the Printing, Graphic Arts or Related
Occupations.’ This regulation distinguishes between those individuals in the graphic
arts business that sell tangible personal property and those that provide services.
Illinois Administration [sic] Code 86 section 130.2000(c)(1)states: [sic]
A photostater who is employed to reproduce material for his customer by
the photostating process, or a printer who is employed to print material for
his customer in accordance with copy supplied to the printer by the
customer or otherwise in accordance with the customer's specifications
and special order, or a person who otherwise engages primarily in the
transaction in furnishing graphic arts' services is not engaged in such
transaction in the business of selling tangible personal property within the
meaning of the Act, if the item so produced does not serve substantially
the same function as stock or standard items of tangible personal property

that are sold at retail, but is engaged in such transaction primarily in a
service occupation.
The code further defines stock or standard items as those items standard enough to be
stocked for sale or offered for sale from catalogues or other sales literature. Examples
in subsection (b)(1) given include legal forms, stock or standard greeting cards, pictures
or other items which are stocked for sale or offered for sale to the public generally, or
products of photo-processing. Subsection (b)(2) of the code further states that a printed
item that is personalized is always considered to be printed on special order.
All of TAXPAYER’s work consists of personalized printed items with customer logos or
other identifying marks. Therefore, we conclude that its work would be considered
special order and they would be classified as a serviceman. As such, they would not be
liable for the Retail [sic] Occupation Tax (ROT) pursuant to 86 Illinois Administration
[sic] Code 130.2000(c)(2), which states,
To the extent to which any such person engages in a service occupation,
he is not liable for Retailers' Occupation Tax on his receipts there from,
[sic] including receipts from both labor and tangible personal property.
This exemption from the ROT is not lost because TAXPAYER is a print broker. Chapter
86 of the Illinois Admin Code section 130.2000(c)(3) goes on to state:
If the tax exemption described in this Section would otherwise apply, the
person supplying the printed item or other item that is produced through
the graphic arts’ processes to the user will not lose that exemption
because of the fact that he farms the work of producing the item out to
someone else.
Traditional Method of Reporting
TAXPAYER is registered as a ‘de minimis serviceman in order to address its SOT/SUT
reporting and filing requirements. They have chosen a methodology that can generally
be termed as the ‘traditional’ method. As long as the aggregate annual cost price of the
tangible personal property transferred to the service customer incident to service is less
than 35% (75% percent [sic] in the case of servicemen transferring prescription drugs or
servicemen engaged in graphic arts production) of the aggregate annual total gross
receipts from service, a registered serviceman can handle his SOT liability under this
‘Traditional Method’ [Illinois Private Letter Ruling ST-91-0928, November 25, 1991].
The aforementioned traditional method states that when the serviceman transfers this
property in the context of a sale of service, he will incur an SOT liability based either
upon the separately stated selling price of the property transferred, or if this price is not
separately stated, then upon 50% of his entire service bill. In no event, however, can
the base be less than the cost price of the tangible personal property which is
transferred. TAXPAYER does not separately state the selling price of tangible personal
property transferred, therefore, state tax rate plus local taxes, if applicable, should be
applied to 50% of the total invoice [Illinois Private Letter Ruling ST-93-0103, March 22,
1993; Illinois Administration [sic] Code 140.101(e)]
Interstate Commerce

To determine the applicability of Illinois’ inter-state [sic] commerce exemption, the
relationship between TAXPAYER, its third party subcontractors and its customer in [sic]
should be examined.
Pursuant to an Illinois Private Letter Ruling [ST-91-0928, November 25, 1991,] when an
out-of-state purchaser contracts with an Illinois serviceman to manufacture and mail
mailers to out-of-state locations, a transaction subject to the Service Occupation Tax
exists. The letter ruling references Illinois Administration [sic] Code 130.605(b) – (f),
stating that if a registered serviceman performs this service, it can claim the interstate
commerce exemption because it mails the items out-of-state.
We note that the fact pattern described in Illinois Private Letter Ruling ST-91-0928 is
analogous to the facts at hand in that TAXPAYER, rather than its customer, contracts
with the fulfillment house to mail the items. The fulfillment house then mails the mailers
through the U.S. mail or through common carrier. Therefore, there is no Illinois delivery
of the items made except for those mailed to Illinois addresses.
An Illinois case involving Deere & Company (‘Deere’) [Deere & Company v. State of
Illinois, 49 Ill App 3d 164 7 Ill Dec 130 364 NE2d 117, 06/14/1977] specifically
addressed the taxability of advertising brochures. The brochures were purchased from
a commercial printer in Illinois and then at Deere’s request sent to a fulfillment company
in Illinois to ready the materials for mailing and subsequently mail. The brochures were
mailed to Deere’s customers residing both within and without the State of Illinois. The
main focus of the case was to determine if Deere exercised right of ownership of the
property while it is in Illinois thereby generating a use tax liability. The Illinois court
referenced a Supreme Court ruling where that court determined that goods do not enter
interstate commerce until they have been shipped or otherwise begun to move from one
state to another. Deere exercised a right to the goods prior to the goods entering into
the stream of interstate commerce because they directed the printer to send the
brochures to the fulfillment company. Based on these facts a use tax obligation for
Deere was established. Deere would be analogous to TAXPAYER’s customer,
however, in contrast to the fact pattern in the case TAXPAYER’s customers do not have
control over the property, the selection of the subcontractors or the work the
subcontractors will perform. TAXPAYER retains control of the property throughout the
transactions.
Because TAXPAYER is registered and subcontracts with a fulfillment house to mail the
items, it can still claim the interstate commerce exemption because its subcontractor
mails the items out-of-state. In addition, the fulfillment house is a registered serviceman
and not only mails the mailers, but also transfers tangible personal property incident to
service. The transfer of property is subject to the Service Occupation Tax but is also
exempt because it, too, can claim the interstate commerce exemption (the items it
transfers are also shipped out-of-state). Illinois Private Letter Ruling ST 06-141-GIL,
discusses the change in Illinois Administrative Code 140.108(a)(2)(B) allowing a de
minimis serviceman to claim the interstate commerce exemption if his customer is
eligible for the exemption.
Due to the fact that TAXPAYER is a registered serviceman it is eligible for all
exemptions that are afforded to other registered servicemen and has the option of
reporting its SOT liability under the ‘traditional method’ described above. Pursuant to
Illinois Private Letter Ruling ST 93-0103-PLR, March 22, 1993 TAXPAYER has elected

to issue resale certificates to its servicemen and takes advantage of the interstate
commerce exemption. As noted in Illinois Private Letter Ruling ST 93-0103, ‘Such
servicemen, since they are registered, can claim all the exemptions any other registered
serviceman can claim.’
Because there is no guidance in the form of published rulings, regulations or court
cases on this issue the Taxpayer respectfully requests a ruling on the above issues and
desires that the State looks favorably upon its contentions. If additional information is
required or you have additional questions please do not hesitate to contact me.

DEPARTMENT’S RESPONSE:
The Department’s regulation “Public Information, Rulemaking and Organization” provides that
“[w]hether to issue a private letter ruling in response to a letter ruling request is within the discretion of
the Department. The Department will respond to all requests for private letter rulings either by
issuance of a ruling or by a letter explaining that the request for ruling will not be honored.” 2 Ill. Adm.
Code 1200.110(a)(4). The Department declines to issue a Private Letter Ruling in this instance.
Although we are not providing you with a Private Letter Ruling, we hope the following general
information will be of assistance.
Retailers’ Occupation Tax Act
The Illinois Retailers’ Occupation Tax Act imposes a tax upon persons engaged in this State in
the business of selling tangible personal property to purchasers for use or consumption. See 86 Ill.
Adm. Code 130.101. The tax is measured by the seller's gross receipts from retail sales made in the
course of such business. "Gross receipts" means the total selling price or the amount of such sales.
The retailer must pay Retailers' Occupation Tax to the Department based upon its gross receipts, or
actual amount received, from the sale of the tangible personal property.
In Illinois, Use Tax is imposed on the privilege of using, in this State, any kind of tangible
personal property that is purchased anywhere at retail from a retailer. See 35 ILCS 105/3; 86 Ill.
Adm. Code 150.101. These taxes comprise what is commonly known as "sales" tax in Illinois. If the
purchases occur in Illinois, the purchasers must pay the Use Tax to the retailer at the time of
purchase. The retailers are then allowed to retain the amount of Use Tax paid to reimburse
themselves for their Retailers' Occupation Tax liability incurred on those sales. If the retailer does not
collect the Use Tax from the purchaser for remittance to the Department, the purchaser is responsible
for remitting the Use Tax directly to the Department. See 86 Ill. Adm. Code 150.130
Service Occupation Tax Act
Illinois Service Occupation and Use Taxes do not apply to sales of service that do not involve
the transfer of tangible personal property to customers. However, if tangible personal property is
transferred incident to sales of service, this will result in either Service Occupation Tax liability or Use
Tax liability for the servicemen depending upon his activities. For your general information, see 86 Ill.
Adm. Code 140.101 through 140.109 regarding sales of service and Service Occupation Tax.
Services that involve the transfer of tangible personal property (such as, for example, written reports,
other tangible media and training manuals) incident to a sale of service may be subject to either
Service Occupation Tax liability or Use Tax liability.
Under the Service Occupation Tax Act, businesses providing services (i.e. servicemen) are
taxed on tangible personal property transferred as an incident to sales of service. See 86 Ill. Adm.

Code 140.101. The purchase of tangible personal property that is transferred to the service customer
may result in either Service Occupation Tax liability or Use Tax liability for the servicemen depending
upon his activities. The serviceman’s liability may be calculated in one of four ways: (1) separately
stated selling price of tangible personal property transferred incident to service; (2) 50% of the
serviceman's entire bill; (3) Service Occupation Tax on the serviceman's cost price if the serviceman
is a registered de minimis serviceman; or (4) Use Tax on the serviceman's cost price if the
serviceman is a de minimis serviceman and is not otherwise required to be registered under
Section 2a of the Retailers' Occupation Tax Act.
Using the first method, servicemen may separately state the selling price of each item
transferred as a result of the sale of service. The tax is then calculated on the separately-stated
selling price of the tangible personal property transferred. If the servicemen do not separately state
the selling price of the tangible personal property transferred, they must use 50% of the entire bill to
the service customer as the tax base. Both of the above methods provide that in no event may the
tax base be less than the servicemen's cost price of the tangible personal property transferred. See
86 Ill. Adm. Code 140.106.
The third way servicemen may account for their tax liability only applies to de minimis
servicemen who have either chosen to be registered or are required to be registered because they
incur Retailers' Occupation Tax liability with respect to a portion of their business. See 86 Ill. Adm.
Code 140.109. Servicemen may qualify as de minimis if they determine that the annual aggregate
cost price of tangible personal property transferred as an incident of the sale of service is less than
35% of the total annual gross receipts from service transactions (75% in the case of pharmacists and
persons engaged in graphics arts production). Servicemen no longer have the option of determining
whether they are de minimis using a transaction by transaction basis. Registered de minimis
servicemen are authorized to pay Service Occupation Tax (which includes local taxes) based upon
their cost price of tangible personal property transferred incident to the sale of service. Such
servicemen should give suppliers resale certificates and remit Service Occupation Tax using the
Service Occupation Tax rates for their locations. Such servicemen also collect a corresponding
amount of Service Use Tax from their customers, absent an exemption.
The final method of determining tax liability may be used by de minimis servicemen that are
not otherwise required to be registered under Section 2a of the Retailers' Occupation Tax Act.
Servicemen may qualify as de minimis if they determine that the annual aggregate cost price of
tangible personal property transferred as an incident of sales of service is less than 35% of the
servicemen's annual gross receipts from service transactions (75% in the case of pharmacists and
persons engaged in graphic arts production). Such de minimis servicemen handle their tax liability by
paying Use Tax to their suppliers. If their suppliers are not registered to collect and remit tax, the
servicemen must register, self-assess and remit Use Tax to the Department. The servicemen are
considered to be the end-users of the tangible personal property transferred incident to service.
Consequently, they are not authorized to collect a "tax" from the service customers. See 86 Ill. Adm.
Code 140.108.
When a serviceman contracts out all or a portion of the service that he will provide, he or she is
acting as a primary serviceman in a multi-service situation. As a primary serviceman, he or she
engages the services of a secondary serviceman in order to obtain all or part of the product and
services desired by the service customer. See 86 Ill. Adm. Code 140.145 to determine the tax
incurred in these situations.
A de minimis serviceman required to be registered because he or she incurs Retailers'
Occupation Tax liability with respect to a portion of his or her business that does not separately state
the selling price of the tangible personal property transferred may chose to use 50% of the entire bill

to service customers as the tax base; however, in no event may the tax base be less than the
servicemen's cost price of the tangible personal property transferred.
86 Ill. Adm. Code
140.105(b)(2); 86 Ill. Adm. Code 140.109(b); 86 Ill. Adm. Code 140.106(a)(2).
Graphic Arts
For your information, please refer to 86 Ill. Adm. Code 130.2000, which is the regulation for
"Persons Engaged in the Printing, Graphic Arts or Related Occupations, and Their Suppliers." Items
that would not be considered stock or standard items and would not be sold to someone other than
the purchaser for substantially the same price would not be subject to the Retailers’ Occupation Tax
when sold, but would be subject to the Service Occupation Tax. Special order or custom print items
are generally not considered stock or standard items and are generally not sold to someone other
than the purchaser for substantially the same price. Therefore special order or custom print items are
generally subject to the Service Occupation Tax. 86 Ill. Adm. Code 130.1995(b).
As a general rule, when products are items of general utility and serve substantially the same
function as stock or standard items, the products will be subject to the Retailers’ Occupation Tax
when sold. Items which serve substantially the same function are those which, when produced on
special order, could be sold as produced to someone other than the original purchaser at
substantially the same price. Items which "serve substantially the same function" are those which,
when produced on special order, could be sold substantially as produced to someone other than the
original purchaser at substantially the same price. A printed item that is personalized is always
considered to be printed on special order. 86 Ill. Adm. Code 130.2000(b)(2).
See also subsection (a)(1) of 86 Ill. Adm. Code 1995 Personalizing Tangible Personal Property
for items in which Retailers’ Occupation Tax liability applies:
“Thermometers, pencils, pens, mirrors, silverware, notebooks, diaries, baby books,
guest registers and other similar books of general utility for the recording of information,
brief cases, wallets, toys, paper weights, pins and other jewelry, watches, rulers, match
books, playing cards, blotters, calendars, bags and other fairly standard salable
containers, napkins, dishes (whether made from paper or some other material),
handkerchiefs and other articles of merchandise which bear the name, monogram or
trade-mark of the purchaser or of some other person, or which bear advertising
inscriptions of the purchaser or of some other person, have intrinsic usefulness and
general utility and so have commercial value (i.e., value to persons other than the
purchaser), notwithstanding the fact that such items are personalized for the purchaser
by the seller by printing, engraving or some other process by means of which the
purchaser's name, monogram, trade-mark or special advertising matter is placed upon
the article for the purchaser by the seller.”
This rule applies to the sales of personalized shirts and golf balls, as well.
Interstate Commerce Exemption
A serviceman who incurs SOT on his or her selling price is authorized to claim any exemption
provided for in the Service Occupation Tax Act. For example, he or she may claim the interstate
commerce exemption or accept various exemption certificates from his or her customers (e.g.,
Certificates of Resale, exemption identification numbers). 86 Ill. Adm. Code 140.106(d). A de
minimis serviceman incurring Service Occupation Tax liability on his or her cost price also is
authorized to claim any of the various exemptions provided for in the Service Occupation Tax Act.
For example, he may claim the interstate commerce exemption or accept various exemption

certificates from his customers (e.g., he can accept Certificates of Resale). 86 Ill. Adm. Code
140.109 (a)(3). The Department has also determined that a de minimis serviceman incurring a Use
Tax liability may claim any of the exemptions, except as provided in subsection (a)(2)(C), authorized
under the Service Occupation Tax Act. De minimis servicemen incurring Use Tax liability may
likewise claim the interstate commerce exemption, which is more fully explained at 86 Ill. Adm. Code
130.605. 86 Ill. Adm. Code 140.108(a)(2)(B).
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 Information Division at (217) 782-3336.

Very truly yours,

Richard S. Wolters
Associate Counsel
RSW:msk