Does Illinois provide a sales-tax exemption for disabled veterans or for purchases by a county veterans association?

Plain-English summary

Illinois did not have a sales-tax exemption for disabled veterans.

The requester also referred to a county veterans association. Illinois could not determine whether that association's purchases qualified because the letter did not provide enough information about how the association was created, organized, and operated.

Generally, tangible personal property sold to a governmental body could be exempt. But the governmental body or unit of local government needed an active Illinois exemption identification number, commonly called an E number. Without one, its purchases were taxable under the rule described.

What this means for you

Disabled veterans buying personally

This GIL identifies no Illinois sales-tax exemption based solely on disabled-veteran status.

Veterans associations and government units

Do not assume the organization's name establishes governmental status. Confirm its legal organization and active Illinois E number before treating purchases as exempt.

Common questions

Q: Did Illinois exempt purchases by disabled veterans?
A: No.

Q: Did the Department exempt the county veterans association?
A: No determination was possible from the limited facts.

Q: What documentation did a governmental body need?
A: An active Illinois E number.

Citations and references

• 86 Ill. Adm. Code 130.2080 — sales to governmental bodies and exemption-number documentation.

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-11-0065.pdf

Original ruling text

ST 11-0065-GIL 08/16/2011 GOVERNMENTAL BODIES
Sales to a governmental body are generally subject to tax unless the governmental body has
an active exemption identification “E” number. See 86 Ill. Adm. Code 130.2080. (This is a
GIL.)

August 16, 2011

Dear Xxxxx:
This letter is in response to your letter dated July 18, 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:
We have found that some other States (Example: Oklahoma) have a Sales Tax
Exemption for Resident Disabled American Veterans.
We would like to know your policy and procedures regarding this issue for the State of
Illinois. Any information you can provide would be appreciated.

DEPARTMENT’S RESPONSE:
The State of Illinois does not have a sales tax exemption for disabled veterans.
Your letter does not provide sufficient information about the creation, organization and
operation of the COUNTY Veteran’s Association to determine whether any purchases made by the
Association qualify for an exemption under the Retailers’ Occupation Tax Act and Use Tax Act.
Generally, tangible personal property sold to a governmental body is exempt from Retailers’
Occupation Tax and Use Tax liability. I direct you attention to 86 Ill. Adm. Code 130.2080 Sales to
Governmental Bodies, Foreign Diplomats and Consular Personnel. Please note that sales to a
governmental body or to a unit of local government are subject to tax unless the governmental body
has an active exemption number or "E-number.” If a governmental body does not have an "E"
number, then its purchases are subject to tax.

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