Were airline tickets bought online subject to Illinois Retailers' Occupation Tax or Use Tax?

Plain-English summary

IDOR said airline tickets were not tangible personal property. Their sale therefore was not subject to Illinois Retailers' Occupation Tax or Use Tax.

The requester asked separately about tickets bought online in Illinois and tickets bought from out of state. The letter's answer covered both: airline tickets were not subject to either tax.

Common questions

Were airline tickets subject to Illinois Use Tax? No.

Did buying the ticket online or from out of state change the answer? No distinction was made; the ticket itself was not tangible personal property.

Citations and references

• 35 ILCS 105/3-65
• 86 Ill. Adm. Code 130.101 and 150.101

Source

• Landing page: https://taxarchive.illinois.gov/research/legal/letter-rulings/sales-tax/2012.html
• Original PDF: https://tax.illinois.gov/content/dam/soi/en/web/taxarchive/research/legal/letter-rulings/sales-tax/2012/st-12-0058.pdf

Original ruling text

ST 12-0058-GIL 11/02/2012 MISCELLANEOUS
The sale of airline tickets is not a sale of tangible personal property and is not subject to
the Retailers Occupation Tax or Use Tax. See 86 Ill. Adm. Code 130.101 and 150.101.
(This is a GIL.)
November 2, 2012
Dear:
This letter is in response to your letter dated, October 10, 2012, 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:
Would appreciate answer to general tax question:
For the Illinois Use Tax: Are airline tickets purchased on the internet subject to
inclusion in the Illinois Use Tax?
1) If purchased in Illinois? 2) If purchased out of state?
Thanks for a response.
DEPARTMENT’S RESPONSE:
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. 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 86 Ill. Adm. Code
150.101. These taxes comprise what is commonly known as "sales" tax in Illinois. Illinois Retailers'
Occupation and Use Taxes do not apply to sales of service that do not involve the transfer of tangible
personal property to customers.
The sale of airline tickets is not considered a sale of tangible personal property and is not subject to
the Retailers' Occupation Tax. The sale of airline tickets also is not subject to Use Tax. 35 ILCS
105/3-65.
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.

ST 12-0058-GIL
November 2, 2012
Page 2

Very truly yours,

Richard S. Wolters
Associate Counsel