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Ezel / Tax Rulings / IL
IL ST 13-0019-GIL Illinois Retailers' Occupation (Sales & Use) Tax 2013-04-26

Did Illinois include tire disposal fees and statutory tire user fees in a retailer's taxable gross receipts?

Short answer: The two fees were treated differently. A retailer's tire disposal fee was a cost of doing business and could not be deducted from taxable gross receipts. The statutory tire user fee was specifically excluded from gross receipts subject to Retailers' Occupation Tax, Use Tax, and locally imposed retailers' occupation taxes. This letter partially rescinded ST 13-0004-GIL to make that correction.

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This page answers the general question as of 2013. Ezel answers yours, under current Illinois tax law, with citations.

Currency note: this ruling is from 2013
Subsequent statutory amendments, regulation changes, court decisions, or later rulings may have changed the analysis. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, rate, or position mentioned here.
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

IDOR partially rescinded its earlier General Information Letter ST 13-0004-GIL to correct the treatment of two tire-related charges.

A retailer's tire disposal fee was a cost of doing business and remained part of taxable gross receipts. The retailer could not deduct it.

The statutory tire user fee was different. Under 415 ILCS 5/55.9, it was excluded from gross receipts subject to Retailers' Occupation Tax, Use Tax, and locally imposed retailers' occupation taxes.

Common questions

Was the tire disposal fee excluded from the tax base? No.

Was the statutory tire user fee excluded? Yes.

What earlier guidance did this change? ST 13-0004-GIL, partially rescinded by this letter.

Citations and references

  • 415 ILCS 5/55.9

Source

Original ruling text

ST 13-0019-GIL 04/26/2013 SALE OF SERVICE
This letter rescinds, in part, ST-13-0004, regarding the taxation of the Tire User Fee.
(This is a GIL.)
April 26, 2013
Dear:
This is to inform you that the Department is rescinding, in part, our General Information Letter dated
January 25, 2013, ST 13-0004.
To clarify, the tire disposal fee is a cost incurred by the retailer as a cost of doing business and may
not be deducted from the retailer’s gross receipts. However, pursuant to statute, the tire user fee is
specifically not includable in the gross receipts of the retailer subject to the Retailers' Occupation Tax
Act, the Use Tax Act or any locally imposed retailers' occupation tax. See, 415 ILCS 5/55.9.
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,

Debra M. Boggess
Associate Counsel

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