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Ezel / Tax Rulings / IL
IL ST 16-0041-GIL Illinois Retailers' Occupation (Sales & Use) Tax 2016-09-29

Did Section 130.330(c)(3) generally exempt gases consumed in manufacturing, as Illinois GIL ST 09-0112 had stated?

Short answer: No. IDOR corrected its August 31, 2009 General Information Letter ST 09-0112, which had incorrectly said the rules specifically exempt gases consumed in manufacturing. The correction states that gases are not generally exempt under Section 130.330(c)(3).

Apply this to your situation

This page answers the general question as of 2016. Ezel answers yours, under current Illinois tax law, with citations.

Currency note: this ruling is from 2016
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) correcting the Department's statement in GIL ST 09-0112. A GIL 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 reviewed its earlier rulings and found an incorrect statement in General Information Letter ST 09-0112, dated August 31, 2009.

That earlier letter said the rules specifically exempt gases consumed in a manufacturing process. ST 16-0041 withdrew that statement and advised that gases are not generally exempt under Section 130.330(c)(3).

What this means for you

Manufacturers should not rely on ST 09-0112 for a general exemption covering gases consumed in production. This correction does not analyze a particular gas or set of manufacturing facts.

Common questions

Which earlier letter was corrected? ST 09-0112.

Did the correction say all manufacturing gases were taxable? It said gases are not generally exempt under Section 130.330(c)(3); it did not analyze specific gases.

Citations and references

  • 86 Ill. Adm. Code 130.330(c)(3).
  • Illinois GIL ST 09-0112, dated August 31, 2009, is identified in the correction.

Source

Original ruling text

ST 16-0041-GIL 09/29/2016 MANUFACTURING MACHINERY & EQUIPMENT
This letter clarifies and corrects part of the Department’s previous response provided in our
General Information Letter dated August 31, 2009, ST 09-0112, wherein we incorrectly stated
that the rules exempt gases that are consumed in a manufacturing process.
NOTE: Gases are not generally exempt under Section 130.330(c)(3).

September 29, 2016

Dear Xxxxx:
We have been reviewing prior letter rulings and discovered that our General Information Letter
to you dated August 31, 2009, ST 09-0112 GIL, inadvertently contained an incorrect statement. In
that General Information Letter, we stated as follows:
“Please note that the rules also specifically exempt gases that are consumed in a
manufacturing process. See Section 130.330 (c)(3).”
Please be advised, gases are not generally exempt under Section 130.330(c)(3).
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,

Debra M. Boggess
Associate Counsel

DMB:bkl

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