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Illinois Department of Revenue
Publication 104 December 2021
Common Sales and Use Tax Exemptions
The information in this publication About this publication
is current as of the date of the The focus of this publication is to:
publication. Please visit our website at • identify several of the most common sales and use tax exemptions and
tax.illinois.gov to verify you have the • provide additional information about these common exemptions.
most current revision.
This publication is written in the plain General Information
English style so the tax information is Retailers and servicepersons are required to pay Illinois Sales Tax (Retailers’
easier to understand. As a result, we Occupation Tax and Service Occupation Tax) on sales of tangible personal property
do not directly quote Illinois statutes and the transfer of tangible personal property incident to sales of service. Retailers
and servicepersons must determine, when the property is sold or transferred
and the Illinois Administrative Code.
incident to a sale of service, whether the purchaser is buying the property “for use
The contents of this publication are or consumption” and whether the purchaser has an exemption for the tangible
informational only and do not take personal property.
the place of statutes, rules, and
court decisions. Visit our website at Customers who make tax-exempt purchases must provide retailers with proper
tax.illinois.gov to view the statutes documentation. Retailers and servicepersons who cannot properly document a tax-
exempt sale will be liable for paying sales tax, and if applicable, the E911 Surcharge
and rules regarding the various topics
and ITAC Assessment on the transaction. Retailers, servicepersons, and customers
covered in this publication for further making tax-exempt purchases must maintain books and records to document the
clarification or more detail. All of the tax-exempt status of purchases.
sections and parts referenced can be
found in Title 86 of the Code. This publication only provides an overview of the common sales and use tax
exemptions. Purchasers, retailers, and servicepersons will need to review the
references in this document for more information.
Taxpayer Bill of Rights
You have the right to call the Illinois Department of Revenue (IDOR) for help in resolving tax problems.
You have the right to privacy and confidentiality under most tax laws.
You have the right to respond, within specified time periods, to IDOR notices by asking questions, paying the amount due,
or providing proof to refute IDOR’s findings.
You have the right to appeal IDOR decisions, in many instances, within specified time periods, by asking for IDOR review,
by filing a petition with the Illinois Independent Tax Tribunal, or by filing a complaint in circuit court.
If you have overpaid your taxes, you have the right, within specified time periods, to file for a credit (or, in some cases, a
refund) of that overpayment.
For more information about these rights and other IDOR procedures, you may write us at the following address:
Problems Resolution Office
Illinois Department of Revenue
PO Box 19014
Springfield, IL 62794-9014
Get forms and other information faster and easier at tax.illinois.gov
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