Sales Tax Articles
Sales Tax State Activity Update - March 2005
You Have E-mail - Exemptions in Illinois
In a General Information Letter the Illinois Department of Revenue advised that a company who performs e-mail advertising services was exempt from charging sales tax on those services.
The taxpayer began e-mailing third party advertisements for a fee. The ads provided product or service information and advised the recipients to contact a specific company if they were interested. The e-mail advertising did not violate any Spam laws.
The Illinois Retailers' Occupation Tax is imposed upon persons engaged in the state that sell tangible personal property for use or consumption as outlined in 86ILL Administrative Code 130.101. The tax is measured on the seller's gross receipts. The use tax is imposed on the privilege of using any kind of tangible personal property purchased from a retailer in the state as outlined in 86 ILL Administrative Code 150.101. Advertising by e-mail is not a transfer of tangible personal property, and therefore is not subject to tax.
View the ruling here.
(General Information Letter ST 04-0229-GIL, Illinois Department of Revenue, December 15, 2004)
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