Note that a recently posted Department general information letter (ST 25-0012-GIL (3/14/25)) also addresses the imposition of Illinois sales and use tax on certain leases of tangible personal property entered into or renewed on or after January 1, 2025, including:
Application of the “true object” test in determining whether a transaction is a retail lease transaction or a transfer by lease of tangible personal property incident to a sale of service;
If the true object of a transaction is the lease or rental of tangible personal property, how any service charges that are “inseparably linked to the lease or rental of the tangible personal property” are considered part of the lessor’s costs of doing business and are includable in the lessor’s taxable gross receipts; and
How to source retail leases and sales of services.
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