Illinois Administrative Code
Title 86 - REVENUE
Part 130 - RETAILERS' OCCUPATION TAX
Subpart S - SPECIFIC APPLICATIONS
Section 130.2085 - Sales to or by Banks, Savings and Loan Associations and Credit Unions
Universal Citation: 86 IL Admin Code ยง 130.2085
Current through Register Vol. 48, No. 12, March 22, 2024
a) Sales to Banks, Etc.
1) Retail sales to national banks,
State-chartered banks, Federally-chartered savings and loan associations, and
other privately-owned financial institutions are subject to the Retailers'
Occupation Tax. This conclusion also applies to sales of building materials and
fixtures to construction contractors for incorporation into real estate owned
by banks and savings and loan associations even if such real estate is used for
bank or savings and loan association purposes. For the foregoing purposes, the
date of sale is considered to be the date of delivery to the purchaser.
Beginning January 4, 2019, sales of tangible personal property are exempt from
the Retailers' Occupation Tax if the purchaser is exempt from use tax by
operation of federal law. [35 ILCS
120/2-5(16)]
2) Federally-chartered credit unions, the
Federal National Mortgage Association (Fannie Mae), Farm Credit Banks, and
Federal Home Loan Banks do not incur Use Tax liability when making purchases of
tangible personal property for use or consumption. (See respectively
12 U.S.C.
1768,
12 U.S.C.
1723(a)(C)(2),
12 U.S.C.
2023 and
12 U.S.C.
1433.) Retailers making sales of tangible
personal property to Federal credit unions, the Federal National Mortgage
Association (Fannie Mae), Farm Credit Banks, and Federal Home Loan Banks are
not able to reimburse themselves for the retailers' occupation tax they incur
as a result of making such sales by collecting the reimbursing use tax.
Nonetheless, retailers making sales of tangible personal property to Federal
credit unions, the Federal National Mortgage Association (Fannie Mae), Farm
Credit Banks, and Federal Home Loan Banks do incur retailers' occupation tax
liability on their gross receipts from such sales. Beginning January 4, 2019,
purchases of tangible personal property are exempt from the Use Tax if the
purchaser is exempt by operation of federal law. [35 ILCS
120/2-5(16)]
b) Sales by Banks, Etc.
State-chartered banks and both Federally- and State-chartered savings and loan associations, which engage in selling tangible personal property at retail, are liable for retailers' occupation tax on their receipts from such sales commencing March 17, 1965. Effective February 1, 1970, national banks that engage in selling tangible personal property at retail also are liable for retailers' occupation tax on their receipts from such sales.
Disclaimer: These regulations may not be the most recent version. Illinois may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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