NAFC Online State Tax Guides

State of Illinois Taxability Matrix

		Taxable	Exempt
Converter Gears			X(1)
Fuel – Diesel		X
Fuel – Gasoline		X
Fuel – Heating (Petroleum Only)		X
Fuel – Propane		X
Lube Oil			X(1)
Motor Vehicles – Brought into State			X(1)
Motor Vehicles & Property Purchased within and Delivered Outside State			X(3)
Motor Vehicles Purchased within State – Line Tractors			X(1)
Motor Vehicles Purchased within State – Line Trailers			X(1)
Motor Vehicles Purchased within State – P & D Vehicles			X(1)
Repairs (Outside) – Labor			X(4)
Repair Parts – Line Tractors			X(1)
Repair Parts – Line Trailers			X(1)
Repair Parts – P & D Equipment			X(1)
Repair Parts – Tools		X
Rentals – Line Equipment			X(2)
Rentals – P & D Equipment			X(2)
Rentals – Shop Equipment			X(2)
Rentals of Vehicles without Driver:			X(2)
	Short Term – Define Period (N/A)		X(2)
	Long Term – Define Period (N/A)		X(2)
Terminal Equipment – Forklifts		X
Terminal Equipment – Hostling Tractors		X
Tires – Line Vehicles			X(1)
Tires – P & D Equipment		X

Exempt if qualified as rolling stock used in interstate commerce (35 Ill. Comp. Stat. Ann. 120/2-5(12) and 120/2-50).
Receipts from rentals are not subject to sales tax. The lessor is the user and pays sales tax on the purchase without regard to customer's tax exempt status. Leases for one year or more qualify the lessor for the exemption from paying sales tax on the purchase of qualified rolling stock. Lease receipts are not subject to sales tax. The purchaser must give the seller certification that purchaser is an interstate carrier for-hire and that property will be used as rolling stock, moving interstate commerce. A long-term lessor must give the seller similar certification identifying the lessee as an interstate carrier for-hire (35 Ill. Comp. Stat. Ann. 120/2-5(12) and Ill. Admin. Code tit. 86 § 130.340).
An exemption is provided for the use, in Illinois, of a motor vehicle that was sold in Illinois to a nonresident, even though the motor vehicle is delivered to the nonresident in Illinois, if the motor vehicle is not to be titled in Illinois, and if a drive-away permit is issued to the motor vehicle as provided in Section 3-603 of the Illinois Vehicle Code or if the nonresident purchaser has vehicle registration plates to transfer to the motor vehicle upon returning to his or her home state (35 Ill. Comp. Stat. Ann. 105/3-55(h)).
Exempt if separately stated on invoice (Ill. Admin. Code tit. 86 § 130.2015(c)(1)).