Illinois – Sales by Exempt Organizations Taxable

SALT Report 3182 – Limitations on exempt organizations.  Illinois Section 130.2055(a) was created with the purpose that “governmental bodies do not have a competitive advantage when selling items that are also sold by Illinois retailers.”

An exempt organization requested clarification on Section 130.2055(a) in regards to the exempt organizations sale of alcoholic beverages at a festival.  The Illinois Department concluded that the sale of alcohol “by a governmental body that is not in direct performance of its governmental function…is subject to the Retailer’s Occupation Tax.”

For Further Information:              

ST 13-0047-GIL 09/10/2013 EXEMPT ORGANIZATIONS