Illinois—Sales and Use Tax: Leasing of Signage Subject to Tax
IL:The Illinois Department of Revenue issued a letter stating that the rental of identification signage by an out-of-state (taxpayer) company is subject to a use tax based on the cost price of the signage. The taxpayer designed, installed, and maintained signage for Illinois customers in this matter. The taxpayer retained ownership of all the signs and rented them out to merchants. The Illinois Department of Revenue considers the user of this TPP and therefore charges a usage tax on its cost.
If the signs are permanently affixed to the property, the person remodeling or installing the property is considered a contractor. Developers are considered end-users of TPPs purchased for incorporation into properties, and such TPP contractors are subject to an excise duty on such purchases based on the cost price of the TPP.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.
