Illinois DOR Issues GIL on Retail Lease Taxation Under New Law

The Illinois Department of Revenue (DOR) has issued a general information letter regarding the taxation of leases of tangible personal property. Effective Jan. 1, 2025, under Public Act 103-592, persons engaged in the business of leasing tangible personal property at retail in Illinois are subject to retailers’ occupation tax on the gross receipts from those leases, with no provision allowing lessors to claim credits for tax previously paid on the purchase of the leased property. The Department stated that amending the law to address concerns about potential “double taxation” would require legislative action. [Il. Dep’t of Revenue, General Information Letter ...