Illinois DOR Clarifies Sales Tax on Digital Products, Marketplace Fees, Energy Items

The Illinois Department of Revenue (DOR) issued a general information letter in response to an annual state tax survey. The Department provides guidance on various sales and use tax issues, including nexus for marketplace facilitators, taxability of digital products and streaming services, and exemptions for energy conservation items. The Department stated that fees charged by marketplace facilitators are generally not taxable, electronic downloads of information and data streaming are not considered transfers of tangible personal property subject to sales tax, and Illinois currently has no exemption for solar energy systems. [Il. Dep’t of Revenue, ST-25-0047-GIL, 09/09/25]

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