Illinois DOR Finds Local Governments Not Exempt From Telecommunications Excise Tax

The Illinois Department of Revenue (DOR) issued a General Information Letter addressing whether a tax-exempt local government in another state is obligated to pay Illinois telecommunications taxes and fees on a data center connection located in Illinois. DOR held that the Illinois Telecommunications Excise Tax, Simplified Municipal Telecommunications Tax, and Telecommunications Infrastructure Maintenance Fee generally apply to charges for telecommunications services purchased by units of local government, even if the local government is located in another state and does not provide services in Illinois. [Il. Dep’t of Revenue, ST-25-0053-GIL, 10/24/25]

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