Sales Sourced to Location of Primary Selling Activities in Illinois

A distribution company’s sales of fuel, lubricant products, and gas were sourced to the cities in which the Illinois Department of Revenue determined the company was engaged in primary selling activities for local sales tax purposes. Generally, in Illinois, for local tax purposes, sales are sourced to the location where three or more of a company’s primary sales activities take place. The distributor had a fuel oil sales and administrative office in city 1, a lubrication products warehouse and sales office in city 2, and a fuel storage facility in city 3. In this case, fuel sales were sourced to city 1, and lubricant sales were sourced to city 2. Sales of gasoline at pumps in city 2 and city 3 were sourced to these cities, since the company made over-the-counter sales at these locations.(Private Letter Ruling, ST 16-0007-PLR, Illinois Department of Revenue, July 29, 2016, released November 2016)

Posted on December 20, 2016