Sales of Electronic Textbooks Not Taxable in Illinois

Monday, June 16th, 2014

 
 
Electronic textbooks.
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Illinois
General

Illinois recently released an information letter stating that sales of electronic textbooks were not taxable.

The taxpayer sold and rented electronic textbooks to students in both public and private schools. These transactions occurred entirely over the internet. Students downloaded the textbooks online and did not receive hard copies of the books.

Illinois taxes the sale and use of tangible personal property. If there is no transfer of tangible personal property, a transaction is not subject to tax.

Illinois does not treat viewing and downloading text and similar data as a transfer of tangible personal property. Sales of downloaded books, musical recordings, magazines, and newspapers were sales of intangibles. Sales of electronic textbooks were therefore not subject to tax.

http://tax.illinois.gov/LegalInformation/LetterRulings/st/2014/ST-14-0031.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

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