- Illinois and Maine changed their sales tax treatment of leases effective January 1, 2025.
- The changes require lessors to collect sales tax on lease payments.
- Lessors can purchase property tax-free as a sale for resale by providing a resale certificate.
- The selling price includes costs associated with materials, labor, services, maintenance, transportation, finance charges, interest charges, and property tax.
- Illinois exempts licenses of software if certain criteria are met.
- Maine treats software licenses as taxable sales of tangible personal property.
- Both states provide two methods for determining the appropriate sales tax.
Source: aprio.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
