- Illinois has changed its tax code effective January 1, 2025, to include leases of tangible personal property as taxable retail sales.
- Lessors must collect and remit Retailers’ Occupational Tax on leases active, renewed, or initiated on or after this date.
- Scaffolding leases are impacted by this change and are considered taxable.
- Form ST-587 is used to claim sales tax exemptions for qualifying equipment in manufacturing, but scaffolding does not qualify.
- The Illinois Department of Revenue clarified that scaffolding is not eligible for the ST-587 exemption.
- Lessors must collect tax on scaffolding leases even if a completed ST-587 form is provided by the lessee.
- Businesses renting out equipment like scaffolding have increased tax responsibilities.
- The Illinois Department of Revenue provides guidance for questions on these regulations.
Source: salestaxinstitute.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.
