The Illinois Department of Revenue recently made public a General Interest Letter addressing the taxation of moving and relocation services. The issue was raised by a 2102 questionnaire from "University" (a specific university is not named), which publishes an annual guide about the application of the tax laws of the states.
According to ST 12-0033-GIL, Illinois does not have a specific statute regarding the taxation of moving or relocation services. Service Occupation and Use Taxes in the state of Illinois only apply to sales of services that involve the transfer of tangible personal property to customers.
However, the Department of Revenue clarifies that "if tangible personal property is transferred incident to sales of service, this will result in either Service Occupation Tax liability or Use Tax liability for the servicemen depending upon his activities."
In addition, any packaging sold by a retailer in Illinois to a moving/van line or storage company "is an Illinois retail sale subject to Retailer's Occupation Tax and Use Tax liabilities."
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