- Illinois clarified that the rental of operated assist cranes used to install or remove tower cranes is not subject to the state’s Retailer’s Occupation Tax (ROT) if the lessee does not possess or control the crane. This is considered a nontaxable service since the crane provider retains full control. This clarification follows legislative changes that redefine leases as retail sales for ROT purposes, effective January 1, 2025. However, lessor-operated assist crane services remain exempt, benefiting construction and heavy-equipment sectors. Companies should ensure contracts specify operator control to avoid tax exposure.
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.
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