In letter ruling ST 21-0003, the Illinois Department of Revenue considered sales made by a nonprofit organization that previously qualified for the isolated or occasional sale exemption to the Retailers’ Occupation Tax. The Organization requested guidance concerning whether the exemption would apply if it made sales through a marketplace facilitator. The Department responded that beginning January 1, 2021, a marketplace facilitator is considered to be a retailer engaged in the occupation of selling at retail for purposes of the Retailers’ Occupation Tax if it exceeds the sales or transactions threshold. The Department concluded that under the new rules, a marketplace is a location held out to the public as being habitually engaged in the selling of tangible personal property. Therefore, sales made on a marketplace would not be considered “occasional” sales. If the marketplace facilitator meets one of the two thresholds it would be liable for collecting and remitting all applicable tax and the occasional sales exemption will not apply.
