Prairie State Wire

Purchases of tangible personal property by active duty members of the United States armed forces will be exempt from several tax acts starting January 1, 2024. This exemption applies when the federal government is the payor for these purchases. The specific tax acts affected include the Retailers’ Occupation Tax Act, the Service Occupation Tax Act, the Use Tax Act, and the Service Use Tax Act.

The legal references for this new exemption are as follows: 35 ILCS 120/2-5(48), 35 ILCS 115/3-5(35), 35 ILCS 110/3-5(34), and 35 ILCS 105/3-5(43).

For further details on this new exemption policy, individuals can refer to FY 2024-16 titled "New Exemption for Military Purchases Made by Active Duty US Armed Forces Personnel," which takes effect at the beginning of next year.