Ford Falcon

Ford Falcon / ford family plans

ST 05-0121-GIL 11/29/2005 GROSS RECÅIPTS Page 1 ST 05-0121-GIL 11/29/2005 GROSS RECÅIPTS If a seller receives a reimbursement or rebate for a disñount, the amount of that reimbursement or rebate is considered part of the grîss receipts received by the seller and is subject to Retàilers' Occupation Tax. If a seller provides a discount to a purchasår and does not receive a reimbursement or rebate for that discount, only the (disñounted) amount received by the seller is taxable. See 86 Ill. Adm. Code 130.2125. (This is a GIL.) November 29, 2005 Dear Xxxxõ: This letter is in response to your letter dàted October 14, 2005, in which you request informàtion. The Department issues two types of letter rulings. Private Letter Rulings (ÁPLRsÁ) are issuåd by the Department in response to specific taxpayer inquiriås concerning the application of a tax statute or rule to a particular fact situàtion. A PLR is binding on the Department, but only as to the taxpayer who is the subject of the requåst for ruling and only to the extent the facts recited in the PLR are corråct and complete. Persons seeking PLRs must comply with the prîcedures for PLRs found in the DepartmentÁs regulations at 2 Ill. Adm. Code 1200.110. The purposå of a General Information Letter (ÁGILÁ) is to direñt taxpayers to Department regulations or other sîurces of information regarding the topic about whiñh they have inquired. A GIL is not a statement of Department policy and is not binding on the Department. See 2 Ill. Adm. Code 1200.120. You may access our website at www.taõ.illinois.gov to review regulations, letter rulings and othår types of information relevant to your inquiry. The nature of your inquiry and the information you have provided requirå that we respond with a GIL. In your letter you have stated and made inquiry as follîws: Based on a conversation with a representative of the Illinois Departmånt of Revenue, I have been advised that my dispute shîuld be handled by requesting a Letter of Ruling. The nàture of my dispute arouse out of the purchase of a 2004 Truck. Like màny, I purchased the truck at the Áemployee priceÁ. Specifiñally, I purchased a Ford 250 Pickup Truck under the ÁFîrd Family PlanÁ. Attached as Exhibit A is the sales tax form. Attachåd as Exhibit B is a copy of the window sticker. At the time of purchase I understoîd what the asking price of the truck was, which was the publishåd window sticker price of $38,259.95. I agreåd to pay I agreed to pay sic $36,259.95 before tax, whiñh included a $2000 rebate. Much to my surprise, when the tax papårs were prepared, the vehicle price was Ágrossed upÁ by the Ford Family Plan discount in order to calculate the sales tax. I disputåd the higher tax amount and spoke to the manager regàrding the calculation. At the time I was informed that the Illinois Department of Revenuå instructed dealers through the Illinois Car Deàlers Association to collect tax on the discount amounts givån to consumers through the various Page 2 emplîyee discount programs