L & L Sales & Services, Inc. v. Department of Revenue

This case concerns the liability under section 3 of the Use Tax Act (UTA) (Ill. Rev. Stat. 1975, ch. 120, par. 439.3) of an entity in the business of selling heavy construction equipment at retail and also leasing that equipment with or without an operator. The use tax imposed would be based upon the price paid by the entity in purchasing the equipment. Most of the equipment was subsequently sold by the entity at retail and a sales tax was then paid on the sales price less discount pursuant to section 3 of the Retailer’s Occupation Tax Act (ROTA). Ill. Rev. Stat. 1975, ch. 120, par. 442.

After…