American Aviation Supply, LLC v. Illinois Department of Revenue

In a petition for direct administrative review of a final decision of the Illinois Independent Tax Tribunal, the petitioner challenged the tribunal’s determination that a sales tax exemption for property that is bought and temporarily stored in-state before being transported out of state did not apply to its customers’ purchases of aviation fuel because the fuel was not consumed solely outside of the state. The appellate court affirmed the tribunal’s decision, finding that the plain language of section 2-5(38) of the Retailers’ Occupation Tax Act supported the department’s interpretation of the statute and that the fuel did not qualify for an exemption because it was partially consumed in Illinois. (ROCHFORD and OCASIO, concurring)