By David Machemer (May 24, 2018, 2:31 PM EDT) -- Illinois' treatment of leases is an anomaly when compared to almost all other jurisdictions.[1] While most jurisdictions impose sales tax on the lease receipts collected from the lessee, the user of the equipment, Illinois differs by treating the lessor as the user of the equipment. As such, the lessor is subject to Illinois use tax.[2] Illinois' unique treatment presents many challenges for lessors. First and foremost, Illinois places the imposition of tax on the entity that does not have the day-to-day control over the equipment. This is particularly challenging in the context of mobile property. Additionally, in the context of exemptions, the question of whether a lessee's exemption "flows through" to the lessor is often presented. This article provides an overview of the retailer's occupation tax (i.e. sales tax) and use tax consequences of leasing equipment in Illinois....