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90_HB1888
SEE INDEX
Creates the Occupation and Use Tax Code. Codifies and
replaces the existing Use Tax Act, Service Use Tax Act,
Service Occupation Tax Act, and Retailers' Occupation Tax
Act. Repeals those Acts. Makes technical and conforming
changes. Corrects an obviously inaccurate reference to the
Service Occupation Tax Act to a correct reference to the
Article that imposes the service use tax. Corrects obviously
inaccurate references in the Use Tax Act, Service Occupation
Tax Act, and Service Use Tax Act to a Section that does not
exist to correct references to a Section concerning the
retailers' occupation tax. Corrects an obviously inaccurate
reference in the Section concerning high impact businesses to
a clause that does not exist to a correct reference to the
appropriate clause.
LRB9000671KDdvA
LRB9000671KDdvA
1 AN ACT to codify the law in relation to use and
2 occupation taxes.
3 WHEREAS, Codification of laws relating to occupation and
4 use taxes will achieve the goals of (i) consolidating the
5 many laws relating to the occupation and use taxes; (ii)
6 updating the often obsolete language currently in use in
7 these many laws; and (iii) incorporating uniform terminology
8 that will ensure consistency of understanding and
9 interpretation of these laws; and
10 WHEREAS, The Illinois General Assembly seeks to achieve
11 these goals by consolidating the many occupation and use tax
12 laws of Illinois into a single Occupation and Use Tax Code
13 without making any substantive changes in the meaning,
14 effect, or application of those laws; therefore
15 Be it enacted by the People of the State of Illinois,
16 represented in the General Assembly:
17 ARTICLE 1. GENERAL PROVISIONS
18 Section 1-1. Short title. This Act may be cited as the
19 Occupation and Use Tax Code.
20 Section 1-5. Applicability. Unless otherwise specified
21 in this Code, the provisions of each Section or subsection of
22 this Code apply to all of the taxes imposed under Articles
23 10, 15, 20, and 25. For example, if a Section or subsection
24 begins with the phrase "for purposes of the retailers'
25 occupation tax and use tax", the provisions of that Section
26 or subsection apply only to the retailers' occupation tax
27 imposed in Article 10 and the use tax imposed in Article 15.
28 Those provisions would not apply to the service occupation
29 tax imposed in Article 20 or the service use tax imposed in
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1 Article 25. If no language in a Section or subsection of
2 this Code specifically limits its application, then the
3 provisions of that Section or subsection apply to the
4 retailers' occupation tax imposed in Article 10, the use tax
5 imposed in Article 15, the service occupation tax imposed in
6 Article 20, and the service use tax imposed in Article 25.
7 (b) This Code, as enacted, is not intended to make any
8 substantive changes in the meaning, effect, or application of
9 the continued and codified provisions of the Retailers'
10 Occupation Tax Act, the Use Tax Act, the Service Occupation
11 Tax Act, or the Service Use Tax Act.
12 ARTICLE 5. DEFINITIONS
13 Section 5-5. Acquired outside this State. For purposes
14 of the use tax, "acquired outside this State", in addition to
15 its usual and popular meaning, also means the delivery,
16 outside Illinois, of tangible personal property that is
17 purchased in this State and delivered from a point in this
18 State to a point of delivery outside this State.
19 Section 5-10. Bulk vending machine. For purposes of the
20 retailers' occupation tax and the use tax, "bulk vending
21 machine" means a nonelectrically operated vending machine,
22 containing unsorted confections, nuts or other merchandise
23 which, when a coin of a denomination not larger than one cent
24 is inserted, are dispensed in equal portions, at random and
25 without selection by the customer.
26 Section 5-15. Bullion. "Bullion" means gold, silver, or
27 platinum in a bulk state with a purity of not less than 980
28 parts per 1,000.
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1 Section 5-20. Computer software. "Computer software"
2 means a set of statements, data, or instructions to be used
3 directly or indirectly in a computer in order to bring about
4 a certain result in any form in which those statements, data,
5 or instructions may be embodied, transmitted, or fixed, by
6 any method now known or hereafter developed, regardless of
7 whether the statements, data, or instructions are capable of
8 being perceived by or communicated to humans, and includes
9 prewritten or canned software that is held for repeated sale
10 or lease, and all associated documentation and materials, if
11 any, whether contained on magnetic tapes, discs, cards, or
12 other devices or media, but does not include software that is
13 adapted to specific individualized requirements of a
14 purchaser, custom-made and modified software designed for a
15 particular or limited use by a purchaser, or software used to
16 operate exempt machinery and equipment used in the process of
17 manufacturing or assembling tangible personal property for
18 wholesale or retail sale or lease.
19 For the purposes of this Code, computer software shall be
20 considered to be tangible personal property.
21 Section 5-25. Corporation, limited liability company,
22 society, association, foundation, or institution organized
23 and operated exclusively for educational purposes.
24 (a) A corporation, limited liability company, society,
25 association, foundation or institution organized and operated
26 exclusively for educational purposes shall include: all
27 tax-supported public schools; private schools which offer
28 systematic instruction in useful branches of learning by
29 methods common to public schools and which compare favorably
30 in their scope and intensity with the course of study
31 presented in tax-supported schools; vocational or technical
32 schools or institutes organized and operated exclusively to
33 provide a course of study of not less than 6 weeks duration
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1 and designed to prepare individuals to follow a trade or to
2 pursue a manual, technical, mechanical, industrial, business
3 or commercial occupation.
4 However, a corporation, limited liability company,
5 society, association, foundation or institution organized and
6 operated for the purpose of offering professional, trade or
7 business seminars of short duration, self-improvement or
8 personality development courses, courses which are
9 avocational or recreational in nature, courses pursued
10 entirely by open circuit television or radio, correspondence
11 courses, or courses which do not provide specialized training
12 within a specific vocational or technical field shall not be
13 considered to be organized and operated exclusively for
14 educational purposes.
15 (b) For purposes of the retailers' occupation tax, the
16 use tax, and the service occupation tax, a corporation,
17 limited liability company, society, association, foundation,
18 or institution organized and operated exclusively for
19 educational purposes shall also include licensed day care
20 centers as defined in Section 2.09 of the Child Care Act of
21 1969 which are operated by a not-for-profit corporation,
22 society, association, foundation, institution, or
23 organization.
24 Section 5-30. Cost price. For purposes of the service
25 occupation tax and the service use tax, "cost price" means
26 the consideration paid by the serviceman for a purchase
27 valued in money, whether paid in money or otherwise,
28 including cash, credits and services, and shall be determined
29 without any deduction on account of the supplier's cost of
30 the property sold or on account of any other expense incurred
31 by the supplier. When a serviceman contracts out part or all
32 of the services required in his sale of service, it shall be
33 presumed that the cost price to the serviceman of the
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1 property transferred to him or her by his or her
2 subcontractor is equal to 50% of the subcontractor's charges
3 to the serviceman in the absence of proof of the
4 consideration paid by the subcontractor for the purchase of
5 such property.
6 Section 5-35. Department. "Department" means the
7 Department of Revenue.
8 Section 5-40. Gasohol. "Gasohol" means motor fuel that
9 is no more than 90% gasoline and at least 10% denatured
10 ethanol that contains no more than 1.25% water by weight.
11 Section 5-45. Graphic arts production. "Graphic arts
12 production" means printing by one or more of the common
13 processes or graphic arts production services as those
14 processes and services are defined in Major Group 27 of the
15 U.S. Standard Industrial Classification Manual.
16 Section 5-50. Gross receipts. For purposes of the
17 retailers' occupation tax, "gross receipts" from the sales of
18 tangible personal property at retail means the total selling
19 price or the amount of such sales as defined in this Code. In
20 the case of charge and time sales, the amount thereof shall
21 be included only as and when payments are received by the
22 seller. Receipts or other consideration derived by a seller
23 from the sale, transfer or assignment of accounts receivable
24 to a wholly owned subsidiary will not be deemed payments
25 prior to the time the purchaser makes payment on such
26 accounts.
27 Section 5-55. Like kind and character. For purposes of
28 the retailers' occupation tax and the use tax, the phrase
29 "like kind and character" shall be liberally construed
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1 (including but not limited to any form of motor vehicle for
2 any form of motor vehicle, or any kind of farm or
3 agricultural implement for any other kind of farm or
4 agricultural implement), while not including a kind of item
5 which, if sold at retail by that retailer, would be exempt
6 from retailers' occupation tax and use tax as an isolated or
7 occasional sale.
8 Section 5-60. Low sulfur dioxide emission coal fueled
9 devices. "Low sulfur dioxide emission coal fueled devices"
10 means any device sold or used or intended for the purpose of
11 burning, combusting or converting locally available coal in a
12 manner which eliminates or significantly reduces the need for
13 additional sulfur dioxide abatement that would otherwise be
14 required under State or federal air emission standards. Such
15 device includes all machinery, equipment, structures and all
16 related apparatus of a coal gasification facility, including
17 coal feeding equipment, designed to convert locally available
18 coal into a low sulfur gaseous fuel and to manage all waste
19 and byproduct streams.
20 Section 5-65. Person. "Person" means any natural
21 individual, firm, partnership, association, joint stock
22 company, joint venture, public or private corporation,
23 limited liability company, or a receiver, executor, trustee,
24 guardian or other representative appointed by order of any
25 court.
26 Section 5-70. Photoprocessing. For purposes of the tax
27 imposed on photographs, negatives, and positives by this
28 Code, "photoprocessing" includes, but is not limited to,
29 developing films, positives, negatives, and transparencies,
30 and tinting, coloring, making, and enlarging prints.
31 Photoprocessing does not include color separation,
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1 typesetting, and platemaking by photographic means in the
2 graphic arts industry and does not include any procedure,
3 process, or activity connected with the creation of the
4 images on the film from which the negatives, positives, or
5 photographs are derived. The charge for in-house
6 photoprocessing may not be less than the photoprocessor's
7 cost price of materials. In transactions in which products
8 of photoprocessing are sold in conjunction with other
9 services, if a charge for the photoprocessing component is
10 not separately stated, tax is imposed on 50% of the entire
11 selling price unless the sale is made by a professional
12 photographer, in which case tax is imposed on 10% of the
13 entire selling price.
14 Section 5-75. Pollution control facilities. "Pollution
15 control facilities" means any system, method, construction,
16 device or appliance appurtenant thereto (i) used in this
17 State and acquired as an incident to the purchase of a
18 service from a serviceman, (ii) transferred by a serviceman,
19 or (iii) sold, used, or intended: (I) for the primary purpose
20 of eliminating, preventing, or reducing air and water
21 pollution as the term "air pollution" or "water pollution" is
22 defined in the Environmental Protection Act, or (II) for the
23 primary purpose of treating, pretreating, modifying or
24 disposing of any potential solid, liquid or gaseous pollutant
25 which if released without such treatment, pretreatment,
26 modification or disposal might be harmful, detrimental or
27 offensive to human, plant or animal life, or to property.
28 Section 5-80. Production agriculture. "Production
29 agriculture" means the raising of or the propagation of
30 livestock; crops for sale for human consumption; crops for
31 livestock consumption; and production seed stock grown for
32 the propagation of feed grains and the husbandry of animals
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1 or for the purpose of providing a food product, including the
2 husbandry of blood stock as a main source of providing a food
3 product. "Production agriculture" also means animal
4 husbandry, floriculture, aquaculture, horticulture, and
5 viticulture.
6 Section 5-85. Purchase at retail. For purposes of the
7 use tax, "purchase at retail" means the acquisition of the
8 ownership of or title to tangible personal property through a
9 sale at retail.
10 Section 5-90. Purchased from a serviceman. For purposes
11 of the service use tax, "purchased from a serviceman" means
12 the acquisition of the ownership of, or title to, tangible
13 personal property through a sale of service.
14 Section 5-95. Purchaser.
15 (a) For purposes of the retailers' occupation tax and
16 the use tax, "purchaser" means anyone who, through a sale at
17 retail, acquires the ownership of or title to tangible
18 personal property for a valuable consideration.
19 (b) For purposes of the service use tax, "purchaser"
20 means anyone who, through a sale of service, acquires the
21 ownership of, or title to, any tangible personal property.
22 Section 5-100. Reseller of motor fuel. For purposes of
23 the retailers' occupation tax, "reseller of motor fuel" means
24 any person engaged in the business of selling or delivering
25 or transferring title of motor fuel to another person other
26 than for use or consumption. No person shall act as a
27 reseller of motor fuel within this State without first being
28 registered as a reseller pursuant to Section 35-50 or a
29 retailer pursuant to Section 35-5.
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1 Section 5-105. Retailer.
2 (a) For purposes of the use tax, "retailer" means and
3 includes every person engaged in the business of making sales
4 at retail as defined in Section 5-115.
5 A person who holds himself or herself out as being
6 engaged (or who habitually engages) in selling tangible
7 personal property at retail is a retailer hereunder with
8 respect to such sales (and not primarily in a service
9 occupation) notwithstanding the fact that such person designs
10 and produces such tangible personal property on special order
11 for the purchaser and in such a way as to render the property
12 of value only to such purchaser, if such tangible personal
13 property so produced on special order serves substantially
14 the same function as stock or standard items of tangible
15 personal property that are sold at retail.
16 A person whose activities are organized and conducted
17 primarily as a not-for-profit service enterprise, and who
18 engages in selling tangible personal property at retail
19 (whether to the public or merely to members and their guests)
20 is a retailer with respect to such transactions, excepting
21 only a person organized and operated exclusively for
22 charitable, religious or educational purposes either (1), to
23 the extent of sales by such person to its members, students,
24 patients or inmates of tangible personal property to be used
25 primarily for the purposes of such person, or (2), to the
26 extent of sales by such person of tangible personal property
27 which is not sold or offered for sale by persons organized
28 for profit. The selling of school books and school supplies
29 by schools at retail to students is not "primarily for the
30 purposes of" the school which does such selling. This
31 paragraph does not apply to nor subject to taxation
32 occasional dinners, social or similar activities of a person
33 organized and operated exclusively for charitable, religious
34 or educational purposes, whether or not such activities are
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1 open to the public.
2 A person who is the recipient of a grant or contract
3 under Title VII of the Older Americans Act of 1965 (P.L.
4 92-258) and serves meals to participants in the federal
5 Nutrition Program for the Elderly in return for contributions
6 established in amount by the individual participant pursuant
7 to a schedule of suggested fees as provided for in the
8 federal Act is not a retailer under Article 15 with respect
9 to such transactions.
10 Persons who engage in the business of transferring
11 tangible personal property upon the redemption of trading
12 stamps are retailers hereunder when engaged in such business.
13 The isolated or occasional sale of tangible personal
14 property at retail by a person who does not hold himself out
15 as being engaged (or who does not habitually engage) in
16 selling such tangible personal property at retail or a sale
17 through a bulk vending machine does not make such person a
18 retailer hereunder. However, any person who is engaged in a
19 business which is not subject to the tax imposed by Article
20 10 because of involving the sale of or a contract to sell
21 real estate or a construction contract to improve real
22 estate, but who, in the course of conducting such business,
23 transfers tangible personal property to users or consumers in
24 the finished form in which it was purchased, and which does
25 not become real estate, under any provision of a construction
26 contract or real estate sale or real estate sales agreement
27 entered into with some other person arising out of or because
28 of such nontaxable business, is a retailer to the extent of
29 the value of the tangible personal property so transferred.
30 If, in such transaction, a separate charge is made for the
31 tangible personal property so transferred, the value of such
32 property, for the purposes of Article 15, is the amount so
33 separately charged, but not less than the cost of such
34 property to the transferor; if no separate charge is made,
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1 the value of such property, for the purposes of Article 15,
2 is the cost to the transferor of such tangible personal
3 property.
4 (b) For purposes of the retailers' occupation tax and
5 the use tax, a person who is engaged in the business of
6 leasing or renting motor vehicles to others and who, in
7 connection with such business sells any used motor vehicle to
8 a purchaser for his use and not for the purpose of resale, is
9 a retailer engaged in the business of selling tangible
10 personal property at retail under Articles 10 and 15 to the
11 extent of the value of the vehicle sold. For the purpose of
12 this Section, "motor vehicle" has the meaning prescribed in
13 Section 1-157 of the Illinois Vehicle Code. (Nothing
14 provided herein shall affect liability incurred under
15 Articles 10 and 15 because of the sale at retail of such
16 motor vehicles to a lessor or use of such motor vehicles by a
17 lessor.)
18 Section 5-110. Retailer maintaining a place of business
19 in this State. For purposes of the use tax, "retailer
20 maintaining a place of business in this State", or any like
21 term, means and includes any of the following retailers:
22 (1) A retailer having or maintaining within this
23 State, directly or by a subsidiary, an office,
24 distribution house, sales house, warehouse or other place
25 of business, or any agent or other representative
26 operating within this State under the authority of the
27 retailer or its subsidiary, irrespective of whether such
28 place of business or agent or other representative is
29 located here permanently or temporarily, or whether such
30 retailer or subsidiary is licensed to do business in this
31 State. However, the ownership of property that is located
32 at the premises of a printer with which the retailer has
33 contracted for printing and that consists of the final
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1 printed product, property that becomes a part of the
2 final printed product, or copy from which the printed
3 product is produced shall not result in the retailer
4 being deemed to have or maintain an office, distribution
5 house, sales house, warehouse, or other place of business
6 within this State.
7 (2) A retailer soliciting orders for tangible
8 personal property by means of a telecommunication or
9 television shopping system (which utilizes toll free
10 numbers) which is intended by the retailer to be
11 broadcast by cable television or other means of
12 broadcasting, to consumers located in this State.
13 (3) A retailer, pursuant to a contract with a
14 broadcaster or publisher located in this State,
15 soliciting orders for tangible personal property by means
16 of advertising which is disseminated primarily to
17 consumers located in this State and only secondarily to
18 bordering jurisdictions.
19 (4) A retailer soliciting orders for tangible
20 personal property by mail if the solicitations are
21 substantial and recurring and if the retailer benefits
22 from any banking, financing, debt collection,
23 telecommunication, or marketing activities occurring in
24 this State or benefits from the location in this State of
25 authorized installation, servicing, or repair facilities.
26 (5) A retailer that is owned or controlled by the
27 same interests that own or control any retailer engaging
28 in business in the same or similar line of business in
29 this State.
30 (6) A retailer having a franchisee or licensee
31 operating under its trade name if the franchisee or
32 licensee is required to collect the tax under this
33 Section.
34 (7) A retailer, pursuant to a contract with a cable
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1 television operator located in this State, soliciting
2 orders for tangible personal property by means of
3 advertising which is transmitted or distributed over a
4 cable television system in this State.
5 (8) A retailer engaging in activities in Illinois,
6 which activities in the state in which the retail
7 business engaging in such activities is located would
8 constitute maintaining a place of business in that state.
9 Section 5-115. Sale at retail.
10 (a) "Sale at retail" means any transfer of the ownership
11 of or title to tangible personal property to a purchaser, for
12 the purpose of use or consumption, and not for the purpose of
13 resale in any form as tangible personal property to the
14 extent not first subjected to a use for which it was
15 purchased, for a valuable consideration: provided that the
16 property purchased is deemed to be purchased for the purpose
17 of resale, despite first being used, to the extent to which
18 it is resold as an ingredient of an intentionally produced
19 product or byproduct of manufacturing. For this purpose,
20 slag produced as an incident to manufacturing pig iron or
21 steel and sold is considered to be an intentionally produced
22 byproduct of manufacturing. "Sale at retail" shall be
23 construed to include any transfer, whether made for or
24 without a valuable consideration, for resale in any form as
25 tangible personal property unless made in compliance with
26 Section 35-50 of this Code. Transactions whereby the
27 possession of the property is transferred but the seller
28 retains the title as security for payment of the selling
29 price shall be deemed to be sales.
30 "Sale at retail" shall be construed to include any
31 Illinois florist's sales transaction in which the purchase
32 order is received in Illinois by a florist and the sale is
33 for use or consumption, but the Illinois florist has a
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1 florist in another state deliver the property to the
2 purchaser or the purchaser's donee in such other state.
3 The purchase, employment and transfer of such tangible
4 personal property as newsprint and ink for the primary
5 purpose of conveying news (with or without other information)
6 is not a purchase, use or sale of service or of tangible
7 personal property.
8 (b) For purposes of the retailers' occupation tax, the
9 service occupation tax, and the service use tax, "sale at
10 retail" shall be construed to include any transfer of the
11 ownership of or title to tangible personal property to a
12 purchaser, for use or consumption by any other person to whom
13 such purchaser may transfer the tangible personal property
14 without a valuable consideration.
15 Sales of tangible personal property, which property, to
16 the extent not first subjected to a use for which it was
17 purchased, as an ingredient or constituent, goes into and
18 forms a part of tangible personal property subsequently the
19 subject of a "sale at retail", are not sales at retail as
20 defined in this Code: provided that the property purchased is
21 deemed to be purchased for the purpose of resale, despite
22 first being used, to the extent to which it is resold as an
23 ingredient of an intentionally produced product or byproduct
24 of manufacturing.
25 A person whose activities are organized and conducted
26 primarily as a not-for-profit service enterprise, and who
27 engages in selling tangible personal property at retail
28 (whether to the public or merely to members and their guests)
29 is engaged in the business of selling tangible personal
30 property at retail with respect to such transactions,
31 excepting only a person organized and operated exclusively
32 for charitable, religious or educational purposes either (1)
33 to the extent of sales by such person to its members,
34 students, patients or inmates of tangible personal property
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1 to be used primarily for the purposes of such person, or (2)
2 to the extent of sales by such person of tangible personal
3 property which is not sold or offered for sale by persons
4 organized for profit. The selling of school books and school
5 supplies by schools at retail to students is not "primarily
6 for the purposes of" the school which does such selling. The
7 provisions of this paragraph shall not apply to nor subject
8 to taxation occasional dinners, socials or similar activities
9 of a person organized and operated exclusively for
10 charitable, religious or educational purposes, whether or not
11 such activities are open to the public.
12 A person who is the recipient of a grant or contract
13 under Title VII of the Older Americans Act of 1965 (P.L.
14 92-258) and serves meals to participants in the federal
15 Nutrition Program for the Elderly in return for contributions
16 established in amount by the individual participant pursuant
17 to a schedule of suggested fees as provided for in the
18 federal Act is not engaged in the business of selling
19 tangible personal property at retail with respect to such
20 transactions.
21 The isolated or occasional sale of tangible personal
22 property at retail by a person who does not hold himself out
23 as being engaged (or who does not habitually engage) in
24 selling such tangible personal property at retail, or a sale
25 through a bulk vending machine, does not constitute engaging
26 in a business of selling such tangible personal property at
27 retail within the meaning of this Code; provided that any
28 person who is engaged in a business which is not subject to
29 the taxes imposed by this Code because of involving the sale
30 of or a contract to sell real estate or a construction
31 contract to improve real estate or a construction contract to
32 engineer, install, and maintain an integrated system of
33 products, but who, in the course of conducting such business,
34 transfers tangible personal property to users or consumers in
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1 the finished form in which it was purchased, and which does
2 not become real estate or was not engineered and installed,
3 under any provision of a construction contract or real estate
4 sale or real estate sales agreement entered into with some
5 other person arising out of or because of such nontaxable
6 business, is engaged in the business of selling tangible
7 personal property at retail to the extent of the value of the
8 tangible personal property so transferred. If, in such a
9 transaction, a separate charge is made for the tangible
10 personal property so transferred, the value of such property,
11 for the purpose of this Code, shall be the amount so
12 separately charged, but not less than the cost of such
13 property to the transferor; if no separate charge is made,
14 the value of such property, for the purposes of this Code, is
15 the cost to the transferor of such tangible personal
16 property. Construction contracts for the improvement of real
17 estate consisting of engineering, installation, and
18 maintenance of voice, data, video, security, and all
19 telecommunication systems do not constitute engaging in a
20 business of selling tangible personal property at retail
21 within the meaning of this Code if they are sold at one
22 specified contract price.
23 A person who holds himself or herself out as being
24 engaged (or who habitually engages) in selling tangible
25 personal property at retail is a person engaged in the
26 business of selling tangible personal property at retail
27 hereunder with respect to such sales (and not primarily in a
28 service occupation) notwithstanding the fact that such person
29 designs and produces such tangible personal property on
30 special order for the purchaser and in such a way as to
31 render the property of value only to such purchaser, if such
32 tangible personal property so produced on special order
33 serves substantially the same function as stock or standard
34 items of tangible personal property that are sold at retail.
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1 Persons who engage in the business of transferring
2 tangible personal property upon the redemption of trading
3 stamps are engaged in the business of selling such property
4 at retail and shall be liable for and shall pay the tax
5 imposed by this Code on the basis of the retail value of the
6 property transferred upon redemption of such stamps.
7 Section 5-120. Selling price.
8 (a) For purposes of the retailers' occupation tax and
9 the use tax, "selling price" means the consideration for a
10 sale valued in money whether received in money or otherwise,
11 including cash, credits, property other than as hereinafter
12 provided, and services, but not including the value of or
13 credit given for traded-in tangible personal property where
14 the item that is traded-in is of like kind and character as
15 that which is being sold, and shall be determined without any
16 deduction on account of the cost of the property sold, the
17 cost of materials used, labor or service cost or any other
18 expense whatsoever, but does not include, for purposes of the
19 use tax only, interest or finance charges which appear as
20 separate items on the bill of sale or sales contract nor, for
21 purposes of the retailers' occupation tax and the use tax,
22 charges that are added to prices by sellers on account of the
23 seller's tax liability under Article 10, or on account of the
24 seller's duty to collect, from the purchaser, the tax that is
25 imposed by Article 15, or on account of the seller's tax
26 liability under Section 8-11-1 of the Illinois Municipal
27 Code, or on account of the seller's tax liability under the
28 County Retailers' Occupation Tax Act, or on account of the
29 seller's tax liability under any tax imposed under the
30 Regional Transportation Authority Act. Effective December 1,
31 1985, "selling price" shall include charges that are added to
32 prices by sellers on account of the seller's tax liability
33 under the Cigarette Tax Act, on account of the seller's duty
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1 to collect, from the purchaser, the tax imposed under the
2 Cigarette Use Tax Act, and on account of the seller's duty to
3 collect, from the purchaser, any cigarette tax imposed by a
4 home rule unit.
5 (b) For purposes of the retailers' occupation tax,
6 "selling price" does not include charges that are added to
7 prices by sellers on account of the seller's tax liability
8 under the Home Rule Municipal Soft Drink Retailers'
9 Occupation Tax. "Amount of sale" shall have the same meaning
10 as "selling price".
11 (c) For purposes of the service occupation tax and the
12 service use tax, "selling price" means the consideration for
13 a sale valued in money whether received in money or
14 otherwise, including cash, credits and service, and shall be
15 determined without any deduction on account of the
16 serviceman's cost of the property sold, the cost of materials
17 used, labor or service cost or any other expense whatsoever,
18 but does not include interest or finance charges which appear
19 as separate items on the bill of sale or sales contract nor
20 charges that are added to prices by sellers on account of the
21 seller's duty to collect, from the purchaser, the tax that is
22 imposed by Article 25.
23 Section 5-125. Serviceman. "Serviceman" means any person
24 who is engaged in the occupation of making sales of service.
25 Section 5-130. Serviceman maintaining a place of
26 business in this State. For purposes of the service use tax,
27 "serviceman maintaining a place of business in this State",
28 or any like term, means and includes any serviceman:
29 (1) having or maintaining within this State,
30 directly or by a subsidiary, an office, distribution
31 house, sales house, warehouse or other place of business,
32 or any agent or other representative operating within
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1 this State under the authority of the serviceman or its
2 subsidiary, irrespective of whether such place of
3 business or agent or other representative is located here
4 permanently or temporarily, or whether such serviceman or
5 subsidiary is licensed to do business in this State;
6 (2) soliciting orders for tangible personal
7 property by means of a telecommunication or television
8 shopping system (which utilizes toll free numbers) which
9 is intended by the retailer to be broadcast by cable
10 television or other means of broadcasting, to consumers
11 located in this State;
12 (3) pursuant to a contract with a broadcaster or
13 publisher located in this State, soliciting orders for
14 tangible personal property by means of advertising which
15 is disseminated primarily to consumers located in this
16 State and only secondarily to bordering jurisdictions;
17 (4) soliciting orders for tangible personal
18 property by mail if the solicitations are substantial and
19 recurring and if the retailer benefits from any banking,
20 financing, debt collection, telecommunication, or
21 marketing activities occurring in this State or benefits
22 from the location in this State of authorized
23 installation, servicing, or repair facilities;
24 (5) being owned or controlled by the same interests
25 which own or control any retailer engaging in business in
26 the same or similar line of business in this State;
27 (6) having a franchisee or licensee operating under
28 its trade name if the franchisee or licensee is required
29 to collect the tax under this Section;
30 (7) pursuant to a contract with a cable television
31 operator located in this State, soliciting orders for
32 tangible personal property by means of advertising which
33 is transmitted or distributed over a cable television
34 system in this State; or
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1 (8) engaging in activities in Illinois, which
2 activities in the state in which the supply business
3 engaging in such activities is located would constitute
4 maintaining a place of business in that state.
5 Section 5-135. Supplier. For purposes of the service
6 occupation tax and the service use tax, "supplier" means any
7 person who makes sales of tangible personal property to
8 servicemen for the purpose of resale as an incident to a sale
9 of service.
10 Section 5-140. Transfer. For purposes of the service
11 occupation tax, "transfer" means any transfer of the title to
12 property or of the ownership of property whether or not the
13 transferor retains title as security for the payment of
14 amounts due him from the transferee.
15 Section 5-145. Use.
16 (a) For purposes of the use tax, "use" means the
17 exercise by any person of any right or power over tangible
18 personal property incident to the ownership of that property,
19 except that it does not include the sale of such property in
20 any form as tangible personal property in the regular course
21 of business to the extent that such property is not first
22 subjected to a use for which it was purchased, and does not
23 include the use of such property by its owner for
24 demonstration purposes: provided that the property purchased
25 is deemed to be purchased for the purpose of resale, despite
26 first being used, to the extent to which it is resold as an
27 ingredient of an intentionally produced product or by-product
28 of manufacturing. "Use" does not mean the demonstration use
29 or interim use of tangible personal property by a retailer
30 before he sells that tangible personal property. For
31 watercraft or aircraft, if the period of demonstration use or
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1 interim use by the retailer exceeds 18 months, the retailer
2 shall pay on the retailers' original cost price the tax
3 imposed by Article 15, and no credit for that tax is
4 permitted if the watercraft or aircraft is subsequently sold
5 by the retailer. "Use" does not mean the physical
6 incorporation of tangible personal property, to the extent
7 not first subjected to a use for which it was purchased, as
8 an ingredient or constituent, into other tangible personal
9 property (1) which is sold in the regular course of business
10 or (2) which the person incorporating such ingredient or
11 constituent therein has undertaken at the time of such
12 purchase to cause to be transported in interstate commerce to
13 destinations outside the State of Illinois: provided that the
14 property purchased is deemed to be purchased for the purpose
15 of resale, despite first being used, to the extent to which
16 it is resold as an ingredient of an intentionally produced
17 product or by-product of manufacturing.
18 (b) For purposes of the service use tax, "use" means the
19 exercise by any person of any right or power over tangible
20 personal property incident to the ownership of that property,
21 but does not include the sale or use for demonstration by him
22 of that property in any form as tangible personal property in
23 the regular course of business. "Use" does not mean the
24 interim use of tangible personal property nor the physical
25 incorporation of tangible personal property, as an ingredient
26 or constituent, into other tangible personal property, (1)
27 which is sold in the regular course of business or (2) which
28 the person incorporating such ingredient or constituent
29 therein has undertaken at the time of such purchase to cause
30 to be transported in interstate commerce to destinations
31 outside the State of Illinois.
32 Section 5-150. Watercraft. For purposes of the
33 retailers' occupation tax and the use tax, "watercraft" means
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1 a Class 2, Class 3, or Class 4 watercraft as defined in
2 Section 3-2 of the Boat Registration and Safety Act, a
3 personal watercraft, or any boat equipped with an inboard
4 motor.
5 ARTICLE 10. IMPOSITION OF THE RETAILERS' OCCUPATION TAX
6 Section 10-5. Tax imposed. A tax is imposed upon persons
7 engaged in the business of selling at retail tangible
8 personal property, including computer software, and including
9 photographs, negatives, and positives that are the product of
10 photoprocessing, but not including products of
11 photoprocessing produced for use in motion pictures for
12 public commercial exhibition. The tax imposed in this Article
13 shall be known as the "retailers' occupation tax".
14 Section 10-10. Tax additional. The tax imposed in this
15 Article shall be in addition to all other occupation or
16 privilege taxes imposed by the State of Illinois or by any
17 municipal corporation or political subdivision thereof.
18 Section 10-15. Rate of tax. Unless otherwise provided
19 in this Section, the tax imposed by this Article is at the
20 rate of 6.25% of gross receipts from sales of tangible
21 personal property made in the course of business.
22 With respect to gasohol, as defined in Section 5-40, the
23 tax imposed by this Article applies to 70% of the proceeds of
24 sales made on or after January 1, 1990, and before July 1,
25 1999, and to 100% of the proceeds of sales made thereafter,
26 except that from July 1, 1997 to July 1, 1999, the rate shall
27 be 85% for gasohol sold in this State during the 12 months
28 beginning July 1 following any calendar year for which the
29 Department has determined that the percentages in Section 10
30 of the Gasohol Fuels Tax Abatement Act have not been met.
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1 With respect to food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, soft drinks, and food that has been
4 prepared for immediate consumption) and prescription and
5 nonprescription medicines, drugs, medical appliances,
6 modifications to a motor vehicle for the purpose of rendering
7 it usable by a disabled person, and insulin, urine testing
8 materials, syringes, and needles used by diabetics, for human
9 use, the tax is imposed at the rate of 1%. For the purposes
10 of this Section, the term "soft drinks" means any complete,
11 finished, ready-to-use, non-alcoholic drink, whether
12 carbonated or not, including but not limited to soda water,
13 cola, fruit juice, vegetable juice, carbonated water, and all
14 other preparations commonly known as soft drinks of whatever
15 kind or description that are contained in any closed or
16 sealed bottle, can, carton, or container, regardless of size.
17 "Soft drinks" does not include coffee, tea, non-carbonated
18 water, infant formula, milk or milk products as defined in
19 the Grade A Pasteurized Milk and Milk Products Act, or drinks
20 containing 50% or more natural fruit or vegetable juice.
21 Notwithstanding any other provisions of this Code, "food
22 for human consumption that is to be consumed off the premises
23 where it is sold" includes all food sold through a vending
24 machine, except soft drinks and food products that are
25 dispensed hot from a vending machine, regardless of the
26 location of the vending machine.
27 Section 10-20. Purchaser refunds. If a seller collects
28 an amount (however designated) that purports to reimburse the
29 seller for retailers' occupation tax liability measured by
30 receipts that are not subject to retailers' occupation tax,
31 or if a seller, in collecting an amount (however designated)
32 that purports to reimburse the seller for retailers'
33 occupation tax liability measured by receipts that are
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1 subject to tax under this Article, collects more from the
2 purchaser than the seller's retailers' occupation tax
3 liability on the transaction, the purchaser shall have a
4 legal right to claim a refund of that amount from the seller.
5 If, however, that amount is not refunded to the purchaser for
6 any reason, the seller is liable to pay that amount to the
7 Department. This paragraph does not apply to an amount
8 collected by the seller as reimbursement for the seller's
9 retailers' occupation tax liability on receipts that are
10 subject to tax under this Article as long as the collection
11 is made in compliance with the tax collection brackets
12 prescribed by the Department in its rules and regulations.
13 Section 10-25. Serviceman transfer. Tangible personal
14 property purchased by a serviceman, as defined in Section
15 5-125, is subject to the tax imposed by this Article when
16 purchased for transfer by the serviceman incidental to
17 completion of a maintenance agreement.
18 Section 10-30. Prepayment of tax by motor fuel retailer.
19 Any person engaged in the business of selling motor fuel at
20 retail, as defined in the Motor Fuel Tax Law, and who is not
21 a licensed distributor or supplier, as defined in the Motor
22 Fuel Tax Law, shall prepay to his or her distributor,
23 supplier, or other reseller of motor fuel a portion of the
24 tax imposed by this Article if the distributor, supplier, or
25 other reseller of motor fuel is registered under Sections
26 35-5 through 35-50 of this Code. The prepayment requirement
27 provided for in this Section does not apply to liquid propane
28 gas.
29 The retailers' occupation tax paid to the distributor,
30 supplier, or other reseller shall be an amount equal to $0.04
31 per gallon of the motor fuel, except gasohol as defined in
32 Section 5-40 of this Code which shall be an amount equal to
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1 $0.03 per gallon, purchased from the distributor, supplier,
2 or other reseller.
3 Any person engaged in the business of selling motor fuel
4 at retail shall be entitled to a credit against tax due under
5 this Article in an amount equal to the tax paid to the
6 distributor, supplier, or other reseller.
7 Every distributor, supplier, or other reseller registered
8 as provided in Sections 35-5 through 35-50 of this Code shall
9 remit the prepaid tax on all motor fuel that is due from any
10 person engaged in the business of selling at retail motor
11 fuel with the returns filed under Section 10-40 or Sections
12 50-5 through 50-140 of this Code, but the vendors discount
13 provided in Sections 50-5 through 50-140 shall not apply to
14 the amount of prepaid tax that is remitted. Any distributor
15 or supplier who fails to properly collect and remit the tax
16 shall be liable for the tax. For purposes of this Section,
17 the prepaid tax is due on invoiced gallons sold during a
18 month by the 20th day of the following month.
19 Section 10-35. Motor fuel distributor or supplier;
20 statement of purchases. Every such distributor or supplier
21 shall deliver a statement of tax paid to each purchaser and
22 the Department of Revenue not later than the 20th day of the
23 month following the month during which a transaction
24 occurred, showing: the number of gallons of motor fuel sold
25 or distributed during the preceding month to that purchaser;
26 identifying the purchaser to whom it was sold or distributed,
27 including the purchaser's tax registration number; and the
28 amount collected from the purchaser.
29 Section 10-40. Reseller of motor fuel; filing of
30 returns. Resellers of motor fuel shall file a return by the
31 20th of the month following the month during which a
32 transaction occurred showing an itemized statement of the
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1 amount of motor fuel sold, distributed and used by the
2 reseller, identifying the purchaser to whom it was sold
3 including the purchaser's tax registration number, the amount
4 of tax collected from the purchaser, or delivery point if the
5 motor fuel was delivered to an unregistered purchaser outside
6 this State, name and address and the total quantity of motor
7 fuel sold or transferred to each purchaser in the preceding
8 calendar month and such other information as the Department
9 may reasonably require.
10 Section 10-45. Procedures for filing return of motor
11 fuel resellers. All provisions of Sections 30-30, 35-75,
12 35-90, 50-145, 50-150, 70-10, 70-15, 70-20, 90-5, and 90-10
13 and Articles 40, 45, 55, 65, 75, 77, and 80 of this Code that
14 apply to the retailers' occupation tax shall apply, as far as
15 practicable, to returns filed pursuant to Section 10-40.
16 ARTICLE 15. IMPOSITION OF THE USE TAX
17 Section 15-5. Tax imposed. A tax is imposed upon the
18 privilege of using in this State tangible personal property
19 purchased at retail from a retailer, including computer
20 software, and including photographs, negatives, and positives
21 that are the product of photoprocessing, but not including
22 products of photoprocessing produced for use in motion
23 pictures for commercial exhibition. The tax imposed in this
24 Article shall be known as the "use tax".
25 Section 15-10. Tax additional. The tax imposed in this
26 Article shall be in addition to all other occupation or
27 privilege taxes imposed by the State of Illinois or by any
28 municipal corporation or political subdivision thereof.
29 Section 15-15. Rate of tax. Unless otherwise provided
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1 in this Section, the tax imposed by this Article is at the
2 rate of 6.25% of either the selling price or the fair market
3 value, if any, of the tangible personal property. In all
4 cases where property functionally used or consumed is the
5 same as the property that was purchased at retail, then the
6 tax is imposed on the selling price of the property. In all
7 cases where property functionally used or consumed is a
8 by-product or waste product that has been refined,
9 manufactured, or produced from property purchased at retail,
10 then the tax is imposed on the lower of the fair market
11 value, if any, of the specific property so used in this State
12 or on the selling price of the property purchased at retail.
13 For purposes of this Section "fair market value" means the
14 price at which property would change hands between a willing
15 buyer and a willing seller, neither being under any
16 compulsion to buy or sell and both having reasonable
17 knowledge of the relevant facts. The fair market value shall
18 be established by Illinois sales by the taxpayer of the same
19 property as that functionally used or consumed, or if there
20 are no such sales by the taxpayer, then comparable sales or
21 purchases of property of like kind and character in Illinois.
22 With respect to gasohol, the tax imposed by this Article
23 applies to 70% of the proceeds of sales made on or after
24 January 1, 1990, and before July 1, 1999, and to 100% of the
25 proceeds of sales made thereafter, except that from July 1,
26 1997 to July 1, 1999, the rate shall be 85% for gasohol sold
27 in this State during the 12 months beginning July 1 following
28 any calendar year for which the Department has determined
29 that the percentages in Section 10 of the Gasohol Fuels Tax
30 Abatement Act have not been met.
31 With respect to food for human consumption that is to be
32 consumed off the premises where it is sold (other than
33 alcoholic beverages, soft drinks, and food that has been
34 prepared for immediate consumption) and prescription and
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1 nonprescription medicines, drugs, medical appliances,
2 modifications to a motor vehicle for the purpose of rendering
3 it usable by a disabled person, and insulin, urine testing
4 materials, syringes, and needles used by diabetics, for human
5 use, the tax is imposed at the rate of 1%. For the purposes
6 of this Section, the term "soft drinks" means any complete,
7 finished, ready-to-use, non-alcoholic drink, whether
8 carbonated or not, including but not limited to soda water,
9 cola, fruit juice, vegetable juice, carbonated water, and all
10 other preparations commonly known as soft drinks of whatever
11 kind or description that are contained in any closed or
12 sealed bottle, can, carton, or container, regardless of size.
13 "Soft drinks" does not include coffee, tea, non-carbonated
14 water, infant formula, milk or milk products as defined in
15 the Grade A Pasteurized Milk and Milk Products Act, or drinks
16 containing 50% or more natural fruit or vegetable juice.
17 Notwithstanding any other provisions of this Code, "food
18 for human consumption that is to be consumed off the premises
19 where it is sold" includes all food sold through a vending
20 machine, except soft drinks and food products that are
21 dispensed hot from a vending machine, regardless of the
22 location of the vending machine.
23 If the property that is purchased at retail from a
24 retailer is acquired outside Illinois and used outside
25 Illinois before being brought to Illinois for use here and is
26 taxable under this Article, the "selling price" on which the
27 tax is computed shall be reduced by an amount that represents
28 a reasonable allowance for depreciation for the period of
29 prior out-of-state use.
30 Section 15-20. Collection. The tax imposed by this
31 Article shall be collected from the purchaser by a retailer
32 maintaining a place of business in this State or a retailer
33 authorized by the Department under Section 60-10 of this
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1 Code, and shall be remitted to the Department as provided in
2 Sections 50-5 through 50-140 of this Code.
3 The tax imposed by this Article that is not paid to a
4 retailer under this Section shall be paid to the Department
5 directly by any person using the property within this State
6 as provided in Section 50-155 of this Code.
7 Retailers shall collect the tax from users by adding the
8 tax to the selling price of tangible personal property, when
9 sold for use, in the manner prescribed by the Department.
10 The Department may adopt and promulgate reasonable rules and
11 regulations for the adding of the tax by retailers to selling
12 prices by prescribing bracket systems for the purpose of
13 enabling the retailers to add and collect, as far as
14 practicable, the amount of the tax.
15 If a seller collects use tax measured by receipts that
16 are not subject to use tax, or if a seller, in collecting use
17 tax measured by receipts that are subject to tax under this
18 Article, collects more from the purchaser than the required
19 amount of the use tax on the transaction, the purchaser shall
20 have a legal right to claim a refund of that amount from the
21 seller. If, however, that amount is not refunded to the
22 purchaser for any reason, the seller is liable to pay that
23 amount to the Department. This paragraph does not apply to
24 an amount collected by the seller as use tax on receipts that
25 are subject to tax under this Article as long as the
26 collection is made in compliance with the tax collection
27 brackets prescribed by the Department in its rules and
28 regulations.
29 Section 15-25. R.O.T. nontaxability. If the seller of
30 tangible personal property for use would not be taxable under
31 Article 10 of this Code despite all elements of the sale
32 occurring in Illinois, then the tax imposed by this Article
33 does not apply to the use of the tangible personal property
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1 in this State.
2 Section 15-30. Serviceman transfer. Tangible personal
3 property purchased by a serviceman, as defined in Section
4 5-125, is subject to the tax imposed by this Article when
5 purchased for transfer by the serviceman incidental to
6 completion of a maintenance agreement.
7 Section 15-35. Method of stating tax. The tax imposed
8 by this Article shall when collected be stated as a distinct
9 item separate and apart from the selling price of the
10 tangible personal property. However, where it is not possible
11 to state the sales tax separately in situations such as sales
12 from vending machines or sales of liquor by the drink the
13 Department may by rule exempt such sales from this
14 requirement so long as purchasers are notified by a sign that
15 the tax is included in the selling price.
16 ARTICLE 20. IMPOSITION OF THE SERVICE OCCUPATION TAX
17 Section 20-5. Tax imposed. A tax is imposed upon all
18 persons engaged in the business of making sales of service
19 (referred to as "servicemen") on all tangible personal
20 property transferred as an incident of a sale of service,
21 including computer software, and including photographs,
22 negatives, and positives that are the product of
23 photoprocessing, but not including products of
24 photoprocessing produced for use in motion pictures for
25 public commercial exhibition. The tax imposed in this Article
26 shall be known as the "service occupation tax".
27 Section 20-10. Tax additional. The tax imposed in this
28 Article shall be in addition to all other occupation or
29 privilege taxes imposed by the State of Illinois or by any
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1 municipal corporation or political subdivision thereof.
2 Section 20-15. Rate of tax. Unless otherwise provided in
3 this Section, the tax imposed by this Article is at the rate
4 of 6.25% of the "selling price", as defined in Section 5-120,
5 of the tangible personal property. For the purpose of
6 computing this tax, in no event shall the "selling price" be
7 less than the cost price to the serviceman of the tangible
8 personal property transferred. The selling price of each
9 item of tangible personal property transferred as an incident
10 of a sale of service may be shown as a distinct and separate
11 item on the serviceman's billing to the service customer. If
12 the selling price is not so shown, the selling price of the
13 tangible personal property is deemed to be 50% of the
14 serviceman's entire billing to the service customer. When,
15 however, a serviceman contracts to design, develop, and
16 produce special order machinery or equipment, the tax imposed
17 by this Article shall be based on the serviceman's cost price
18 of the tangible personal property transferred incident to the
19 completion of the contract.
20 With respect to gasohol, as defined in Section 5-40, the
21 tax imposed by this Article shall apply to 70% of the cost
22 price of property transferred as an incident to the sale of
23 service on or after January 1, 1990, and before July 1, 1999,
24 and to 100% of the cost price thereafter, except that from
25 July 1, 1997 to July 1, 1999, the rate shall be 85% for
26 gasohol sold in this State during the 12 months beginning
27 July 1 following any calendar year for which the Department
28 has determined that the percentages in Section 10 of the
29 Gasohol Fuels Tax Abatement Act have not been met.
30 At the election of any registered serviceman made for
31 each fiscal year, sales of service in which the aggregate
32 annual cost price of tangible personal property transferred
33 as an incident to the sales of service is less than 35%, or
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1 75% in the case of servicemen transferring prescription drugs
2 or servicemen engaged in graphic arts production, of the
3 aggregate annual total gross receipts from all sales of
4 service, the tax imposed by this Article shall be based on
5 the serviceman's cost price of the tangible personal property
6 transferred incident to the sale of those services.
7 The tax shall be imposed at the rate of 1% on food
8 prepared for immediate consumption and transferred incident
9 to a sale of service subject to this Article or Article 25 by
10 an entity licensed under the Hospital Licensing Act or the
11 Nursing Home Care Act. The tax shall also be imposed at the
12 rate of 1% on food for human consumption that is to be
13 consumed off the premises where it is sold (other than
14 alcoholic beverages, soft drinks, and food that has been
15 prepared for immediate consumption and is not otherwise
16 included in this paragraph) and prescription and
17 nonprescription medicines, drugs, medical appliances,
18 modifications to a motor vehicle for the purpose of rendering
19 it usable by a disabled person, and insulin, urine testing
20 materials, syringes, and needles used by diabetics, for human
21 use. For the purposes of this Section, the term "soft
22 drinks" means any complete, finished, ready-to-use,
23 non-alcoholic drink, whether carbonated or not, including but
24 not limited to soda water, cola, fruit juice, vegetable
25 juice, carbonated water, and all other preparations commonly
26 known as soft drinks of whatever kind or description that are
27 contained in any closed or sealed can, carton, or container,
28 regardless of size. "Soft drinks" does not include coffee,
29 tea, non-carbonated water, infant formula, milk or milk
30 products as defined in the Grade A Pasteurized Milk and Milk
31 Products Act, or drinks containing 50% or more natural fruit
32 or vegetable juice.
33 Notwithstanding any other provisions of this Code, "food
34 for human consumption that is to be consumed off the premises
-33- LRB9000671KDdvA
1 where it is sold" includes all food sold through a vending
2 machine, except soft drinks and food products that are
3 dispensed hot from a vending machine, regardless of the
4 location of the vending machine.
5 Section 20-20. Collection. The tax imposed by this
6 Article shall be paid to the Department by any serviceman
7 transferring tangible personal property as an incident to a
8 sale of service taxable under this Article. If a serviceman
9 has paid service occupation tax to his or her supplier based
10 upon the cost price of tangible personal property before
11 January 1, 1990, or in error on or after January 1, 1990, the
12 serviceman, without filing any formal claims with the
13 Department, shall be allowed to take credit against his or
14 her service occupation tax liability based upon the selling
15 price of that property transferred in the course of providing
16 service to the extent of the amount of the tax so paid.
17 If any serviceman collects an amount (however designated)
18 that purports to reimburse the serviceman for service
19 occupation tax liability measured by receipts or selling
20 prices that are not subject to service occupation tax, or if
21 any serviceman, in collecting an amount (however designated)
22 that purports to reimburse the serviceman for service
23 occupation tax liability measured by receipts or selling
24 prices that are subject to tax under this Article, collects
25 more from the purchaser than the serviceman's service
26 occupation tax liability in the transaction, the purchaser
27 shall have a legal right to claim a refund of that amount
28 from the serviceman. If, however, that amount is not refunded
29 to the purchaser by a serviceman for any reason, the supplier
30 or serviceman is liable to pay that amount to the Department.
31 This paragraph does not apply to an amount collected by the
32 supplier as service occupation tax, nor to an amount
33 collected by the serviceman as reimbursement for the
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1 serviceman's service occupation tax liability on receipts or
2 cost prices that are subject to tax under this Article, as
3 long as the collection is made in compliance with the tax
4 collection brackets prescribed by the Department in its rules
5 and regulations.
6 ARTICLE 25. IMPOSITION OF THE SERVICE USE TAX
7 Section 25-5. Tax imposed. A tax is imposed upon the
8 privilege of using in this State real or tangible personal
9 property acquired as an incident to the purchase of a service
10 from a serviceman, including computer software, and including
11 photographs, negatives, and positives that are the product of
12 photoprocessing, but not including products of
13 photoprocessing produced for use in motion pictures for
14 public commercial exhibition. The tax imposed in this Article
15 shall be known as the "service use tax".
16 Section 25-10. Tax additional. The tax imposed in this
17 Article shall be in addition to all other occupation or
18 privilege taxes imposed by the State of Illinois or by any
19 municipal corporation or political subdivision thereof.
20 Section 25-15. Rate of tax. Unless otherwise provided
21 in this Section, the tax imposed by this Article is at the
22 rate of 6.25% of the selling price of tangible personal
23 property transferred as an incident to the sale of service,
24 but, for the purpose of computing this tax, in no event shall
25 the selling price be less than the cost price of the property
26 to the serviceman.
27 With respect to gasohol, as defined in Section 5-40, the
28 tax imposed by this Article applies to 70% of the selling
29 price of property transferred as an incident to the sale of
30 service on or after January 1, 1990, and before July 1, 1999,
-35- LRB9000671KDdvA
1 and to 100% of the selling price thereafter, except that from
2 July 1, 1997 to July 1, 1999, the rate shall be 85% for
3 gasohol sold in this State during the 12 months beginning
4 July 1 following any calendar year for which the Department
5 has determined that the percentages in Section 10 of the
6 Gasohol Fuels Tax Abatement Act have not been met.
7 At the election of any registered serviceman made for
8 each fiscal year, sales of service in which the aggregate
9 annual cost price of tangible personal property transferred
10 as an incident to the sales of service is less than 35%, or
11 75% in the case of servicemen transferring prescription drugs
12 or servicemen engaged in graphic arts production, of the
13 aggregate annual total gross receipts from all sales of
14 service, the tax imposed by this Article shall be based on
15 the serviceman's cost price of the tangible personal property
16 transferred as an incident to the sale of those services.
17 The tax shall be imposed at the rate of 1% on food
18 prepared for immediate consumption and transferred incident
19 to a sale of service subject to this Article or Article 20
20 by an entity licensed under the Hospital Licensing Act or the
21 Nursing Home Care Act. The tax shall also be imposed at the
22 rate of 1% on food for human consumption that is to be
23 consumed off the premises where it is sold (other than
24 alcoholic beverages, soft drinks, and food that has been
25 prepared for immediate consumption and is not otherwise
26 included in this paragraph) and prescription and
27 nonprescription medicines, drugs, medical appliances,
28 modifications to a motor vehicle for the purpose of rendering
29 it usable by a disabled person, and insulin, urine testing
30 materials, syringes, and needles used by diabetics, for human
31 use. For the purposes of this Section, the term "soft drinks"
32 means any complete, finished, ready-to-use, non-alcoholic
33 drink, whether carbonated or not, including but not limited
34 to soda water, cola, fruit juice, vegetable juice, carbonated
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1 water, and all other preparations commonly known as soft
2 drinks of whatever kind or description that are contained in
3 any closed or sealed bottle, can, carton, or container,
4 regardless of size. "Soft drinks" does not include coffee,
5 tea, non-carbonated water, infant formula, milk or milk
6 products as defined in the Grade A Pasteurized Milk and Milk
7 Products Act, or drinks containing 50% or more natural fruit
8 or vegetable juice.
9 Notwithstanding any other provisions of this Code, "food
10 for human consumption that is to be consumed off the premises
11 where it is sold" includes all food sold through a vending
12 machine, except soft drinks and food products that are
13 dispensed hot from a vending machine, regardless of the
14 location of the vending machine.
15 If the property that is acquired from a serviceman is
16 acquired outside Illinois and used outside Illinois before
17 being brought to Illinois for use here and is taxable under
18 this Article, the "selling price" on which the tax is
19 computed shall be reduced by an amount that represents a
20 reasonable allowance for depreciation for the period of prior
21 out-of-state use.
22 Section 25-20. Collection. The tax imposed by this
23 Article shall be collected at the time of purchase in the
24 manner prescribed by the Department from the user by a
25 serviceman maintaining a place of business in this State or
26 by a serviceman authorized by the Department under Section
27 60-10 of this Code, and the tax shall be remitted to the
28 Department as provided in Sections 50-5 through 50-140 of
29 this Code.
30 The tax imposed by this Article that is not paid to a
31 serviceman under this Section shall be paid to the Department
32 directly by any person using the property within this State
33 as provided in Section 50-155 of this Code.
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1 If a serviceman collects service use tax measured by
2 receipts or selling prices that are not subject to service
3 use tax, or if a serviceman, in collecting service use tax
4 measured by receipts or selling prices that are subject to
5 tax under this Article, collects more from the purchaser than
6 the required amount of the service use tax on the
7 transaction, the purchaser shall have a legal right to claim
8 a refund of that amount from the serviceman. If, however,
9 that amount is not refunded to the purchaser for any reason,
10 the serviceman is liable to pay that amount to the
11 Department. This paragraph does not apply to an amount
12 collected by the serviceman as service use tax on receipts or
13 selling prices that are subject to tax under this Article as
14 long as the collection is made in compliance with the tax
15 collection brackets prescribed by the Department in its rules
16 and regulations.
17 Section 25-25. S. O. T. nontaxability. If the
18 serviceman would not be taxable under Article 20 of this Code
19 despite all elements of his sale of service occurring in
20 Illinois, then the tax imposed by this Article does not apply
21 to the use in this State of the property transferred as a
22 necessary incident to the sale of service.
23 Section 25-30. Method of stating tax. The tax imposed by
24 this Article may be stated as a distinct item separate and
25 apart from the selling price of the service, and shall be so
26 stated when requested by the buyer.
27 Section 25-35. Selling price of tangible personal
28 property transferred incident to a sale of service.
29 (a) Except as provided in subsection (b) of this
30 Section, the selling price of each item of tangible personal
31 property transferred incident to a sale of service may be
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1 stated as a distinct item by the serviceman to the service
2 customer and the tax imposed by this Article shall when
3 collected be stated as a distinct item separate and apart
4 from the selling price of the tangible personal property. If
5 the selling price of each item of tangible personal property
6 transferred incidental to a sale of service is not stated as
7 a separate item on the serviceman's billing to the service
8 customer, then the tax imposed by this Article shall be based
9 on 50% of the serviceman's entire billing to the service
10 customer.
11 (b) When a serviceman contracts to design, develop and
12 produce special order machinery or equipment, the tax imposed
13 by this Article shall be based on the serviceman's cost price
14 of the tangible personal property transferred incident to the
15 completion of the contract.
16 ARTICLE 30. EXEMPTIONS, EXCLUSIONS, AND CREDITS
17 Section 30-5. Pollution control facilities. The purchase,
18 employment and transfer of tangible personal property as
19 pollution control facilities, as defined in Section 5-75, is
20 not (i) a purchase, use or sale of tangible personal property
21 or (ii) a purchase, use, or sale of service, but shall be
22 deemed to be intangible personal property.
23 Section 30-10. Tangible personal property used or
24 consumed in pollution control facilities. For purposes of
25 the taxes imposed by this Code, subject to the provisions of
26 Section 35-55, or subject to the provisions of Section 5.5 of
27 the Illinois Enterprise Zone Act, all tangible personal
28 property to be used or consumed in the operation of pollution
29 control facilities, as defined in Section 5-75, within an
30 enterprise zone established pursuant to the Illinois
31 Enterprise Zone Act shall be exempt.
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1 Section 30-15. Low sulfur dioxide emission coal fueled
2 devices. The purchase, employment and transfer of such
3 tangible personal property as low sulfur dioxide emission
4 coal fueled devices, as defined in Section 5-60, is not a
5 purchase, use, or sale of tangible personal property.
6 Section 30-20. Designated tangible personal property;
7 enterprise zone; high impact business. Subject to the
8 provisions of Section 35-55, all tangible personal property
9 to be used or consumed within an enterprise zone established
10 pursuant to the Illinois Enterprise Zone Act or subject to
11 the provisions of Section 5.5 of the Illinois Enterprise Zone
12 Act, all tangible personal property to be used or consumed by
13 any high impact business, in the process of the manufacturing
14 or assembly of tangible personal property for wholesale or
15 retail sale or lease or in the process of graphic arts
16 production if used or consumed at a facility which is a
17 Department of Commerce and Community Affairs certified
18 business and located in a county of more than 4,000 persons
19 and less than 45,000 persons is exempt from the taxes imposed
20 by this Code. This exemption includes repair and replacement
21 parts for machinery and equipment used primarily in the
22 process of manufacturing or assembling tangible personal
23 property or in the process of graphic arts production if used
24 or consumed at a facility which is a Department of Commerce
25 and Community Affairs certified business and located in a
26 county of more than 4,000 persons and less than 45,000
27 persons for wholesale or retail sale, or lease, and
28 equipment, manufacturing or graphic arts fuels, material and
29 supplies for the maintenance, repair or operation of such
30 manufacturing or assembling or graphic arts machinery or
31 equipment.
32 Section 30-25. Exemption - Machinery or Equipment used
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1 in the operation of high impact service facilities. Subject
2 to the provisions of Section 35-85 of this Code, machinery or
3 equipment used in the operation of a high impact service
4 facility, as defined in Section 35-85 of this Code, located
5 within an enterprise zone established pursuant to the
6 Illinois Enterprise Zone Act shall be exempt from the taxes
7 imposed by this Code. Machinery and equipment, new and
8 replacement, shall include, but not be limited to: (i) motor
9 driven heavy equipment not considered rolling stock which is
10 used for the purpose of transporting parcels, machinery, or
11 equipment, or trailers used for the shipment of parcels, and
12 equipment used to maintain and provide in-house services,
13 within the confines of the facility, and (ii) automated
14 machinery and equipment used for the purposes of transporting
15 parcels within the facility, along with all components,
16 parts, pieces, and computer software or hardware contained in
17 the electronic control systems related thereto. The
18 Department of Revenue shall promulgate such rules and
19 regulations as necessary to further define machinery and
20 equipment eligible for exemption in a high impact service
21 facility.
22 Section 30-30. High impact; building materials.
23 Beginning January 1, 1995, each retailer who makes a sale of
24 building materials that will be incorporated into a high
25 impact business location as designated by the Department of
26 Commerce and Community Affairs under Section 5.5 of the
27 Illinois Enterprise Zone Act may deduct receipts from such
28 sales when calculating only the 6.25% State rate of taxes
29 imposed by this Code. Beginning June 30, 1995, a retailer
30 may also deduct receipts from such sales when calculating any
31 applicable local taxes. However, until June 30, 1995, a
32 retailer may file claims for credit or refund to recover the
33 amount of any applicable local tax paid on such sales. No
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1 retailer who is eligible for the deduction or credit under
2 Section 35-90 of this Code for making a sale of building
3 materials to be incorporated into real estate in an
4 enterprise zone by rehabilitation, remodeling or new
5 construction shall be eligible for the deduction or credit
6 authorized under this Section.
7 Section 30-35. Machinery and equipment used in aircraft
8 maintenance facility. Subject to the provisions of Section
9 35-80 of this Code, machinery and equipment used in the
10 operation of an aircraft maintenance facility as defined in
11 Section 35-80, located within an enterprise zone shall be
12 exempt from the taxes imposed by this Code. The machinery
13 and equipment exempted by this Section is limited to
14 machinery and equipment used primarily to maintain, rebuild
15 or repair aircraft used as rolling stock moving in interstate
16 commerce for hire by the operator of the facility. The
17 Department of Revenue shall promulgate any rules and
18 regulations necessary to further define machinery and
19 equipment eligible for exemption in an aircraft maintenance
20 facility.
21 Section 30-40. Tangible personal property used or
22 consumed in aircraft maintenance facility. Subject to the
23 provisions of Section 35-80, all tangible personal property
24 to be used or consumed, within an enterprise zone established
25 pursuant to the Illinois Enterprise Zone Act, by any aircraft
26 maintenance facility, directly in the process of maintaining,
27 rebuilding or repairing aircraft is exempt from the taxes
28 imposed by this Code. The exemption includes repair and
29 replacement parts for machinery and equipment used primarily
30 in the process of maintaining, rebuilding or repairing
31 aircraft, and also includes equipment, fuels, material and
32 supplies for the maintenance, repair or operation of such
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1 machinery or equipment.
2 Section 30-45. Personal property used in infrastructure
3 repairs. For purposes of the taxes imposed by this Code,
4 beginning with taxable years ending on or after December 31,
5 1995 and ending with taxable years ending on or before
6 December 31, 2004, personal property that is used in the
7 performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and retention
12 facilities, and sewage treatment facilities, resulting from a
13 State or federally declared disaster in Illinois or bordering
14 Illinois when such repairs are initiated on facilities
15 located in the declared disaster area within 6 months after
16 the disaster is exempt.
17 Section 30-50. Horses. For purposes of the taxes
18 imposed by this Code, horses, or interests in horses,
19 registered with and meeting the requirements of any of the
20 Arabian Horse Club Registry of America, Appaloosa Horse Club,
21 American Quarter Horse Association, United States Trotting
22 Association, or Jockey Club, as appropriate, used for
23 purposes of breeding or racing for prizes are exempt.
24 Section 30-55. Semen. For purposes of the taxes imposed
25 by this Code, semen used for artificial insemination of
26 livestock for direct agricultural production is exempt.
27 Section 30-60. Farm chemicals. For purposes of the
28 retailers' occupation tax and the use tax, farm chemicals are
29 exempt.
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1 Section 30-65. Farm machinery and equipment. For
2 purposes of the taxes imposed by this Code, farm machinery
3 and equipment, both new and used, including that manufactured
4 on special order, certified by the purchaser to be used
5 primarily for production agriculture or State or federal
6 agricultural programs, including individual replacement parts
7 for the machinery and equipment, and including machinery and
8 equipment purchased for lease, but excluding motor vehicles
9 required to be registered under the Illinois Vehicle Code is
10 exempt.
11 Section 30-70. Distillation machinery and equipment.
12 (a) For purposes of the retailers' occupation tax and
13 the use tax, distillation machinery and equipment, sold as a
14 unit or kit, assembled or installed by the retailer,
15 certified by the user to be used only for the production of
16 ethyl alcohol that will be used for consumption as motor fuel
17 or as a component of motor fuel for the personal use of the
18 user, and not subject to sale or resale is exempt.
19 (b) For purposes of the service occupation tax and the
20 service use tax, "sale of service" shall not include a sale
21 or transfer of distillation machinery and equipment, sold as
22 a unit or kit and assembled or installed by the retailer,
23 which machinery and equipment is certified by the user to be
24 used only for the production of ethyl alcohol that will be
25 used for consumption as motor fuel or as a component of motor
26 fuel for the personal use of such user and not subject to
27 sale or resale.
28 Section 30-75. Oil field equipment. For purposes of the
29 taxes imposed by this Code, oil field exploration, drilling,
30 and production equipment, including (i) rigs and parts of
31 rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
32 pipe and tubular goods, including casing and drill strings,
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1 (iii) pumps and pump-jack units, (iv) storage tanks and flow
2 lines, (v) any individual replacement part for oil field
3 exploration, drilling, and production equipment, and (vi)
4 machinery and equipment purchased for lease; but excluding
5 motor vehicles required to be registered under the Illinois
6 Vehicle Code is exempt.
7 Section 30-80. Coal exploration equipment. For purposes
8 of the taxes imposed by this Code, coal exploration, mining,
9 offhighway hauling, processing, maintenance, and reclamation
10 equipment, including replacement parts and equipment, and
11 including equipment purchased for lease, but excluding motor
12 vehicles required to be registered under the Illinois Vehicle
13 Code is exempt.
14 Section 30-85. Photoprocessing machinery and equipment.
15 For purposes of the taxes imposed by this Code,
16 photoprocessing machinery and equipment, including repair and
17 replacement parts, both new and used, including that
18 manufactured on special order, certified by the purchaser to
19 be used primarily for photoprocessing, and including
20 photoprocessing machinery and equipment purchased for lease
21 is exempt.
22 Section 30-90. Graphic arts machinery and equipment. For
23 purposes of the taxes imposed by this Code, graphic arts
24 machinery and equipment, including repair and replacement
25 parts, both new and used, and including that manufactured on
26 special order or purchased for lease, certified by the
27 purchaser to be used primarily for graphic arts production is
28 exempt.
29 Section 30-95. Manufacturing and assembling machinery
30 and equipment.
-45- LRB9000671KDdvA
1 (a) For purposes of the retailers' occupation tax and
2 the use tax, machinery and equipment that will be used by the
3 purchaser, or a lessee of the purchaser, primarily in the
4 process of manufacturing or assembling tangible personal
5 property for wholesale or retail sale or lease, whether the
6 sale or lease is made directly by the manufacturer or by some
7 other person, whether the materials used in the process are
8 owned by the manufacturer or some other person, or whether
9 the sale or lease is made apart from or as an incident to the
10 seller's engaging in the service occupation of producing
11 machines, tools, dies, jigs, patterns, gauges, or other
12 similar items of no commercial value on special order for a
13 particular purchaser is exempt.
14 (b) For purposes of the service occupation tax and
15 service use tax, "sale of service" shall not include a sale
16 or transfer of machinery and equipment used primarily in the
17 process of the manufacturing or assembling, either in an
18 existing, an expanded or a new manufacturing facility, of
19 tangible personal property for wholesale or retail sale or
20 lease, whether such sale or lease is made directly by the
21 manufacturer or by some other person, whether the materials
22 used in the process are owned by the manufacturer or some
23 other person, or whether such sale or lease is made apart
24 from or as an incident to the seller's engaging in a service
25 occupation and the applicable tax is a service use tax or
26 service occupation tax, rather than use tax or retailers'
27 occupation tax.
28 Section 30-100. Manufacturing and assembling exemption.
29 (a) For purposes of the retailers' occupation tax and
30 the use tax, the manufacturing and assembling machinery and
31 equipment exemption includes machinery and equipment that
32 replaces machinery and equipment in an existing manufacturing
33 facility as well as machinery and equipment that are for use
-46- LRB9000671KDdvA
1 in an expanded or new manufacturing facility. The
2 manufacturing and assembling machinery and equipment
3 exemption includes the sale of materials to a purchaser who
4 produces exempted types of machinery, equipment, or tools and
5 who rents or leases that machinery, equipment, or tools to a
6 manufacturer of tangible personal property. This exemption
7 also includes the sale of materials to a purchaser who
8 manufactures those materials into an exempted type of
9 machinery, equipment, or tools that the purchaser uses
10 himself or herself in the manufacturing of tangible personal
11 property. For purposes of the use tax, this exemption also
12 includes the sale of exempted types of machinery or equipment
13 to a purchaser who is not the manufacturer, but who rents or
14 leases the use of the property to a manufacturer.
15 (b) For purposes of this Code, the machinery and
16 equipment exemption also includes machinery and equipment
17 used in the general maintenance or repair of exempt machinery
18 and equipment or for in-house manufacture of exempt machinery
19 and equipment. For the purposes of this exemption, terms have
20 the following meanings:
21 (1) "Manufacturing process" means the production of
22 an article of tangible personal property, whether the
23 article is a finished product or an article for use in
24 the process of manufacturing or assembling a different
25 article of tangible personal property, by a procedure
26 commonly regarded as manufacturing, processing,
27 fabricating, or refining that changes some existing
28 material or materials into a material with a different
29 form, use, or name. In relation to a recognized
30 integrated business composed of a series of operations
31 that collectively constitute manufacturing, or
32 individually constitute manufacturing operations, the
33 manufacturing process commences with the first operation
34 or stage of production in the series and does not end
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1 until the completion of the final product in the last
2 operation or stage of production in the series. For
3 purposes of this exemption, photoprocessing is a
4 manufacturing process of tangible personal property for
5 wholesale or retail sale.
6 (2) "Assembling process" means the production of an
7 article of tangible personal property, whether the
8 article is a finished product or an article for use in
9 the process of manufacturing or assembling a different
10 article of tangible personal property, by the combination
11 of existing materials in a manner commonly regarded as
12 assembling that results in an article or material of a
13 different form, use, or name.
14 (3) "Machinery" means major mechanical machines or
15 major components of those machines contributing to a
16 manufacturing or assembling process.
17 (4) "Equipment" includes an independent device or
18 tool separate from machinery but essential to an
19 integrated manufacturing or assembly process; including
20 computers used primarily in operating exempt machinery
21 and equipment in a computer assisted design, computer
22 assisted manufacturing (CAD/CAM) system; any subunit or
23 assembly comprising a component of any machinery or
24 auxiliary, adjunct or attachment parts of machinery, such
25 as tools, dies, jigs, fixtures, patterns, and molds; and
26 any parts that require periodic replacement in the course
27 of normal operation; but does not include hand tools.
28 (c) For purposes of this Code, the purchaser of the
29 machinery and equipment who has an active resale registration
30 number shall furnish that number to the seller at the time of
31 purchase. For purposes of the retailers' occupation tax and
32 the service occupation tax, a purchaser of the machinery,
33 equipment, and tools without an active resale registration
34 number shall furnish to the seller a certificate of exemption
-48- LRB9000671KDdvA
1 for each transaction stating facts establishing the exemption
2 for that transaction. For purposes of the use tax and the
3 service use tax, a user of the machinery, equipment, or tools
4 without an active resale registration number shall prepare a
5 certificate of exemption for each transaction stating facts
6 establishing the exemption for that transaction. That
7 certificate shall be available to the Department for
8 inspection or audit. The Department shall prescribe the form
9 of the certificate. Informal rulings, opinions, or letters
10 issued by the Department in response to an inquiry or request
11 for an opinion from any person regarding the coverage and
12 applicability of this exemption to specific devices shall be
13 published, maintained as a public record, and made available
14 for public inspection and copying. If the informal ruling,
15 opinion, or letter contains trade secrets or other
16 confidential information, where possible, the Department
17 shall delete that information before publication. Whenever
18 informal rulings, opinions, or letters contain a policy of
19 general applicability, the Department shall formulate and
20 adopt that policy as a rule in accordance with the Illinois
21 Administrative Procedure Act.
22 Section 30-105. Motor vehicle used for renting. For
23 purposes of the retailers' occupation tax and the use tax, a
24 motor vehicle of the first division, a motor vehicle of the
25 second division that is a self-contained motor vehicle
26 designed or permanently converted to provide living quarters
27 for recreational, camping, or travel use, with direct walk
28 through access to the living quarters from the driver's seat,
29 or a motor vehicle of the second division that is of the van
30 configuration designed for the transportation of not less
31 than 7 nor more than 16 passengers, as defined in Section
32 1-146 of the Illinois Vehicle Code, that is used for
33 automobile renting, as defined in the Automobile Renting
-49- LRB9000671KDdvA
1 Occupation and Use Tax Act is exempt.
2 Section 30-110. Passenger car subject to replacement
3 vehicle tax. For purposes of the retailers' occupation tax
4 and the use tax, proceeds of that portion of the selling
5 price of a passenger car the sale of which is subject to the
6 Replacement Vehicle Tax are exempt.
7 Section 30-115. Motor vehicle sold to a non-resident.
8 For purposes of the retailers' occupation tax and the use
9 tax, a motor vehicle sold in this State to a nonresident even
10 though the motor vehicle is delivered to the nonresident in
11 this State, if the motor vehicle is not to be titled in this
12 State, and if a driveaway decal permit is issued to the motor
13 vehicle as provided in Section 3-603 of the Illinois Vehicle
14 Code or if the nonresident purchaser has vehicle registration
15 plates to transfer to the motor vehicle upon returning to his
16 or her home state is exempt. The issuance of the driveaway
17 decal permit or having the out-of-state registration plates
18 to be transferred is prima facie evidence that the motor
19 vehicle will not be titled in this State.
20 Section 30-120. Petroleum products. For purposes of the
21 retailers' occupation tax, petroleum products sold to a
22 purchaser if the seller is prohibited by federal law from
23 charging tax to the purchaser are exempt.
24 Section 30-125. Petroleum products sold to air carrier.
25 For purposes of the taxes imposed by this Code, fuel and
26 petroleum products sold to or used by an air common carrier,
27 certified by the carrier to be used for consumption,
28 shipment, or storage in the conduct of its business as an air
29 common carrier, for a flight destined for or returning from a
30 location or locations outside the United States without
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1 regard to previous or subsequent domestic stopovers are
2 exempt.
3 Section 30-130. Fuel consumed by ships. For purposes of
4 the retailers' occupation tax, fuel consumed or used in the
5 operation of ships, barges, or vessels that are used
6 primarily in or for the transportation of property or the
7 conveyance of persons for hire on rivers bordering on this
8 State if the fuel is delivered by the seller to the
9 purchaser's barge, ship, or vessel while it is afloat upon
10 that bordering river is exempt.
11 Section 30-135. Tangible personal property sold to rail
12 common carrier.
13 (a) For purposes of the retailers' occupation tax and
14 the use tax, tangible personal property sold to a common
15 carrier by rail that receives the physical possession of the
16 property in Illinois and that transports the property, or
17 shares with another common carrier in the transportation of
18 the property, out of Illinois on a standard uniform bill of
19 lading showing the seller of the property as the shipper or
20 consignor of the property to a destination outside Illinois,
21 for use outside Illinois is exempt.
22 (b) For purposes of the service occupation tax and the
23 service use tax, "sale of service" shall not include the
24 repairing, reconditioning or remodeling, for a common carrier
25 by rail, of tangible personal property which belongs to such
26 carrier for hire, and as to which such carrier receives the
27 physical possession of the repaired, reconditioned or
28 remodeled item of tangible personal property in Illinois, and
29 which such carrier transports, or shares with another common
30 carrier in the transportation of such property, out of
31 Illinois on a standard uniform bill of lading showing the
32 person who repaired, reconditioned or remodeled the property
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1 as the shipper or consignor of such property to a destination
2 outside Illinois, for use outside Illinois.
3 (c) For purposes of the service occupation tax and the
4 service use tax, "sale of service" shall not include a sale
5 or transfer of tangible personal property which is produced
6 by the seller thereof on special order in such a way as to
7 have made the applicable tax the service occupation tax or
8 the service use tax, rather than the retailers' occupation
9 tax or the use tax, for an interstate carrier by rail which
10 receives the physical possession of such property in
11 Illinois, and which transports such property, or shares with
12 another common carrier in the transportation of such
13 property, out of Illinois on a standard uniform bill of
14 lading showing the seller of the property as the shipper or
15 consignor of such property to a destination outside Illinois,
16 for use outside Illinois.
17 Section 30-140. Rolling stock; personal property.
18 (a) For purposes of the retailers' occupation tax and
19 the use tax, personal property sold to an interstate carrier
20 for hire for use as rolling stock moving in interstate
21 commerce or to lessors under leases of one year or longer
22 executed or in effect at the time of purchase by interstate
23 carriers for hire for use as rolling stock moving in
24 interstate commerce as long as so used by interstate carriers
25 for hire and equipment operated by a telecommunications
26 provider, licensed as a common carrier by the Federal
27 Communications Commission, which is permanently installed in
28 or affixed to aircraft moving in interstate commerce is
29 exempt.
30 (b) For purposes of the service occupation tax and the
31 service use tax, "sale of service" shall not include a sale
32 or transfer of tangible personal property as an incident to
33 the rendering of service for interstate carriers for hire for
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1 use as rolling stock moving in interstate commerce or lessors
2 under leases of one year or longer, executed or in effect at
3 the time of purchase, to interstate carriers for hire for use
4 as rolling stock moving in interstate commerce as long as so
5 used by such interstate carriers for hire, and equipment
6 operated by a telecommunications provider, licensed as a
7 common carrier by the Federal Communications Commission,
8 which is permanently installed in or affixed to aircraft
9 moving in interstate commerce.
10 Section 30-145. Rolling stock; proceeds from sales.
11 (a) For purposes of the retailers' occupation tax and
12 the use tax, proceeds from sales to owners, lessors, or
13 shippers of tangible personal property that is utilized by
14 interstate carriers for hire for use as rolling stock moving
15 in interstate commerce as long as so used by the interstate
16 carriers for hire, and equipment operated by a
17 telecommunications provider, licensed as a common carrier by
18 the Federal Communications Commission, which is permanently
19 installed in or affixed to aircraft moving in interstate
20 commerce are exempt.
21 (b) For purposes of the service occupation tax and the
22 service use tax, "sale of service" shall not include a sale
23 or transfer of tangible personal property as an incident to
24 the rendering of service for owners, lessors or shippers of
25 tangible personal property which is utilized by interstate
26 carriers for hire for use as rolling stock moving in
27 interstate commerce as long as so used by such interstate
28 carriers for hire, and equipment operated by a
29 telecommunications provider, licensed as a common carrier by
30 the Federal Communications Commission, which is permanently
31 installed in or affixed to aircraft moving in interstate
32 commerce.
-53- LRB9000671KDdvA
1 Section 30-150. Rolling stock exemption. The rolling
2 stock exemption applies to rolling stock used by an
3 interstate carrier for hire, even just between points in
4 Illinois, if the rolling stock transports, for hire, persons
5 whose journeys or property whose shipments originate or
6 terminate outside Illinois.
7 Section 30-155. Personal property sold by students. For
8 purposes of the taxes imposed by this Code, personal property
9 sold by or purchased from a teacher-sponsored student
10 organization affiliated with an elementary or secondary
11 school located in Illinois is exempt.
12 Section 30-160. Personal property sold to a
13 not-for-profit music or dramatic arts organization. For
14 purposes of the taxes imposed by this Code, personal property
15 sold to or purchased by a not-for-profit music or dramatic
16 arts organization that establishes, by proof required by the
17 Department by rule, that it has received an exemption under
18 Section 501(c)(3) of the Internal Revenue Code and that is
19 organized and operated for the presentation of live public
20 performances of musical or theatrical works on a regular
21 basis is exempt.
22 Section 30-165. Personal property sold for the benefit
23 of persons 65 years of age or older. For purposes of the
24 taxes imposed by this Code, personal property sold by or
25 purchased from a corporation, society, association,
26 foundation, institution, or organization, other than a
27 limited liability company, that is organized and operated as
28 a not-for-profit service enterprise for the benefit of
29 persons 65 years of age or older if the personal property was
30 not purchased by the enterprise for the purpose of resale by
31 the enterprise is exempt.
-54- LRB9000671KDdvA
1 Section 30-170. Personal property sold to charitable,
2 religious, or educational organizations.
3 (a) For purposes of the retailers' occupation tax and
4 the use tax, personal property sold to or purchased by a
5 governmental body, to a corporation, society, association,
6 foundation, or institution organized and operated exclusively
7 for charitable, religious, or educational purposes, or to a
8 not-for-profit corporation, society, association, foundation,
9 institution, or organization that has no compensated officers
10 or employees and that is organized and operated primarily for
11 the recreation of persons 55 years of age or older is exempt.
12 A limited liability company may qualify for the exemption
13 under this subsection only if the limited liability company
14 is organized and operated exclusively for educational
15 purposes. On and after July 1, 1987, however, no entity
16 otherwise eligible for this exemption shall make tax-free
17 purchases unless it has an active exemption identification
18 number issued by the Department in accordance with Section
19 35-60 of this Code.
20 (b) For purposes of the service occupation tax and the
21 service use tax, "sale of service" shall not include, except
22 as hereinafter provided, a sale or transfer of tangible
23 personal property as an incident to the rendering of service
24 for or by any governmental body or for or by any corporation,
25 society, association, foundation or institution organized and
26 operated exclusively for charitable, religious or educational
27 purposes or any not-for-profit corporation, society,
28 association, foundation, institution or organization which
29 has no compensated officers or employees and which is
30 organized and operated primarily for the recreation of
31 persons 55 years of age or older. A limited liability
32 company may qualify for the exemption under this subsection
33 only if the limited liability company is organized and
34 operated exclusively for educational purposes. On and after
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1 July 1, 1987, however, no entity otherwise eligible for the
2 exemption under this subsection shall make tax free purchases
3 unless it has an active exemption identification number
4 issued by the Department.
5 Section 30-175. County fair association.
6 (a) For purposes of the retailers' occupation tax,
7 personal property sold to an Illinois county fair association
8 for use in conducting, operating, or promoting the county
9 fair is exempt.
10 (b) For purposes of the use tax, the service occupation
11 tax, and the service use tax, personal property purchased by
12 a not-for-profit Illinois county fair association for use in
13 conducting, operating, or promoting the county fair is
14 exempt.
15 Section 30-180. Personal property donated for disaster
16 relief. For purposes of the taxes imposed by this Code,
17 beginning with taxable years ending on or after December 31,
18 1995 and ending with taxable years ending on or before
19 December 31, 2004, personal property that is donated for
20 disaster relief to be used in a State or federally declared
21 disaster area in Illinois or bordering Illinois by a
22 manufacturer or retailer that is registered in this State to
23 a corporation, society, association, foundation, or
24 institution that has been issued a sales tax exemption
25 identification number by the Department, in accordance with
26 Section 35-60, that assists victims of the disaster who
27 reside within the declared disaster area is exempt.
28 Section 30-185. Computers for hospitals.
29 (a) For purposes of the taxes imposed by this Code,
30 computers and communications equipment utilized for any
31 hospital purpose and equipment used in the diagnosis,
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1 analysis, or treatment of hospital patients sold to a lessor
2 who leases the equipment, under a lease of one year or longer
3 executed or in effect, for purposes of the retailers'
4 occupation tax and the service occupation tax, at the time of
5 the purchase, or, for purposes of the use tax and the service
6 use tax, at the time the lessor would otherwise be subject to
7 the tax imposed by Article 15 or Article 25, to a hospital
8 that has been issued an active tax exemption identification
9 number by the Department under Section 35-60 are exempt.
10 (b) For purposes of the use tax and the service use tax,
11 if the equipment is leased in a manner that does not qualify
12 for this exemption or is used in any other non-exempt manner,
13 the lessor shall be liable for the tax imposed under Article
14 15 or Article 25, as the case may be, based on the fair
15 market value of the property at the time the non-qualifying
16 use occurs. No lessor shall collect or attempt to collect an
17 amount (however designated) that purports to reimburse that
18 lessor for the tax imposed by Article 15 or Article 25, as
19 the case may be, if the tax has not been paid by the lessor.
20 If a lessor improperly collects any such amount from the
21 lessee, the lessee shall have a legal right to claim a refund
22 of that amount from the lessor. If, however, that amount is
23 not refunded to the lessee for any reason, the lessor is
24 liable to pay that amount to the Department.
25 Section 30-190. Personal property sold to lessor for
26 lease to governmental body.
27 (a) For purposes of the taxes imposed by this Code,
28 personal property sold to a lessor who leases the property,
29 under a lease of one year or longer executed or in effect,
30 for purposes of the retailers' occupation tax and the service
31 occupation tax, at the time of the purchase, or, for purposes
32 of the use tax and the service use tax, at the time the
33 lessor would otherwise be subject to the tax imposed by
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1 Article 15 or Article 25, to a governmental body that has
2 been issued an active tax exemption identification number by
3 the Department under Section 35-60 is exempt.
4 (b) For purposes of the use tax and the service use tax,
5 if the property is leased in a manner that does not qualify
6 for this exemption or used in any other non-exempt manner,
7 the lessor shall be liable for the tax imposed under Article
8 15 or Article 25, as the case may be, based on the fair
9 market value of the property at the time the non-qualifying
10 use occurs. No lessor shall collect or attempt to collect an
11 amount (however designated) that purports to reimburse that
12 lessor for the tax imposed by Article 15 or Article 25, as
13 the case may be, if the tax has not been paid by the lessor.
14 If a lessor improperly collects any such amount from the
15 lessee, the lessee shall have a legal right to claim a refund
16 of that amount from the lessor. If, however, that amount is
17 not refunded to the lessee for any reason, the lessor is
18 liable to pay that amount to the Department.
19 Section 30-195. Food and drugs sold by not-for-profit
20 organizations; exemption.
21 (a) The Department shall not collect the 1% tax imposed
22 on food for human consumption that is to be consumed off the
23 premises where it is sold (other than alcoholic beverages,
24 soft drinks, and food that has been prepared for immediate
25 consumption) and prescription and nonprescription medicines,
26 drugs, medical appliances, and insulin, urine testing
27 materials, syringes, and needles used by diabetics, for human
28 use from any not-for-profit organization, that sells food in
29 a food distribution program at a price below the retail cost
30 of the food to purchasers who, as a condition of
31 participation in the program, are required to perform
32 community service, located in a county or municipality that
33 notifies the Department, in writing, that the county or
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1 municipality does not want the tax to be collected from any
2 of such organizations located in the county or municipality.
3 (b) For purposes of the service occupation tax, food for
4 human consumption that is to be consumed off the premises
5 where it is sold (other than alcoholic beverages, soft drinks
6 and food that has been prepared for immediate consumption)
7 and prescription and nonprescription medicines, drugs,
8 medical appliances, and insulin, urine testing materials,
9 syringes, and needles used by diabetics, for human use, when
10 purchased for use by a person receiving medical assistance
11 under Article 5 of the Illinois Public Aid Code who resides
12 in a licensed long-term care facility, as defined in the
13 Nursing Home Care Act is exempt.
14 Section 30-200. Mandatory service charge. For purposes
15 of the taxes imposed by this Code, proceeds of mandatory
16 service charges separately stated on customers' bills for the
17 purchase and consumption of food and beverages, to the extent
18 that the proceeds of the service charge are in fact turned
19 over as tips or as a substitute for tips to the employees who
20 participate directly in preparing, serving, hosting or
21 cleaning up the food or beverage function with respect to
22 which the service charge is imposed are exempt.
23 Section 30-205. Legal tender. For purposes of the taxes
24 imposed by this Code, legal tender, currency, medallions, or
25 gold or silver coinage issued by the State of Illinois, the
26 government of the United States of America, or the government
27 of any foreign country, and bullion are exempt.
28 Section 30-210. Florist.
29 (a) For purposes of the retailers' occupation tax, a
30 transaction in which the purchase order is received by a
31 florist who is located outside Illinois, but who has a
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1 florist located in Illinois deliver the property to the
2 purchaser or the purchaser's donee in Illinois is exempt.
3 (b) For purposes of the use tax, personal property
4 delivered to a purchaser or purchaser's donee inside Illinois
5 when the purchase order for that personal property was
6 received by a florist located outside Illinois who has a
7 florist located inside Illinois deliver the personal property
8 is exempt.
9 Section 30-215. Interstate commerce exemption. No tax
10 is imposed by Article 10 or Article 20 upon the privilege of
11 engaging in a business in interstate commerce or otherwise,
12 when the business may not, under the Constitution and
13 statutes of the United States, be made the subject of
14 taxation by this State.
15 Section 30-220. Multistate exemption.
16 (a) To prevent actual or likely multistate taxation, the
17 taxes imposed by Article 15 and Article 25 do not apply to
18 the use of tangible personal property in this State under the
19 following circumstances:
20 (1) The use, in this State, of tangible personal
21 property acquired outside this State by a nonresident
22 individual and brought into this State by the individual
23 for his or her own use while temporarily within this
24 State or while passing through this State.
25 (2) The use, in this State, of tangible personal
26 property that is acquired outside this State and caused
27 to be brought into this State by a person who has already
28 paid a tax in another state in respect to the sale,
29 purchase, or use of that property, to the extent of the
30 amount of the tax properly due and paid in the other
31 state.
32 (3) The temporary storage, in this State, of
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1 tangible personal property that is acquired outside this
2 State and that, after being brought into this State and
3 stored here temporarily, is used solely outside this
4 State or is physically attached to or incorporated into
5 other tangible personal property that is used solely
6 outside this State, or is altered by converting,
7 fabricating, manufacturing, printing, processing, or
8 shaping, and, as altered, is used solely outside this
9 State.
10 (b) To prevent actual or likely multistate taxation, the
11 tax imposed by Article 15 does not apply to the temporary
12 storage in this State of building materials and fixtures that
13 are acquired either in this State or outside this State by an
14 Illinois registered combination retailer and construction
15 contractor, and that the purchaser thereafter uses outside
16 this State by incorporating that property into real estate
17 located outside this State.
18 (c) To prevent actual or likely multistate taxation, the
19 tax imposed by Article 25 does not apply to the use, in this
20 State, of property that is acquired outside this State and
21 that is moved into this State for use as rolling stock moving
22 in interstate commerce.
23 Section 30-225. Property acquired by nonresident. The
24 taxes imposed by Article 15 and Article 25 do not apply to
25 the use, in this State, of tangible personal property that is
26 acquired outside this State by a nonresident individual who
27 then brings the property to this State for use here and who
28 has used the property outside this State for at least 3
29 months before bringing the property to this State.
30 Where a business that is not operated in Illinois, but is
31 operated in another State, is moved to Illinois or opens an
32 office, plant, or other business facility in Illinois, that
33 business shall not be taxed on its use, in Illinois, of used
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1 tangible personal property, other than, for purposes of the
2 use tax only, items of tangible personal property that must
3 be titled or registered with the State of Illinois or whose
4 registration with the United States Government must be filed
5 with the State of Illinois, that the business bought outside
6 Illinois and used outside Illinois in the operation of the
7 business for at least 3 months before moving the used
8 property to Illinois for use in this State.
9 Section 30-230. Manufacturer's Purchase Credit. For
10 purposes of the use tax and the service use tax, for
11 purchases of machinery and equipment made on and after
12 January 1, 1995, a purchaser of manufacturing machinery and
13 equipment that qualifies for the exemption provided by
14 Section 30-95 of this Code earns a credit in an amount equal
15 to a fixed percentage of the tax which would have been
16 incurred under Article 15 or 25 of this Code on those
17 purchases. For purchases of graphic arts machinery and
18 equipment made on or after July 1, 1996, a purchaser of
19 graphic arts machinery and equipment that qualifies for the
20 exemption provided by Section 30-90 of this Code earns a
21 credit in an amount equal to a fixed percentage of the tax
22 that would have been incurred under Article 15 or 25 of this
23 Code on those purchases. The credit earned for purchases of
24 manufacturing machinery and equipment or graphic arts
25 machinery and equipment shall be referred to as the
26 Manufacturer's Purchase Credit. A graphic arts producer is a
27 person engaged in graphic arts production as defined in
28 Section 5-45 of this Code. Beginning July 1, 1996, all
29 references in this Section to manufacturers or manufacturing
30 shall also be deemed to refer to graphic arts producers or
31 graphic arts production.
32 The amount of credit shall be a percentage of the tax
33 that would have been incurred on the purchase of
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1 manufacturing machinery and equipment or graphic arts
2 machinery and equipment if the exemptions provided by Section
3 30-90 or 30-95 of this Code had not been applicable. The
4 percentage shall be as follows:
5 (1) 15% for purchases made on or before June 30,
6 1995.
7 (2) 25% for purchases made after June 30, 1995, and
8 on or before June 30, 1996.
9 (3) 40% for purchases made after June 30, 1996, and
10 on or before June 30, 1997.
11 (4) 50% for purchases made on or after July 1,
12 1997.
13 A purchaser of production related tangible personal
14 property desiring to use the Manufacturer's Purchase Credit
15 shall certify to the seller that the purchaser is satisfying
16 all or part of the liability under Article 15 or Article 25
17 of this Code that is due on the purchase of the production
18 related tangible personal property by use of Manufacturer's
19 Purchase Credit. The Manufacturer's Purchase Credit
20 certification must be dated and shall include the name and
21 address of the purchaser, the purchaser's registration
22 number, if registered, the credit being applied, and a
23 statement that the State use tax or service use tax liability
24 is being satisfied with the manufacturer's or graphic arts
25 producer's accumulated purchase credit. Certification may be
26 incorporated into the manufacturer's or graphic arts
27 producer's purchase order. Manufacturer's Purchase Credit
28 certification by the manufacturer or graphic arts producer
29 may be used to satisfy the retailer's or serviceman's
30 liability under Article 10 or Article 20 of this Code for the
31 credit claimed, not to exceed 6.25% of the receipts subject
32 to tax from a qualifying purchase, but only if the retailer
33 or serviceman reports the Manufacturer's Purchase Credit
34 claimed as required by the Department. The Manufacturer's
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1 Purchase Credit earned by purchase of exempt manufacturing
2 machinery and equipment or graphic arts machinery and
3 equipment is a non-transferable credit. A manufacturer or
4 graphic arts producer that enters into a contract involving
5 the installation of tangible personal property into real
6 estate within a manufacturing or graphic arts production
7 facility may authorize a construction contractor to utilize
8 credit accumulated by the manufacturer or graphic arts
9 producer to purchase the tangible personal property. A
10 manufacturer or graphic arts producer intending to use
11 accumulated credit to purchase such tangible personal
12 property shall execute a written contract authorizing the
13 contractor to utilize a specified dollar amount of credit.
14 The contractor shall furnish the supplier with the
15 manufacturer's or graphic arts producer's name, registration
16 or resale number, and a statement that a specific amount of
17 the use tax or service use tax liability, not to exceed 6.25%
18 of the selling price, is being satisfied with the credit. The
19 manufacturer or graphic arts producer shall remain liable to
20 timely report all information required by the annual Report
21 of Manufacturer's Purchase Credit Used for all credit
22 utilized by a construction contractor.
23 The Manufacturer's Purchase Credit may be used to satisfy
24 liability under Article 15 or Article 25 of this Code due on
25 the purchase of production related tangible personal property
26 (including purchases by a manufacturer, by a graphic arts
27 producer, or by a lessor who rents or leases the use of the
28 property to a manufacturer or graphic arts producer) that
29 does not otherwise qualify for the manufacturing machinery
30 and equipment exemption or the graphic arts machinery and
31 equipment exemption. "Production related tangible personal
32 property" means (i) all tangible personal property used or
33 consumed by the purchaser in a manufacturing facility in
34 which a manufacturing process described in Section 30-100 of
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1 this Code takes place, including tangible personal property
2 purchased for incorporation into real estate within a
3 manufacturing facility and including, but not limited to,
4 tangible personal property used or consumed in activities
5 such as preproduction material handling, receiving, quality
6 control, inventory control, storage, staging, and packaging
7 for shipping and transportation purposes; (ii) all tangible
8 personal property used or consumed by the purchaser in a
9 graphic arts facility in which graphic arts production as
10 described in Section 5-45 of this Code takes place, including
11 tangible personal property purchased for incorporation into
12 real estate within a graphic arts facility and including, but
13 not limited to, all tangible personal property used or
14 consumed in activities such as graphic arts preliminary or
15 pre-press production, pre-production material handling,
16 receiving, quality control, inventory control, storage,
17 staging, sorting, labeling, mailing, tying, wrapping, and
18 packaging; and (iii) all tangible personal property used or
19 consumed by the purchaser for research and development.
20 "Production related tangible personal property" does not
21 include (i) tangible personal property used, within or
22 without a manufacturing facility, in sales, purchasing,
23 accounting, fiscal management, marketing, personnel
24 recruitment or selection, or landscaping or (ii) tangible
25 personal property required to be titled or registered with a
26 department, agency, or unit of federal, state, or local
27 government. The Manufacturer's Purchase Credit may be used
28 to satisfy the tax arising either from the purchase of
29 machinery and equipment on or after January 1, 1995 for which
30 the exemption provided by Section 30-95 of this Code was
31 erroneously claimed, or the purchase of machinery and
32 equipment on or after July 1, 1996 for which the exemption
33 provided by Section 30-90 of this Code was erroneously
34 claimed, but not in satisfaction of penalty, if any, and
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1 interest for failure to pay the tax when due. A purchaser of
2 production related tangible personal property who is required
3 to pay Illinois use tax or service use tax on the purchase
4 directly to the Department may utilize the Manufacturer's
5 Purchase Credit in satisfaction of the tax arising from that
6 purchase, but not in satisfaction of penalty and interest. A
7 purchaser who uses the Manufacturer's Purchase Credit to
8 purchase property which is later determined not to be
9 production related tangible personal property may be liable
10 for tax, penalty, and interest on the purchase of that
11 property as of the date of purchase but shall be entitled to
12 use the disallowed Manufacturer's Purchase Credit, so long as
13 it has not expired, on qualifying purchases of production
14 related tangible personal property not previously subject to
15 credit usage. The Manufacturer's Purchase Credit earned by a
16 manufacturer or graphic arts producer expires the last day of
17 the second calendar year following the calendar year in which
18 the credit arose.
19 A purchaser earning Manufacturer's Purchase Credit shall
20 sign and file an annual Report of Manufacturer's Purchase
21 Credit Earned for each calendar year no later than the last
22 day of the sixth month following the calendar year in which a
23 Manufacturer's Purchase Credit is earned. A Report of
24 Manufacturer's Purchase Credit Earned shall be filed on forms
25 as prescribed or approved by the Department and shall state,
26 for each month of the calendar year: (i) the total purchase
27 price of all purchases of exempt manufacturing or graphic
28 arts machinery on which the credit was earned; (ii) the total
29 State use tax or service use tax which would have been due on
30 those items; (iii) the percentage used to calculate the
31 amount of credit earned; (iv) the amount of credit earned;
32 and (v) such other information as the Department may
33 reasonably require. A purchaser earning Manufacturer's
34 Purchase Credit shall maintain records which identify, as to
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1 each purchase of manufacturing or graphic arts machinery and
2 equipment on which the purchaser earned Manufacturer's
3 Purchase Credit, the vendor (including, if applicable, either
4 the vendor's registration number or Federal Employer
5 Identification Number), the purchase price, and the amount of
6 Manufacturer's Purchase Credit earned on each purchase.
7 A purchaser using Manufacturer's Purchase Credit shall
8 sign and file an annual Report of Manufacturer's Purchase
9 Credit Used for each calendar year no later than the last day
10 of the sixth month following the calendar year in which a
11 Manufacturer's Purchase Credit is used. A Report of
12 Manufacturer's Purchase Credit Used shall be filed on forms
13 as prescribed or approved by the Department and shall state,
14 for each month of the calendar year: (i) the total purchase
15 price of production related tangible personal property
16 purchased from Illinois suppliers; (ii) the total purchase
17 price of production related tangible personal property
18 purchased from out-of-state suppliers; (iii) the total amount
19 of credit used during such month; and (iv) such other
20 information as the Department may reasonably require. A
21 purchaser using Manufacturer's Purchase Credit shall maintain
22 records that identify, as to each purchase of production
23 related tangible personal property on which the purchaser
24 used Manufacturer's Purchase Credit, the vendor (including,
25 if applicable, either the vendor's registration number or
26 Federal Employer Identification Number), the purchase price,
27 and the amount of Manufacturer's Purchase Credit used on each
28 purchase.
29 No annual report shall be filed before May 1, 1996. A
30 purchaser that fails to file an annual Report of
31 Manufacturer's Purchase Credit Earned or an annual Report of
32 Manufacturer's Purchase Credit Used by the last day of the
33 sixth month following the end of the calendar year shall
34 forfeit all Manufacturer's Purchase Credit for that calendar
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1 year unless it establishes that its failure to file was due
2 to reasonable cause. Manufacturer's Purchase Credit reports
3 may be amended to report and claim credit on qualifying
4 purchases not previously reported at any time before the
5 credit would have expired, unless both the Department and the
6 purchaser have agreed to an extension of the statute of
7 limitations for the issuance of a notice of tax liability as
8 provided in Section 50-145 of this Code. If the time for
9 assessment or refund has been extended, then amended reports
10 for a calendar year may be filed at any time prior to the
11 date to which the statute of limitations for the calendar
12 year or portion thereof has been extended. No Manufacturer's
13 Purchase Credit report filed with the Department for periods
14 prior to January 1, 1995 shall be approved. Manufacturer's
15 Purchase Credit claimed on an amended report may be used to
16 satisfy tax liability under Article 15 or Article 25 of this
17 Code (i) on qualifying purchases of production related
18 tangible personal property made after the date the amended
19 report is filed or (ii) assessed by the Department on
20 qualifying purchases of production related tangible personal
21 property made in the case of manufacturers on or after
22 January 1, 1995, or in the case of graphic arts producers on
23 or after July 1, 1996.
24 If the purchaser is not the manufacturer or a graphic
25 arts producer, but rents or leases the use of the property to
26 a manufacturer or graphic arts producer, the purchaser may
27 earn, report, and use Manufacturer's Purchase Credit in the
28 same manner as a manufacturer or graphic arts producer.
29 A purchaser shall not be entitled to any Manufacturer's
30 Purchase Credit for a purchase that is required to be
31 reported and is not timely reported as provided in this
32 Section. A purchaser remains liable for (i) any tax that was
33 satisfied by use of a Manufacturer's Purchase Credit, as of
34 the date of purchase, if that use is not timely reported as
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1 required in this Section and (ii) for any applicable
2 penalties and interest for failing to pay the tax when due.
3 Section 30-235. Sale of service. For purposes of the
4 service occupation tax and the service use tax, "sale of
5 service" means any transaction except:
6 (1) a retail sale of tangible personal property
7 taxable under Article 10 or Article 15.
8 (2) a sale of tangible personal property for the
9 purpose of resale made in compliance with Section 35-50.
10 (3) for purposes of the service occupation tax
11 only, until January 1, 1997, a sale, by a registered
12 serviceman paying service occupation tax to the
13 Department, of special order printed materials delivered
14 outside Illinois and which are not returned to this
15 State, if delivery is made by the seller or agent of the
16 seller, including an agent who causes the product to be
17 delivered outside Illinois by a common carrier or the
18 U.S. postal service.
19 Section 30-240. Election not to be sale of service. For
20 purposes of the service occupation tax and the service use
21 tax, "sale of service" shall not include, at the election of
22 any serviceman not required to be otherwise registered as a
23 retailer under Sections 35-5 through 35-45, made for each
24 fiscal year sales of service in which the aggregate annual
25 cost price of tangible personal property transferred as an
26 incident to the sales of service is less than 35%, or 75% in
27 the case of servicemen transferring prescription drugs or
28 servicemen engaged in graphic arts production, of the
29 aggregate annual total gross receipts from all sales of
30 service. The purchase of such tangible personal property by
31 the serviceman shall be subject to the retailers' occupation
32 tax and the use tax. However, if a primary serviceman who
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1 has made the election described in this Section subcontracts
2 service work to a secondary serviceman who has also made the
3 election described in this Section, the primary serviceman
4 does not incur a use tax liability if the secondary
5 serviceman (i) has paid or will pay use tax on his or her
6 cost price of any tangible personal property transferred to
7 the primary serviceman and (ii) certifies that fact in
8 writing to the primary serviceman.
9 Section 30-245. Maintenance agreement. Tangible personal
10 property transferred incident to the completion of a
11 maintenance agreement is exempt from the taxes imposed
12 pursuant to Article 20 and Article 25.
13 ARTICLE 35. APPLICATION, REGISTRATION, AND BONDING
14 Section 35-5. Certificate of registration.
15 (a) All of the provisions of Section 35-5 and Sections
16 35-25 through 35-45 of this Code concerning registration
17 shall apply to the retailers' occupation tax, the use tax,
18 the service occupation tax, and the service use tax unless
19 otherwise stated. To the extent that any provision
20 specifically applying to the use tax, the service occupation
21 tax, or the service use tax is inconsistent with a general
22 provision applying to all of the taxes, the specific
23 provision shall control.
24 (b) It is unlawful for any person to engage in the
25 business of selling tangible personal property at retail in
26 this State without a certificate of registration from the
27 Department. Application for a certificate of registration
28 shall be made to the Department upon forms furnished by it.
29 Each such application shall be signed and verified and shall
30 state: (1) the name and social security number of the
31 applicant; (2) the address of his principal place of
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1 business; (3) the address of the principal place of business
2 from which he engages in the business of selling tangible
3 personal property at retail in this State and the addresses
4 of all other places of business, if any (enumerating such
5 addresses, if any, in a separate list attached to and made a
6 part of the application), from which he engages in the
7 business of selling tangible personal property at retail in
8 this State; (4) the name and address of the person or persons
9 who will be responsible for filing returns and payment of
10 taxes due under Article 10 of this Code; (5) in the case of a
11 corporation, the name, title, and social security number of
12 each corporate officer; (6) in the case of a limited
13 liability company, the name, social security number, and FEIN
14 number of each manager and member; and (7) such other
15 information as the Department may reasonably require. The
16 application shall contain an acceptance of responsibility
17 signed by the person or persons who will be responsible for
18 filing returns and payment of the taxes due under Article 10.
19 If the applicant will sell tangible personal property at
20 retail through vending machines, his application to register
21 shall indicate the number of vending machines to be so
22 operated; and thereafter, he shall notify the Department by
23 January 31 of the number of vending machines which such
24 person was using in his business of selling tangible personal
25 property at retail on the preceding December 31.
26 The Department may deny a certificate of registration to
27 any applicant if the owner, any partner, any manager or
28 member of a limited liability company, or a corporate officer
29 of the applicant, is or has been the owner, a partner, a
30 manager or member of a limited liability company, or a
31 corporate officer, of another retailer that is in default for
32 moneys due under this Code.
33 Section 35-10. Certificate of registration; use tax. A
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1 retailer maintaining a place of business in this State, if
2 required to register for purposes of the retailers'
3 occupation tax, need not obtain an additional certificate of
4 registration for purposes of the use tax, but shall be deemed
5 to be sufficiently registered under the provisions of this
6 Code. Every retailer maintaining a place of business in this
7 State, if not required to register for purposes of the
8 retailers' occupation tax, shall apply to the Department
9 (upon a form prescribed and furnished by the Department) for
10 a certificate of registration for purposes of the use tax.
11 Section 35-15. Certificate of registration; service
12 occupation tax. A supplier maintaining a place of business
13 in this State, if required to register for purposes of the
14 retailers' occupation tax, the use tax, or the service use
15 tax, need not obtain an additional certificate of
16 registration for purposes of the service occupation tax, but
17 shall be deemed to be sufficiently registered by virtue of
18 his being registered for purposes of the retailers'
19 occupation tax, the use tax, or the service use tax. Every
20 supplier maintaining a place of business in this State, if
21 not required to register for purposes of the retailers'
22 occupation tax, the use tax, or the service use tax, shall
23 apply to the Department (upon a form prescribed and furnished
24 by the Department) for a certificate of registration for
25 purposes of the service occupation tax. Every serviceman
26 maintaining a place of business in this State, if not
27 required to register for purposes of the retailers'
28 occupation tax, the use tax, or the service use tax, and
29 desiring to or required to pay the tax imposed by Article 20
30 directly to the Department, shall apply to the Department
31 (upon a form prescribed and furnished by the Department) for
32 a certificate of registration for purposes of the service
33 occupation tax.
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1 Section 35-20. Certificate of registration; service use
2 tax. A serviceman maintaining a place of business in this
3 State, if required to register for purposes of the retailers'
4 occupation tax, for purposes of the use tax, or for purposes
5 of the service occupation tax, need not obtain an additional
6 certificate of registration for purposes of the service use
7 tax, but shall be deemed to be sufficiently registered by
8 virtue of his being registered for purposes of the retailers'
9 occupation tax, the use tax, or the service occupation tax.
10 Every serviceman maintaining a place of business in this
11 State, if not required to register for purposes of the
12 retailers' occupation tax, the use tax, or the service
13 occupation tax, shall apply to the Department (upon a form
14 prescribed and furnished by the Department) for a certificate
15 of registration for purposes of the service use tax.
16 Section 35-25. Bonds.
17 (a) Every applicant for a certificate of registration
18 shall, at the time of filing such application, furnish a bond
19 from a surety company authorized to do business in the State
20 of Illinois, or an irrevocable bank letter of credit or a
21 bond signed by 2 personal sureties who have filed, with the
22 Department, sworn statements disclosing net assets equal to
23 at least 3 times the amount of the bond to be required of
24 such applicant, or a bond secured by an assignment of a bank
25 account or certificate of deposit, stocks or bonds,
26 conditioned upon the applicant paying to the State of
27 Illinois all moneys becoming due under this Code and under
28 any other State tax law or municipal or county tax ordinance
29 or resolution under which the certificate of registration
30 that is issued to the applicant under Sections 35-5 through
31 35-20 will permit the applicant to engage in business without
32 registering separately under such other law, ordinance or
33 resolution. The Department shall fix the amount of such
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1 security in each case, taking into consideration the amount
2 of money expected to become due from the applicant under this
3 Code and under any other State tax law or municipal or county
4 tax ordinance or resolution under which the certificate of
5 registration that is issued to the applicant under Sections
6 35-5 through 35-20 will permit the applicant to engage in
7 business without registering separately under such other law,
8 ordinance or resolution. The amount of security required by
9 the Department shall be such as, in its opinion, will protect
10 the State of Illinois against failure to pay the amount which
11 may become due from the applicant under this Code and under
12 any other State tax law or municipal or county tax ordinance
13 or resolution under which the certificate of registration
14 that is issued to the applicant under Sections 35-5 through
15 35-20 will permit the applicant to engage in business without
16 registering separately under such other law, ordinance or
17 resolution, but the amount of the security required by the
18 Department shall not exceed three times the amount of the
19 applicant's average monthly tax liability, or $50,000.00,
20 whichever amount is lower.
21 (b) With respect to security other than bonds (upon which
22 the Department may sue in the event of a forfeiture), if the
23 taxpayer fails to pay, when due, any amount whose payment
24 such security guarantees, the Department shall, after such
25 liability is admitted by the taxpayer or established by the
26 Department through the issuance of a final assessment that
27 has become final under the law, convert the security which
28 that taxpayer has furnished into money for the State, after
29 first giving the taxpayer at least 10 days' written notice,
30 by registered or certified mail, to pay the liability or
31 forfeit such security to the Department. If the security
32 consists of stocks or bonds or other securities which are
33 listed on a public exchange, the Department shall sell such
34 securities through such public exchange. If the security
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1 consists of an irrevocable bank letter of credit, the
2 Department shall convert the security in the manner provided
3 for in the Uniform Commercial Code. If the security consists
4 of a bank certificate of deposit, the Department shall
5 convert the security into money by demanding and collecting
6 the amount of such bank certificate of deposit from the bank
7 which issued such certificate. If the security consists of a
8 type of stocks or other securities which are not listed on a
9 public exchange, the Department shall sell such security to
10 the highest and best bidder after giving at least 10 days'
11 notice of the date, time and place of the intended sale by
12 publication in the "State Official Newspaper". If the
13 Department realizes more than the amount of such liability
14 from the security, plus the expenses incurred by the
15 Department in converting the security into money, the
16 Department shall pay such excess to the taxpayer who
17 furnished such security, and the balance shall be paid into
18 the State Treasury.
19 (c) No certificate of registration under this Code shall
20 be issued by the Department until the applicant provides the
21 Department with satisfactory security as herein provided for.
22 (d) The Department shall discharge any surety and shall
23 release and return any security deposited, assigned, pledged
24 or otherwise provided to it by a taxpayer under this Section
25 within 30 days after:
26 (1) such taxpayer becomes a Prior Continuous
27 Compliance taxpayer as defined in Section 35-35; or
28 (2) such taxpayer has ceased to collect receipts on
29 which he is required to remit tax to the Department, has
30 filed a final tax return, and has paid to the Department
31 an amount sufficient to discharge his remaining tax
32 liability, as determined by the Department, under this
33 Code and under every other State tax law or municipal or
34 county tax ordinance or resolution under which the
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1 certificate of registration issued under Sections 35-5
2 through 35-20 permits the registrant to engage in
3 business without registering separately under such other
4 law, ordinance or resolution. The Department shall make
5 a final determination of the taxpayer's outstanding tax
6 liability as expeditiously as possible after his final
7 tax return has been filed; if the Department cannot make
8 such final determination within 45 days after receiving
9 the final tax return, within such period it shall so
10 notify the taxpayer, stating its reasons therefor.
11 Section 35-30. Issuance of certificate of registration;
12 sub-certificate of registration.
13 (a) Upon receipt of the application for certificate of
14 registration in proper form, and upon approval by the
15 Department of the security furnished by the applicant, the
16 Department shall issue to such applicant a certificate of
17 registration which shall permit the person to whom it is
18 issued to act as a retailer, supplier, or serviceman in this
19 State. The certificate of registration shall be conspicuously
20 displayed at the place of business which the person so
21 registered states in his application to be the principal
22 place of business from which he will act as a retailer,
23 supplier, or serviceman in this State.
24 No certificate of registration issued to a taxpayer who
25 files returns required by this Code on a monthly basis shall
26 be valid after the expiration of 5 years from the date of its
27 issuance or last renewal. The expiration date of a
28 sub-certificate of registration shall be that of the
29 certificate of registration to which the sub-certificate
30 relates. A certificate of registration shall automatically
31 be renewed, subject to revocation as provided by this Code,
32 for an additional 5 years from the date of its expiration
33 unless otherwise notified by the Department as provided by
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1 this paragraph. Where a taxpayer to whom a certificate of
2 registration is issued under this Code is in default to the
3 State of Illinois for moneys due under this Code or any other
4 State tax law or municipal or county ordinance administered
5 or enforced by the Department, the Department shall, not less
6 than 120 days before the expiration date of such certificate
7 of registration, give notice to the taxpayer to whom the
8 certificate was issued, of the amount of tax, penalty and
9 interest due and owing from the taxpayer, and that the
10 certificate of registration shall not be automatically
11 renewed upon its expiration date unless the taxpayer, on or
12 before the date of expiration, has paid the defaulted amount
13 in full. A taxpayer to whom such a notice is issued shall be
14 deemed an applicant for renewal. The Department shall
15 promulgate regulations establishing procedures for taxpayers
16 who file returns on a monthly basis but desire and qualify to
17 change to a quarterly or yearly filing basis and will no
18 longer be subject to renewal under this Section, and for
19 taxpayers who file returns on a yearly or quarterly basis but
20 who desire or are required to change to a monthly filing
21 basis and will be subject to renewal under this Section.
22 The Department may in its discretion approve renewal by
23 an applicant who is in default if, at the time of application
24 for renewal, the applicant pays to the Department such
25 percentage of the defaulted amount as may be determined by
26 the Department and agrees in writing to waive all limitations
27 upon the Department for collection of the remaining defaulted
28 amount to the Department over a period not to exceed 5 years
29 from the date of renewal of the certificate; however, no
30 renewal application submitted by an applicant who is in
31 default shall be approved if the immediately preceding
32 renewal by the applicant was conditioned upon the installment
33 payment agreement described in this Section. The payment
34 agreement herein provided for shall be in addition to and not
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1 in lieu of the security required by Section 35-25 of a
2 taxpayer who is no longer considered a prior continuous
3 compliance taxpayer. The execution of the payment agreement
4 as provided in this Code shall not toll the accrual of
5 interest at the statutory rate.
6 A certificate of registration issued under this Code more
7 than 5 years before the effective date of this amendatory Act
8 of 1989 shall expire and be subject to the renewal provisions
9 of this Section on the next anniversary of the date of
10 issuance of such certificate which occurs more than 6 months
11 after the effective date of this amendatory Act of 1989. A
12 certificate of registration issued less than 5 years before
13 the effective date of this amendatory Act of 1989 shall
14 expire and be subject to the renewal provisions of this
15 Section on the 5th anniversary of the issuance of the
16 certificate.
17 (b) If the person so registered states that he operates
18 other places of business from which he acts as a retailer,
19 supplier, or serviceman in this State, the Department shall
20 furnish him with a sub-certificate of registration for each
21 such place of business, and the applicant shall display the
22 appropriate sub-certificate of registration at each such
23 place of business. All sub-certificates of registration shall
24 bear the same registration number as that appearing upon the
25 certificate of registration to which such sub-certificates
26 relate.
27 (c) If the applicant will sell tangible personal
28 property at retail through vending machines, the Department
29 shall furnish him with a sub-certificate of registration for
30 each such vending machine, and the applicant shall display
31 the appropriate sub-certificate of registration on each such
32 vending machine by attaching the sub-certificate of
33 registration to a conspicuous part of such vending machine.
34 Where the same person engages in 2 or more businesses
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1 that are subject to registration under this Code, which
2 businesses are substantially different in character or are
3 engaged in under different trade names or are engaged in
4 under other substantially dissimilar circumstances (so that
5 it is more practicable, from an accounting, auditing or
6 bookkeeping standpoint, for such businesses to be separately
7 registered), the Department may require or permit such person
8 (subject to the same requirements concerning the furnishing
9 of security as those that are provided for in Section 35-25
10 as to each application for a certificate of registration) to
11 apply for and obtain a separate certificate of registration
12 for each such business or for any of such businesses, under a
13 single certificate of registration supplemented by related
14 sub-certificates of registration.
15 Section 35-35. Prior continuous compliance taxpayer.
16 (a) Any person who is registered under Section 35-5 as of
17 March 8, 1963, and who, during the 3-year period immediately
18 prior to March 8, 1963, or during a continuous 3-year period
19 part of which passed immediately before and the remainder of
20 which passes immediately after March 8, 1963, has been so
21 registered continuously and who is determined by the
22 Department not to have been either delinquent or deficient in
23 the payment of tax liability during that period under this
24 Code or under any other State tax law or municipal or county
25 tax ordinance or resolution under which the certificate of
26 registration that is issued to the registrant under this Code
27 will permit the registrant to engage in business without
28 registering separately under such other law, ordinance or
29 resolution, shall be considered to be a Prior Continuous
30 Compliance taxpayer. Also any taxpayer who has, as verified
31 by the Department, faithfully and continuously complied with
32 the condition of his bond or other security under the
33 provisions of this Code for a period of 3 consecutive years
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1 shall be considered to be a Prior Continuous Compliance
2 taxpayer.
3 (b) Every Prior Continuous Compliance taxpayer shall be
4 exempt from all requirements under this Code concerning the
5 furnishing of security as a condition precedent to his being
6 authorized to engage in the business of selling tangible
7 personal property at retail in this State. This exemption
8 shall continue for each such taxpayer until such time as he
9 may be determined by the Department to be delinquent in the
10 filing of any returns, or is determined by the Department
11 (either through the Department's issuance of a final
12 assessment which has become final under the Code, or by the
13 taxpayer's filing of a return which admits tax that is not
14 paid to be due) to be delinquent or deficient in the paying
15 of any tax under this Code or under any other State tax law
16 or municipal or county tax ordinance or resolution under
17 which the certificate of registration that is issued to the
18 registrant under Sections 35-5 through 35-20 will permit the
19 registrant to engage in business without registering
20 separately under such other law, ordinance or resolution, at
21 which time that taxpayer shall become subject to all the
22 financial responsibility requirements of this Code and, as a
23 condition of being allowed to continue to engage in the
24 business of selling tangible personal property at retail,
25 shall be required to post bond or other acceptable security
26 with the Department covering liability which such taxpayer
27 may thereafter incur. Any taxpayer who fails to pay an
28 admitted or established liability under this Code may also be
29 required to post bond or other acceptable security with this
30 Department guaranteeing the payment of such admitted or
31 established liability.
32 Section 35-40. Registrants in default. No certificate of
33 registration shall be issued to any person who is in default
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1 to the State of Illinois for moneys due under this Code or
2 under any other State tax law or municipal or county tax
3 ordinance or resolution under which the certificate of
4 registration that is issued to the applicant under this Code
5 will permit the applicant to engage in business without
6 registering separately under such other law, ordinance or
7 resolution.
8 Section 35-45. Hearings. Any person aggrieved by any
9 decision of the Department under Sections 35-5 through 35-40
10 may, within 20 days after notice of such decision, protest
11 and request a hearing, whereupon the Department shall give
12 notice to such person of the time and place fixed for such
13 hearing and shall hold a hearing in conformity with the
14 provisions of this Code and then issue its final
15 administrative decision in the matter to such person. In the
16 absence of such a protest within 20 days, the Department's
17 decision shall become final without any further determination
18 being made or notice given.
19 Section 35-50. Resale number. If the purchaser is not
20 registered with the Department as a taxpayer, but claims to
21 be a reseller of the tangible personal property in such a way
22 that such resales are not taxable under this Code or under
23 some other tax law which the Department may administer, such
24 purchaser (except in the case of an out-of-State purchaser
25 who will always resell and deliver the property to his
26 customers outside Illinois) shall apply to the Department for
27 a resale number. Such applicant shall state facts which will
28 show the Department why such applicant is not liable for tax
29 under this Code or under some other tax law which the
30 Department may administer on any of his resales and shall
31 furnish such additional information as the Department may
32 reasonably require.
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1 Upon approval of the application, the Department shall
2 assign a resale number to the applicant and shall certify
3 such number to him. The Department may cancel any such number
4 which is obtained through misrepresentation, or which is used
5 to make a purchase tax-free when the purchase in fact is not
6 a purchase for resale, or which no longer applies because of
7 the purchaser's having discontinued the making of tax exempt
8 resales of the property.
9 The Department may restrict the use of the number to one
10 year at a time or to some other definite period if the
11 Department finds it impracticable or otherwise inadvisable to
12 issue such numbers for indefinite periods.
13 Except as provided hereinabove in this Section, a sale
14 shall be made tax-free on the ground of being a sale for
15 resale if the purchaser has an active registration number or
16 resale number from the Department and furnishes that number
17 to the seller in connection with certifying to the seller
18 that any sale to such purchaser is nontaxable because of
19 being a sale for resale.
20 Failure to present an active registration number or
21 resale number and a certification to the seller that a sale
22 is for resale creates a presumption that a sale is not for
23 resale. This presumption may be rebutted by other evidence
24 that all of the seller's sales are sale for resale, or that a
25 particular sale is a sale for resale.
26 Section 35-55. High impact business. Except for high
27 impact businesses, the exemption stated in Sections 30-10 and
28 30-20 shall only apply to business enterprises which:
29 (1) either (i) make investments which cause the
30 creation of a minimum of 200 full-time equivalent jobs in
31 Illinois or (ii) make investments which cause the
32 retention of a minimum of 2000 full-time jobs in Illinois
33 or (iii) make investments of a minimum of $40,000,000 and
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1 retain at least 90% of the jobs in place on the date on
2 which the exemption is granted and for the duration of
3 the exemption; and
4 (2) are located in an enterprise zone established
5 pursuant to the Illinois Enterprise Zone Act; and
6 (3) are certified by the Department of Commerce and
7 Community Affairs as complying with the requirements
8 specified in clauses (1), (2) and (3).
9 Any business enterprise seeking to avail itself of the
10 exemptions stated in Sections 30-10 or 30-20, or both, shall
11 make application to the Department of Commerce and Community
12 Affairs in such form and providing such information as may be
13 prescribed by the Department of Commerce and Community
14 Affairs. However, no business enterprise shall be required,
15 as a condition for certification under clause (3) of this
16 Section, to attest that its decision to invest under clause
17 (1) of this Section and to locate under clause (2) of this
18 Section is predicated upon the availability of the exemptions
19 authorized by Sections 30-10 or 30-20.
20 The Department of Commerce and Community Affairs shall
21 determine whether the business enterprise meets the criteria
22 prescribed in this Section. If the Department of Commerce
23 and Community Affairs determines that such business
24 enterprise meets the criteria, it shall issue a certificate
25 of eligibility for exemption to the business enterprise in
26 such form as is prescribed by the Department of Revenue. The
27 Department of Commerce and Community Affairs shall act upon
28 such certification requests within 60 days after receipt of
29 the application, and shall file with the Department of
30 Revenue a copy of each certificate of eligibility for
31 exemption.
32 The Department of Commerce and Community Affairs shall
33 have the power to promulgate rules and regulations to carry
34 out the provisions of this Section including the power to
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1 define the amounts and types of eligible investments not
2 specified in this Section which business enterprises must
3 make in order to receive the exemptions stated in Sections
4 30-10 and 30-20 of this Code; and to require that any
5 business enterprise that is granted a tax exemption repay the
6 exempted tax if the business enterprise fails to comply with
7 the terms and conditions of the certification.
8 Such certificate of eligibility for exemption shall be
9 presented by the business enterprise to its supplier when
10 making the initial purchase of tangible personal property for
11 which an exemption is granted by Section 30-10 or Section
12 30-20, or both, together with a certification by the business
13 enterprise that such tangible personal property is exempt
14 from taxation under Section 30-10 or Section 30-20 and by
15 indicating the exempt status of each subsequent purchase on
16 the face of the purchase order.
17 The Department of Commerce and Community Affairs shall
18 determine the period during which such exemption from the
19 taxes imposed under this Code is in effect which shall not
20 exceed 20 years.
21 Section 35-60. Exemption identification number. On or
22 before December 31, 1986, except as hereinafter provided,
23 each entity otherwise eligible under Section 30-170 shall
24 make application to the Department for an exemption
25 identification number. In the case of a corporation, society,
26 association, foundation, or institution organized and
27 operated exclusively for charitable purposes and that has
28 more than 50 subsidiary organizations in Illinois, the
29 Department, in its sole discretion, may issue one exemption
30 identification number to be used by the parent organization
31 and each subsidiary organization.
32 Each exemption identification number or renewal number
33 shall be valid for 5 years after the first day of the month
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1 following the month of issuance. Not less than 3 months
2 before the expiration date, an application for renewal shall
3 be filed.
4 Each application for an exemption identification number
5 or a renewal number shall contain information and be
6 accompanied by documentation as shall be requested by the
7 Department.
8 Section 35-65. Exemption identification number; list.
9 Upon request made on or after July 1, 1987, the Department
10 shall furnish to any county or municipality a list containing
11 the name of each corporation, society, association,
12 foundation or institution organized and operated exclusively
13 for charitable, religious or educational purposes, and each
14 not-for-profit corporation, society, association, foundation,
15 institution or organization which has no compensated officers
16 or employees and which is organized and operated primarily
17 for the recreation of persons 55 years of age or older, which
18 had a valid exemption identification number on the first day
19 of January or July, as the case may be, proceeding the date
20 on which such request is received and which is located within
21 the corporate limits of such municipality or the
22 unincorporated territory of such county, except that the list
23 need not include subsidiary organizations using an exemption
24 identification number issued to its parent organization as
25 provided by Section 30-20.
26 Section 35-70. Exemption from bonding. Notwithstanding
27 any other provision to the contrary, any person who is
28 required to file a bond pursuant to any provision of this
29 Code and who has continuously complied with all provisions of
30 this Code for 24 or more consecutive months, shall no longer
31 be required to comply with the bonding provisions of this
32 Code so long as such person continues his compliance with the
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1 provisions of this Code.
2 Section 35-75. Exemption from bonding; Department of
3 Revenue. The Department is not required to furnish any bond
4 nor to make a deposit for or pay any costs or fees of any
5 court or officer thereof in any judicial proceedings under
6 this Code. Whenever a certified copy of a judgment or order
7 for attachment, issued from any court for the enforcement or
8 collection of any liability created by this Code, is levied
9 by any sheriff or coroner upon any personal property, and
10 such property is claimed by any person other than the
11 judgment debtor or the defendant in the attachment, or is
12 claimed by the judgment debtor or defendant in the attachment
13 as exempt from enforcement of a judgment thereon by virtue of
14 the exemption laws of this State, then the person making such
15 claim shall give notice in writing of his or her claim and of
16 his or her intention to prosecute the claim, to the sheriff
17 or coroner within 10 days after the making of the levy. On
18 receiving such notice, the sheriff or coroner shall proceed
19 in accordance with Part 2 of Article XII of the Code of Civil
20 Procedure, as amended. The giving of such notice within the
21 10 day period is a condition precedent to any judicial action
22 against the sheriff or coroner for wrongfully levying,
23 seizing or selling the property and any such person who fails
24 to give such notice within that time is barred from bringing
25 any judicial action against such sheriff or coroner for
26 injury or damages to or conversion of the property.
27 Section 35-80. Aircraft maintenance facility. Aircraft
28 maintenance facility means a facility operated by an
29 interstate carrier for hire that is used primarily for the
30 maintenance, rebuilding or repair of aircraft, aircraft parts
31 and auxiliary equipment owned or leased by that carrier and
32 used by that carrier as rolling stock moving in interstate
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1 commerce, and which: (1) will make an investment by the
2 interstate carrier for hire of $400,000,000 or more in an
3 enterprise zone; (2) will cause the creation of at least
4 5,000 full-time jobs in that enterprise zone; (3) is located
5 in a county with population not less than 150,000 and not
6 more than 200,000 and that contains 3 enterprise zones as of
7 December 31, 1990; (4) enters into a legally binding
8 agreement with the Department of Commerce and Community
9 Affairs to comply with clauses (1) and (2) of this paragraph
10 within a time period specified in the rules and regulations
11 promulgated pursuant to this Section; and (5) is certified by
12 the Department of Commerce and Community Affairs to be in
13 compliance with clauses (1), (2), (3) and (4) of this
14 Section. Any aircraft maintenance facility applying for the
15 exemption stated in this Section shall make application to
16 the Department of Commerce and Community Affairs in such form
17 and providing such information as may be prescribed by the
18 Department of Commerce and Community Affairs.
19 The Department of Commerce and Community Affairs shall
20 determine whether the facility meets the criteria prescribed
21 in this Section. If the Department of Commerce and Community
22 Affairs determines that the facility meets the criteria, it
23 shall issue a certificate of eligibility for exemption in the
24 form prescribed by the Department of Revenue to the business
25 enterprise operating the facility. The Department of
26 Commerce and Community Affairs shall act upon certification
27 request within 60 days after receipt of application, and
28 shall file with the Department of Revenue a copy of each
29 certificate of eligibility for exemption.
30 The Department of Commerce and Community Affairs shall
31 promulgate rules and regulations to carry out the provisions
32 of this Section, and to require that any business enterprise
33 that is granted a tax exemption pay the exempted tax to the
34 Department of Revenue if the business enterprise fails to
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1 comply with the terms and conditions of the certification,
2 and pay all penalties and interest on that exempted tax as
3 determined by the Department of Revenue.
4 The certificate of eligibility for exemption shall be
5 presented by the business enterprise to its supplier when
6 making the initial purchase of machinery and equipment for
7 which an exemption is granted by Section 30-35 or Section
8 30-40 of this Code, or both, together with a certification by
9 the business enterprise that the machinery and equipment is
10 exempt from taxation under Section 30-35 or 30-40 of this
11 Code. The exempt status, if any, of each subsequent purchase
12 shall be indicated on the face of the purchase order.
13 Section 35-85. High impact service facility. High
14 impact service facility means a facility used primarily for
15 the sorting, handling and redistribution of single item
16 non-fungible parcels received from agents or employees of the
17 handler or shipper for processing at a common location and
18 redistribution to other employees or agents for delivery to
19 an ultimate destination on an item-by-item basis, and which:
20 (1) will make an investment by a business enterprise of
21 $150,000,000 dollars or more; (2) will cause the creation of
22 at least 1,000 jobs in an enterprise zone established
23 pursuant to the Illinois Enterprise Zone Act; and (3) is
24 certified by the Department of Commerce and Community Affairs
25 as contractually obligated to meet the requirements specified
26 in divisions (1) and (2) of this paragraph within the time
27 period as specified by the certification. Any business
28 enterprise applying for the exemption stated in this Section
29 shall make application to the Department of Commerce and
30 Community Affairs in such form and providing such information
31 as may be prescribed by the Department of Commerce and
32 Community Affairs.
33 The Department of Commerce and Community Affairs shall
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1 determine whether the facility meets the criteria prescribed
2 in this Section. If the Department of Commerce and Community
3 Affairs determines that such business enterprise meets the
4 criteria, it shall issue a certificate of eligibility for
5 exemption to the business enterprise in such form as is
6 prescribed by the Department of Revenue. The Department of
7 Commerce and Community Affairs shall act upon such
8 certification requests within 60 days after receipt of the
9 application, and shall file with the Department of Revenue a
10 copy of each certificate of eligibility for exemption.
11 The Department of Commerce and Community Affairs shall
12 have the power to promulgate rules and regulations to carry
13 out the provisions of this Section and to require that any
14 business enterprise that is granted a tax exemption repay the
15 exempted tax if the business enterprise fails to comply with
16 the terms and conditions of the certification.
17 The certificate of eligibility for exemption shall be
18 presented by the business enterprise to its supplier when
19 making the initial purchase of machinery and equipment for
20 which an exemption is granted by Section 30-25 of this Code,
21 together with a certification by the business enterprise that
22 such machinery and equipment is exempt from taxation under
23 Section 30-25 of this Code and by indicating the exempt
24 status of each subsequent purchase on the face of the
25 purchase order.
26 The Department of Commerce and Community Affairs shall
27 determine the period during which such exemption from the
28 taxes imposed under this Code will remain in effect.
29 Section 35-90. Enterprise zones; building materials.
30 Each retailer whose place of business is within a county or
31 municipality which has established an enterprise zone
32 pursuant to the Illinois Enterprise Zone Act and who makes a
33 sale of building materials to be incorporated into real
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1 estate in such enterprise zone by remodeling, rehabilitation
2 or new construction, may deduct receipts from such sales when
3 calculating the taxes imposed by this Code. The deduction
4 allowed by this Section for the sale of building materials
5 may be limited, to the extent authorized by ordinance,
6 adopted after February 18, 1992, by the municipality or
7 county that created the enterprise zone. The corporate
8 authorities of any municipality or county that adopts an
9 ordinance or resolution imposing or changing any limitation
10 on the enterprise zone exemption for building materials shall
11 transmit to the Department of Revenue on or not later than 5
12 days after publication, as provided by law, a certified copy
13 of the ordinance or resolution imposing or changing those
14 limitations, whereupon the Department of Revenue shall
15 proceed to administer and enforce those limitations effective
16 the first day of the second calendar month next following
17 date of receipt by the Department of the certified ordinance
18 or resolution.
19 ARTICLE 40. CONFIDENTIALITY
20 Section 40-5. Information confidential; exceptions. All
21 information received by the Department from returns filed
22 under this Code, or from any investigation conducted under
23 this Code, shall be confidential, except for official
24 purposes, and any person who divulges any such information in
25 any manner, except in accordance with a proper judicial order
26 or as otherwise provided by law, shall be guilty of a Class B
27 misdemeanor.
28 Nothing in this Code prevents the Director of Revenue
29 from publishing or making available to the public the names
30 and addresses of persons filing returns under this Code, or
31 reasonable statistics concerning the operation of the tax by
32 grouping the contents of returns so the information in any
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1 individual return is not disclosed.
2 Nothing in this Code prevents the Director of Revenue
3 from divulging to the United States Government or the
4 government of any other state, or any village that does not
5 levy any real property taxes for village operations and that
6 receives more than 60% of its general corporate revenue from
7 taxes under Articles 10, 15, 20, and 25 of this Code, or any
8 officer or agency thereof, for exclusively official purposes,
9 information received by the Department in administering this
10 Code, provided that such other governmental agency agrees to
11 divulge requested tax information to the Department.
12 The Department's furnishing of information derived from a
13 taxpayer's return or from an investigation conducted under
14 this Code to the surety on a taxpayer's bond that has been
15 furnished to the Department under this Code, either to
16 provide notice to such surety of its potential liability
17 under the bond or, in order to support the Department's
18 demand for payment from such surety under the bond, is an
19 official purpose within the meaning of this Section.
20 The furnishing upon request of information obtained by
21 the Department from returns filed under this Code or
22 investigations conducted under this Code to the Illinois
23 Liquor Control Commission for official use is deemed to be an
24 official purpose within the meaning of this Section.
25 Notice to a surety of potential liability shall not be
26 given unless the taxpayer has first been notified, not less
27 than 10 days prior thereto, of the Department's intent to so
28 notify the surety.
29 The furnishing upon request of the Auditor General, or
30 his authorized agents, for official use, of returns filed and
31 information related thereto under this Code is deemed to be
32 an official purpose within the meaning of this Section.
33 Where an appeal or a protest has been filed on behalf of
34 a taxpayer, the furnishing upon request of the attorney for
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1 the taxpayer of returns filed by the taxpayer and information
2 related thereto under this Code is deemed to be an official
3 purpose within the meaning of this Section.
4 The furnishing of financial information to a home rule
5 unit that has imposed a tax similar to that imposed by this
6 Code pursuant to its home rule powers, or to any village that
7 does not levy any real property taxes for village operations
8 and that receives more than 60% of its general corporate
9 revenue from taxes under Articles 10, 15, 20, and 25 of this
10 Code, upon request of the Chief Executive thereof, is an
11 official purpose within the meaning of this Section,
12 provided the home rule unit or village that does not levy any
13 real property taxes for village operations and that receives
14 more than 60% of its general corporate revenue from taxes
15 under Articles 10, 15, 20, and 25 of this Code agrees in
16 writing to the requirements of this Section.
17 For a village that does not levy any real property taxes
18 for village operations and that receives more than 60% of its
19 general corporate revenue from taxes under Articles 10, 15,
20 20, and 25 of this Code, the officers eligible to receive
21 information from the Department of Revenue under this Section
22 are the village manager and the chief financial officer of
23 the village.
24 Information so provided shall be subject to all
25 confidentiality provisions of this Section. The written
26 agreement shall provide for reciprocity, limitations on
27 access, disclosure, and procedures for requesting
28 information.
29 The Director may make available to any State agency,
30 including the Illinois Supreme Court, which licenses persons
31 to engage in any occupation, information that a person
32 licensed by such agency has failed to file returns under this
33 Code or pay the tax, penalty and interest shown therein, or
34 has failed to pay any final assessment of tax, penalty or
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1 interest due under this Code. The Director may also make
2 available to the Secretary of State information that a
3 limited liability company, which has filed articles of
4 organization with the Secretary of State, or corporation
5 which has been issued a certificate of incorporation by the
6 Secretary of State has failed to file returns under this Code
7 or pay the tax, penalty and interest shown therein, or has
8 failed to pay any final assessment of tax, penalty or
9 interest due under this Code. An assessment is final when all
10 proceedings in court for review of such assessment have
11 terminated or the time for the taking thereof has expired
12 without such proceedings being instituted.
13 The Director shall make available for public inspection
14 in the Department's principal office and for publication, at
15 cost, administrative decisions issued on or after January 1,
16 1995. These decisions are to be made available in a manner so
17 that the following taxpayer information is not disclosed:
18 (1) The names, addresses, and identification
19 numbers of the taxpayer, related entities, and employees.
20 (2) At the sole discretion of the Director, trade
21 secrets or other confidential information identified as
22 such by the taxpayer, no later than 30 days after receipt
23 of an administrative decision, by such means as the
24 Department shall provide by rule.
25 The Director shall determine the appropriate extent of
26 the deletions allowed in paragraph (2). In the event the
27 taxpayer does not submit deletions, the Director shall make
28 only the deletions specified in paragraph (1).
29 The Director shall make available for public inspection
30 and publication an administrative decision within 180 days
31 after the issuance of the administrative decision. The term
32 "administrative decision" has the same meaning as defined in
33 Section 3-101 of Article III of the Code of Civil Procedure.
34 Costs collected under this Section shall be paid into the Tax
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1 Compliance and Administration Fund.
2 ARTICLE 45. BOOKKEEPING
3 Section 45-5. Applicability of Article. The provisions
4 of this Article shall apply to the retailers' occupation tax,
5 the use tax, the service occupation tax, and the service use
6 tax. To the extent that any provision specifically applying
7 to the use tax, the service occupation tax, or the service
8 use tax is inconsistent with a general provision applying to
9 all of the taxes, the specific provision shall control.
10 Section 45-10. Records to be kept. Every person engaged
11 in the business of selling tangible personal property at
12 retail in this State shall keep records and books of all
13 sales of tangible personal property, together with invoices,
14 bills of lading, sales records, copies of bills of sale,
15 inventories prepared as of December 31 of each year or
16 otherwise annually as has been the custom in the specific
17 trade and other pertinent papers and documents. Every person
18 who is engaged in the business of selling tangible personal
19 property at retail in this State and who, in connection with
20 such business, also engages in other activities (including,
21 but not limited to, engaging in a service occupation) shall
22 keep such additional records and books of all such activities
23 as will accurately reflect the character and scope of such
24 activities and the amount of receipts realized therefrom. The
25 Department may adopt rules that establish requirements,
26 including record forms and formats, for records required to
27 be kept and maintained by taxpayers. For purposes of this
28 Section, "records" means all data maintained by the taxpayer,
29 including data on paper, microfilm, microfiche or any type of
30 machine-sensible data compilation.
31 All books and records and other papers and documents
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1 which are required by this Code to be kept shall be kept in
2 the English language and shall, at all times during business
3 hours of the day, be subject to inspection by the Department
4 or its duly authorized agents and employees.
5 To support deductions made on the tax return form, or
6 authorized under this Code, on account of receipts from
7 isolated or occasional sales of tangible personal property,
8 on account of receipts from sales of tangible personal
9 property for resale, on account of receipts from sales to
10 governmental bodies or other exempted types of purchasers, on
11 account of receipts from sales of tangible personal property
12 in interstate commerce, and on account of receipts from any
13 other kind of transaction that is not taxable under this
14 Code, entries in any books, records or other pertinent papers
15 or documents of the taxpayer in relation thereto shall be in
16 detail sufficient to show the name and address of the
17 taxpayer's customer in each such transaction, the character
18 of every such transaction, the date of every such
19 transaction, the amount of receipts realized from every such
20 transaction and such other information as may be necessary to
21 establish the non-taxable character of such transaction under
22 this Code.
23 Except in the case of a sale to a purchaser who will
24 always resell and deliver the property to his customers
25 outside Illinois, anyone claiming that he has made a
26 nontaxable sale for resale in some form as tangible personal
27 property shall also keep a record of the purchaser's
28 registration number or resale number with the Department.
29 It shall be presumed that all sales of tangible personal
30 property are subject to tax under this Code until the
31 contrary is established, and the burden of proving that a
32 transaction is not taxable hereunder shall be upon the person
33 who would be required to remit the tax to the Department if
34 such transaction is taxable. In the course of any audit or
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1 investigation or hearing by the Department with reference to
2 a given taxpayer, if the Department finds that the taxpayer
3 lacks documentary evidence needed to support the taxpayer's
4 claim to exemption from tax hereunder, the Department is
5 authorized to notify the taxpayer in writing to produce such
6 evidence, and the taxpayer shall have 60 days subject to the
7 right in the Department to extend this period either on
8 request for good cause shown or on its own motion from the
9 date when such notice is sent to the taxpayer by certified or
10 registered mail (or delivered to the taxpayer if the notice
11 is served personally) in which to obtain and produce such
12 evidence for the Department's inspection, failing which the
13 matter shall be closed, and the transaction shall be
14 conclusively presumed to be taxable hereunder.
15 Books and records and other papers reflecting gross
16 receipts received during any period with respect to which the
17 Department is authorized to issue notices of tax liability as
18 provided by Sections 50-145 and 50-150 of this Code shall be
19 preserved until the expiration of such period unless the
20 Department, in writing, shall authorize their destruction or
21 disposal prior to such expiration.
22 Section 45-15. Records; use tax; service occupation tax;
23 service use tax. For purposes of the use tax, the service
24 occupation tax, and the service use tax, every retailer,
25 supplier, or serviceman required or authorized to collect
26 taxes hereunder and every person subject to the taxes imposed
27 by Article 15, Article 20, or Article 25 shall keep such
28 records, receipts, invoices and other pertinent books,
29 documents, memoranda and papers as the Department shall
30 require, in such form as the Department shall require. The
31 Department may adopt rules that establish requirements,
32 including record forms and formats, for records required to
33 be kept and maintained by taxpayers. For purposes of this
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1 Section, "records" means all data maintained by the taxpayer,
2 including data on paper, microfilm, microfiche or any type of
3 machine-sensible data compilation. For the purpose of
4 administering and enforcing the provisions hereof, the
5 Department, or any officer or employee of the Department
6 designated, in writing, by the Director thereof, may hold
7 investigations and hearings concerning any matters covered
8 herein and may examine any books, papers, records, documents
9 or memoranda of (i) any retailer or purchaser bearing upon
10 the sales or purchases of tangible personal property, the
11 privilege of using which is taxed under Article 15, (ii) any
12 supplier or serviceman bearing upon the sales of services or
13 the sales of tangible personal property to servicemen, or
14 (iii) any serviceman or any taxable purchaser for use for
15 purposes of Article 25, and may require the attendance of
16 such person or any officer or employee of such person, or of
17 any person having knowledge of the facts, and may take
18 testimony and require proof for its information.
19 ARTICLE 50. RETURNS
20 Section 50-5. Applicability of Sections 50-10 through
21 50-140. All of the provisions of Sections 50-10 through
22 50-140 of this Code shall apply to the retailers' occupation
23 tax, the use tax, the service occupation tax, and the service
24 use tax unless otherwise stated, except that the Sections
25 concerning the disposition by the Department of the money
26 collected under this Code shall not apply to the service
27 occupation tax and the service use tax unless the Section
28 states that it applies to those taxes. To the extent that
29 any provision specifically applying to the use tax, the
30 service occupation tax, or the service use tax is
31 inconsistent with a general provision applying to all of the
32 taxes, the specific provision shall control.
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1 Section 50-10. Monthly returns. Except as provided in
2 Sections 50-5 through 50-140, on or before the twentieth day
3 of each calendar month, every person engaged in the business
4 of selling tangible personal property at retail in this State
5 during the preceding calendar month shall file a return with
6 the Department, stating:
7 (1) the name of the seller;
8 (2) his residence address and the address of his
9 principal place of business and the address of the
10 principal place of business (if that is a different
11 address) from which he engages in the business of selling
12 tangible personal property at retail in this State;
13 (3) total amount of receipts received by him during
14 the preceding calendar month or quarter, as the case may
15 be, from sales of tangible personal property, and from
16 services furnished, by him during such preceding calendar
17 month or quarter;
18 (4) total amount received by him during the
19 preceding calendar month or quarter on charge and time
20 sales of tangible personal property, and from services
21 furnished, by him prior to the month or quarter for which
22 the return is filed;
23 (5) deductions allowed by law;
24 (6) gross receipts which were received by him
25 during the preceding calendar month or quarter and upon
26 the basis of which the tax is imposed;
27 (7) the amount of credit provided in Section 10-30;
28 (8) the amount of tax due;
29 (9) the signature of the taxpayer; and
30 (10) such other reasonable information as the
31 Department may require.
32 Section 50-15. Use tax returns. For purposes of the use
33 tax, except as provided in Sections 50-5 through 50-140, on
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1 or before the twentieth day of each calendar month, each
2 retailer required or authorized to collect the use tax shall
3 file a return for the preceding calendar month. Such return
4 shall be filed on forms prescribed by the Department and
5 shall furnish such information as the Department may
6 reasonably require.
7 Section 50-20. Service occupation tax returns. For
8 purposes of the service occupation tax, except as provided in
9 Sections 50-5 through 50-140, on or before the twentieth day
10 of each calendar month, each serviceman required or
11 authorized to collect the service occupation tax shall file a
12 return for the preceding calendar month in accordance with
13 reasonable rules and regulations to be promulgated by the
14 Department of Revenue. Such return shall be filed on a form
15 prescribed by the Department and shall contain such
16 information as the Department may reasonably require.
17 Section 50-25. Service use tax returns. For purposes of
18 the service use tax, except as provided in Sections 50-5
19 through 50-140, on or before the twentieth day of each
20 calendar month, each serviceman required or authorized to
21 collect the service use tax shall file a return for the
22 preceding calendar month in accordance with reasonable rules
23 and regulations to be promulgated by the Department. Such
24 return shall be filed on a form prescribed by the Department
25 and shall contain such information as the Department may
26 reasonably require.
27 Section 50-30. Quarterly returns. The Department may
28 require returns to be filed on a quarterly basis. If so
29 required, a return for each calendar quarter shall be filed
30 on or before the twentieth day of the calendar month
31 following the end of such calendar quarter. The taxpayer
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1 shall also file a return with the Department for each of the
2 first two months of each calendar quarter, on or before the
3 twentieth day of the following calendar month, stating:
4 (1) the name of the seller;
5 (2) the address of the principal place of business
6 from which he engages (i) in the business of selling
7 tangible personal property at retail in this State or
8 (ii) in business as a serviceman in this State;
9 (3) for purposes of the retailers' occupation tax
10 and the use tax, the total amount of taxable receipts
11 received by him during the preceding calendar month from
12 sales of tangible personal property by him during such
13 preceding calendar month, including receipts from charge
14 and time sales, but less all deductions allowed by law
15 or, for purposes of the service occupation tax and the
16 service use tax, the total amount of taxable receipts
17 received by him during the preceding calendar month,
18 including receipts from charge and time sales but less
19 all deductions allowed by law;
20 (4) the amount of credit provided in Section 10-30;
21 (5) the amount of tax due;
22 (6) for purposes of the use tax, the service
23 occupation tax, and the service use tax, the signature of
24 the taxpayer; and
25 (7) such other reasonable information as the
26 Department may require.
27 Section 50-35. Authorization to file returns on quarter
28 annual or annual basis.
29 (a) If the retailer or serviceman is otherwise required
30 to file a monthly return and if the retailer's or
31 serviceman's average monthly tax liability to the Department
32 does not exceed $200, the Department may authorize his
33 returns to be filed on a quarter annual basis, with the
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1 return for January, February and March of a given year being
2 due by April 20 of such year; with the return for April, May
3 and June of a given year being due by July 20 of such year;
4 with the return for July, August and September of a given
5 year being due by October 20 of such year, and with the
6 return for October, November and December of a given year
7 being due by January 20 of the following year.
8 (b) If the retailer or serviceman is otherwise required
9 to file a monthly or quarterly return and if the retailer's
10 or serviceman's average monthly tax liability with the
11 Department does not exceed $50, the Department may authorize
12 his returns to be filed on an annual basis, with the return
13 for a given year being due by January 20 of the following
14 year.
15 (c) Such quarter annual and annual returns, as to form
16 and substance, shall be subject to the same requirements as
17 monthly returns.
18 Section 50-40. Failure to sign a return. If a taxpayer
19 fails to sign a return within 30 days after the proper notice
20 and demand for signature by the Department, the return shall
21 be considered valid and any amount shown to be due on the
22 return shall be deemed assessed.
23 Section 50-45. Signature on return for a corporation or
24 limited liability company.
25 (a) Where the seller is a corporation, the return filed
26 on behalf of such corporation shall be signed by the
27 president, vice-president, secretary or treasurer or by the
28 properly accredited agent of such corporation.
29 (b) Where the seller is a limited liability company, the
30 return filed on behalf of the limited liability company shall
31 be signed by a manager, member, or properly accredited agent
32 of the limited liability company.
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1 Section 50-50. Statement of prepaid tax. Each return
2 shall be accompanied by the statement of prepaid tax issued
3 pursuant to Section 10-35 for which credit is claimed.
4 Section 50-55. Rounding.
5 (a) If a total amount of less than $1 is payable,
6 refundable or creditable, such amount shall be disregarded if
7 it is less than 50 cents and shall be increased to $1 if it
8 is 50 cents or more.
9 (b) Any amount which is required to be shown or reported
10 on any return or other document under this Code shall, if
11 such amount is not a whole-dollar amount, be increased to the
12 nearest whole-dollar amount in any case where the fractional
13 part of a dollar is 50 cents or more, and decreased to the
14 nearest whole-dollar amount where the fractional part of a
15 dollar is less than 50 cents.
16 Section 50-60. Cessation of business. Notwithstanding
17 any other provision in this Code concerning the time within
18 which a retailer or serviceman may file his return, in the
19 case of any retailer or serviceman who ceases to engage in a
20 kind of business which makes him responsible for filing
21 returns under this Code, such retailer or serviceman shall
22 file a final return under this Code with the Department not
23 more than one month after discontinuing such business.
24 Section 50-65. Multiple businesses. Where the same
25 person has more than one business registered with the
26 Department under separate registrations under this Code, such
27 person may not file each return that is due as a single
28 return covering all such registered businesses, but shall
29 file separate returns for each such registered business.
30 Section 50-70. Selling price of property on return.
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1 (a) For purposes of the use tax, any retailer filing a
2 return under Sections 50-5 through 50-140 shall also include
3 (for the purpose of paying tax thereon) the total tax covered
4 by such return upon the selling price of tangible personal
5 property purchased by him at retail from a retailer, but as
6 to which the tax imposed by Article 15 was not collected from
7 the retailer filing such return, and such retailer shall
8 remit the amount of such tax to the Department when filing
9 such return.
10 (b) For purposes of the service use tax, any serviceman
11 filing a return hereunder shall also include the total tax
12 upon the selling price of tangible personal property
13 purchased for use by him as an incident to a sale of service,
14 and such serviceman shall remit the amount of such tax to the
15 Department when filing such return.
16 Section 50-75. Joint returns.
17 (a) For purposes of the use tax, if experience indicates
18 such action to be practicable, the Department may prescribe
19 and furnish a combination or joint return which will enable
20 retailers, who are required to file returns for the taxes
21 imposed in Article 10 and Article 15 to furnish all the
22 return information required for both taxes on the one form.
23 (b) For purposes of the service use tax, if experience
24 indicates such action to be practicable, the Department may
25 prescribe and furnish a combination or joint return which
26 will enable servicemen, who are required to file returns for
27 the taxes imposed by Articles 20 and 25, to furnish all the
28 return information required by both taxes on the one form.
29 (c) For purposes of the service occupation tax, if
30 experience indicates such action to be practicable, the
31 Department may prescribe and furnish a combination or joint
32 return which will enable servicemen, who are required to file
33 returns for the tax imposed by Article 20 and also the taxes
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1 imposed by Articles 10, 15, and 25, to furnish all the return
2 information required by all said taxes on the one form.
3 Section 50-80. Separate return for certain registered
4 property. With respect to motor vehicles, watercraft,
5 aircraft, and trailers that are required to be registered
6 with an agency of this State, every retailer selling this
7 kind of tangible personal property shall file, with the
8 Department, upon a form to be prescribed and supplied by the
9 Department, a separate return for each such item of tangible
10 personal property which the retailer sells, except that
11 where, in the same transaction, a retailer of aircraft,
12 watercraft, motor vehicles or trailers transfers more than
13 one aircraft, watercraft, motor vehicle or trailer to another
14 aircraft, watercraft, motor vehicle retailer or trailer
15 retailer for the purpose of resale, that seller for resale
16 may report the transfer of all aircraft, watercraft, motor
17 vehicles or trailers involved in that transaction to the
18 Department on the same uniform invoice-transaction reporting
19 return form.
20 Section 50-85. Retailer selling only vehicles,
21 watercraft, aircraft, or trailers. Any retailer who sells
22 only motor vehicles, watercraft, aircraft, or trailers that
23 are required to be registered with an agency of this State,
24 so that all retailers' occupation tax liability is required
25 to be reported, and is reported, on such transaction
26 reporting returns and who is not otherwise required to file
27 monthly or quarterly returns, need not file monthly or
28 quarterly returns. However, those retailers shall be
29 required to file returns on an annual basis.
30 Section 50-90. Transaction reporting return.
31 (a) The transaction reporting return, in the case of
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1 motor vehicles or trailers that are required to be registered
2 with an agency of this State, shall be the same document as
3 the Uniform Invoice referred to in Section 5-402 of the
4 Illinois Vehicle Code and must show the name and address of
5 the seller; the name and address of the purchaser; the amount
6 of the selling price including the amount allowed by the
7 retailer for traded-in property, if any; the amount allowed
8 by the retailer for the traded-in tangible personal property,
9 if any, to the extent to which Section 5-120 allows an
10 exemption for the value of traded-in property; the balance
11 payable after deducting such trade-in allowance from the
12 total selling price; the amount of tax due from the retailer
13 with respect to such transaction; the amount of tax collected
14 from the purchaser by the retailer on such transaction (or
15 satisfactory evidence that such tax is not due in that
16 particular instance, if that is claimed to be the fact); the
17 place and date of the sale; a sufficient identification of
18 the property sold; such other information as is required in
19 Section 5-402 of the Illinois Vehicle Code, and such other
20 information as the Department may reasonably require.
21 (b) The transaction reporting return in the case of
22 watercraft or aircraft must show the name and address of the
23 seller; the name and address of the purchaser; the amount of
24 the selling price including the amount allowed by the
25 retailer for traded-in property, if any; the amount allowed
26 by the retailer for the traded-in tangible personal property,
27 if any, to the extent to which Section 5-120 allows an
28 exemption for the value of traded-in property; the balance
29 payable after deducting such trade-in allowance from the
30 total selling price; the amount of tax due from the retailer
31 with respect to such transaction; the amount of tax collected
32 from the purchaser by the retailer on such transaction (or
33 satisfactory evidence that such tax is not due in that
34 particular instance, if that is claimed to be the fact); the
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1 place and date of the sale, a sufficient identification of
2 the property sold, and such other information as the
3 Department may reasonably require.
4 (c) Such transaction reporting return shall be filed not
5 later than 20 days after the day of delivery of the item that
6 is being sold, but may be filed by the retailer at any time
7 sooner than that if he chooses to do so. The transaction
8 reporting return and tax remittance or proof of exemption
9 from the Illinois use tax may be transmitted to the
10 Department by way of the State agency with which or State
11 officer with whom the tangible personal property must be
12 titled or registered (if titling or registration is required)
13 if the Department and such agency or State officer determine
14 that this procedure will expedite the processing of
15 applications for title or registration.
16 (d) With each such transaction reporting return, the
17 retailer shall remit the proper amount of tax due (or shall
18 submit satisfactory evidence that the sale is not taxable if
19 that is the case), to the Department or its agents, whereupon
20 the Department shall issue, in the purchaser's name, a use
21 tax receipt (or a certificate of exemption if the Department
22 is satisfied that the particular sale is tax exempt) which
23 such purchaser may submit to the agency with which, or State
24 officer with whom, he must title or register the tangible
25 personal property that is involved (if titling or
26 registration is required) in support of such purchaser's
27 application for an Illinois certificate or other evidence of
28 title or registration to such tangible personal property.
29 (e) No retailer's failure or refusal to remit tax under
30 this Code precludes a user, who has paid the proper tax to
31 the retailer, from obtaining his certificate of title or
32 other evidence of title or registration (if titling or
33 registration is required) upon satisfying the Department that
34 such user has paid the proper tax (if tax is due) to the
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1 retailer. The Department shall adopt appropriate rules to
2 carry out the mandate of this subsection.
3 (f) If the user who would otherwise pay tax to the
4 retailer wants the transaction reporting return filed and the
5 payment of the tax or proof of exemption made to the
6 Department before the retailer is willing to take these
7 actions and such user has not paid the tax to the retailer,
8 such user may certify to the fact of such delay by the
9 retailer and may (upon the Department being satisfied of the
10 truth of such certification) transmit the information
11 required by the transaction reporting return and the
12 remittance for tax or proof of exemption directly to the
13 Department and obtain his tax receipt or exemption
14 determination, in which event the transaction reporting
15 return and tax remittance (if a tax payment was required)
16 shall be credited by the Department to the proper retailer's
17 account with the Department, but without the 2.1% or 1.75%
18 discount provided for in Section 50-110 being allowed. When
19 the user pays the tax directly to the Department, he shall
20 pay the tax in the same amount and in the same form in which
21 it would be remitted if the tax had been remitted to the
22 Department by the retailer.
23 Section 50-95. Annual information return.
24 (a) The Department may, upon separate written notice to
25 a taxpayer, require the taxpayer to prepare and file with the
26 Department on a form prescribed by the Department within not
27 less than 60 days after receipt of the notice an annual
28 information return for the tax year specified in the notice.
29 Such annual return to the Department shall include a
30 statement of gross receipts as shown by the taxpayer's last
31 federal income tax return. If the total receipts of the
32 business as reported in the federal income tax return do not
33 agree with the gross receipts reported to the Department of
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1 Revenue for the same period, the taxpayer shall attach to his
2 annual return a schedule showing a reconciliation of the 2
3 amounts and the reasons for the difference. The taxpayer's
4 annual return to the Department shall also disclose the cost
5 of goods sold by the taxpayer during the year covered by such
6 return, opening and closing inventories of such goods for
7 such year, cost of goods used from stock or taken from stock
8 and given away by the taxpayer during such year, payroll
9 information of the taxpayer's business during such year and
10 any additional reasonable information which the Department
11 deems would be helpful in determining the accuracy of the
12 monthly, quarterly or annual returns filed by such taxpayer
13 as provided for in Sections 50-5 through 50-140.
14 (b) If the annual information return required by this
15 Section is not filed when and as required, the taxpayer shall
16 be liable as follows:
17 (i) Until January 1, 1994, the taxpayer shall be
18 liable for a penalty equal to 1/6 of 1% of the tax due
19 from such taxpayer under this Code during the period to
20 be covered by the annual return for each month or
21 fraction of a month until such return is filed as
22 required, the penalty to be assessed and collected in the
23 same manner as any other penalty provided for in this
24 Code.
25 (ii) On and after January 1, 1994, the taxpayer
26 shall be liable for a penalty as described in Section 3-4
27 of the Uniform Penalty and Interest Act.
28 (c) The chief executive officer, proprietor, owner or
29 highest ranking manager shall sign the annual return to
30 certify the accuracy of the information contained therein.
31 Any person who willfully signs the annual return containing
32 false or inaccurate information shall be guilty of perjury
33 and punished accordingly. The annual return form prescribed
34 by the Department shall include a warning that the person
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1 signing the return may be liable for perjury.
2 (d) The provisions of this Section concerning the filing
3 of an annual information return do not apply to a retailer or
4 serviceman who is not required to file an income tax return
5 with the United States government.
6 Section 50-100. Electronic funds transfer.
7 (a) Beginning October 1, 1993, a taxpayer who has an
8 average monthly tax liability of $150,000 or more shall make
9 all payments required by rules of the Department by
10 electronic funds transfer. Beginning October 1, 1994, a
11 taxpayer who has an average monthly tax liability of $100,000
12 or more shall make all payments required by rules of the
13 Department by electronic funds transfer. Beginning October
14 1, 1995, a taxpayer who has an average monthly tax liability
15 of $50,000 or more shall make all payments required by rules
16 of the Department by electronic funds transfer. The term
17 "average monthly tax liability" shall be the sum of the
18 taxpayer's liabilities under this Code, and under all other
19 State and local occupation and use tax laws administered by
20 the Department, for the immediately preceding calendar year
21 divided by 12.
22 (b) Before August 1 of each year beginning in 1993, the
23 Department shall notify all taxpayers required to make
24 payments by electronic funds transfer. All taxpayers
25 required to make payments by electronic funds transfer shall
26 make those payments for a minimum of one year beginning on
27 October 1.
28 (c) Any taxpayer not required to make payments by
29 electronic funds transfer may make payments by electronic
30 funds transfer with the permission of the Department.
31 (d) All taxpayers required to make payment by electronic
32 funds transfer and any taxpayers authorized to voluntarily
33 make payments by electronic funds transfer shall make those
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1 payments in the manner authorized by the Department.
2 (e) The Department shall adopt such rules as are
3 necessary to effectuate a program of electronic funds
4 transfer and the requirements of Sections 50-5 through
5 50-140.
6 Section 50-105. Refunds.
7 (a) Refunds made by the seller during the preceding
8 return period to purchasers, on account of tangible personal
9 property returned to the seller, shall be allowed as a
10 deduction under subdivision 5 of his monthly or quarterly
11 return, as the case may be, in case the seller had
12 theretofore included the receipts from the sale of such
13 tangible personal property in a return filed by him and had
14 paid the tax imposed by Article 10 with respect to such
15 receipts.
16 (b) For purposes of the use tax, the service occupation
17 tax, and the service use tax, where a retailer or serviceman
18 collects the tax with respect to the selling price of
19 property which he sells and the purchaser thereafter returns
20 such property and the retailer or serviceman refunds the
21 selling price thereof to the purchaser, such retailer or
22 serviceman shall also refund, to the purchaser, the tax so
23 collected from the purchaser. When filing his return for the
24 period in which he refunds such tax to the purchaser, the
25 retailer or serviceman may deduct the amount of the tax so
26 refunded by him to the purchaser from any other service use
27 tax, service occupation tax, retailers' occupation tax or use
28 tax which such retailer or serviceman may be required to pay
29 or remit to the Department, as shown by such return, provided
30 that the amount of the tax to be deducted was previously
31 remitted to the Department by such retailer or serviceman. If
32 the retailer or serviceman has not previously remitted the
33 amount of such tax to the Department, he shall be entitled to
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1 no deduction hereunder upon refunding such tax to the
2 purchaser.
3 Section 50-110. Payment of tax by retailer or
4 serviceman.
5 (a) Except as provided in Sections 50-5 through 50-140,
6 the retailer filing the return under Sections 50-5 through
7 50-140 shall, at the time of filing such return, pay to the
8 Department the amount of tax imposed by this Code less a
9 discount of 2.1% prior to January 1, 1990 and 1.75% on and
10 after January 1, 1990, or $5 per calendar year, whichever is
11 greater, which is allowed to reimburse the retailer for the
12 expenses incurred in keeping records, preparing and filing
13 returns, remitting the tax and supplying data to the
14 Department on request. Any prepayment made pursuant to
15 Section 10-30 shall be included in the amount on which such
16 2.1% or 1.75% discount is computed.
17 (b) For purposes of the use tax, the service occupation
18 tax, and the service use tax, each retailer or serviceman
19 required or authorized to collect the taxes imposed by
20 Articles 15, 20, or 25 shall pay to the Department the amount
21 of such tax (except as otherwise provided) at the time when
22 he is required to file his return for the period during which
23 such tax was collected, less a discount of 2.1% prior to
24 January 1, 1990, and 1.75% on and after January 1, 1990, or
25 $5 per calendar year, whichever is greater, which is allowed
26 to reimburse the retailer or serviceman for expenses incurred
27 in collecting the tax, keeping records, preparing and filing
28 returns, remitting the tax and supplying data to the
29 Department on request. For purposes of the use tax, this
30 subsection shall not apply to motor vehicles, watercraft,
31 aircraft, and trailers that are required to be registered
32 with an agency of this State.
33 (c) In the case of retailers who report and pay the tax
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1 on a transaction by transaction basis, as provided in
2 Sections 50-5 through 50-140, such discount shall be taken
3 with each such tax remittance instead of when such retailer
4 files his periodic return.
5 (d) For purposes of the use tax, a retailer need not
6 remit that part of any tax collected by him to the extent
7 that he is required to remit and does remit the tax imposed
8 by Article 10, with respect to the sale of the same property.
9 (e) For purposes of the service use tax, a serviceman
10 need not remit that part of any tax collected by him to the
11 extent that he is required to pay and does pay the tax
12 imposed by Article 20 with respect to his sale of service
13 involving the incidental transfer by him of the same
14 property.
15 Section 50-115. Conditional sales contract. For
16 purposes of the use tax and the service occupation tax, where
17 such tangible personal property is sold under a conditional
18 sales contract, or under any other form of sale wherein the
19 payment of the principal sum, or a part thereof, is extended
20 beyond the close of the period for which the return is filed,
21 the retailer or serviceman, in collecting the tax (except,
22 for purposes of the use tax only, as to motor vehicles,
23 watercraft, aircraft, and trailers that are required to be
24 registered with an agency of this State), may collect for
25 each tax return period, only the tax applicable to that part
26 of the selling price actually received during such tax return
27 period.
28 Section 50-120. Quarter-monthly payments.
29 (a) If the taxpayer's average monthly tax liability to
30 the Department under this Code excluding any liability for
31 prepaid sales tax to be remitted in accordance with Section
32 10-30, was $10,000 or more during the preceding 4 complete
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1 calendar quarters, he shall file a return with the Department
2 each month by the 20th day of the month next following the
3 month during which such tax liability is incurred and shall
4 make payments to the Department on or before the 7th, 15th,
5 22nd and last day of the month during which such liability is
6 incurred. If the month during which such tax liability is
7 incurred began prior to January 1, 1985, each payment shall
8 be in an amount equal to 1/4 of the taxpayer's actual
9 liability for the month or an amount set by the Department
10 not to exceed 1/4 of the average monthly liability of the
11 taxpayer to the Department for the preceding 4 complete
12 calendar quarters (excluding the month of highest liability
13 and the month of lowest liability in such 4 quarter period).
14 If the month during which such tax liability is incurred
15 begins on or after January 1, 1985 and prior to January 1,
16 1987, each payment shall be in an amount equal to 22.5% of
17 the taxpayer's actual liability for the month or 27.5% of the
18 taxpayer's liability for the same calendar month of the
19 preceding year. If the month during which such tax liability
20 is incurred begins on or after January 1, 1987 and prior to
21 January 1, 1988, each payment shall be in an amount equal to
22 22.5% of the taxpayer's actual liability for the month or
23 26.25% of the taxpayer's liability for the same calendar
24 month of the preceding year. If the month during which such
25 tax liability is incurred begins on or after January 1, 1988,
26 and prior to January 1, 1989, or begins on or after January
27 1, 1996, each payment shall be in an amount equal to 22.5% of
28 the taxpayer's actual liability for the month or 25% of the
29 taxpayer's liability for the same calendar month of the
30 preceding year. If the month during which such tax liability
31 is incurred begins on or after January 1, 1989, and prior to
32 January 1, 1996, each payment shall be in an amount equal to
33 22.5% of the taxpayer's actual liability for the month or 25%
34 of the taxpayer's liability for the same calendar month of
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1 the preceding year or 100% of the taxpayer's actual liability
2 for the quarter monthly reporting period. The amount of such
3 quarter monthly payments shall be credited against the final
4 tax liability of the taxpayer's return for that month. Once
5 applicable, the requirement of the making of quarter monthly
6 payments to the Department by taxpayers having an average
7 monthly tax liability of $10,000 or more as determined in the
8 manner provided above shall continue until such taxpayer's
9 average monthly liability to the Department during the
10 preceding 4 complete calendar quarters (excluding the month
11 of highest liability and the month of lowest liability) is
12 less than $9,000, or until such taxpayer's average monthly
13 liability to the Department as computed for each calendar
14 quarter of the 4 preceding complete calendar quarter period
15 is less than $10,000. However, if a taxpayer can show the
16 Department that a substantial change in the taxpayer's
17 business has occurred which causes the taxpayer to anticipate
18 that his average monthly tax liability for the reasonably
19 foreseeable future will fall below $10,000, then such
20 taxpayer may petition the Department for a change in such
21 taxpayer's reporting status. The Department shall change
22 such taxpayer's reporting status unless it finds that such
23 change is seasonal in nature and not likely to be long term.
24 If any such quarter monthly payment is not paid at the time
25 or in the amount required by this Section, then the
26 taxpayer's 2.1% or 1.75% vendors' discount shall be reduced
27 by 2.1% or 1.75% of the difference between the minimum amount
28 due as a payment and the amount of such quarter monthly
29 payment actually and timely paid, and the taxpayer shall be
30 liable for penalties and interest on such difference, except
31 insofar as the taxpayer has previously made payments for that
32 month to the Department in excess of the minimum payments
33 previously due as provided in Sections 50-5 through 50-140.
34 The Department shall make reasonable rules and regulations to
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1 govern the quarter monthly payment amount and quarter monthly
2 payment dates for taxpayers who file on other than a calendar
3 monthly basis.
4 (b) Without regard to whether a taxpayer is required to
5 make quarter monthly payments as specified above, any
6 taxpayer who is required by Section 10-30 to collect and
7 remit prepaid taxes and has collected prepaid taxes which
8 average in excess of $25,000 per month during the preceding 2
9 complete calendar quarters, shall file a return with the
10 Department as required by Section 10-40 and shall make
11 payments to the Department on or before the 7th, 15th, 22nd
12 and last day of the month during which such liability is
13 incurred. If the month during which such tax liability is
14 incurred began prior to the effective date of this amendatory
15 Act of 1985, each payment shall be in an amount not less than
16 22.5% of the taxpayer's actual liability under Section 10-30.
17 If the month during which such tax liability is incurred
18 begins on or after January 1, 1986, each payment shall be in
19 an amount equal to 22.5% of the taxpayer's actual liability
20 for the month or 27.5% of the taxpayer's liability for the
21 same calendar month of the preceding calendar year. If the
22 month during which such tax liability is incurred begins on
23 or after January 1, 1987, each payment shall be in an amount
24 equal to 22.5% of the taxpayer's actual liability for the
25 month or 26.25% of the taxpayer's liability for the same
26 calendar month of the preceding year. The amount of such
27 quarter monthly payments shall be credited against the final
28 tax liability of the taxpayer's return for that month filed
29 under Sections 50-5 through 50-140 or Section 10-40, as the
30 case may be. Once applicable, the requirement of the making
31 of quarter monthly payments to the Department pursuant to
32 this subsection shall continue until such taxpayer's average
33 monthly prepaid tax collections during the preceding 2
34 complete calendar quarters is $25,000 or less. If any such
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1 quarter monthly payment is not paid at the time or in the
2 amount required, the taxpayer shall be liable for penalties
3 and interest on such difference, except insofar as the
4 taxpayer has previously made payments for that month in
5 excess of the minimum payments previously due.
6 Section 50-125. Credit memorandum.
7 (a) If any payment provided for in Sections 50-5 through
8 50-140 exceeds the taxpayer's liabilities under this Code, as
9 shown on an original monthly return, the Department shall, if
10 requested by the taxpayer, issue to the taxpayer a credit
11 memorandum no later than 30 days after the date of payment.
12 The credit evidenced by such credit memorandum may be
13 assigned by the taxpayer to a similar taxpayer under this
14 Code, in accordance with reasonable rules and regulations to
15 be prescribed by the Department. If no such request is made,
16 the taxpayer may credit such excess payment against tax
17 liability subsequently to be remitted to the Department under
18 this Code, in accordance with reasonable rules and
19 regulations prescribed by the Department.
20 (b) For purposes of the use tax, if any such payment
21 provided for in Sections 50-5 through 50-140 exceeds the
22 taxpayer's liabilities under this Code, as shown by an
23 original monthly return, the Department shall issue to the
24 taxpayer a credit memorandum no later than 30 days after the
25 date of payment, which memorandum may be submitted by the
26 taxpayer to the Department in payment of tax liability
27 subsequently to be remitted by the taxpayer to the Department
28 or be assigned by the taxpayer to a similar taxpayer under
29 this Code, in accordance with reasonable rules and
30 regulations to be prescribed by the Department, except that
31 if such excess payment is shown on an original monthly return
32 and is made after December 31, 1986, no credit memorandum
33 shall be issued, unless requested by the taxpayer. If no
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1 such request is made, the taxpayer may credit such excess
2 payment against tax liability subsequently to be remitted by
3 the taxpayer to the Department under this Code, in accordance
4 with reasonable rules and regulations prescribed by the
5 Department.
6 (c) If the Department subsequently determines that all
7 or any part of the credit taken was not actually due to the
8 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount
9 shall be reduced by 2.1% or 1.75% of the difference between
10 the credit taken and that actually due, and the taxpayer
11 shall be liable for penalties and interest on such
12 difference.
13 Section 50-130. Credit for motor fuel retailer. If a
14 retailer of motor fuel is entitled to a credit under Section
15 10-30 which exceeds the taxpayer's liability to the
16 Department under Article 10 for the month which the taxpayer
17 is filing a return, the Department shall issue the taxpayer a
18 credit memorandum for the excess.
19 Section 50-135. Payment by manufacturers, importers, and
20 wholesalers. For greater simplicity of administration,
21 manufacturers, importers and wholesalers whose products are
22 sold at retail in Illinois by numerous retailers or
23 servicemen, and who wish to do so, may assume the
24 responsibility for accounting and paying to the Department
25 all tax accruing under this Code with respect to such sales,
26 if the retailers or servicemen who are affected do not make
27 written objection to the Department to this arrangement.
28 Section 50-140. Fair reports.
29 (a) Any person who promotes, organizes, provides retail
30 selling space for concessionaires or other types of sellers
31 at the Illinois State Fair, DuQuoin State Fair, county fairs,
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1 local fairs, art shows, flea markets and similar exhibitions
2 or events, including any transient merchant as defined by
3 Section 2 of the Transient Merchant Act of 1987, is required
4 to file a report with the Department providing the name of
5 the merchant's business, the name of the person or persons
6 engaged in merchant's business, the permanent address and
7 Illinois Retailers Occupation Tax Registration Number of the
8 merchant, the dates and location of the event and other
9 reasonable information that the Department may require. The
10 report must be filed not later than the 20th day of the month
11 next following the month during which the event with retail
12 sales was held. Any person who fails to file a report
13 required by this Section commits a business offense and is
14 subject to a fine not to exceed $250.
15 (b) Any person engaged in the business of selling
16 tangible personal property at retail as a concessionaire or
17 other type of seller at the Illinois State Fair, county
18 fairs, art shows, flea markets and similar exhibitions or
19 events, or any transient merchants, as defined by Section 2
20 of the Transient Merchant Act of 1987, may be required to
21 make a daily report of the amount of such sales to the
22 Department and to make a daily payment of the full amount of
23 tax due. The Department shall impose this requirement when
24 it finds that there is a significant risk of loss of revenue
25 to the State at such an exhibition or event. Such a finding
26 shall be based on evidence that a substantial number of
27 concessionaires or other sellers who are not residents of
28 Illinois will be engaging in the business of selling tangible
29 personal property at retail at the exhibition or event, or
30 other evidence of a significant risk of loss of revenue to
31 the State. The Department shall notify concessionaires and
32 other sellers affected by the imposition of this requirement.
33 In the absence of notification by the Department, the
34 concessionaires and other sellers shall file their returns as
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1 otherwise required in Sections 50-5 through 50-140.
2 Section 50-145. Examination and correction of return.
3 The provisions of this Section shall apply to the retailers'
4 occupation tax, the use tax, the service occupation tax, and
5 the service use tax, except that for purposes of the use tax
6 and the service occupation tax, the time limitation
7 provisions shall run from the date when the tax is due rather
8 than from the date when gross receipts are received, and for
9 purposes of the service use tax, the time limitations
10 provisions shall run from the date when gross receipts are
11 received. As soon as practicable after any return is filed,
12 the Department shall examine such return and shall, if
13 necessary, correct such return according to its best judgment
14 and information. If the correction of a return results in an
15 amount of tax that is understated on the taxpayer's return
16 due to a mathematical error, the Department shall notify the
17 taxpayer that the amount of tax in excess of that shown on
18 the return is due and has been assessed. The term
19 "mathematical error" means arithmetic errors or incorrect
20 computations on the return or supporting schedules. No such
21 notice of additional tax due shall be issued on and after
22 each July 1 and January 1 covering gross receipts received
23 during any month or period of time more than 3 years prior to
24 such July 1 and January 1, respectively. Such notice of
25 additional tax due shall not be considered a notice of tax
26 liability nor shall the taxpayer have any right of protest.
27 In the event that the return is corrected for any reason
28 other than a mathematical error, any return so corrected by
29 the Department shall be prima facie correct and shall be
30 prima facie evidence of the correctness of the amount of tax
31 due, as shown therein. In correcting transaction by
32 transaction reporting returns provided for in Sections 50-5
33 through 50-140 of this Code, it shall be permissible for the
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1 Department to show a single corrected return figure for any
2 given period of a calendar month instead of having to correct
3 each transaction by transaction return form individually and
4 having to show a corrected return figure for each of such
5 transaction by transaction return forms. In making a
6 correction of transaction by transaction, monthly or
7 quarterly returns covering a period of 6 months or more, it
8 shall be permissible for the Department to show a single
9 corrected return figure for any given 6-month period.
10 Instead of requiring the person filing such return to
11 file an amended return, the Department may simply notify him
12 of the correction or corrections it has made.
13 Proof of such correction by the Department may be made at
14 any hearing before the Department or in any legal proceeding
15 by a reproduced copy or computer print-out of the
16 Department's record relating thereto in the name of the
17 Department under the certificate of the Director of Revenue.
18 If reproduced copies of the Department's records are offered
19 as proof of such correction, the Director must certify that
20 those copies are true and exact copies of records on file
21 with the Department. If computer print-outs of the
22 Department's records are offered as proof of such correction,
23 the Director must certify that those computer print-outs are
24 true and exact representations of records properly entered
25 into standard electronic computing equipment, in the regular
26 course of the Department's business, at or reasonably near
27 the time of the occurrence of the facts recorded, from
28 trustworthy and reliable information. Such certified
29 reproduced copy or certified computer print-out shall without
30 further proof, be admitted into evidence before the
31 Department or in any legal proceeding and shall be prima
32 facie proof of the correctness of the amount of tax due, as
33 shown therein.
34 If the tax computed upon the basis of the gross receipts
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1 as fixed by the Department is greater than the amount of tax
2 due under the return or returns as filed, the Department
3 shall (or if the tax or any part thereof that is admitted to
4 be due by a return or returns, whether filed on time or not,
5 is not paid, the Department may) issue the taxpayer a notice
6 of tax liability for the amount of tax claimed by the
7 Department to be due, together with a penalty in an amount
8 determined in accordance with Section 3-3 of the Uniform
9 Penalty and Interest Act. Provided, that if the incorrectness
10 of any return or returns as determined by the Department is
11 due to negligence or fraud, the penalty shall be in an amount
12 determined in accordance with Section 3-5 or Section 3-6 of
13 the Uniform Penalty and Interest Act, as the case may be. If
14 the notice of tax liability is not based on a correction of
15 the taxpayer's return or returns, but is based on the
16 taxpayer's failure to pay all or a part of the tax admitted
17 by his return or returns (whether filed on time or not) to be
18 due, such notice of tax liability shall be prima facie
19 correct and shall be prima facie evidence of the correctness
20 of the amount of tax due, as shown therein.
21 Proof of such notice of tax liability by the Department
22 may be made at any hearing before the Department or in any
23 legal proceeding by a reproduced copy of the Department's
24 record relating thereto in the name of the Department under
25 the certificate of the Director of Revenue. Such reproduced
26 copy shall without further proof, be admitted into evidence
27 before the Department or in any legal proceeding and shall be
28 prima facie proof of the correctness of the amount of tax
29 due, as shown therein.
30 If the person filing any return dies or becomes a person
31 under legal disability at any time before the Department
32 issues its notice of tax liability, such notice shall be
33 issued to the administrator, executor or other legal
34 representative, as such, of such person.
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1 Except in case of a fraudulent return, or in the case of
2 an amended return (where a notice of tax liability may be
3 issued on or after each January 1 and July 1 for an amended
4 return filed not more than 3 years prior to such January 1 or
5 July 1, respectively), no notice of tax liability shall be
6 issued on and after each January 1 and July 1 covering gross
7 receipts received during any month or period of time more
8 than 3 years prior to such January 1 and July 1,
9 respectively. If, before the expiration of the time
10 prescribed in this Section for the issuance of a notice of
11 tax liability, both the Department and the taxpayer have
12 consented in writing to its issuance after such time, such
13 notice may be issued at any time prior to the expiration of
14 the period agreed upon. The period so agreed upon may be
15 extended by subsequent agreements in writing made before the
16 expiration of the period previously agreed upon. The
17 foregoing limitations upon the issuance of a notice of tax
18 liability shall not apply to the issuance of a notice of tax
19 liability with respect to any period of time prior thereto in
20 cases where the Department has, within the period of
21 limitation then provided, notified the person making the
22 return of a notice of tax liability even though such return,
23 with which the tax that was shown by such return to be due
24 was paid when the return was filed, had not been corrected by
25 the Department in the manner required herein prior to the
26 issuance of such notice, but in no case shall the amount of
27 any such notice of tax liability for any period otherwise
28 barred by this Code exceed for such period the amount shown
29 in the notice of tax liability theretofore issued.
30 If, when a tax or penalty under this Code becomes due and
31 payable, the person alleged to be liable therefor is out of
32 the State, the notice of tax liability may be issued within
33 the times herein limited after his coming into or return to
34 the State; and if, after the tax or penalty under this Code
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1 becomes due and payable, the person alleged to be liable
2 therefor departs from and remains out of the State, the time
3 of his or her absence is no part of the time limited for the
4 issuance of the notice of tax liability; but the foregoing
5 provisions concerning absence from the State shall not apply
6 to any case in which, at the time when a tax or penalty
7 becomes due under this Code, the person allegedly liable
8 therefor is not a resident of this State.
9 The time limitation period on the Department's right to
10 issue a notice of tax liability shall not run during any
11 period of time in which the order of any court has the effect
12 of enjoining or restraining the Department from issuing the
13 notice of tax liability.
14 If such person or legal representative shall within 60
15 days after such notice of tax liability file a protest to
16 said notice of tax liability and request a hearing thereon,
17 the Department shall give notice to such person or legal
18 representative of the time and place fixed for such hearing
19 and shall hold a hearing in conformity with the provisions of
20 this Code, and pursuant thereto shall issue to such person or
21 legal representative a final assessment for the amount found
22 to be due as a result of such hearing.
23 If a protest to the notice of tax liability and a request
24 for a hearing thereon is not filed within 60 days after such
25 notice, such notice of tax liability shall become final
26 without the necessity of a final assessment being issued and
27 shall be deemed to be a final assessment.
28 After the issuance of a final assessment, or a notice of
29 tax liability which becomes final without the necessity of
30 actually issuing a final assessment as hereinbefore provided,
31 the Department, at any time before such assessment is reduced
32 to judgment, may (subject to rules of the Department) grant a
33 rehearing (or grant departmental review and hold an original
34 hearing if no previous hearing in the matter has been held)
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1 upon the application of the person aggrieved. Pursuant to
2 such hearing or rehearing, the Department shall issue a
3 revised final assessment to such person or his legal
4 representative for the amount found to be due as a result of
5 such hearing or rehearing.
6 Section 50-150. Failure to make return.
7 The provisions of this Section shall apply to the
8 retailers' occupation tax, the use tax, the service
9 occupation tax, and the service use tax, except that for
10 purposes of the use tax, the service occupation tax, and the
11 service use tax, the time limitation provisions on the
12 issuance of notices of tax liability shall run from the date
13 when the tax is due rather than from the date when gross
14 receipts are received, and for purposes of the use tax and
15 the service use tax, in the case of a failure to file a
16 return required by this Code, no notice of tax liability
17 shall be issued on and after each July 1 and January 1
18 covering tax due with that return during any month or period
19 more than 6 years before that July 1 or January 1,
20 respectively. In case any person engaged in the business of
21 selling tangible personal property at retail fails to file a
22 return when and as herein required, but thereafter, prior to
23 the Department's issuance of a notice of tax liability under
24 this Section, files a return and pays the tax, he shall also
25 pay a penalty in an amount determined in accordance with
26 Section 3-3 of the Uniform Penalty and Interest Act.
27 In case any person engaged in the business of selling
28 tangible personal property at retail files the return at the
29 time required by this Code but fails to pay the tax, or any
30 part thereof, when due, a penalty in an amount determined in
31 accordance with Section 3-3 of the Uniform Penalty and
32 Interest Act shall be added thereto.
33 In case any person engaged in the business of selling
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1 tangible personal property at retail fails to file a return
2 when and as herein required, but thereafter, prior to the
3 Department's issuance of a notice of tax liability under this
4 Section, files a return but fails to pay the entire tax, a
5 penalty in an amount determined in accordance with Section
6 3-3 of the Uniform Penalty and Interest Act shall be added
7 thereto.
8 In case any person engaged in the business of selling
9 tangible personal property at retail fails to file a return,
10 the Department shall determine the amount of tax due from him
11 according to its best judgment and information, which amount
12 so fixed by the Department shall be prima facie correct and
13 shall be prima facie evidence of the correctness of the
14 amount of tax due, as shown in such determination. In making
15 any such determination of tax due, it shall be permissible
16 for the Department to show a figure that represents the tax
17 due for any given period of 6 months instead of showing the
18 amount of tax due for each month separately. Proof of such
19 determination by the Department may be made at any hearing
20 before the Department or in any legal proceeding by a
21 reproduced copy or computer print-out of the Department's
22 record relating thereto in the name of the Department under
23 the certificate of the Director of Revenue. If reproduced
24 copies of the Department's records are offered as proof of
25 such determination, the Director must certify that those
26 copies are true and exact copies of records on file with the
27 Department. If computer print-outs of the Department's
28 records are offered as proof of such determination, the
29 Director must certify that those computer print-outs are true
30 and exact representations of records properly entered into
31 standard electronic computing equipment, in the regular
32 course of the Department's business, at or reasonably near
33 the time of the occurrence of the facts recorded, from
34 trustworthy and reliable information. Such certified
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1 reproduced copy or certified computer print-out shall,
2 without further proof, be admitted into evidence before the
3 Department or in any legal proceeding and shall be prima
4 facie proof of the correctness of the amount of tax due, as
5 shown therein. The Department shall issue the taxpayer a
6 notice of tax liability for the amount of tax claimed by the
7 Department to be due, together with a penalty of 30% thereof.
8 However, where the failure to file any tax return
9 required under this Code on the date prescribed therefor
10 (including any extensions thereof), is shown to be
11 unintentional and nonfraudulent and has not occurred in the 2
12 years immediately preceding the failure to file on the
13 prescribed date or is due to other reasonable cause the
14 penalties imposed by this Code shall not apply.
15 If such person or the legal representative of such person
16 files, within 60 days after such notice, a protest to such
17 notice of tax liability and requests a hearing thereon, the
18 Department shall give notice to such person or the legal
19 representative of such person of the time and place fixed for
20 such hearing, and shall hold a hearing in conformity with the
21 provisions of this Code, and pursuant thereto shall issue a
22 final assessment to such person or to the legal
23 representative of such person for the amount found to be due
24 as a result of such hearing.
25 If a protest to the notice of tax liability and a request
26 for a hearing thereon is not filed within 60 days after such
27 notice, such notice of tax liability shall become final
28 without the necessity of a final assessment being issued and
29 shall be deemed to be a final assessment.
30 After the issuance of a final assessment, or a notice of
31 tax liability which becomes final without the necessity of
32 actually issuing a final assessment as hereinbefore provided,
33 the Department, at any time before such assessment is reduced
34 to judgment, may (subject to rules of the Department) grant a
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1 rehearing (or grant departmental review and hold an original
2 hearing if no previous hearing in the matter has been held)
3 upon the application of the person aggrieved. Pursuant to
4 such hearing or rehearing, the Department shall issue a
5 revised final assessment to such person or his legal
6 representative for the amount found to be due as a result of
7 such hearing or rehearing.
8 Except in case of failure to file a return, or with the
9 consent of the person to whom the notice of tax liability is
10 to be issued, no notice of tax liability shall be issued on
11 and after each July 1 and January 1 covering gross receipts
12 received during any month or period of time more than 3 years
13 prior to such July 1 and January 1, respectively, except that
14 if a return is not filed at the required time, a notice of
15 tax liability may be issued not later than 3 years after the
16 time the return is filed. The foregoing limitations upon the
17 issuance of a notice of tax liability shall not apply to the
18 issuance of any such notice with respect to any period of
19 time prior thereto in cases where the Department has, within
20 the period of limitation then provided, notified a person of
21 the amount of tax computed even though the Department had not
22 determined the amount of tax due from such person in the
23 manner required herein prior to the issuance of such notice,
24 but in no case shall the amount of any such notice of tax
25 liability for any period otherwise barred by this Code exceed
26 for such period the amount shown in the notice theretofore
27 issued.
28 If, when a tax or penalty under this Code becomes due and
29 payable, the person alleged to be liable therefor is out of
30 the State, the notice of tax liability may be issued within
31 the times herein limited after his or her coming into or
32 return to the State; and if, after the tax or penalty under
33 this Code becomes due and payable, the person alleged to be
34 liable therefor departs from and remains out of the State,
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1 the time of his or her absence is no part of the time limited
2 for the issuance of the notice of tax liability; but the
3 foregoing provisions concerning absence from the State shall
4 not apply to any case in which, at the time when a tax or
5 penalty becomes due under this Code, the person allegedly
6 liable therefor is not a resident of this State.
7 The time limitation period on the Department's right to
8 issue a notice of tax liability shall not run during any
9 period of time in which the order of any court has the effect
10 of enjoining or restraining the Department from issuing the
11 notice of tax liability.
12 In case of failure to pay the tax, or any portion
13 thereof, or any penalty provided for in this Code, or
14 interest, when due, the Department may bring suit to recover
15 the amount of such tax, or portion thereof, or penalty or
16 interest; or, if the taxpayer has died or become a person
17 under legal disability, may file a claim therefor against his
18 estate; provided that no such suit with respect to any tax,
19 or portion thereof, or penalty, or interest shall be
20 instituted more than 2 years after the date any proceedings
21 in court for review thereof have terminated or the time for
22 the taking thereof has expired without such proceedings being
23 instituted, except with the consent of the person from whom
24 such tax or penalty or interest is due; nor, except with such
25 consent, shall such suit be instituted more than 2 years
26 after the date any return is filed with the Department in
27 cases where the return constitutes the basis for the suit for
28 unpaid tax, or portion thereof, or penalty provided for in
29 this Code, or interest: provided that the time limitation
30 period on the Department's right to bring any such suit shall
31 not run during any period of time in which the order of any
32 court has the effect of enjoining or restraining the
33 Department from bringing such suit.
34 After the expiration of the period within which the
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1 person assessed may file an action for judicial review under
2 the Administrative Review Law without such an action being
3 filed, a certified copy of the final assessment or revised
4 final assessment of the Department may be filed with the
5 Circuit Court of the county in which the taxpayer has his
6 principal place of business, or of Sangamon County in those
7 cases in which the taxpayer does not have his principal place
8 of business in this State. The certified copy of the final
9 assessment or revised final assessment shall be accompanied
10 by a certification which recites facts that are sufficient to
11 show that the Department complied with the jurisdictional
12 requirements of the Code in arriving at its final assessment
13 or its revised final assessment and that the taxpayer had his
14 opportunity for an administrative hearing and for judicial
15 review, whether he availed himself or herself of either or
16 both of these opportunities or not. If the court is satisfied
17 that the Department complied with the jurisdictional
18 requirements of the Code in arriving at its final assessment
19 or its revised final assessment and that the taxpayer had his
20 opportunity for an administrative hearing and for judicial
21 review, whether he availed himself of either or both of these
22 opportunities or not, the court shall render judgment in
23 favor of the Department and against the taxpayer for the
24 amount shown to be due by the final assessment or the revised
25 final assessment, plus any interest which may be due, and
26 such judgment shall be entered in the judgment docket of the
27 court. Such judgment shall bear the rate of interest as set
28 by the Uniform Penalty and Interest Act, but otherwise shall
29 have the same effect as other judgments. The judgment may be
30 enforced, and all laws applicable to sales for the
31 enforcement of a judgment shall be applicable to sales made
32 under such judgments. The Department shall file the certified
33 copy of its assessment, as herein provided, with the Circuit
34 Court within 2 years after such assessment becomes final
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1 except when the taxpayer consents in writing to an extension
2 of such filing period, and except that the time limitation
3 period on the Department's right to file the certified copy
4 of its assessment with the Circuit Court shall not run during
5 any period of time in which the order of any court has the
6 effect of enjoining or restraining the Department from filing
7 such certified copy of its assessment with the Circuit Court.
8 If, when the cause of action for a proceeding in court
9 accrues against a person, he or she is out of the State, the
10 action may be commenced within the times herein limited,
11 after his or her coming into or return to the State; and if,
12 after the cause of action accrues, he or she departs from and
13 remains out of the State, the time of his or her absence is
14 no part of the time limited for the commencement of the
15 action; but the foregoing provisions concerning absence from
16 the State shall not apply to any case in which, at the time
17 the cause of action accrues, the party against whom the cause
18 of action accrues is not a resident of this State. The time
19 within which a court action is to be commenced by the
20 Department hereunder shall not run from the date the taxpayer
21 files a petition in bankruptcy under the Federal Bankruptcy
22 Act until 30 days after notice of termination or expiration
23 of the automatic stay imposed by the Federal Bankruptcy Act.
24 No claim shall be filed against the estate of any
25 deceased person or any person under legal disability for any
26 tax or penalty or part of either, or interest, except in the
27 manner prescribed and within the time limited by the Probate
28 Act of 1975.
29 The collection of tax or penalty or interest by any means
30 provided for herein shall not be a bar to any prosecution
31 under this Code.
32 In addition to any penalty provided for in this Code, any
33 amount of tax which is not paid when due shall bear interest
34 at the rate and in the manner specified in Sections 3-2 and
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1 3-9 of the Uniform Penalty and Interest Act from the date
2 when such tax becomes past due until such tax is paid or a
3 judgment therefor is obtained by the Department. If the time
4 for making or completing an audit of a taxpayer's books and
5 records is extended with the taxpayer's consent, at the
6 request of and for the convenience of the Department, beyond
7 the date on which the statute of limitations upon the
8 issuance of a notice of tax liability by the Department
9 otherwise would run, no interest shall accrue during the
10 period of such extension or until a Notice of Tax Liability
11 is issued, whichever occurs first.
12 In addition to any other remedy provided by this Code,
13 and regardless of whether the Department is making or intends
14 to make use of such other remedy, where a corporation or
15 limited liability company registered under this Code violates
16 the provisions of this Code or of any rule or regulation
17 promulgated thereunder, the Department may give notice to the
18 Attorney General of the identity of such a corporation or
19 limited liability company and of the violations committed by
20 such a corporation or limited liability company, for such
21 action as is not already provided for by this Code and as the
22 Attorney General may deem appropriate.
23 If the Department determines that an amount of tax or
24 penalty or interest was incorrectly assessed, whether as the
25 result of a mistake of fact or an error of law, the
26 Department shall waive the amount of tax or penalty or
27 interest that accrued due to the incorrect assessment.
28 Section 50-155. Requirement to file return.
29 (a) For purposes of the use tax, except as to motor
30 vehicles and aircraft, when tangible personal property is
31 purchased from a retailer for use in this State by a
32 purchaser who did not pay the tax imposed by Article 15 to
33 the retailer, and who does not file returns with the
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1 Department as a retailer under Sections 50-5 through 50-140
2 of this Code, such purchaser (by the last day of the month
3 following the calendar month in which such purchaser makes
4 any payment upon the selling price of such property) shall,
5 except as provided in this Section, file a return with the
6 Department and pay the tax upon that portion of the selling
7 price so paid by the purchaser during the preceding calendar
8 month. When tangible personal property is purchased by a
9 lessor, under a lease for one year or longer, executed or in
10 effect at the time of purchase to an interstate carrier for
11 hire, who did not pay the tax imposed by Article 15 to the
12 retailer, such lessor (by the last day of the month following
13 the calendar month in which such property reverts to the use
14 of such lessor) shall file a return with the Department and
15 pay the tax upon the fair market value of such property on
16 the date of such reversion. Such return shall be filed on a
17 form prescribed by the Department and shall contain such
18 information as the Department may reasonably require. Such
19 return and payment from the purchaser shall be submitted to
20 the Department sooner than the last day of the month after
21 the month in which the purchase is made to the extent that
22 that may be necessary in order to secure the title to a motor
23 vehicle or the certificate of registration for an aircraft.
24 However, if the purchaser's annual use tax liability does not
25 exceed $600, the purchaser may file the return on an annual
26 basis on or before April 15th of the year following the year
27 use tax liability was incurred.
28 In addition with respect to motor vehicles and aircraft,
29 a purchaser of such tangible personal property for use in
30 this State, who purchases such tangible personal property
31 from an out-of-state retailer, shall file with the
32 Department, upon a form to be prescribed and supplied by the
33 Department, a return for each such item of tangible personal
34 property purchased. Such return in the case of motor
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1 vehicles and aircraft must show the name and address of the
2 seller, the name and address of purchaser, the amount of the
3 selling price including the amount allowed by the retailer
4 for traded in property, if any; the amount allowed by the
5 retailer for the traded-in tangible personal property, if
6 any, to the extent to which Section 5-120 of this Code allows
7 an exemption for the value of traded-in property; the balance
8 payable after deducting such trade-in allowance from the
9 total selling price; the amount of tax due from the purchaser
10 with respect to such transaction; the amount of tax collected
11 from the purchaser by the retailer on such transaction (or
12 satisfactory evidence that such tax is not due in that
13 particular instance if that is claimed to be the fact); the
14 place and date of the sale, a sufficient identification of
15 the property sold, and such other information as the
16 Department may reasonably require.
17 Such return shall be filed not later than 30 days after
18 such motor vehicle or aircraft is brought into this State for
19 use.
20 The return and tax remittance or proof of exemption from
21 the tax that is imposed by Article 15 may be transmitted to
22 the Department by way of the State agency with which, or
23 State officer with whom, the tangible personal property must
24 be titled or registered (if titling or registration is
25 required) if the Department and such agency or State officer
26 determine that this procedure will expedite the processing of
27 applications for title or registration.
28 With each such return, the purchaser shall remit the
29 proper amount of tax due (or shall submit satisfactory
30 evidence that the sale is not taxable if that is the case),
31 to the Department or its agents, whereupon the Department
32 shall issue, in the purchaser's name, a tax receipt (or a
33 certificate of exemption if the Department is satisfied that
34 the particular sale is tax exempt) which such purchaser may
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1 submit to the agency with which, or State officer with whom,
2 he must title or register the tangible personal property that
3 is involved (if titling or registration is required) in
4 support of such purchaser's application for an Illinois
5 certificate or other evidence of title or registration to
6 such tangible personal property.
7 (b) For purposes of the service use tax, where property
8 is acquired as an incident to the purchase of a service from
9 a serviceman for use in this State by a purchaser who did not
10 pay the tax herein imposed to the serviceman, and who does
11 not file returns with the Department as a serviceman under
12 Sections 50-5 through 50-140 of this Code, such purchaser (by
13 the last day of the month following the calendar month in
14 which such purchaser makes any payment upon the selling price
15 of such property) shall, except as hereinafter provided in
16 this Section, file a return with the Department and pay the
17 tax upon that portion of the selling price so paid by the
18 purchaser during the preceding calendar month. Such return
19 shall be filed on a form prescribed by the Department and
20 shall contain such information as the Department may
21 reasonably require.
22 (c) For purposes of the use tax and the service use tax,
23 when a purchaser pays a tax imposed by Article 15 or 25
24 directly to the Department, the Department (upon request
25 therefor from such purchaser) shall issue an appropriate
26 receipt to such purchaser showing that he has paid such tax
27 to the Department. Such receipt shall be sufficient to
28 relieve the purchaser from further liability for the tax to
29 which such receipt may refer.
30 (d) For purposes of the use tax and the service use tax,
31 a user who is liable to pay use tax or service use tax
32 directly to the Department only occasionally and not on a
33 frequently recurring basis, and who is not required to file
34 returns with the Department as a retailer or serviceman under
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1 Sections 50-5 through 50-140 of this Code need not register
2 with the Department. However, if such a user has a frequently
3 recurring direct use tax or service use tax liability to pay
4 to the Department, such user shall be required to register
5 with the Department on forms prescribed by the Department and
6 to obtain and display a certificate of registration from the
7 Department. In that event, all of the provisions of Sections
8 50-5 through 50-140 of this Code concerning the filing of
9 regular monthly, quarterly or annual tax returns and all of
10 the provisions of Sections 35-5 through 35-45 concerning the
11 requirements for registrants to post bond or other security
12 with the Department, as the provisions of such sections now
13 exist or may hereafter be amended, shall apply to such users
14 to the same extent as if such provisions were included
15 herein.
16 Section 50-160. Manufacturer's Purchase Credit.
17 (a) For purposes of the retailers' occupation tax, a
18 retailer may accept a Manufacturer's Purchase Credit
19 certification from a purchaser in satisfaction of use tax as
20 provided in Section 30-230 if the purchaser provides the
21 appropriate documentation as required by Section 30-230. A
22 Manufacturer's Purchase Credit certification, accepted by a
23 retailer as provided in Section 30-230, may be used by that
24 retailer to satisfy retailers' occupation tax liability in
25 the amount claimed in the certification, not to exceed 6.25%
26 of the receipts subject to tax from a qualifying purchase.
27 (b) For purposes of the service occupation tax, a
28 serviceman may accept a Manufacturer's Purchase Credit
29 certification from a purchaser in satisfaction of service use
30 tax as provided in Section 30-230 if the purchaser provides
31 the appropriate documentation as required by Section 30-230.
32 A Manufacturer's Purchase Credit certification, accepted by a
33 serviceman as provided in Section 30-230 may be used by that
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1 serviceman to satisfy service occupation tax liability in the
2 amount claimed in the certification, not to exceed 6.25% of
3 the receipts subject to tax from a qualifying purchase.
4 ARTICLE 55. CREDITS AND REFUNDS
5 Section 55-5. Erroneous payment; credit or refund;
6 retailers' occupation tax. If it appears, after claim
7 therefor filed with the Department, that an amount of tax or
8 penalty or interest has been paid which was not due under
9 Article 10, whether as the result of a mistake of fact or an
10 error of law, except as hereinafter provided, then the
11 Department shall issue a credit memorandum or refund to the
12 person who made the erroneous payment or, if that person died
13 or became a person under legal disability, to his or her
14 legal representative, as such. For purposes of this Section,
15 the tax is deemed to be erroneously paid by a retailer when
16 the manufacturer of a motor vehicle sold by the retailer
17 accepts the return of that automobile and refunds to the
18 purchaser the selling price of that vehicle as provided in
19 the New Vehicle Buyer Protection Act. When a motor vehicle is
20 returned for a refund of the purchase price under the New
21 Vehicle Buyer Protection Act, the Department shall issue a
22 credit memorandum or a refund for the amount of tax paid by
23 the retailer under Article 10 attributable to the initial
24 sale of that vehicle. Claims submitted by the retailer are
25 subject to the same restrictions and procedures provided for
26 in this Code. If it is determined that the Department should
27 issue a credit memorandum or refund, the Department may first
28 apply the amount thereof against any tax or penalty or
29 interest due or to become due under this Code, the Municipal
30 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
31 Municipal Service Occupation Tax Act, the County Retailers'
32 Occupation Tax Act, the County Supplementary Retailers'
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1 Occupation Tax Act, the County Service Occupation Tax Act,
2 the County Supplementary Service Occupation Tax Act, the
3 County Use Tax Act, the County Supplementary Use Tax Act,
4 Section 4 of the Water Commission Act of 1985, subsections
5 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
6 District Act, or subsections (e), (f) and (g) of Section 4.03
7 of the Regional Transportation Authority Act, from the person
8 who made the erroneous payment. If no tax or penalty or
9 interest is due and no proceeding is pending to determine
10 whether such person is indebted to the Department for tax or
11 penalty or interest, the credit memorandum or refund shall be
12 issued to the claimant; or (in the case of a credit
13 memorandum) the credit memorandum may be assigned and set
14 over by the lawful holder thereof, subject to reasonable
15 rules of the Department, to any other person who is subject
16 to this Code, the Municipal Retailers' Occupation Tax Act,
17 the Municipal Use Tax Act, the Municipal Service Occupation
18 Tax Act, the County Retailers' Occupation Tax Act, the County
19 Supplementary Retailers' Occupation Tax Act, the County
20 Service Occupation Tax Act, the County Supplementary Service
21 Occupation Tax Act, the County Use Tax Act, the County
22 Supplementary Use Tax Act, Section 4 of the Water Commission
23 Act of 1985, subsections (b), (c) and (d) of Section 5.01 of
24 the Local Mass Transit District Act, or subsections (e), (f)
25 and (g) of Section 4.03 of the Regional Transportation
26 Authority Act, and the amount thereof applied by the
27 Department against any tax or penalty or interest due or to
28 become due under this Code, the Municipal Retailers'
29 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
30 Service Occupation Tax Act, the County Retailers' Occupation
31 Tax Act, the County Supplementary Retailers' Occupation Tax
32 Act, the County Service Occupation Tax Act, the County
33 Supplementary Service Occupation Tax Act, the County Use Tax
34 Act, the County Supplementary Use Tax Act, Section 4 of the
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1 Water Commission Act of 1985, subsections (b), (c) and (d) of
2 Section 5.01 of the Local Mass Transit District Act, or
3 subsections (e), (f) and (g) of Section 4.03 of the Regional
4 Transportation Authority Act, from such assignee.
5 No claim shall be allowed for any amount paid to the
6 Department, whether paid voluntarily or involuntarily, if
7 paid in total or partial liquidation of an assessment which
8 had become final before the claim for credit or refund to
9 recover the amount so paid is filed with the Department, or
10 if paid in total or partial liquidation of a judgment or
11 order of court.
12 No credit may be allowed or refund made for any amount
13 paid by or collected from any claimant unless it appears (a)
14 that the claimant bore the burden of such amount and has not
15 been relieved thereof nor reimbursed therefor and has not
16 shifted such burden directly or indirectly through inclusion
17 of such amount in the price of the tangible personal property
18 sold by him or her or in any manner whatsoever; and that no
19 understanding or agreement, written or oral, exists whereby
20 he or she or his or her legal representative may be relieved
21 of the burden of such amount, be reimbursed therefor or may
22 shift the burden thereof; or (b) that he or she or his or her
23 legal representative has repaid unconditionally such amount
24 to his or her vendee (1) who bore the burden thereof and has
25 not shifted such burden directly or indirectly, in any manner
26 whatsoever; (2) who, if he or she has shifted such burden,
27 has repaid unconditionally such amount to his own vendee; and
28 (3) who is not entitled to receive any reimbursement therefor
29 from any other source than from his or her vendor, nor to be
30 relieved of such burden in any manner whatsoever. No credit
31 may be allowed or refund made for any amount paid by or
32 collected from any claimant unless it appears that the
33 claimant has unconditionally repaid, to the purchaser, any
34 amount collected from the purchaser and retained by the
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1 claimant with respect to the same transaction under Article
2 15.
3 If a retailer who has failed to pay retailers' occupation
4 tax on gross receipts from retail sales is required by the
5 Department to pay such tax, such retailer, without filing any
6 formal claim with the Department, shall be allowed to take
7 credit against such retailers' occupation tax liability to
8 the extent, if any, to which such retailer has paid an amount
9 equivalent to retailers' occupation tax or has paid use tax
10 in error to his or her vendor or vendors of the same tangible
11 personal property which such retailer bought for resale and
12 did not first use before selling it, and no penalty or
13 interest shall be charged to such retailer on the amount of
14 such credit. However, when such credit is allowed to the
15 retailer by the Department, the vendor is precluded from
16 refunding any of that tax to the retailer and filing a claim
17 for credit or refund with respect thereto with the
18 Department. The provisions of this amendatory Act shall be
19 applied retroactively, regardless of the date of the
20 transaction.
21 Section 55-10. Erroneous payment; creditor refund; use
22 tax; service occupation tax; service use tax.
23 (a) For purposes of the use tax, the service occupation
24 tax, and the service use tax, if it shall appear that an
25 amount of tax or penalty or interest has been paid in error
26 under Article 15, Article 20, or Article 25 to the Department
27 by (i) a purchaser, as distinguished from the retailer, (ii)
28 a serviceman, or (iii) a purchaser, as distinguished from the
29 serviceman, whether such amount be paid through a mistake of
30 fact or an error of law, such purchaser or serviceman may
31 file a claim for credit or refund with the Department. If it
32 shall appear that an amount of tax or penalty or interest has
33 been paid in error to the Department under Article 15,
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1 Article 20, or Article 25 by (i) a retailer who is required
2 or authorized to collect and remit the tax imposed by Article
3 15, (ii) a supplier who is required or authorized to collect
4 and remit the tax imposed by Article 20, or (iii) a
5 serviceman who is required or authorized to collect the tax
6 imposed by Article 25, whether such amount be paid through a
7 mistake of fact or an error of law, such retailer, supplier,
8 or serviceman may file a claim for credit or refund with the
9 Department, provided that no credit or refund shall be
10 allowed for any amount paid by any such retailer, supplier,
11 or serviceman unless it shall appear that he bore the burden
12 of such amount and did not shift the burden thereof to anyone
13 else (as in the case of a duplicated tax payment which the
14 retailer, supplier, or serviceman made to the Department and
15 did not collect from anyone else), or unless it shall appear
16 that he or she or his or her legal representative has
17 unconditionally repaid such amount to his vendee (1) who bore
18 the burden thereof and has not shifted such burden directly
19 or indirectly in any manner whatsoever; (2) who, if he has
20 shifted such burden, has repaid unconditionally such amount
21 to his or her own vendee; and (3) who is not entitled to
22 receive any reimbursement therefor from any other source than
23 from his vendor, nor to be relieved of such burden in any
24 other manner whatsoever.
25 (b) For purposes of the use tax and the service use tax,
26 if it shall appear that an amount of tax has been paid in
27 error under Article 15 or Article 25 by (i) the purchaser to
28 a retailer or (ii) the purchaser to a serviceman, who
29 retained such tax as reimbursement for his or her tax
30 liability on the same sale under Article 10, in the case of a
31 retailer, or Article 20, in the case of a serviceman, and who
32 remitted the amount involved to the Department under Article
33 10 or Article 20, whether such amount be paid through a
34 mistake of fact or an error of law, the procedure for
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1 recovering such tax shall be as prescribed in this Article
2 55.
3 (c) For purposes of the use tax, if a retailer who has
4 failed to pay use tax on gross receipts from retail sales is
5 required by the Department to pay such tax, such retailer,
6 without filing any formal claim with the Department, shall be
7 allowed to take credit against such use tax liability to the
8 extent, if any, to which such retailer has paid an amount
9 equivalent to retailers' occupation tax or has paid use tax
10 in error to his or her vendor or vendors of the same tangible
11 personal property which such retailer bought for resale and
12 did not first use before selling it, and no penalty or
13 interest shall be charged to such retailer on the amount of
14 such credit. However, when such credit is allowed to the
15 retailer by the Department, the vendor is precluded from
16 refunding any of that tax to the retailer and filing a claim
17 for credit or refund with respect thereto with the
18 Department. The provisions of this amendatory Act shall be
19 applied retroactively, regardless of the date of the
20 transaction.
21 Section 55-15. Credit or refund; payment and interest.
22 Any credit or refund that is allowed under Section 55-5 or
23 55-10 shall bear interest at the rate and in the manner
24 specified in the Uniform Penalty and Interest Act.
25 In case the Department determines that the claimant is
26 entitled to a refund, such refund shall be made only from
27 such appropriation as may be available for that purpose. If
28 it appears unlikely that the amount appropriated would permit
29 everyone having a claim allowed during the period covered by
30 such appropriation to elect to receive a cash refund, the
31 Department, by rule or regulation, shall provide for the
32 payment of refunds in hardship cases and shall define what
33 types of cases qualify as hardship cases.
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1 Section 55-20. Claims for credit or refund.
2 (a) For purposes of the retailers' occupation tax,
3 claims for credit or refund shall be prepared and filed upon
4 forms provided by the Department. Each claim shall state: (1)
5 the name and principal business address of the claimant; (2)
6 the period covered by the claim; (3) the total amount of
7 credit or refund claimed, giving in detail the net amount of
8 taxable receipts reported each month or other return period
9 used by the claimant as the basis for filing returns in the
10 period covered by the claim; (4) the total amount of tax paid
11 for each return period; (5) receipts upon which tax liability
12 is admitted for each return period; (6) the amount of
13 receipts on which credit or refund is claimed for each return
14 period; (7) the tax due for each return period as corrected;
15 (8) the amount of credit or refund claimed for each return
16 period; (9) reason or reasons why the amount, for which the
17 claim is filed, is alleged to have been paid in error; (10) a
18 list of the evidence (documentary or otherwise) which the
19 claimant has available to establish his compliance with
20 Section 55-5 as to bearing the burden of the tax for which he
21 seeks credit or refund; (11) payments or parts thereof (if
22 any) included in the claim and paid by the claimant under
23 protest; (12) sufficient information to identify any suit
24 which involves this Code, and to which the claimant is a
25 party; and (13) such other information as the Department may
26 reasonably require. Where the claimant is a corporation or
27 limited liability company, the claim filed on behalf of such
28 corporation or limited liability company shall be signed by
29 the president, vice-president, secretary or treasurer, by the
30 properly accredited agent of such corporation, or by a
31 manager, member, or properly accredited agent of the limited
32 liability company.
33 (b) For purposes of the use tax, the service occupation
34 tax, and the service use tax, any claim filed under Section
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1 55-10 shall be filed upon a form prescribed and furnished by
2 the Department. The claim shall be signed by the claimant
3 (or by the claimant's legal representative if the claimant
4 shall have died or become a person under legal disability),
5 or by a duly authorized agent of the claimant or his or her
6 legal representative.
7 (c) A claim for credit or refund shall be considered to
8 have been filed with the Department on the date upon which it
9 is received by the Department. Upon receipt of any claim for
10 credit or refund filed under this Code, any officer or
11 employee of the Department, authorized in writing by the
12 Director of Revenue to acknowledge receipt of such claims on
13 behalf of the Department, shall execute on behalf of the
14 Department, and shall deliver or mail to the claimant or his
15 or her duly authorized agent, a written receipt,
16 acknowledging that the claim has been filed with the
17 Department, describing the claim in sufficient detail to
18 identify it and stating the date upon which the claim was
19 received by the Department. Such written receipt shall be
20 prima facie evidence that the Department received the claim
21 described in such receipt and shall be prima facie evidence
22 of the date when such claim was received by the Department.
23 In the absence of such a written receipt, the records of the
24 Department as to when the claim was received by the
25 Department, or as to whether or not the claim was received at
26 all by the Department, shall be deemed to be prima facie
27 correct upon these questions in the event of any dispute
28 between the claimant (or his legal representative) and the
29 Department concerning these questions.
30 Section 55-25. Determination of claim; hearing.
31 (a) As soon as practicable after a claim for credit or
32 refund is filed, the Department shall examine the same and
33 determine the amount of credit or refund to which the
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1 claimant or the claimant's legal representative, in the event
2 that the claimant shall have died or become a person under
3 legal disability, is entitled and shall, by its Notice of
4 Tentative Determination of Claim, notify the claimant or his
5 or her legal representative of such determination, which
6 determination shall be prima facie correct. Proof of such
7 determination by the Department may be made at any hearing
8 before the Department or in any legal proceeding by a
9 reproduced copy of the Department's record relating thereto,
10 in the name of the Department under the certificate of the
11 Director of Revenue. Such reproduced copy shall, without
12 further proof, be admitted into evidence before the
13 Department or in any legal proceeding and shall be prima
14 facie proof of the correctness of the Department's
15 determination, as shown therein. If such claimant, or the
16 legal representative of a deceased claimant or a claimant who
17 is a person under legal disability shall, for purposes of the
18 use tax, the service occupation tax, and the service use tax,
19 within 20 days after the Department's Notice of Tentative
20 Determination of Claim, or for purposes of the retailers'
21 occupation tax, within 60 days after the Department's Notice
22 of Tentative Determination of Claim, file a protest thereto
23 and request a hearing thereon, the Department shall give
24 notice to such claimant, or the legal representative of a
25 deceased claimant, or a claimant who is a person under legal
26 disability of the time and place fixed for such hearing, and
27 shall hold a hearing in conformity with the provisions of
28 this Code, and pursuant thereto shall issue its Final
29 Determination of the amount, if any, found to be due as a
30 result of such hearing, to such claimant, or the legal
31 representative of a deceased claimant or a claimant who is a
32 person under legal disability.
33 (b) For purposes of the retailers' occupation tax only,
34 the Department's Final Determination may be reviewed by the
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1 proper Circuit Court, in the same manner, within the same
2 time, upon the same terms and conditions and to the same
3 extent, as provided by Section 77-5 of this Code.
4 Section 55-30. Final determination of claim. If a
5 protest to the Department's Notice of Tentative Determination
6 of Claim is not filed within 20 days and a request for a
7 hearing thereon is not made as provided in Section 55-25, the
8 Notice shall thereupon become and operate as a Final
9 Determination; and, if the Department's Notice of Tentative
10 Determination, upon becoming a Final Determination, indicates
11 no amount due to the claimant, or, upon issuance of a credit
12 memorandum or refund for the amount, if any, found by the
13 Department to be due, the claim in all its aspects shall be
14 closed and no longer open to protest, hearing, judicial
15 review, or by any other proceeding or action whatever, either
16 before the Department or in any court of this State. Claims
17 for credit or refund hereunder must be filed with and
18 initially determined by the Department, the remedy herein
19 provided being exclusive; and no court shall have
20 jurisdiction to determine the merits of any claim except upon
21 review as provided in this Code.
22 Section 55-35. Limitations. As to any claim for credit
23 or refund filed with the Department on and after January 1
24 but on or before June 30 of any given year, no amount of tax
25 or penalty or interest erroneously paid (either in total or
26 partial liquidation of a tax or penalty or interest under
27 this Code) more than 3 years prior to such January 1 shall be
28 credited or refunded, and as to any such claim filed on and
29 after July 1 but on or before December 31 of any given year,
30 no amount of tax or penalty or interest erroneously paid
31 (either in total or partial liquidation of a tax or penalty
32 or interest under this Code) more than 3 years prior to such
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1 July 1 shall be credited or refunded except that, for
2 purposes of the retailers' occupation tax, if both the
3 Department and the taxpayer have agreed to an extension of
4 time to issue a notice of tax liability as provided in
5 Section 50-145 of this Code, such claim may be filed at any
6 time prior to the expiration of the period agreed upon.
7 Section 55-40. Application of credit or refund against
8 tax. For purposes of the use tax, the service occupation
9 tax, and the service use tax, if it is determined that the
10 Department should issue a credit or refund under this Code,
11 the Department may first apply the amount thereof against any
12 amount of tax or penalty or interest due under this Code, the
13 Municipal Retailers' Occupation Tax Act, the Municipal Use
14 Tax Act, the Municipal Service Occupation Tax Act, the County
15 Retailers' Occupation Tax Act, the County Supplementary
16 Retailers' Occupation Tax Act, the County Service Occupation
17 Tax Act, the County Supplementary Service Occupation Tax Act,
18 the County Use Tax Act, the County Supplementary Use Tax Act,
19 Section 4 of the Water Commission Act of 1985, subsections
20 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
21 District Act, or subsections (e), (f) and (g) of Section 4.03
22 of the Regional Transportation Authority Act, from the person
23 entitled to such credit or refund. For this purpose, if
24 proceedings are pending to determine whether or not any tax
25 or penalty or interest is due under this Code, the Municipal
26 Retailers' Occupation Tax Act, the Municipal Use Tax Act, the
27 Municipal Service Occupation Tax Act, the County Retailers'
28 Occupation Tax Act, the County Supplementary Retailers'
29 Occupation Tax Act, the County Service Occupation Tax Act,
30 the County Supplementary Service Occupation Tax Act, the
31 County Use Tax Act, the County Supplementary Use Tax Act,
32 Section 4 of the Water Commission Act of 1985, subsections
33 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
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1 District Act, or subsections (e), (f) and (g) of Section 4.03
2 of the Regional Transportation Authority Act, from such
3 person, the Department may withhold issuance of the credit or
4 refund pending the final disposition of such proceedings and
5 may apply such credit or refund against any amount found to
6 be due to the Department as a result of such proceedings. The
7 balance, if any, of the credit or refund shall be issued to
8 the person entitled thereto.
9 Any credit memorandum issued hereunder may be used by the
10 authorized holder thereof to pay any tax or penalty or
11 interest due or to become due under this Code or under the
12 Municipal Retailers' Occupation Tax Act, the Municipal Use
13 Tax Act, the Municipal Service Occupation Tax Act, the County
14 Retailers' Occupation Tax Act, the County Supplementary
15 Retailers' Occupation Tax Act, the County Service Occupation
16 Tax Act, the County Supplementary Service Occupation Tax Act,
17 the County Use Tax Act, the County Supplementary Use Tax Act,
18 Section 4 of the Water Commission Act of 1985, subsections
19 (b), (c) and (d) of Section 5.01 of the Local Mass Transit
20 District Act, or subsections (e), (f) and (g) of Section 4.03
21 of the Regional Transportation Authority Act, from such
22 holder. Subject to reasonable rules of the Department, a
23 credit memorandum issued hereunder may be assigned by the
24 holder thereof to any other person for use in paying tax or
25 penalty or interest which may be due or become due under this
26 Code or, for purposes of the service occupation tax and the
27 service use tax, due under the Municipal Retailers'
28 Occupation Tax Act, the Municipal Use Tax Act, the Municipal
29 Service Occupation Tax Act, the County Retailers' Occupation
30 Tax Act, the County Supplementary Retailers' Occupation Tax
31 Act, the County Service Occupation Tax Act, the County
32 Supplementary Service Occupation Tax Act, the County Use Tax
33 Act, the County Supplementary Use Tax Act, Section 4 of the
34 Water Commission Act of 1985, subsections (b), (c) and (d) of
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1 Section 5.01 of the Local Mass Transit District Act, or
2 subsections (e), (f) and (g) of Section 4.03 of the Regional
3 Transportation Authority Act, from the assignee.
4 (b) For purposes of this Code, in any case in which
5 there has been an erroneous refund of tax payable under this
6 Code, a notice of tax liability may be issued at any time
7 within 3 years from the making of that refund, or within 5
8 years from the making of that refund if it appears that any
9 part of the refund was induced by fraud or the
10 misrepresentation of a material fact. The amount of any
11 proposed assessment set forth in the notice shall be limited
12 to the amount of the erroneous refund.
13 ARTICLE 60. COLLECTION
14 Section 60-5. Tax collected as debt owed to State;
15 exception. The tax required to be collected by any retailer
16 pursuant to Article 15, any supplier pursuant to Article 20,
17 or any serviceman pursuant to Article 25, and any such tax
18 collected by any retailer, supplier, or serviceman shall
19 constitute a debt owed by the retailer, supplier, or
20 serviceman to this State, except (i) when such retailer is
21 relieved of the duty of remitting such tax to the Department
22 by virtue of his being required to pay, and his in fact
23 paying, the tax imposed by Article 10 upon his gross receipts
24 from the same transaction, or (ii) when such serviceman is
25 relieved of the duty of remitting such tax to the Department
26 by virtue of his being required to pay, and his in fact
27 paying, the tax imposed by Article 20 upon his sale of
28 service involving the incidental transfer by him of the same
29 property.
30 Section 60-10. Foreign retailers; permit to collect tax.
31 For purposes of the use tax, the service occupation tax, and
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1 the service use tax, the Department may, in its discretion,
2 upon application, authorize the collection of the tax herein
3 imposed by any retailer, supplier, or serviceman not
4 maintaining a place of business within this State, who, to
5 the satisfaction of the Department, furnishes adequate
6 security to insure collection and payment of the tax. Such
7 retailer, supplier, or serviceman shall be issued, without
8 charge, a permit to collect such tax. When so authorized, it
9 shall be the duty of such retailer, supplier, or serviceman
10 to collect the tax upon all tangible personal property sold
11 to his knowledge for use or for the purpose of resale as an
12 incident to the sale of a service within this State, in the
13 same manner and subject to the same requirements, including
14 the furnishing of a receipt to the purchaser or serviceman
15 (if demanded by the purchaser or serviceman), as a retailer,
16 supplier, or serviceman maintaining a place of business
17 within this State. The receipt given to the purchaser or
18 serviceman shall be sufficient to relieve him from further
19 tax liability for the tax to which such receipt may refer.
20 Such permit may be revoked by the Department as provided in
21 this Code.
22 Section 60-15. Foreign retailers; revocation of permit
23 to collect tax. For purposes of the use tax and service use
24 tax, whenever any retailer or serviceman not maintaining a
25 place of business in this State, to whom a permit to collect
26 the taxes imposed by Article 15 and Article 25 has been
27 issued pursuant to Section 60-10, fails to comply with any of
28 the provisions hereof or any orders, rules or regulations of
29 the Department prescribed and adopted hereunder, or when the
30 Department considers the security furnished by such retailer
31 or serviceman to be inadequate or considers that the tax can
32 be collected more effectively from persons using such
33 property in this State, the Department may, upon notice and
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1 hearing as herein provided, by order revoke the permit issued
2 to such retailer or serviceman. No order authorized by this
3 Section shall be made until the retailer or serviceman is
4 given an opportunity to be heard and to show cause why such
5 order shall not be made, and he shall be given at least 7
6 days' notice of the time, place and purpose of such hearing.
7 The Department shall have the power in its discretion to
8 issue a new permit pursuant to Section 60-10 after such
9 revocation.
10 Section 60-20. Receipts; list of agents.
11 (a) For purposes of the use tax, except as to motor
12 vehicles and other items of tangible personal property that
13 must be titled or registered under an Illinois law, but that
14 cannot be so titled or registered without a use tax receipt
15 or exemption determination from the Department, every
16 retailer maintaining a place of business in this State and
17 making sales of tangible personal property for use in this
18 State (whether those sales are made within or without this
19 State) shall, when collecting the tax as provided in Section
20 15-20 of this Code from the purchaser, give to the purchaser
21 (if demanded by the purchaser) a receipt for the tax in the
22 manner and form prescribed by the Department.
23 (b) For purposes of the service occupation tax and the
24 service use tax, every supplier or serviceman maintaining a
25 place of business in this State and (i) making sales of
26 tangible personal property for the purpose of resale as an
27 incident to the sale of service taxable under this Code or
28 (ii) making sales of service involving the incidental
29 transfer of property for use in this State (whether those
30 sales are made within or without this State) shall, when
31 collecting the taxes as provided in Sections 20-20 and 25-20
32 of this Code from the serviceman or purchaser, give to the
33 serviceman or purchaser, if demanded by the serviceman or
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1 purchaser, a receipt for the tax in the manner and form
2 provided by the Department.
3 (c) A receipt issued under this Section shall be
4 sufficient to relieve the purchaser or serviceman from
5 further liability for the tax to which the receipt may refer.
6 Each retailer, supplier, or serviceman shall list with the
7 Department the names and addresses of all of his or her
8 agents operating in this State and the location of any and
9 all of his or her distribution or sales houses, offices, or
10 other places of business in this State.
11 ARTICLE 65. LIENS
12 Section 65-5. Tax lien. The Department shall have a lien
13 for the taxes herein imposed or any portion thereof, or for
14 any penalty provided for in this Code, or for any amount of
15 interest which may be due as provided for in Section 50-150
16 of this Code, upon all the real and personal property of any
17 person to whom a final assessment or revised final assessment
18 has been issued as provided in this Code, or whenever a
19 return is filed without payment of the tax or penalty shown
20 therein to be due, including all such property of such
21 persons acquired after receipt of such assessment or filing
22 of such return.
23 However, where the lien arises because of the issuance of
24 a final assessment or revised final assessment by the
25 Department, such lien shall not attach and the notice
26 hereinafter referred to in this Section shall not be filed
27 until all proceedings in court for review of such final
28 assessment or revised final assessment have terminated or the
29 time for the taking thereof has expired without such
30 proceedings being instituted.
31 Upon the granting of a rehearing or departmental review
32 pursuant to Section 50-145 or Section 50-150 of this Code
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1 after a lien has attached, such lien shall remain in full
2 force except to the extent to which the final assessment may
3 be reduced by a revised final assessment following such
4 rehearing or review.
5 The lien created by the issuance of a final assessment
6 shall terminate unless a notice of lien is filed, as provided
7 in Section 65-10, within 3 years from the date all
8 proceedings in court for the review of such final assessment
9 have terminated or the time for the taking thereof has
10 expired without such proceedings being instituted, or (in the
11 case of a revised final assessment issued pursuant to a
12 rehearing or departmental review) within 3 years from the
13 date all proceedings in court for the review of such revised
14 final assessment have terminated or the time for the taking
15 thereof has expired without such proceedings being
16 instituted; and where the lien results from the filing of a
17 return without payment of the tax or penalty shown therein to
18 be due, the lien shall terminate unless a notice of lien is
19 filed, as provided in Section 65-10 hereof, within 3 years
20 from the date when such return is filed with the Department:
21 provided that the time limitation period on the Department's
22 right to file a notice of lien shall not run during any
23 period of time in which the order of any court has the effect
24 of enjoining or restraining the Department from filing such
25 notice of lien.
26 If the Department finds that a taxpayer is about to
27 depart from the State, or to conceal himself or his property,
28 or to do any other act tending to prejudice or to render
29 wholly or partly ineffectual proceedings to collect such tax
30 unless such proceedings are brought without delay, or if the
31 Department finds that the collection of the amount due from
32 any taxpayer will be jeopardized by delay, the Department
33 shall give the taxpayer notice of such findings and shall
34 make demand for immediate return and payment of such tax,
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1 whereupon such tax shall become immediately due and payable.
2 If the taxpayer, within 5 days after such notice (or within
3 such extension of time as the Department may grant), does not
4 comply with such notice or show to the Department that the
5 findings in such notice are erroneous, the Department may
6 file a notice of jeopardy assessment lien in the office of
7 the recorder of the county in which any property of the
8 taxpayer may be located and shall notify the taxpayer of such
9 filing. Such jeopardy assessment lien shall have the same
10 scope and effect as the statutory lien hereinbefore provided
11 for in this Section.
12 If the taxpayer believes that he does not owe some or all
13 of the tax for which the jeopardy assessment lien against him
14 has been filed, or that no jeopardy to the revenue in fact
15 exists, he may protest within 20 days after being notified by
16 the Department of the filing of such jeopardy assessment lien
17 and request a hearing, whereupon the Department shall hold a
18 hearing in conformity with the provisions of this Code and,
19 pursuant thereto, shall notify the taxpayer of its findings
20 as to whether or not such jeopardy assessment lien will be
21 released. If not, and if the taxpayer is aggrieved by this
22 decision, he may file an action for judicial review of such
23 final determination of the Department in accordance with
24 Section 77-5 of this Code and the Administrative Review Law.
25 If, pursuant to such hearing (or after an independent
26 determination of the facts by the Department without a
27 hearing), the Department determines that some or all of the
28 tax covered by the jeopardy assessment lien is not owed by
29 the taxpayer, or that no jeopardy to the revenue exists, or
30 if on judicial review the final judgment of the court is that
31 the taxpayer does not owe some or all of the tax covered by
32 the jeopardy assessment lien against him, or that no jeopardy
33 to the revenue exists, the Department shall release its
34 jeopardy assessment lien to the extent of such finding of
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1 nonliability for the tax, or to the extent of such finding of
2 no jeopardy to the revenue.
3 The Department shall also release its jeopardy assessment
4 lien against the taxpayer whenever the tax and penalty
5 covered by such lien, plus any interest which may be due, are
6 paid.
7 Nothing in this Section shall be construed to give the
8 Department a preference over the rights of any bona fide
9 purchaser, holder of a security interest, mechanics
10 lienholder, mortgagee, or judgment lien creditor arising
11 prior to the filing of a regular notice of lien or a notice
12 of jeopardy assessment lien in the office of the recorder in
13 the county in which the property subject to the lien is
14 located: provided, however, that the word "bona fide", as
15 used in this Section shall not include any mortgage of real
16 or personal property or any other credit transaction that
17 results in the mortgagee or the holder of the security acting
18 as trustee for unsecured creditors of the taxpayer mentioned
19 in the notice of lien who executed such chattel or real
20 property mortgage or the document evidencing such credit
21 transaction. Such lien shall be inferior to the lien of
22 general taxes, special assessments and special taxes
23 heretofore or hereafter levied by any political subdivision
24 of this State.
25 In case title to land to be affected by the notice of
26 lien or notice of jeopardy assessment lien is registered
27 under the provisions of the Registered Titles (Torrens) Act,
28 such notice shall be filed in the office of the Registrar of
29 Titles of the county within which the property subject to the
30 lien is situated and shall be entered upon the register of
31 titles as a memorial or charge upon each folium of the
32 register of titles affected by such notice, and the
33 Department shall not have a preference over the rights of any
34 bona fide purchaser, mortgagee, judgment creditor or other
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1 lien holder arising prior to the registration of such notice:
2 Provided, however, that the word "bona fide" shall not
3 include any mortgage of real or personal property or any
4 other credit transaction that results in the mortgagee or the
5 holder of the security acting as trustee for unsecured
6 creditors of the taxpayer mentioned in the notice of lien who
7 executed such chattel or real property mortgage or the
8 document evidencing such credit transaction.
9 Such regular lien or jeopardy assessment lien shall not
10 be effective against any purchaser with respect to any item
11 in a retailer's stock in trade purchased from the retailer in
12 the usual course of such retailer's business.
13 Section 65-10. Records of State tax liens. The recorder
14 of each county shall procure a file labeled "State Tax Lien
15 Notices" and an index book labeled "State Tax Lien Index".
16 When notice of any lien or jeopardy assessment lien is
17 presented to him for filing, he shall file it in numerical
18 order in the file and shall enter it alphabetically in the
19 index. The entry shall show the name and last known business
20 address of the person named in the notice, the serial number
21 of the notice, the date and hour of filing, whether it is a
22 regular lien or a jeopardy assessment lien, and the amount of
23 tax and penalty due and unpaid, plus the amount of interest
24 due under Section 50-150 of this Code at the time when the
25 notice of lien or jeopardy assessment lien is filed.
26 No recorder or registrar of titles of any county shall
27 require that the Department pay any costs or fees in
28 connection with recordation of any notice or other document
29 filed by the Department under this Code at the time such
30 notice or other document is presented for recordation. The
31 recorder or registrar of each county, in order to receive
32 payment for fees or costs incurred by the Department, shall
33 present the Department with monthly statements indicating the
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1 amount of fees and costs incurred by the Department and for
2 which no payment has been received.
3 A notice of lien may be filed after the issuance of a
4 revised final assessment pursuant to a rehearing or
5 departmental review under Section 50-145 or Section 50-150 of
6 this Code.
7 When the lien obtained pursuant to this Code has been
8 satisfied, the Department shall issue a release to the
9 person, or his agent, against whom the lien was obtained and
10 such release shall contain in legible letters a statement as
11 follows:
12 FOR THE PROTECTION OF THE OWNER, THIS RELEASE SHALL
13 BE FILED WITH THE RECORDER OR THE REGISTRAR
14 OF TITLES, IN WHOSE OFFICE, THE LIEN WAS FILED.
15 When a certificate of complete or partial release of lien
16 issued by the Department is presented for filing in the
17 office of the recorder or Registrar of Titles where a notice
18 of lien or notice of jeopardy assessment lien was filed, the
19 recorder, in the case of nonregistered property, shall
20 permanently attach the certificate of release to the notice
21 of lien or notice of jeopardy assessment lien and shall enter
22 the certificate of release and the date in the "State Tax
23 Lien Index" on the line where the notice of lien or notice of
24 jeopardy assessment lien is entered.
25 In the case of registered property, the Registrar of
26 Titles shall file and enter upon each folium of the register
27 of titles affected thereby a memorial of the certificate of
28 release which memorial when so entered shall act as a release
29 pro tanto of any memorial of such notice of lien or notice of
30 jeopardy assessment lien previously filed and registered.
31 Section 65-15. Tax liens; certificate of complete or
32 partial release. The Department shall issue a certificate of
33 complete or partial release of the lien:
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1 (a) to the extent that the fair market value of any
2 property subject to the lien exceeds the amount of the lien
3 plus the amount of all prior liens upon such property;
4 (b) to the extent that such lien shall become
5 unenforceable;
6 (c) to the extent that the amount of such lien is paid
7 by the retailer whose property is subject to such lien,
8 together with any interest which may become due under Section
9 50-150 of this Code between the date when the notice of lien
10 is filed and the date when the amount of such lien is paid;
11 (d) to the extent that there is furnished to the
12 Department on a form to be approved and with a surety or
13 sureties satisfactory to the Department a bond that is
14 conditioned upon the payment of the amount of such lien,
15 together with any interest which may become due under Section
16 50-150 of this Code after the notice of lien is filed, but
17 before the amount thereof is fully paid;
18 (e) to the extent and under the circumstances specified
19 in Section 65-5 of this Code in the case of jeopardy
20 assessment liens;
21 (f) to the extent to which an assessment is reduced
22 pursuant to a rehearing or departmental review under Section
23 50-145 or Section 50-150 of this Code.
24 A certificate of complete or partial release of any lien
25 shall be held conclusive that the lien upon the property
26 covered by the certificate is extinguished to the extent
27 indicated by such certificate.
28 Section 65-20. Tax liens on realty; enforcement. In
29 addition to any other remedy provided for by the laws of this
30 State, and provided that no hearing or proceedings for review
31 provided by this Code shall be pending, and the time for the
32 taking thereof shall have expired, the Department may
33 foreclose in the circuit court any lien on real property for
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1 any tax or penalty imposed by this Code to the same extent
2 and in the same manner as in the enforcement of other liens.
3 Provided that such proceedings to foreclose shall not be
4 instituted more than 20 years after the filing of the notice
5 of lien under the provisions of Section 65-10, except that
6 the time limitation period on the Department's right to
7 commence any such foreclosure proceeding shall not run during
8 any period of time in which a court order has the effect of
9 enjoining or restraining the Department from commencing such
10 foreclosure proceeding. The process, practice and procedure
11 for such foreclosure shall be the same as provided in the
12 Civil Practice Law, as amended. The provisions of this
13 amendatory Act of 1984 shall apply to any lien which has not
14 expired before September 13, 1984.
15 Section 65-25. Demand for payment of tax. In addition to
16 any other remedy provided for by the laws of this State, if
17 the taxes imposed by this Code are not paid within the time
18 required by this Code, the Department, or some person
19 designated by it, may cause a demand to be made on the
20 taxpayer for the payment of the tax. If the tax remains
21 unpaid for 10 days after demand has been made and no
22 proceedings have been taken for review, the Department may
23 issue a warrant directed to the sheriff of any county of the
24 State or to any State officer authorized to serve process,
25 commanding the sheriff or other officer to levy upon property
26 and rights to property (whether real or personal, tangible or
27 intangible) of the taxpayer, without exemption, found within
28 his or her jurisdiction, for the payment of the amount of
29 unpaid tax with the added penalties, interest and the cost of
30 executing the warrant. The term "levy" includes the power of
31 distraint and seizure by any means. In any case in which the
32 warrant to levy has been issued, the sheriff or other person
33 to whom the warrant was directed may seize and sell such
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1 property or rights to property. Such warrant shall be
2 returned to the Department together with the money collected
3 by virtue of the warrant within the time specified in the
4 warrant, which may not be less than 20 nor more than 90 days
5 from the date of the warrant. The sheriff or other officer to
6 whom such warrant is directed shall proceed in the same
7 manner as is prescribed by law for proceeding against
8 property to enforce judgments which are entered by a circuit
9 court of this State, and is entitled to the same fees for his
10 or her services in executing the warrant, to be collected in
11 the same manner. The Department, or some officer, employee or
12 agent designated by it, may bid for and purchase any such
13 property sold.
14 No proceedings for a levy under this Section may be
15 commenced more than 20 years after the latest date for filing
16 of the notice of lien under Section 65-10 of this Code,
17 without regard to whether such notice was actually filed.
18 Any officer or employee of the Department designated in
19 writing by the Director is authorized to serve process under
20 this Section to levy upon accounts or other intangible assets
21 of a taxpayer held by a financial organization, as defined by
22 Section 1501 of the Illinois Income Tax Act. In addition to
23 any other provisions of this Section, any officer or employee
24 of the Department designated in writing by the Director may
25 levy upon the following property and rights to property
26 belonging to a taxpayer: contractual payments, accounts and
27 notes receivable and other evidences of debt, and interest on
28 bonds, by serving a notice of levy on the person making such
29 payment. Levy shall not be made until the Department has
30 caused a demand to be made on the taxpayer in the manner
31 provided above. In addition to any other provisions of this
32 Section, any officer or employee of the Department designated
33 in writing by the Director, may levy upon the salary, wages,
34 commissions and bonuses of any employee, including officers,
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1 employees, or elected officials of the United States as
2 authorized by Section 5520a of the Government Organization
3 and Employees Act (5 U.S.C. 5520a), but not upon the salary
4 or wages of officers, employees, or elected officials of any
5 state other than this State, by serving a notice of levy on
6 the employer. Levy shall not be made until the Department
7 has caused a demand to be made on the employee in the manner
8 provided above. The provisions of Section 12-803 of the Code
9 of Civil Procedure relating to maximum compensation subject
10 to collection under wage deduction orders shall apply to all
11 levies made upon compensation under this Section. To the
12 extent of the amount due on the levy, the employer or other
13 person making payments to the taxpayer shall hold any
14 non-exempt wages or other payments due or which subsequently
15 come due. The levy or balance due thereon is a lien on wages
16 or other payments due at the time of the service of the
17 notice of levy, and such lien shall continue as to subsequent
18 earnings and other payments until the total amount due upon
19 the levy is paid, except that such lien on subsequent
20 earnings or other payments shall terminate sooner if the
21 employment relationship is terminated or if the notice of
22 levy is rescinded or modified. The employer or other person
23 making payments to the taxpayer shall file, on or before the
24 return dates stated in the notice of levy (which shall not be
25 more often than bimonthly) a written answer under oath to
26 interrogatories, setting forth the amount due as wages or
27 other payments to the taxpayer for the payment periods ending
28 immediately prior to the appropriate return date. A lien
29 obtained hereunder shall have priority over any subsequent
30 lien obtained pursuant to Section 12-808 of the Code of Civil
31 Procedure, except that liens for the support of a spouse or
32 dependent children shall have priority over all liens
33 obtained hereunder.
34 In any case where property or rights to property have
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1 been seized by an officer of the Illinois Department of Law
2 Enforcement, or successor agency thereto, under the authority
3 of a warrant to levy issued by the Department of Revenue, the
4 Department of Revenue may take possession of and may sell
5 such property or rights to property and the Department of
6 Revenue may contract with third persons to conduct sales of
7 such property or rights to the property. In the conduct of
8 such sales, the Department of Revenue shall proceed in the
9 same manner as is prescribed by law for proceeding against
10 property to enforce judgments which are entered by a circuit
11 court of this State. If, in the Department's opinion, no
12 offer to purchase at such sale is acceptable and the State's
13 interest would be better served by retaining the property for
14 sale at a later date, then the Department may decline to
15 accept any bid and may retain the property for sale at a
16 later date.
17 Section 65-30. Sale of property on which judgment for
18 tax is inferior; redemption. Except as to any sale had by
19 virtue of a judgment of foreclosure in accordance with
20 Article XV of the Code of Civil Procedure, whenever any real
21 estate has been or is sold at a judicial sale or a sale for
22 the enforcement of a judgment and such real estate is then
23 subject to a tax lien or notice of tax lien in favor of the
24 Department, as hereinbefore provided, and which is junior or
25 inferior to the lien so enforced or foreclosed by or through
26 that sale, the right to redeem in any manner under or by
27 virtue of such tax lien or claim for tax lien from such sale
28 or from the lien so foreclosed or enforced terminates at the
29 end of 12 months from the date upon which there is filed for
30 record in the office of the recorder for the county in which
31 the lands so sold are situated, if such lands are
32 unregistered, or in the office of the Registrar of Titles for
33 such county, if such lands are registered, a certified copy
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1 of the original or duplicate recorded or registered
2 certificate of such sale, such certified copy being endorsed
3 by the Director of Revenue showing service of a copy of such
4 certificate upon him or her, and upon such service it shall
5 be the duty of such officer to make such endorsement.
6 Service may be by United States registered or certified mail.
7 ARTICLE 70. HEARINGS
8 Section 70-5. Revocation of certificate of registration.
9 The Department may, after notice and a hearing as provided
10 herein, revoke the certificate of registration of any person
11 who violates any of the provisions of this Code. Before
12 revocation of a certificate of registration the Department
13 shall, within 90 days after non-compliance and at least 7
14 days prior to the date of the hearing, give the person so
15 accused notice in writing of the charge against him or her,
16 and on the date designated shall conduct a hearing upon this
17 matter. The lapse of such 90 day period shall not preclude
18 the Department from conducting revocation proceedings at a
19 later date if necessary. Any hearing held under this Section
20 shall be conducted by the Director of Revenue or by any
21 officer or employee of the Department designated, in writing,
22 by the Director of Revenue.
23 Upon the hearing of any such proceeding, the Director of
24 Revenue, or any officer or employee of the Department
25 designated, in writing, by the Director of Revenue, may
26 administer oaths and the Department may procure by its
27 subpoena the attendance of witnesses and, by its subpoena
28 duces tecum, the production of relevant books and papers. Any
29 circuit court, upon application either of the accused or of
30 the Department, may, by order duly entered, require the
31 attendance of witnesses and the production of relevant books
32 and papers, before the Department in any hearing relating to
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1 the revocation of certificates of registration. Upon refusal
2 or neglect to obey the order of the court, the court may
3 compel obedience thereof by proceedings for contempt.
4 The Department may, by application to any circuit court,
5 obtain an injunction restraining any person who engages in
6 the business of selling tangible personal property at retail
7 in this State without a certificate of registration (either
8 because the certificate of registration has been revoked or
9 because of a failure to obtain a certificate of registration
10 in the first instance) from engaging in such business until
11 such person, as if he or she were a new applicant for a
12 certificate of registration, shall comply with all of the
13 conditions, restrictions and requirements of Sections 35-5
14 through 35-45 of this Code and qualify for and obtain a
15 certificate of registration. Upon refusal or neglect to obey
16 the order of the court, the court may compel obedience
17 thereof by proceedings for contempt.
18 It shall not be a defense in a proceeding before the
19 Department to revoke a certificate of registration issued
20 under this Code, or in any action by the Department to
21 collect any tax due under this Code, that the holder of the
22 certificate is a party to an installment payment agreement
23 under Sections 35-5 through 35-45 if the liability which is
24 the basis of the revocation proceeding, or the tax that is
25 sought to be collected: (1) was incurred after the date of
26 the agreement was approved by the Department; or (2) was
27 incurred prior to the date the agreement was approved by the
28 Department, but was not included in the agreement; or (3) was
29 included in the agreement, but the taxpayer is in default of
30 the agreement.
31 Section 70-10. Investigations and hearings. For the
32 purpose of administering and enforcing the provisions of this
33 Code, the Department, or any officer or employee of the
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1 Department designated, in writing, by the Director thereof,
2 may hold investigations and hearings concerning any matters
3 covered by this Code and may examine any books, papers,
4 records or memoranda bearing upon the sales of tangible
5 personal property or services of any such person, and may
6 require the attendance of such person or any officer or
7 employee of such person, or of any person having knowledge of
8 such business, and may take testimony and require proof for
9 its information. In the conduct of any investigation or
10 hearing, neither the Department nor any officer or employee
11 thereof shall be bound by the technical rules of evidence,
12 and no informality in any proceeding, or in the manner of
13 taking testimony, shall invalidate any order, decision, rule
14 or regulation made or approved or confirmed by the
15 Department. The Director of Revenue, or any officer or
16 employee of the Department authorized by the Director
17 thereof, shall have power to administer oaths to such
18 persons. The books, papers, records and memoranda of the
19 Department, or parts thereof, may be proved in any hearing,
20 investigation, or legal proceeding by a reproduced copy
21 thereof under the certificate of the Director of Revenue.
22 Such reproduced copy shall, without further proof, be
23 admitted into evidence before the Department or in any legal
24 proceeding.
25 Section 70-15. Incriminating testimony. No person shall
26 be excused from testifying or from producing any books,
27 papers, records or memoranda in any investigation or upon any
28 hearing, when ordered to do so by the Department or any
29 officer or employee thereof, upon the ground that the
30 testimony or evidence, documentary or otherwise, may tend to
31 incriminate him or subject him to a criminal penalty, but no
32 person shall be prosecuted or subjected to any criminal
33 penalty for, or on account of, any transaction made or thing
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1 concerning which he may testify or produce evidence,
2 documentary or otherwise, before the Department or an officer
3 or employee thereof; provided, that such immunity shall
4 extend only to a natural person who, in obedience to a
5 subpoena, gives testimony under oath or produces evidence,
6 documentary or otherwise, under oath. No person so testifying
7 shall be exempt from prosecution and punishment for perjury
8 committed in so testifying.
9 Section 70-20. Subpoenas; witnesses; depositions. The
10 Department or any officer or employee of the Department
11 designated, in writing, by the Director thereof, shall at its
12 or his or her own instance, or on the written request of any
13 other party to the proceeding, issue subpoenas requiring the
14 attendance of and the giving of testimony by witnesses, and
15 subpoenas duces tecum requiring the production of books,
16 papers, records or memoranda. All subpoenas and subpoenas
17 duces tecum issued under the terms of this Code may be served
18 by any person of full age. The fees of witnesses for
19 attendance and travel shall be the same as the fees of
20 witnesses before the circuit court of this State; such fees
21 to be paid when the witness is excused from further
22 attendance. When the witness is subpoenaed at the instance of
23 the Department or any officer or employee thereof, such fees
24 shall be paid in the same manner as other expenses of the
25 Department, and when the witness is subpoenaed at the
26 instance of any other party to any such proceeding the
27 Department may require that the cost of service of the
28 subpoena or subpoena duces tecum and the fee of the witness
29 be borne by the party at whose instance the witness is
30 summoned. In such case, the Department, in its discretion,
31 may require a deposit to cover the cost of such service and
32 witness fees. A subpoena or subpoena duces tecum issued as
33 aforesaid shall be served in the same manner as a subpoena
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1 issued out of a court.
2 Any circuit court of this State, upon the application of
3 the Department or any officer or employee thereof, or upon
4 the application of any other party to the proceeding, may, in
5 its discretion, compel the attendance of witnesses, the
6 production of books, papers, records or memoranda and the
7 giving of testimony before the Department or any officer or
8 employee thereof conducting an investigation or holding a
9 hearing authorized by this Code, by an attachment for
10 contempt, or otherwise, in the same manner as production of
11 evidence may be compelled before the court.
12 The Department or any officer or employee thereof, or any
13 other party in an investigation or hearing before the
14 Department, may cause the depositions of witnesses within the
15 State to be taken in the manner prescribed by law for like
16 depositions in civil actions in courts of this State, and to
17 that end compel the attendance of witnesses and the
18 production of books, papers, records or memoranda.
19 ARTICLE 75. ADMINISTRATIVE PROCEDURE
20 Section 75-5. Application of the Administrative
21 Procedure Act. The Illinois Administrative Procedure Act is
22 hereby expressly adopted and shall apply to all
23 administrative rules and procedures of the Department of
24 Revenue under this Code, except that (1) paragraph (b) of
25 Section 5-10 of the Illinois Administrative Procedure Act
26 does not apply to final orders, decisions and opinions of the
27 Department, (2) subparagraph (a)(2) of Section 5-10 of the
28 Illinois Administrative Procedure Act does not apply to forms
29 established by the Department for use under this Code, and
30 (3) the provisions of Section 10-45 of the Illinois
31 Administrative Procedure Act regarding proposals for decision
32 are excluded and not applicable to the Department under this
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1 Code.
2 ARTICLE 77. ADMINISTRATIVE REVIEW LAW
3 Section 77-5. Review under Administrative Review Law.
4 The Department is authorized to make, promulgate and enforce
5 such reasonable rules and regulations relating to the
6 administration and enforcement of the provisions of this Code
7 as may be deemed expedient.
8 Whenever notice is required by this Code, such notice may
9 be given by United States registered or certified mail,
10 addressed to the person concerned at his last known address,
11 and proof of such mailing shall be sufficient for the
12 purposes of this Code. Notice of any hearing provided for by
13 this Code shall be so given not less than 7 days prior to the
14 day fixed for the hearing. Following the initial contact of a
15 person represented by an attorney, the Department shall not
16 contact the person concerned but shall only contact the
17 attorney representing the person concerned.
18 All hearings provided for in this Code with respect to or
19 concerning a taxpayer having his or her principal place of
20 business in this State other than in Cook County shall be
21 held at the Department's office nearest to the location of
22 the taxpayer's principal place of business: provided that if
23 the taxpayer has his or her principal place of business in
24 Cook County, such hearing shall be held in Cook County; and
25 provided, further, that if the taxpayer does not have his or
26 her principal place of business in this State, such hearing
27 shall be held in Sangamon County.
28 The Circuit Court of the County wherein the taxpayer has
29 his or her principal place of business, or of Sangamon County
30 in those cases where the taxpayer does not have his or her
31 principal place of business in this State, shall have power
32 to review all final administrative decisions of the
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1 Department in administering the provisions of this Code:
2 provided that if the administrative proceeding which is to be
3 reviewed judicially is a claim for refund proceeding
4 commenced in accordance with Section 55-5 or 55-10 of this
5 Code and Section 2a of the State Officers and Employees Money
6 Disposition Act, the Circuit Court having jurisdiction of
7 the action for judicial review under this Section and under
8 the Administrative Review Law shall be the same court that
9 entered the temporary restraining order or preliminary
10 injunction which is provided for in Section 2a of the State
11 Officers and Employees Money Disposition Act, and which
12 enables such claim proceeding to be processed and disposed of
13 as a claim for refund proceeding rather than as a claim for
14 credit proceeding.
15 The provisions of the Administrative Review Law, and the
16 rules adopted pursuant thereto, shall apply to and govern all
17 proceedings for the judicial review of final administrative
18 decisions of the Department hereunder. The term
19 "administrative decision" is defined as in Section 3-101 of
20 the Code of Civil Procedure.
21 Any person filing an action under the Administrative
22 Review Law to review a final assessment or revised final
23 assessment issued by the Department under this Code shall,
24 within 20 days after filing the complaint, file a bond with
25 good and sufficient surety or sureties residing in this State
26 or licensed to do business in this State or, instead of the
27 bond, obtain an order from the court imposing a lien upon the
28 plaintiff's property as provided in Article 65. If the person
29 filing the complaint fails to comply with this bonding
30 requirement within 20 days after filing the complaint, the
31 Department shall file a motion to dismiss and the court shall
32 dismiss the action unless the person filing the action
33 complies with the bonding requirement set out in this
34 provision within 30 days after the filing of the Department's
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1 motion to dismiss. Upon dismissal of any complaint for
2 failure to comply with the jurisdictional prerequisites
3 herein set forth, the court is empowered to and shall enter
4 judgment against the taxpayer and in favor of the Department
5 in the amount of the final assessment or revised final
6 assessment, together with any interest which may have accrued
7 since the Department issued the final assessment or revised
8 final assessment, and for costs, which judgment is
9 enforceable as other judgments for the payment of money. The
10 lien provided for in this Section shall not be applicable to
11 the real property of a corporate surety duly licensed to do
12 business in this State. The amount of such bond shall be
13 fixed and approved by the court, but shall not be less than
14 the amount of the tax and penalty claimed to be due by the
15 Department in its final assessment or revised final
16 assessment to the person filing such bond, plus the amount of
17 interest due from such person to the Department at the time
18 when the Department issued its final assessment to such
19 person. Such bond shall be executed to the Department of
20 Revenue and shall be conditioned on the taxpayer's payment
21 within 30 days after termination of the proceedings for
22 judicial review of the amount of tax and penalty and interest
23 found by the court to be due in such proceedings for judicial
24 review. Such bond, when filed and approved, shall, from such
25 time until 2 years after termination of the proceedings for
26 judicial review in which the bond is filed, be a lien against
27 the real estate situated in the county in which the bond is
28 filed, of the person filing such bond, and of the surety or
29 sureties on such bond, until the condition of the bond has
30 been complied with or until the bond has been canceled as
31 hereinafter provided. If the person filing any such bond
32 fails to keep the condition thereof, such bond shall
33 thereupon be forfeited, and the Department may institute an
34 action upon such bond in its own name for the entire amount
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1 of the bond and costs. Such action upon the bond shall be in
2 addition to any other remedy provided for herein. If the
3 person filing such bond complies with the condition thereof,
4 or if, in the proceedings for judicial review in which such
5 bond is filed, the court determines that no amount of tax or
6 penalty or interest is due, such bond shall be canceled.
7 If the court finds in a particular case that the
8 plaintiff cannot procure and furnish a satisfactory surety or
9 sureties for the kind of bond required herein, the court may
10 relieve the plaintiff of the obligation of filing such bond,
11 if, upon the timely application for a lien in lieu thereof
12 and accompanying proof therein submitted, the court is
13 satisfied that any such lien imposed would operate to secure
14 the assessment in the manner and to the degree as would a
15 bond. Upon a finding that such lien applied for would secure
16 the assessment at issue, the court shall enter an order, in
17 lieu of such bond, subjecting the plaintiff's real and
18 personal property (including subsequently acquired property),
19 situated in the county in which such order is entered, to a
20 lien in favor of the Department. Such lien shall be for the
21 amount of the tax and penalty claimed to be due by the
22 Department in its final assessment or revised final
23 assessment, plus the amount of interest due from such person
24 to the Department at the time when the Department issued its
25 final assessment to such person, and shall continue in full
26 force and effect until the termination of the proceedings for
27 judicial review, or until the plaintiff pays, to the
28 Department, the tax and penalty and interest to secure which
29 the lien is given, whichever happens first. In the exercise
30 of its discretion, the court may impose a lien regardless of
31 the ratio of the taxpayer's assets to the final assessment or
32 revised final assessment plus the amount of the interest and
33 penalty. Nothing in this Section shall be construed to give
34 the Department a preference over the rights of any bona fide
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1 purchaser, mortgagee, judgment creditor or other lien holder
2 arising prior to the entry of the order creating such lien in
3 favor of the Department: provided, however, that the word
4 "bona fide", as used in this Section, shall not include any
5 mortgage of real or personal property or any other credit
6 transaction that results in the mortgagee or the holder of
7 the security acting as trustee for unsecured creditors of the
8 taxpayer mentioned in the order for lien who executed such
9 chattel or real property mortgage or the document evidencing
10 such credit transaction. Such lien shall be inferior to the
11 lien of general taxes, special assessments and special taxes
12 heretofore or hereafter levied by any political subdivision
13 of this State. Such lien shall not be effective against any
14 purchaser with respect to any item in a retailer's stock in
15 trade purchased from the retailer in the usual course of such
16 retailer's business, and such lien shall not be enforced
17 against the household effects, wearing apparel, or the books,
18 tools or implements of a trade or profession kept for use by
19 any person. Such lien shall not be effective against real
20 property whose title is registered under the provisions of
21 the Registered Titles (Torrens) Act until the provisions of
22 Section 85 of that Act are complied with.
23 Service upon the Director of Revenue or the Assistant
24 Director of Revenue of the Department of Revenue of summons
25 issued in an action to review a final administrative decision
26 of the Department shall be service upon the Department. The
27 Department shall certify the record of its proceedings if the
28 taxpayer pays to it the sum of 75¢ per page of testimony
29 taken before the Department and 25¢ per page of all other
30 matters contained in such record, except that these charges
31 may be waived where the Department is satisfied that the
32 aggrieved party is a poor person who cannot afford to pay
33 such charges. If payment for such record is not made by the
34 taxpayer within 30 days after notice from the Department or
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1 the Attorney General of the cost thereof, the court in which
2 the proceeding is pending, on motion of the Department, shall
3 dismiss the complaint and (where the administrative decision
4 as to which the action for judicial review was filed is a
5 final assessment or revised final assessment) shall enter
6 judgment against the taxpayer and in favor of the Department
7 for the amount of tax and penalty shown by the Department's
8 final assessment or revised final assessment to be due, plus
9 interest as provided for in Section 50-150 of this Code from
10 the date when the liability upon which such interest accrued
11 became delinquent until the entry of the judgment in the
12 action for judicial review under the Administrative Review
13 Law, and also for costs.
14 Whenever any proceeding provided by this Code is begun
15 before the Department, either by the Department or by a
16 person subject to this Code, and such person thereafter dies
17 or becomes a person under legal disability before such
18 proceeding is concluded, the legal representative of the
19 deceased or person under legal disability shall notify the
20 Department of such death or legal disability. Such legal
21 representative, as such, shall then be substituted by the
22 Department for such person. If the legal representative
23 fails to notify the Department of his or her appointment as
24 such legal representative, the Department may, upon its own
25 motion, substitute such legal representative in the
26 proceeding pending before the Department for the person who
27 died or became a person under legal disability.
28 The changes made by Public Act 89-60 to Section 12 of the
29 Retailers' Occupation Tax Act, the predecessor to this
30 Section 77-5, apply to all actions pending on and after June
31 30, 1995 to review a final assessment or revised final
32 assessment issued by the Department.
33 ARTICLE 80. PENALTIES AND CRIMINAL VIOLATIONS
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1 Section 80-5. Violations under the retailers' occupation
2 tax. This Section applies to the retailers' occupation tax
3 only. When the amount due is under $300, any person engaged
4 in the business of selling tangible personal property at
5 retail in this State who fails to file a return, or who files
6 a fraudulent return, or any officer, employee or agent of a
7 corporation, member, employee or agent of a partnership, or
8 manager, member, agent, or employee of a limited liability
9 company engaged in the business of selling tangible personal
10 property at retail in this State who, as such officer,
11 employee, agent, manager, or member is under a duty to file a
12 return, or any officer, agent or employee of a corporation,
13 member, agent, or employee of a partnership, or manager,
14 member, agent, or employee of a limited liability company
15 engaged in the business of selling tangible personal property
16 at retail in this State who files or causes to be filed or
17 signs or causes to be signed a fraudulent return filed on
18 behalf of such corporation or limited liability company, or
19 any accountant or other agent who knowingly enters false
20 information on the return of any taxpayer under Article 10,
21 is guilty of a Class 4 felony.
22 Any person who or any officer or director of any
23 corporation, partner or member of any partnership, or manager
24 or member of a limited liability company that: (a) violates
25 Sections 35-5 through 35-45 or (b) fails to keep books and
26 records, or fails to produce books and records as required by
27 Section 45-10 or (c) willfully violates a rule or regulation
28 of the Department for the administration and enforcement of
29 Article 10 is guilty of a Class A misdemeanor. Any person,
30 manager or member of a limited liability company, or officer
31 or director of any corporation who engages in the business of
32 selling tangible personal property at retail after the
33 certificate of registration of that person, corporation,
34 limited liability company, or partnership has been revoked is
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1 guilty of a Class A misdemeanor. Each day such person,
2 corporation, or partnership is engaged in business without a
3 certificate of registration or after the certificate of
4 registration of that person, corporation, or partnership has
5 been revoked constitutes a separate offense.
6 Any purchaser who obtains a registration number or resale
7 number from the Department through misrepresentation, or who
8 represents to a seller that such purchaser has a registration
9 number or a resale number from the Department when he knows
10 that he does not, or who uses his registration number or
11 resale number to make a seller believe that he is buying
12 tangible personal property for resale when such purchaser in
13 fact knows that this is not the case is guilty of a Class 4
14 felony.
15 Any distributor, supplier or other reseller of motor fuel
16 registered pursuant to Sections 35-5 through 35-50 who fails
17 to collect the prepaid tax on invoiced gallons of motor fuel
18 sold or who fails to deliver a statement of tax paid to the
19 purchaser or to the Department as required by Sections 10-30
20 and 10-35, respectively, shall be guilty of a Class A
21 misdemeanor if the amount due is under $300, and a Class 4
22 felony if the amount due is $300 or more.
23 When the amount due is under $300, any person who accepts
24 money that is due to the Department under Article 10 from a
25 taxpayer for the purpose of acting as the taxpayer's agent to
26 make the payment to the Department, but who fails to remit
27 such payment to the Department when due is guilty of a Class
28 4 felony.
29 Any seller who collects or attempts to collect an amount
30 (however designated) which purports to reimburse such seller
31 for retailers' occupation tax liability measured by receipts
32 which such seller knows are not subject to retailers'
33 occupation tax, or any seller who knowingly over-collects or
34 attempts to over-collect an amount purporting to reimburse
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1 such seller for retailers' occupation tax liability in a
2 transaction which is subject to the tax that is imposed by
3 Article 10, shall be guilty of a Class 4 felony for each such
4 offense. This paragraph does not apply to an amount
5 collected by the seller as reimbursement for the seller's
6 retailers' occupation tax liability on receipts which are
7 subject to tax under Article 10 as long as such collection is
8 made in compliance with the tax collection brackets
9 prescribed by the Department in its rules and regulations.
10 When the amount due is $300 or more, any person engaged
11 in the business of selling tangible personal property at
12 retail in this State who fails to file a return, or who files
13 a fraudulent return, or any officer, employee or agent of a
14 corporation, member, employee or agent of a partnership, or
15 manager, member, agent, or employee of a limited liability
16 company engaged in the business of selling tangible personal
17 property at retail in this State who, as such officer,
18 employee, agent, manager, or member is under a duty to file a
19 return and who fails to file such return or any officer,
20 agent, or employee of a corporation, member, agent or
21 employee of a partnership, or manager, member, agent, or
22 employee of a limited liability company engaged in the
23 business of selling tangible personal property at retail in
24 this State who files or causes to be filed or signs or causes
25 to be signed a fraudulent return filed on behalf of such
26 corporation or limited liability company, or any accountant
27 or other agent who knowingly enters false information on the
28 return of any taxpayer under Article 10 is guilty of a Class
29 3 felony.
30 When the amount due is $300 or more, any person engaged
31 in the business of selling tangible personal property at
32 retail in this State who accepts money that is due to the
33 Department under Article 10 from a taxpayer for the purpose
34 of acting as the taxpayer's agent to make payment to the
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1 Department but fails to remit such payment to the Department
2 when due, is guilty of a Class 3 felony.
3 Any person whose principal place of business is in this
4 State and who is charged with a violation under this Section
5 shall be tried in the county where his principal place of
6 business is located unless he asserts a right to be tried in
7 another venue.
8 Any taxpayer or agent of a taxpayer who with the intent
9 to defraud purports to make a payment due to the Department
10 by issuing or delivering a check or other order upon a real
11 or fictitious depository for the payment of money, knowing
12 that it will not be paid by the depository, shall be guilty
13 of a deceptive practice in violation of Section 17-1 of the
14 Criminal Code of 1961.
15 A prosecution for any act in violation of this Section
16 may be commenced at any time within 3 years of the commission
17 of that act.
18 Section 80-10. Violations under the use tax, the service
19 occupation tax, and the service use tax.
20 (a) This Section applies to the use tax, the service
21 occupation tax, and the service use tax. When the amount due
22 is under $300, any person subject to the provisions hereof
23 who fails to file a return, or who violates any other
24 provision of Sections 50-5 through 50-140 or Section 50-155,
25 or who fails to keep books and records as required herein, or
26 who files a fraudulent return, or who wilfully violates any
27 rule or regulation of the Department for the administration
28 and enforcement of the provisions hereof, or any officer or
29 agent of a corporation or manager, member, or agent of a
30 limited liability company subject hereto who signs a
31 fraudulent return filed on behalf of such corporation or
32 limited liability company, or any accountant or other agent
33 who knowingly enters false information on the return of any
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1 taxpayer under Articles 15, 20, or 25, or any person who
2 violates any of the provisions of Sections 15-5, 20-5, 25-5,
3 60-20, or 80-20 hereof, or any purchaser who obtains a
4 registration number or resale number from the Department
5 through misrepresentation, or who represents to a seller that
6 such purchaser has a registration number or a resale number
7 from the Department when he knows that he does not, or who
8 uses his registration number or resale number to make a
9 seller believe that he is buying tangible personal property
10 for resale when such purchaser in fact knows that this is not
11 the case, is guilty of a Class 4 felony.
12 Any person who violates any provision of Sections 35-5
13 through 35-45, or who engages in the business of (i) selling
14 tangible personal property at retail or (ii) making sales of
15 service after his certificate of registration has been
16 revoked in accordance with Section 90-40, is guilty of a
17 Class 4 felony. Each day any such person is engaged in
18 business in violation of Sections 35-5 through 35-45, or
19 after his certificate of registration has been revoked,
20 constitutes a separate offense.
21 When the amount due is under $300, any person who accepts
22 money that is due to the Department under Articles 15, 20, or
23 25 from a taxpayer for the purpose of acting as the
24 taxpayer's agent to make the payment to the Department, but
25 who fails to remit such payment to the Department when due is
26 guilty of a Class 4 felony. Any such person who purports to
27 make such payment by issuing or delivering a check or other
28 order upon a real or fictitious depository for the payment of
29 money, knowing that it will not be paid by the depository,
30 shall be guilty of a deceptive practice in violation of
31 Section 17-1 of the Criminal Code of 1961.
32 When the amount due is $300 or more, any person subject
33 to the provisions hereof who fails to file a return or who
34 violates any other provision of Sections 50-5 through 50-140
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1 or Section 50-155 or who fails to keep books and records as
2 required herein or who files a fraudulent return, or who
3 wilfully violates any rule or regulation of the Department
4 for the administration and enforcement of the provisions
5 hereof, or any officer or agent of a corporation or manager,
6 member, or agent of a limited liability company subject
7 hereto who signs a fraudulent return filed on behalf of such
8 corporation or limited liability company, or any accountant
9 or other agent who knowingly enters false information on the
10 return of any taxpayer under Articles 15, 20, or 25 or any
11 person who violates any of the provisions of Sections 15-5,
12 20-5, 25-5, 60-20, or 80-20 or any purchaser who obtains a
13 registration number or resale number from the Department
14 through misrepresentation, or who represents to a seller that
15 such purchaser has a registration number or a resale number
16 from the Department when he knows that he does not or who
17 uses his registration number or resale number to make a
18 seller believe that he is buying tangible personal property
19 for resale when such purchaser in fact knows that this is not
20 the case, is guilty of a Class 3 felony.
21 When the amount due is $300 or more, any person who
22 accepts money that is due to the Department under Articles
23 15, 20, or 25 from a taxpayer for the purpose of acting as
24 the taxpayer's agent to make the payment to the Department,
25 but who fails to remit such payment to the Department when
26 due is guilty of a Class 3 felony. Any such person who
27 purports to make such payment by issuing or delivering a
28 check or other order upon a real or fictitious depository for
29 the payment of money, knowing that it will not be paid by the
30 depository shall be guilty of a deceptive practice in
31 violation of Section 17-1 of the Criminal Code of 1961.
32 Any seller or serviceman who collects or attempts to
33 collect use tax, service occupation tax, or service use tax
34 measured by receipts or selling prices which such seller or
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1 serviceman knows are not subject to use tax, service
2 occupation tax, or service use tax, or any serviceman who
3 collects or attempts to collect an amount (however
4 designated) which purports to reimburse such serviceman for
5 service occupation tax liability measured by receipts or
6 selling prices which such serviceman knows are not subject to
7 service occupation tax liability, or any seller or serviceman
8 who knowingly over-collects or attempts to over-collect use
9 tax, service occupation tax, or service use tax or an amount
10 purporting to be reimbursement for service occupation tax
11 liability in a transaction which is subject to the taxes that
12 are imposed by Articles 15, 20, or 25, shall be guilty of a
13 Class 4 felony for each offense. This paragraph does not
14 apply to an amount collected (i) by the seller or serviceman
15 as use tax or service use tax on receipts or selling prices
16 or (ii) by the serviceman as reimbursement for the
17 serviceman's service occupation tax liability on receipts or
18 selling prices which are subject to tax under Articles 15,
19 20, or 25 as long as such collection is made in compliance
20 with the tax collection brackets prescribed by the Department
21 in its rules and regulations.
22 A prosecution for any act in violation of this Section
23 may be commenced at any time within 3 years of the commission
24 of that act.
25 This Section does not apply if the violation in a
26 particular case also constitutes a criminal violation of
27 Section 80-5.
28 (b) For purposes of the use tax and the service use tax,
29 any taxpayer or agent of a taxpayer who with the intent to
30 defraud purports to make a payment due to the Department by
31 issuing or delivering a check or other order upon a real or
32 fictitious depository for the payment of money, knowing that
33 it will not be paid by the depository, shall be guilty of a
34 deceptive practice in violation of Section 17-1 of the
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1 Criminal Code of 1961.
2 (c) For purposes of the service occupation tax, if the
3 violation in a particular case also constitutes a criminal
4 violation of the provisions applying to the use tax then this
5 Section shall not apply to the violation of the provisions
6 applying to the service occupation tax.
7 (d) For purposes of the service use tax, if the
8 violation in a particular case also constitutes a criminal
9 violation of the provisions applying to the use tax or the
10 provisions applying to the service occupation tax then this
11 Section shall not apply to the violation of the provisions
12 applying to the service use tax.
13 Section 80-15. Misrepresentation of gasohol. For
14 purposes of the retailers' occupation tax and the use tax,
15 any person who knowingly sells or represents as gasohol any
16 fuel that does not qualify as gasohol under this Code is
17 guilty of a business offense and shall be fined not more than
18 $100 for each day that the sale or representation takes place
19 after notification from the Department of Agriculture that
20 the fuel in question does not qualify as gasohol.
21 Section 80-20. Advertisement of tax absorption. For
22 purposes of the use tax, the service occupation tax, and the
23 service use tax, it is unlawful for (a) any retailer to
24 advertise, hold out, or state to the public or to any
25 purchaser, consumer, or user, (b) any supplier to advertise,
26 hold out, or state to the public or to any serviceman, or (c)
27 any serviceman to advertise, hold out, or state to the public
28 or to any service customer, purchaser, consumer, or user,
29 directly or indirectly, that the tax imposed by Article 15,
30 Article 20, or Article 25 or any part thereof will be assumed
31 or absorbed by the retailer, supplier, or serviceman or that
32 they will not be added to the selling price of the property
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1 sold or transferred as an incident to a sale of service, or
2 if added that it or any part thereof will be refunded other
3 than when the retailer, supplier, or serviceman refunds the
4 selling price and tax because of the merchandise's being
5 returned to the retailer, supplier, or serviceman or other
6 than when the retailer, supplier, or serviceman credits or
7 refunds the tax to the purchaser, serviceman, or service
8 customer to support a claim filed with the Department under
9 this Code. Any person violating any of the provisions of
10 this Section within the State shall be guilty of a Class A
11 misdemeanor.
12 Article 85. DISPOSITION OF FUNDS
13 Section 85-5. Disposition of retailers' occupation tax
14 receipts. This Section applies to the retailers' occupation
15 tax only. Beginning January 1, 1990, each month the
16 Department shall pay into the Local Government Tax Fund, a
17 special fund in the State treasury which is hereby created,
18 the net revenue realized for the preceding month from the 1%
19 tax on sales of food for human consumption which is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, soft drinks and food which has been
22 prepared for immediate consumption) and prescription and
23 nonprescription medicines, drugs, medical appliances and
24 insulin, urine testing materials, syringes and needles used
25 by diabetics.
26 Beginning January 1, 1990, each month the Department
27 shall pay into the County and Mass Transit District Fund, a
28 special fund in the State treasury which is hereby created,
29 4% of the net revenue realized for the preceding month from
30 the 6.25% general rate.
31 Beginning January 1, 1990, each month the Department
32 shall pay into the Local Government Tax Fund 16% of the net
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1 revenue realized for the preceding month from the 6.25%
2 general rate on the selling price of tangible personal
3 property.
4 Of the remainder of the moneys received by the Department
5 pursuant to Article 10, disposition of funds shall be made as
6 provided in Section 85-25.
7 Subject to payment of amounts into the Build Illinois
8 Fund as provided in this Section and Section 85-25,
9 disposition of funds shall be made as provided in Section
10 85-30.
11 Subject to payment of amounts into the Build Illinois
12 Fund and the McCormick Place Expansion Project Fund pursuant
13 to this Article, each month the Department shall pay into the
14 Local Government Distributive Fund 0.4% of the net revenue
15 realized for the preceding month from the 5% general rate or
16 0.4% of 80% of the net revenue realized for the preceding
17 month from the 6.25% general rate, as the case may be, on the
18 selling price of tangible personal property which amount
19 shall, subject to appropriation, be distributed as provided
20 in Section 2 of the State Revenue Sharing Act. No payments
21 or distributions pursuant to this paragraph shall be made if
22 the tax imposed by Article 10 on photoprocessing products is
23 declared unconstitutional, or if the proceeds from such tax
24 are unavailable for distribution because of litigation.
25 Subject to payment of amounts into the Build Illinois
26 Fund and the McCormick Place Expansion Project pursuant this
27 Article, beginning July 1, 1993, the Department shall each
28 month pay into the Illinois Tax Increment Fund 0.27% of 80%
29 of the net revenue realized for the preceding month from the
30 6.25% general rate on the selling price of tangible personal
31 property.
32 Of the remainder of the moneys received by the Department
33 pursuant to Article 10, 75% thereof shall be paid into the
34 State Treasury and 25% shall be reserved in a special account
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1 and used only for the transfer to the Common School Fund as
2 part of the monthly transfer from the General Revenue Fund in
3 accordance with Section 8a of the State Finance Act.
4 As soon as possible after the first day of each month,
5 upon certification of the Department of Revenue, the
6 Comptroller shall order transferred and the Treasurer shall
7 transfer from the General Revenue Fund to the Motor Fuel Tax
8 Fund an amount equal to 1.7% of 80% of the net revenue
9 realized under Article 10 for the second preceding month;
10 except that this transfer shall not be made for the months
11 February through June, 1992.
12 For purposes of this Section, net revenue realized for a
13 month shall be the revenue collected by the State pursuant to
14 Article 10, less the amount paid out during that month as
15 refunds to taxpayers for overpayment of liability.
16 Section 85-10. Disposition of use tax receipts. This
17 Section shall apply to the use tax only. Beginning January
18 1, 1990, each month the Department shall pay into the State
19 and Local Sales Tax Reform Fund, a special fund in the State
20 Treasury which is hereby created, the net revenue realized
21 for the preceding month from the 1% tax on sales of food for
22 human consumption which is to be consumed off the premises
23 where it is sold (other than alcoholic beverages, soft drinks
24 and food which has been prepared for immediate consumption)
25 and prescription and nonprescription medicines, drugs,
26 medical appliances and insulin, urine testing materials,
27 syringes and needles used by diabetics.
28 Beginning January 1, 1990, each month the Department
29 shall pay into the County and Mass Transit District Fund 4%
30 of the net revenue realized for the preceding month from the
31 6.25% general rate on the selling price of tangible personal
32 property which is purchased outside Illinois at retail from a
33 retailer and which is titled or registered by an agency of
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1 this State's government.
2 Beginning January 1, 1990, each month the Department
3 shall pay into the State and Local Sales Tax Reform Fund, a
4 special fund in the State Treasury, 20% of the net revenue
5 realized for the preceding month from the 6.25% general rate
6 on the selling price of tangible personal property, other
7 than tangible personal property which is purchased outside
8 Illinois at retail from a retailer and which is titled or
9 registered by an agency of this State's government.
10 Beginning January 1, 1990, each month the Department
11 shall pay into the Local Government Tax Fund 16% of the net
12 revenue realized for the preceding month from the 6.25%
13 general rate on the selling price of tangible personal
14 property which is purchased outside Illinois at retail from a
15 retailer and which is titled or registered by an agency of
16 this State's government.
17 Of the remainder of the moneys received by the Department
18 pursuant to Article 15, disposition of funds shall be made as
19 provided in Section 85-25.
20 Subject to payment of amounts into the Build Illinois
21 Fund as provided in this Section and Section 85-25,
22 distribution of funds shall be made as provided in Section
23 85-30.
24 Subject to payment of amounts into the Build Illinois
25 Fund and the McCormick Place Expansion Project Fund pursuant
26 to this Article, each month the Department shall pay into the
27 Local Government Distributive Fund .4% of the net revenue
28 realized for the preceding month from the 5% general rate, or
29 .4% of 80% of the net revenue realized for the preceding
30 month from the 6.25% general rate, as the case may be, on the
31 selling price of tangible personal property which amount
32 shall, subject to appropriation, be distributed as provided
33 in Section 2 of the State Revenue Sharing Act. No payments or
34 distributions pursuant to this paragraph shall be made if the
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1 tax imposed by Article 15 on photoprocessing products is
2 declared unconstitutional, or if the proceeds from such tax
3 are unavailable for distribution because of litigation.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project Fund, and the
6 Local Government Distributive Fund pursuant to this Article,
7 beginning July 1, 1993, the Department shall each month pay
8 into the Illinois Tax Increment Fund 0.27% of 80% of the net
9 revenue realized for the preceding month from the 6.25%
10 general rate on the selling price of tangible personal
11 property.
12 Of the remainder of the moneys received by the Department
13 pursuant to Article 15, 75% thereof shall be paid into the
14 State Treasury and 25% shall be reserved in a special account
15 and used only for the transfer to the Common School Fund as
16 part of the monthly transfer from the General Revenue Fund in
17 accordance with Section 8a of the State Finance Act.
18 As soon as possible after the first day of each month,
19 upon certification of the Department of Revenue, the
20 Comptroller shall order transferred and the Treasurer shall
21 transfer from the General Revenue Fund to the Motor Fuel Tax
22 Fund an amount equal to 1.7% of 80% of the net revenue
23 realized under Article 15 for the second preceding month;
24 except that this transfer shall not be made for the months
25 February through June of 1992.
26 Net revenue realized for a month shall be the revenue
27 collected by the State pursuant to Article 15, less the
28 amount paid out during that month as refunds to taxpayers for
29 overpayment of liability.
30 Section 85-15. Distribution of service occupation tax
31 receipts. This Section shall apply to the service occupation
32 tax only. Beginning January 1, 1990, each month the
33 Department shall pay into the Local Government Tax Fund the
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1 revenue realized for the preceding month from the 1% tax on
2 sales of food for human consumption which is to be consumed
3 off the premises where it is sold (other than alcoholic
4 beverages, soft drinks and food which has been prepared for
5 immediate consumption) and prescription and nonprescription
6 medicines, drugs, medical appliances and insulin, urine
7 testing materials, syringes and needles used by diabetics.
8 Beginning January 1, 1990, each month the Department
9 shall pay into the County and Mass Transit District Fund 4%
10 of the revenue realized for the preceding month from the
11 6.25% general rate.
12 Beginning January 1, 1990, each month the Department
13 shall pay into the Local Government Tax Fund 16% of the
14 revenue realized for the preceding month from the 6.25%
15 general rate on transfers of tangible personal property.
16 Of the remainder of the moneys received by the Department
17 pursuant to Article 20, disposition of funds shall be made as
18 provided in Section 85-25.
19 Subject to payment of amounts into the Build Illinois
20 Fund as provided in this Section and Section 85-25,
21 disposition of funds shall be made as provided in Section
22 85-30.
23 Subject to payment of amounts into the Build Illinois
24 Fund and the McCormick Place Expansion Project Fund pursuant
25 to this Article, each month the Department shall pay into the
26 Local Government Distributive Fund 0.4% of the net revenue
27 realized for the preceding month from the 5% general rate or
28 0.4% of 80% of the net revenue realized for the preceding
29 month from the 6.25% general rate, as the case may be, on the
30 selling price of tangible personal property which amount
31 shall, subject to appropriation, be distributed as provided
32 in Section 2 of the State Revenue Sharing Act. No payments
33 or distributions pursuant to this paragraph shall be made if
34 the tax imposed by Article 20 on photoprocessing products is
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1 declared unconstitutional, or if the proceeds from such tax
2 are unavailable for distribution because of litigation.
3 Subject to payment of amounts into the Build Illinois
4 Fund, the McCormick Place Expansion Project Fund, and the
5 Local Government Distributive Fund pursuant to this Article,
6 beginning July 1, 1993, the Department shall each month pay
7 into the Illinois Tax Increment Fund 0.27% of 80% of the net
8 revenue realized for the preceding month from the 6.25%
9 general rate on the selling price of tangible personal
10 property.
11 Remaining moneys received by the Department pursuant to
12 Article 20 shall be paid into the General Revenue Fund of the
13 State Treasury.
14 As soon as possible after the first day of each month,
15 upon certification of the Department of Revenue, the
16 Comptroller shall order transferred and the Treasurer shall
17 transfer from the General Revenue Fund to the Motor Fuel Tax
18 Fund an amount equal to 1.7% of 80% of the net revenue
19 realized under this Article 20 for the second preceding
20 month; except that this transfer shall not be made for the
21 months February through June, 1992.
22 For purposes of this Section net revenue realized for a
23 month shall be the revenue collected by the State pursuant to
24 Article 20, less the amount paid out during that month as
25 refunds to taxpayers for overpayment of liability.
26 Section 85-20. Distribution of funds from the service
27 use tax. This Section shall apply to the service use tax
28 only. Beginning January 1, 1990, each month the Department
29 shall pay into the State and Local Tax Reform Fund, a special
30 fund in the State Treasury, the net revenue realized for the
31 preceding month from the 1% tax on sales of food for human
32 consumption which is to be consumed off the premises where it
33 is sold (other than alcoholic beverages, soft drinks and food
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1 which has been prepared for immediate consumption) and
2 prescription and nonprescription medicines, drugs, medical
3 appliances and insulin, urine testing materials, syringes and
4 needles used by diabetics.
5 Beginning January 1, 1990, each month the Department
6 shall pay into the State and Local Sales Tax Reform Fund 20%
7 of the net revenue realized for the preceding month from the
8 6.25% general rate on transfers of tangible personal
9 property, other than tangible personal property which is
10 purchased outside Illinois at retail from a retailer and
11 which is titled or registered by an agency of this State's
12 government.
13 Of the remainder of the moneys received by the Department
14 pursuant to Article 25, disposition of funds shall be made as
15 provided in Section 85-25.
16 Subject to payment of amounts into the Build Illinois
17 Fund as provided in this Section and Section 85-25,
18 distribution of funds shall be made as provided in Section
19 85-30.
20 Subject to payment of amounts into the Build Illinois
21 Fund and the McCormick Place Expansion Project Fund pursuant
22 to this Article, each month the Department shall pay into the
23 Local Government Distributive Fund 0.4% of the net revenue
24 realized for the preceding month from the 5% general rate or
25 0.4% of 80% of the net revenue realized for the preceding
26 month from the 6.25% general rate, as the case may be, on the
27 selling price of tangible personal property which amount
28 shall, subject to appropriation, be distributed as provided
29 in Section 2 of the State Revenue Sharing Act. No payments or
30 distributions pursuant to this paragraph shall be made if the
31 tax imposed by Article 25 on photo processing products is
32 declared unconstitutional, or if the proceeds from such tax
33 are unavailable for distribution because of litigation.
34 Subject to payment of amounts into the Build Illinois
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1 Fund, the McCormick Place Expansion Project Fund, and the
2 Local Government Distributive Fund pursuant to this Article,
3 beginning July 1, 1993, the Department shall each month pay
4 into the Illinois Tax Increment Fund 0.27% of 80% of the net
5 revenue realized for the preceding month from the 6.25%
6 general rate on the selling price of tangible personal
7 property.
8 All remaining moneys received by the Department pursuant
9 to Article 25 shall be paid into the General Revenue Fund of
10 the State Treasury.
11 As soon as possible after the first day of each month,
12 upon certification of the Department of Revenue, the
13 Comptroller shall order transferred and the Treasurer shall
14 transfer from the General Revenue Fund to the Motor Fuel Tax
15 Fund an amount equal to 1.7% of 80% of the net revenue
16 realized under Article 25 for the second preceding month;
17 except that this transfer shall not be made for the months
18 February through June, 1992.
19 For purposes of this Section, net revenue realized for a
20 month shall be the revenue collected by the State pursuant to
21 Article 25, less the amount paid out during that month as
22 refunds to taxpayers for overpayment of liability.
23 Section 85-25. Payments to the Build Illinois Fund. Of
24 the remainder of the moneys received by the Department
25 pursuant to Article 10, Article 15, Article 20, or Article
26 25, as the case may be, (a) 1.75% thereof shall be paid into
27 the Build Illinois Fund and (b) prior to July 1, 1989, 2.2%
28 and on and after July 1, 1989, 3.8% thereof shall be paid
29 into the Build Illinois Fund; provided, however, that if in
30 any fiscal year the sum of (1) the aggregate of 2.2% or 3.8%,
31 as the case may be, of the moneys received by the Department
32 and required to be paid into the Build Illinois Fund pursuant
33 to this Code and such aggregate of 2.2% or 3.8%, as the case
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1 may be, of moneys being hereinafter called the "Tax Code
2 Amount", and (2) the amount transferred to the Build Illinois
3 Fund from the State and Local Sales Tax Reform Fund shall be
4 less than the Annual Specified Amount (as hereinafter
5 defined), an amount equal to the difference shall be
6 immediately paid into the Build Illinois Fund from other
7 moneys received by the Department pursuant to this Code; the
8 "Annual Specified Amount" means the amounts specified below
9 for fiscal years 1986 through 1993:
10 Fiscal Year Annual Specified Amount
11 1986 $54,800,000
12 1987 $76,650,000
13 1988 $80,480,000
14 1989 $88,510,000
15 1990 $115,330,000
16 1991 $145,470,000
17 1992 $182,730,000
18 1993 $206,520,000;
19 and means the Certified Annual Debt Service Requirement (as
20 defined in Section 13 of the Build Illinois Bond Act) or the
21 Tax Code Amount, whichever is greater, for fiscal year 1994
22 and each fiscal year thereafter; and further provided, that
23 if on the last business day of any month the sum of (1) the
24 Tax Code Amount required to be deposited into the Build
25 Illinois Bond Account in the Build Illinois Fund during such
26 month and (2) the amount transferred to the Build Illinois
27 Fund from the State and Local Sales Tax Reform Fund shall
28 have been less than 1/12 of the Annual Specified Amount, an
29 amount equal to the difference shall be immediately paid into
30 the Build Illinois Fund from other moneys received by the
31 Department pursuant to this Code; and, further provided, that
32 in no event shall the payments required under the preceding
33 proviso result in aggregate payments into the Build Illinois
34 Fund pursuant to this clause (b) for any fiscal year in
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1 excess of the greater of (i) the Tax Code Amount or (ii) the
2 Annual Specified Amount for such fiscal year. The amounts
3 payable into the Build Illinois Fund under clause (b) of the
4 first sentence in this paragraph shall be payable only until
5 such time as the aggregate amount on deposit under each trust
6 indenture securing Bonds issued and outstanding pursuant to
7 the Build Illinois Bond Act is sufficient, taking into
8 account any future investment income, to fully provide, in
9 accordance with such indenture, for the defeasance of or the
10 payment of the principal of, premium, if any, and interest on
11 the Bonds secured by such indenture and on any Bonds expected
12 to be issued thereafter and all fees and costs payable with
13 respect thereto, all as certified by the Director of the
14 Bureau of the Budget. If on the last business day of any
15 month in which Bonds are outstanding pursuant to the Build
16 Illinois Bond Act, the aggregate of moneys deposited in the
17 Build Illinois Bond Account in the Build Illinois Fund in
18 such month shall be less than the amount required to be
19 transferred in such month from the Build Illinois Bond
20 Account to the Build Illinois Bond Retirement and Interest
21 Fund pursuant to Section 13 of the Build Illinois Bond Act,
22 an amount equal to such deficiency shall be immediately paid
23 from other moneys received by the Department pursuant to this
24 Code to the Build Illinois Fund; provided, however, that any
25 amounts paid to the Build Illinois Fund in any fiscal year
26 pursuant to this sentence shall be deemed to constitute
27 payments pursuant to clause (b) of the first sentence of this
28 paragraph and shall reduce the amount otherwise payable for
29 such fiscal year pursuant to that clause (b). The moneys
30 received by the Department pursuant to this Code and required
31 to be deposited into the Build Illinois Fund are subject to
32 the pledge, claim and charge set forth in Section 12 of the
33 Build Illinois Bond Act.
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1 Section 85-30. Payments to the McCormick Place Expansion
2 Project Fund. Subject to payment of amounts into the Build
3 Illinois Fund as provided in Sections 85-5 through 85-25, the
4 following specified monthly installment of the amount
5 requested in the certificate of the Chairman of the
6 Metropolitan Pier and Exposition Authority provided under
7 Section 8.25f of the State Finance Act, but not in excess of
8 sums designated as "Total Deposit", shall be deposited in the
9 aggregate from collections under Sections 50-5 through 50-140
10 into the McCormick Place Expansion Project Fund in the
11 specified fiscal years.
12 Fiscal Year Total Deposit
13 1993 $0
14 1994 53,000,000
15 1995 58,000,000
16 1996 61,000,000
17 1997 64,000,000
18 1998 68,000,000
19 1999 71,000,000
20 2000 75,000,000
21 2001 80,000,000
22 2002 84,000,000
23 2003 89,000,000
24 2004 and 93,000,000
25 each fiscal year
26 thereafter that bonds
27 are outstanding under
28 Section 13.2 of the
29 Metropolitan Pier and
30 Exposition Authority
31 Act.
32 Beginning July 20, 1993 and in each month of each fiscal
33 year thereafter, one-eighth of the amount requested in the
34 certificate of the Chairman of the Metropolitan Pier and
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1 Exposition Authority for that fiscal year, less the amount
2 deposited into the McCormick Place Expansion Project Fund by
3 the State Treasurer in the respective month under subsection
4 (g) of Section 13 of the Metropolitan Pier and Exposition
5 Authority Act, plus cumulative deficiencies in the deposits
6 required under this Section for previous months and years,
7 shall be deposited into the McCormick Place Expansion Project
8 Fund, until the full amount requested for the fiscal year,
9 but not in excess of the amount specified above as "Total
10 Deposit", has been deposited.
11 ARTICLE 90. MISCELLANEOUS PROVISIONS
12 Section 90-5. Appointment of Secretary of State for
13 service of process. Any non-resident of this State who
14 accepts the privilege extended by the laws of this State to
15 non-residents of acting as a retailer maintaining a place of
16 business within this State within the meaning of Section
17 5-110 or as a serviceman maintaining a place of business in
18 this State within the meaning of Section 5-130, any resident
19 of this State who incurs tax liability under Article 15 as a
20 seller or Article 25 as a serviceman and who subsequently
21 removes from this State or conceals his whereabouts, and any
22 person (resident or non-resident) who incurs tax liability
23 under Article 10 as a retailer, under Article 15 or Article
24 25 as a user in this State, or under Article 20 as a
25 serviceman in this State, and who removes from this State or
26 conceals his whereabouts, shall be deemed thereby to appoint
27 the Secretary of State of Illinois his agent for service of
28 process or notice in any judicial or administrative
29 proceeding under this Code. Such process or notice shall be
30 served by the Department on the Secretary of State by
31 leaving, at the office of the Secretary of State at least 15
32 days before the return day of such process or notice, a true
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1 and certified copy thereof, and by sending to the taxpayer by
2 registered or certified mail, postage prepaid, a like and
3 true certified copy, with an endorsement thereon of the
4 service upon said Secretary of State, addressed to such
5 taxpayer at his last known address.
6 Service of process or notice in the manner provided for
7 in this Section, under the circumstances specified in this
8 Section, shall be of the same force and validity as if served
9 upon the taxpayer personally within this State. Proof of such
10 service upon the taxpayer in this State through the Secretary
11 of State as his agent and by mailing to the last known
12 address of the taxpayer may be made in such judicial or
13 administrative proceeding by the affidavit of the Director of
14 Revenue, or by his duly authorized representative who made
15 such service, with a copy of the process or notice that was
16 so served attached to such affidavit.
17 Section 90-10. Bulk sales. If any taxpayer, outside the
18 usual course of his business, sells or transfers the major
19 part of any one or more of (A) the stock of goods which he is
20 engaged in the business of selling, (B) the furniture or
21 fixtures, (C) the machinery and equipment, or (D) the real
22 property, of any business that is subject to the provisions
23 of this Code, the purchaser or transferee of such asset
24 shall, no later than 10 days after the sale or transfer, file
25 a notice of sale or transfer of business assets with the
26 Chicago office of the Department disclosing the name and
27 address of the seller or transferor, the name and address of
28 the purchaser or transferee, the date of the sale or
29 transfer, a copy of the sales contract and financing
30 agreements which shall include a description of the property
31 sold, the amount of the purchase price or a statement of
32 other consideration for the sale or transfer, the terms for
33 payment of the purchase price, and such other information as
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1 the Department may reasonably require. If the purchaser or
2 transferee fails to file the above described notice of sale
3 with the Department within the prescribed time, the purchaser
4 or transferee shall be personally liable for the amount owed
5 hereunder by the seller or transferor to the Department up to
6 the amount of the reasonable value of the property acquired
7 by the purchaser or transferee. The seller or transferor
8 shall pay the Department the amount of tax, penalty and
9 interest (if any) due from him under this Code up to the date
10 of the payment of tax. The seller or transferor, or the
11 purchaser or transferee, at least 10 days before the date of
12 the sale or transfer, may notify the Department of the
13 intended sale or transfer and request the Department to audit
14 the books and records of the seller or transferor, or to do
15 whatever else may be necessary to determine how much the
16 seller or transferor owes to the Department hereunder up to
17 the date of the sale or transfer. The Department shall take
18 such steps as may be appropriate to comply with such request.
19 Any order issued by the Department pursuant to this
20 Section to withhold from the purchase price shall be issued
21 within 10 days after the Department receives notification of
22 a sale as provided in this Section. The purchaser or
23 transferee shall withhold such portion of the purchase price
24 as may be directed by the Department, but not to exceed a
25 minimum amount varying by type of business, as determined by
26 the Department pursuant to regulations, plus twice the
27 outstanding unpaid liabilities and twice the average
28 liability of preceding filings times the number of unfiled
29 returns, to cover the amount of all tax, penalty and interest
30 due and unpaid by the seller or transferor under this Code
31 or, if the payment of money or property is not involved,
32 shall withhold the performance of the condition that
33 constitutes the consideration for the sale or transfer.
34 Within 60 days after issuance of the initial order to
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1 withhold, the Department shall provide written notice to the
2 purchaser or transferee of the actual amount of all taxes,
3 penalties and interest then due and whether or not additional
4 amounts may become due as a result of unfiled returns,
5 pending assessments and audits not completed. The purchaser
6 or transferee shall continue to withhold the amount directed
7 to be withheld by the initial order or such lesser amount as
8 is specified by the final withholding order or to withhold
9 the performance of the condition which constitutes the
10 consideration for the sale or transfer until the purchaser
11 or transferee receives from the Department a certificate
12 showing that such tax, penalty and interest have been paid or
13 a certificate from the Department showing that no tax,
14 penalty or interest is due from the seller or transferor
15 under this Code.
16 The purchaser or transferee is relieved of any duty to
17 continue to withhold from the purchase price and of any
18 liability for tax, penalty or interest due hereunder from the
19 seller or transferor if the Department fails to notify the
20 purchaser or transferee in the manner provided herein of the
21 amount to be withheld within 10 days after the sale or
22 transfer has been reported to the Department or within 60
23 days after issuance of the initial order to withhold, as the
24 case may be. The Department shall have the right to determine
25 amounts claimed on an estimated basis to allow for non-filed
26 periods, pending assessments and audits not completed,
27 however the purchaser or transferee shall be personally
28 liable only for the actual amount due when determined.
29 If the seller or transferor fails to pay the tax, penalty
30 and interest (if any) due from him hereunder and the
31 Department makes timely claim therefor against the purchaser
32 or transferee as hereinabove provided, then the purchaser or
33 transferee shall pay the amount so withheld from the purchase
34 price to the Department. If the purchaser or transferee fails
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1 to comply with the requirements of this Section, the
2 purchaser or transferee shall be personally liable to the
3 Department for the amount owed hereunder by the seller or
4 transferor to the Department up to the amount of the
5 reasonable value of the property acquired by the purchaser or
6 transferee.
7 Any person who shall acquire any property or rights
8 thereto which, at the time of such acquisition, is subject to
9 a valid lien in favor of the Department shall be personally
10 liable to the Department for a sum equal to the amount of
11 taxes secured by such lien but not to exceed the reasonable
12 value of such property acquired by him.
13 Section 90-15. Liability because of amendatory Act.
14 (a) Revisions in Section 2 (which became Sections 2
15 through 2-65) of the Retailers' Occupation Tax Act by Public
16 Act 85-1135 do not affect tax liability that arose before
17 January 1, 1990.
18 (b) Revisions in Section 3 (which became Sections 3
19 through 3-80) of the Use Tax Act by Public Act 85-1135 do not
20 affect tax liability that arose before January 1, 1990.
21 (c) Revisions in Section 3 (which became Sections 3
22 through 3-50) of the Service Occupation Tax Act by Public Act
23 85-1135 do not affect tax liability that arose before January
24 1, 1990.
25 (d) Revisions in Section 3 (which became Sections 3
26 through 3-65) of the Service Use Tax Act by Public Act
27 85-1135 do not affect tax liability that arose before January
28 1, 1990.
29 Section 90-20. Sunset of exemptions, credits, and
30 deductions. The application of every exemption, credit, and
31 deduction against taxes imposed by this Code that becomes law
32 after September 16, 1994 shall be limited by a reasonable and
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1 appropriate sunset date. A taxpayer is not entitled to take
2 the exemption, credit, or deduction beginning on the sunset
3 date and thereafter. If a reasonable and appropriate sunset
4 date is not specified in the Public Act that creates the
5 exemption, credit, or deduction, a taxpayer shall not be
6 entitled to take the exemption, credit, or deduction
7 beginning 5 years after the effective date of the Public Act
8 creating the exemption, credit, or deduction and thereafter.
9 Section 90-25. Delivery in State.
10 (a) For purposes of the use tax and the service use tax,
11 evidence that tangible personal property was sold by any
12 person for delivery to a person residing or engaged in
13 business in this State shall be prima facie evidence that
14 such tangible personal property was sold for use in this
15 State.
16 (b) For purposes of the service occupation tax, evidence
17 that tangible personal property was sold by any supplier for
18 delivery to a person residing or engaged in business in this
19 State shall be prima facie evidence that such tangible
20 personal property was sold for the purpose of resale as an
21 incident to a sale of service taxable under Article 20.
22 Section 90-30. Tax stated as distinct item from selling
23 price.
24 (a) The use tax imposed by Article 15 shall when
25 collected be stated as a distinct item separate and apart
26 from the selling price of the tangible personal property.
27 However, where it is not possible to state the sales tax
28 separately in situations such as sales from vending machines
29 or sales of liquor by the drink the Department may by rule
30 exempt such sales from this requirement so long as purchasers
31 are notified by a sign that the tax is included in the
32 selling price.
-198- LRB9000671KDdvA
1 (b) For purposes of the service use tax, except as
2 provided in subsection (c) of this Section, the selling price
3 of each item of tangible personal property transferred
4 incident to a sale of service may be stated as a distinct
5 item by the serviceman to the service customer and the
6 service use tax imposed by Article 25 shall when collected be
7 stated as a distinct item separate and apart from the selling
8 price of the tangible personal property. If the selling
9 price of each item of tangible personal property transferred
10 incidental to a sale of service is not stated as a separate
11 item on the serviceman's billing to the service customer,
12 then the service use tax imposed by Article 25 shall be based
13 on 50% of the serviceman's entire billing to the service
14 customer.
15 (c) For purposes of the service use tax, when a
16 serviceman contracts to design, develop and produce special
17 order machinery or equipment, the service use tax imposed by
18 Article 25 shall be based on the serviceman's cost price of
19 the tangible personal property transferred incident to the
20 completion of the contract.
21 Section 90-35. Severability. If any clause, sentence,
22 Section, provision or part of this Code or the application
23 thereof to any person or circumstance shall be adjudged to be
24 unconstitutional, the remainder of this Code or its
25 application to persons or circumstances other than those to
26 which it is held invalid, shall not be affected thereby. In
27 particular, if any provision which exempts or has the effect
28 of exempting some class of users or servicemen or some kind
29 of use or service from the taxes imposed by this Code should
30 be held to constitute or to result in an invalid
31 classification or to be unconstitutional for some other
32 reason, such provision shall be deemed to be severable, with
33 the remainder of this Code without said provision being held
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1 constitutional.
2 Section 90-40. Applicability of the Uniform Penalty and
3 Interest Act. All of the provisions of Section 3-7 of the
4 Uniform Penalty and Interest Act, which are not inconsistent
5 with this Code, shall apply, as far as practicable, to the
6 subject matter of this Code to the same extent as if such
7 provisions were included herein.
8 Section 90-45. Low sulfur dioxide emission coal fueled
9 devices; declaratory provisions. The amendatory provisions
10 of Public Act 82-672 concerning low sulfur dioxide emission
11 coal fueled devices, as those provisions appeared in Section
12 1a-1 of the Retailers' Occupation Tax Act, Section 2a-1 of
13 the Use Tax Act, Section 2b of the Service Occupation Tax
14 Act, and Section 2b of the Service Use Tax Act, (now Sections
15 5-60 and 30-5 of this Code) are not intended to nor do they
16 make any change in the meaning of any provision in those
17 Sections but are intended to remove possible ambiguities,
18 thereby confirming the existing meaning of those Sections in
19 effect prior to October 28, 1981.
20 ARTICLE 900. CODIFICATION PROVISIONS
21 Section 900-1. Prior law.
22 (a) A provision of this Code that is the same as a prior
23 law shall be construed as a continuation of the prior law and
24 not as a new or different law.
25 (b) A citation in another Act to an Act or to a Section
26 of an Act that is continued in this Code shall be construed
27 to be a citation to that continued provision.
28 Section 900-5. Other Acts of the General Assembly. If
29 any Act of the General Assembly changes, adds, or repeals a
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1 provision of prior law that is continued in this Code, then
2 that change, addition, or repeal in the other Act shall be
3 construed together with this Code.
4 Section 900-10. Home rule; mandates. Nothing in this
5 Code as initially enacted (i) is a denial or limitation on
6 home rule powers if no denial or limitation existed under
7 prior law or (ii) creates a State mandate under the State
8 Mandates Act if no mandate existed under prior law.
9 Section 900-15. Titles; Articles; captions. The
10 language contained in the Titles, Articles, headings, and
11 Section and subsection caption in this Code:
12 (1) is intended only as a general description that is
13 not a part of the substantive provisions of this Code;
14 (2) does not take precedence over the content of the
15 substantive provisions of this Code; and
16 (3) shall not be used in construing the meaning of the
17 substantive provisions of this Code.
18 ARTICLE 990. STATUTES REPEALED
19 (35 ILCS 120/Act rep.)
20 (35 ILCS 105/Act rep.)
21 (35 ILCS 115/Act rep.)
22 (35 ILCS 110/Act rep.)
23 Section 990-5. Repeals. The Retailers' Occupation Tax
24 Act, the Use Tax Act, the Service Occupation Tax Act, and the
25 Service Use Tax Act are repealed.
26 ARTICLE 995. COMPARISON OF PRIOR LAW
27 PART 1. GENERAL PROVISIONS
28 Section 995-1. Explanation. Because this Act is a
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1 codification of existing law, this Article is included only
2 for informational purposes to show the relationship between
3 provisions of prior occupation and use tax laws and the new
4 Occupation and Use Tax Code. In Parts 10 through 25 of this
5 Article, each Part sets forth in full the prior use and
6 occupation tax Acts that have been replaced by the Occupation
7 and Use Tax Code. In Parts 10 through 25 of this Article, in
8 the text of a Section, (i) matter that is stricken indicates
9 matter that is deleted from prior law in order to state the
10 corresponding Occupation and Use Tax Code provision and (ii)
11 matter that is underscored indicates matter that is added to
12 prior law in order to state the corresponding Occupation and
13 Use Tax Code provision. If a Section of prior law has been
14 replaced by 2 or more new Sections representing Occupation
15 and Use Tax Code provisions, the beginning of the second and
16 following of those new Sections is indicated in the text as a
17 new paragraph beginning in the form "Section X-XX.".
18 This Article is repealed on the effective date of this
19 Act.
20 PART 5. DERIVATION CHART
21 [Bold text in far left column, beneath heading "OCCUPATION
22 AND USE TAX CODE", represents Article and Section numbers and
23 captions for that Code. Section references not in bold
24 directly beneath the headings "UTA", "SUTA", "SOTA", and
25 "ROTA" represent the Sections of the Use Tax Act, Service Use
26 Tax Act, Service Occupation Tax Act, and Retailers'
27 Occupation Tax Act, respectively, from which the Code
28 Sections are derived.]
29 OCCUPATION AND USE TAX CODE
30 UTA SUTA SOTA ROTA
31 Article 1. General provisions
32 Sec. 1-1. Short title
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1 Sec. 1-5. Applicability
2 Article 5. Definitions
3 Sec. 5-5. Acquired outside the State
4 Sec. 3-70
5 in part
6 Sec. 5-10. Bulk vending machine
7 Sec. 2 Sec. 1
8 in part in part
9 Sec. 5-15. Bullion
10 Sec. 3-20 Sec. 3-20 Sec. 3-20 Sec. 2-20
11 Sec. 5-20. Computer software
12 Sec. 3-25 Sec. 3-25 Sec. 3-25 Sec. 2-25
13 Sec. 5-25. Corporations organized for educational purposes
14 Sec. 2c Sec. 3c Sec. 2c Sec. 2h
15 Sec. 5-30. Cost price
16 Sec. 2 Sec. 2
17 in part in part
18 Sec. 5-35. Department
19 Sec. 2 Sec. 2 Sec. 2 Sec. 1
20 in part in part in part in part
21 Sec. 5-40. Gasohol
22 Sec. 3-40 in part
23 Sec. 5-45. Graphic arts production
24 Sec. 3-30 Sec. 3-30 Sec. 3-30 Sec. 2-30
25 Sec. 5-50. Gross receipts
26 Sec. 1
27 in part
28 Sec. 5-55. Like kind and character
29 Sec. 2 Sec. 1
30 in part in part
31 Sec. 5-60. Low sulfur dioxide emission coal fueled devices
32 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
33 in part in part in part in part
34 Sec. 5-65. Person
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1 Sec. 2 Sec. 2 Sec. 2 Sec. 1
2 in part in part in part in part
3 Sec. 5-70. Photoprocessing
4 Sec. 3-15 Sec. 3-15 Sec. 3-15 Sec. 2-15
5 Sec. 5-75. Pollution control facilities
6 Sec. 2a Sec. 2a Sec. 2a Sec. 1a
7 in part in part in part in part
8 Sec. 5-80. Production agriculture
9 Sec. 3-35 Sec. 3-35 Sec. 3-35 Sec. 2-35
10 Sec. 5-85. Purchase at retail
11 Sec. 2
12 in part
13 Sec. 5-90. Purchased from a serviceman
14 Sec. 2
15 in part
16 Sec. 5-95. Purchaser
17 Sec. 2 Sec. 2 Sec. 1
18 in part in part in part
19 Sec. 5-100. Reseller of motor fuel
20 Sec. 1
21 in part
22 Sec. 5-105. Retailer
23 1a; Sec. 2 Sec. 1c
24 in part
25 Sec. 5-110. Retailer maintaining a business in State
26 Sec. 2
27 in part
28 Sec. 5-115. Sale at retail
29 Sec. 2 Sec. 2 Sec. 2 Sec. 1
30 in part in part in part in part
31 Sec. 5-120. Selling price
32 Sec. 2 Sec. 2 Sec. 1
33 in part; 2b in part in part
34 Sec. 5-125. Serviceman
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1 Sec. 2 Sec. 2
2 in part in part
3 Sec. 5-130. Serviceman maintaining a business in State
4 Sec. 2
5 in part
6 Sec. 5-135. Supplier
7 Sec. 2 Sec. 2
8 in part in part
9 Sec. 5-140. Transfer
10 Sec. 2
11 in part
12 Sec. 5-145. Use
13 Sec. 2 Sec. 2
14 in part in part
15 Sec. 5-150. Watercraft
16 Sec. 2 in Sec. 3
17 in part; 9 in part
18 Article 10. Imposition of the retailers' occupation tax
19 Sec. 10-5. Tax imposed
20 Sec. 2
21 Sec. 10-10. Tax additional
22 Sec. 14
23 Sec. 10-15. Rate of tax
24 Sec. 2-10
25 Sec. 10-20. Purchaser refunds
26 Sec. 2-40
27 Sec. 10-25. Serviceman transfer
28 Sec. 2-55
29 Sec. 10-30. Prepayment of tax by motor fuel retailer
30 Sec. 2d
31 Sec. 10-35. Motor fuel distributor or supplier; statement
32 Sec. 2e
33 Sec. 10-40. Reseller of motor fuel; filing of returns
34 Sec. 2f
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1 Sec. 10-45. Procedure for filing return of motor
2 fuel reseller
3 Sec. 2g
4 Article 15. Imposition of the use tax
5 Sec. 15-5. Tax imposed
6 Sec. 3
7 Sec. 15-10. Tax additional
8 Sec. 15
9 in part
10 Sec. 15-15. Rate of tax
11 Sec. 3-10
12 Sec. 15-20. Collection
13 Sec. 3-45
14 Sec. 15-25. R.O.T. nontaxability
15 Sec. 3-65
16 Sec. 15-30. Serviceman transfer
17 Sec. 3-75
18 Sec. 15-35. Method of stating tax
19 Sec. 3a
20 Article 20. Imposition of the service occupation tax
21 Sec. 20-5. Tax imposed
22 Sec. 3
23 Sec. 20-10. Tax additional
24 Sec. 16
25 Sec. 20-15. Rate of tax
26 Sec. 3-10
27 Sec. 20-20. Collection
28 Sec. 3-40
29 Article 25. Imposition of the service use tax
30 Sec. 25-5. Tax imposed
31 Sec. 3
32 Sec. 25-10. Tax additional
33 Sec. 16
34 Sec. 25-15. Rate of tax
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1 Sec. 3-10
2 Sec. 25-20. Collection
3 Sec. 3-40
4 Sec. 25-25. S.O.T. nontaxability
5 Sec. 3-55
6 Sec. 25-30. Method of stating tax
7 Sec. 3a
8 Sec. 25-35. Selling price of tangible personal property
9 Sec. 3d
10 Article 30. Exemptions, exclusions, and credits
11 Sec. 30-5. Pollution control facilities
12 Sec. 2a Sec. 2a Sec. 2a Sec. 1a
13 in part in part in part in part
14 Sec. 30-10. Property used in pollution control facilities
15 Sec. 1e
16 Sec. 30-15. Low sulfur dioxide emission coal fueled devices
17 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
18 in part in part in part in part
19 Sec. 30-20. Designated tangible personal property
20 Sec. 1d
21 Sec. 30-25. Machinery used in high impact service facility
22 Sec. 1j
23 Sec. 30-30. High impact business; building materials
24 Sec. 5l
25 Sec. 30-35. Machinery used in aircraft maintenance facility
26 Sec. 1m
27 Sec. 30-40. Property used in aircraft maintenance facility
28 Sec. 1n
29 Sec. 30-45. Personal property used in infrastructure repairs
30 Sec. 3-5(25) Sec. 3-5(18) Sec. 3-5(19) Sec. 2-5(31)
31 Sec. 30-50. Horses
32 Sec. 3-5(21) Sec. 3-5(14) Sec. 3-5(15) Sec. 2-5(27)
33 Sec. 30-55. Semen
34 Sec. 3-5(20) Sec. 3-5(13) Sec. 3-5(14) Sec. 2-5(26)
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1 Sec. 30-60. Farm chemicals
2 Sec. 3-5(7) Sec. 2-5(1)
3 Sec. 30-65. Farm machinery and equipment
4 Sec. 3-5(11) Sec. 3-5(7) Sec. 3-5(7) Sec. 2-5(2)
5 Sec. 30-70. Distillation machinery and equipment
6 Sec. 3-5(17) Sec. 2 Sec. 2 Sec. 2-5(3)
7 in part in part
8 Sec. 30-75. Oil field equipment
9 Sec. 3-5(14) Sec. 3-5(10) Sec. 3-5(10) Sec. 2-5(19)
10 Sec. 30-80. Coal exploration equipment
11 Sec. 3-5(16) Sec. 3-5(12) Sec. 3-5(12) Sec. 2-5(21)
12 Sec. 30-85. Photoprocessing machinery and equipment
13 Sec. 3-5(15) Sec. 3-5(11) Sec. 3-5(11) Sec. 2-5(20)
14 Sec. 30-90. Graphic arts machinery and equipment
15 Sec. 3-5(6) Sec. 3-5(5) Sec. 3-5(5) Sec. 2-5(4)
16 Sec. 30-95. Manufacturing and assembling machinery
17 Sec. 3-5(18) Sec. 2 Sec. 2 Sec. 2-5(14)
18 in part in part
19 Sec. 30-100. Manufacturing and assembling exemption
20 Sec. 3-50 Sec. 2 Sec. 2 Sec. 2-45
21 in part in part
22 Sec. 30-105. Motor vehicle used for renting
23 Sec. 3-5(10) Sec. 2-5(5)
24 Sec. 30-110. Passenger car subject to replacement tax
25 Sec. 3-5(5) Sec. 2-5(7)
26 Sec. 30-115. Motor vehicle sold to non-resident
27 Sec. 3-55 Sec. 2-5(25)
28 in part
29 Sec. 30-120. Petroleum products
30 Sec. 2-5(16)
31 Sec. 30-125. Petroleum products sold to air carrier
32 Sec. 3-5(12) Sec. 3-5(8) Sec. 3-5(8) Sec. 2-5(22)
33 Sec. 30-130. Fuel consumed by ships
34 Sec. 2-5(24)
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1 Sec. 30-135. Property sold to rail common carrier
2 Sec. 3-55(g) Sec. 2 Sec. 2 Sec. 2-5(17)
3 in part in part
4 Sec. 30-140. Rolling stock; personal property
5 Sec. 3-55(b) Sec. 2 Sec. 2 Sec. 2-5(12)
6 in part in part
7 Sec. 30-145. Rolling stock; proceeds from sales
8 Sec. 3-55(c) Sec. 2 Sec. 2 Sec. 2-5(13)
9 in part in part
10 Sec. 30-150. Rolling stock exemption
11 Sec. 3-60 Sec. 3-50 Sec. 2-50
12 Sec. 30-155. Personal property sold by students
13 Sec. 3-5(9) Sec. 3-5(6) Sec. 3-5(6) Sec. 2-5(6)
14 Sec. 30-160. Property sold to non-profit music organization
15 Sec. 3-5(3) Sec. 3-5(3) Sec. 3-5(3) Sec. 2-5(9)
16 Sec. 30-165. Property sold for the benefit of the elderly
17 Sec. 3-5(1) Sec. 3-5(1) Sec. 3-5(1) Sec. 2-5(10)
18 Sec. 30-170. Property sold for charity, religion or education
19 Sec. 3-5(4) Sec. 2 Sec. 2 Sec. 2-5(11)
20 in part in part
21 Sec. 30-175. County fair association
22 Sec. 3-5(2) Sec. 3-5(2) Sec. 3-5(2) Sec. 2-5(8)
23 Sec. 30-180. Property donated for disaster relief
24 Sec. 3-5(24) Sec. 3-5(17) Sec. 3-5(18) Sec. 2-5(30)
25 Sec. 30-185. Computers for hospitals
26 Sec. 3-5(22) Sec. 3-5(15) Sec. 3-5(16) Sec. 2-5(28)
27 Sec. 30-190. Property sold for lease to government
28 Sec. 3-5(23) Sec. 3-5(16) Sec. 3-5(17) Sec. 2-5(29)
29 Sec. 30-195. Food and drug sold by non-profit organization
30 Sec. 3-5.5 Sec. 3-5.5 Sec. 3-5(13); Sec. 2-5.5
31 ;3-5.5
32 Sec. 30-200. Mandatory service charge
33 Sec. 3-5(13) Sec. 3-5(9) Sec. 3-5(9) Sec. 2-5(15)
34 Sec. 30-205. Legal tender
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1 Sec. 3-5(8) Sec. 3-5(4) Sec. 3-5(4) Sec. 2-5(18)
2 Sec. 30-210. Florist
3 Sec. 3-5(19) Sec. 2-5(23)
4 Sec. 30-215. Interstate commerce exemption
5 Sec. 3-45 Sec. 2-60
6 Sec. 30-220. Multistate exemption
7 Sec. 3-55 Sec. 3-45
8 in part
9 Sec. 30-225. Property acquired by nonresident
10 Sec. 3-70 Sec. 3-60
11 in part
12 Sec. 30-230. Manufacturer's purchase credit
13 Sec. 3-85 Sec. 3-70
14 Sec. 30-235. Sale of service
15 Sec. 2 Sec. 2
16 in part in part
17 Sec. 30-240. Election not to be sale of service
18 Sec. 2 Sec. 2
19 in part in part
20 Sec. 30-245. Maintenance agreement
21 Sec. 2 Sec. 2
22 in part in part
23 Article 35. Application, registration and bonding
24 Sec. 35-5. Certificate of registration
25 Sec. 2a
26 in part
27 Sec. 35-10. Use tax
28 Sec. 6
29 in part
30 Sec. 35-15. Service occupation tax
31 Sec. 6
32 in part
33 Sec. 35-20. Service use tax
34 Sec. 6
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1 in part
2 Sec. 35-25. Bonds
3 Sec. 2a
4 in part
5 Sec. 35-30. Issuance of certificate of registration
6 Sec. 6 Sec. 6 Sec. 6 Sec. 2a
7 in part in part in part in part
8 Sec. 35-35. Prior continuous compliance taxpayer
9 Sec. 2a
10 in part
11 Sec. 35-40. Registrants in default
12 Sec. 2a
13 in part
14 Sec. 35-45. Hearings
15 Sec. 2a
16 in part
17 Sec. 35-50. Resale number
18 Sec. 2c
19 Sec. 35-55. High impact business
20 Sec. 1f
21 Sec. 35-60. Exemption identification number
22 Sec. 1g
23 Sec. 35-65. Exemption identification number; list
24 Sec. 1h
25 Sec. 35-70. Exemption from bonding
26 Sec. 10a Sec. 10a Sec. 10a Sec. 2i
27 Sec. 35-75. Exemption from bonding; Dept. of Revenue
28 Sec. 5d
29 Sec. 35-80. Aircraft maintenance facility
30 Sec. 1k
31 Sec. 35-85. High impact service facility
32 Sec. 1i
33 Sec. 35-90. Enterprise zones; building materials
34 Sec. 5k
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1 Article 40. Confidentiality
2 Sec. 40-5. Information confidential; exceptions
3 Sec. 11
4 Article 45. Bookkeeping
5 Sec. 45-5. Applicability of Article
6 Sec. 45-10. Records to be kept
7 Sec. 7
8 Sec. 45-15. Records; taxes
9 Sec. 11 Sec. 11 Sec. 11
10 Article 50. Returns
11 Sec. 50-5. Applicability of Section 50-10 through 50-140
12 Sec. 50-10. Monthly returns
13 Sec. 3
14 in part
15 Sec. 50-15. Use tax returns
16 Sec. 9
17 in part
18 Sec. 50-20. Service occupation tax returns
19 Sec. 9
20 in part
21 Sec. 50-25. Service use tax returns
22 Sec. 9
23 in part
24 Sec. 50-30. Quarterly returns
25 Sec. 9 Sec. 9 Sec. 9 Sec. 3
26 in part in part in part in part
27 Sec. 50-35. Filing returns quarterly or annually
28 Sec. 9 Sec. 9 Sec. 9 Sec. 3
29 in part in part in part in part
30 Sec. 50-40. Failure to sign a return
31 Sec. 9 Sec. 9 Sec. 9 Sec. 3
32 in part in part in part in part
33 Sec. 50-45. Signature on return for corporation
34 Sec. 3
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1 in part
2 Sec. 50-50. Statement of prepaid tax
3 Sec. 3
4 in part
5 Sec. 50-55. Rounding
6 Sec. 3
7 in part
8 Sec. 50-60. Cessation of business
9 Sec. 9 Sec. 9 Sec. 9 Sec. 3
10 in part in part in part in part
11 Sec. 50-65. Multiple businesses
12 Sec. 9 Sec. 9 Sec. 9 Sec. 3
13 in part in part in part in part
14 Sec. 50-70. Selling price of property on return
15 Sec. 9 Sec. 9
16 in part in part
17 Sec. 50-75. Joint returns
18 Sec. 9 Sec. 9 Sec. 9
19 in part in part in part
20 Sec. 50-80. Separate return for certain registered property
21 Sec. 9 Sec. 3
22 in part in part
23 Sec. 50-85. Retail of vehicles, watercraft, aircraft or
24 trailers
25 Sec. 3
26 in part
27 Sec. 50-90. Transaction reporting return
28 Sec. 9 in Sec. 3
29 in part in part
30 Sec. 50-95. Annual information return
31 Sec. 9 Sec. 3
32 in part in part
33 Sec. 50-100. Electronic funds transfer
34 Sec. 9 Sec. 9 Sec. 9 Sec. 3
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1 in part in part in part in part
2 Sec. 50-105. Refunds
3 Sec. 9 Sec. 9 Sec. 9 Sec. 3
4 in part in part in part in part
5 Sec. 50-110. Payment by retailer or serviceman
6 Sec. 9 Sec. 9 Sec. 9 Sec. 3
7 in part in part in part in part
8 Sec. 50-115. Conditional sales contract
9 Sec. 9 Sec. 9
10 in part in part
11 Sec. 50-120. Quarter-monthly payments
12 Sec. 9 Sec. 3
13 in part in part
14 Sec. 50-125. Credit memorandum
15 Sec. 9 Sec. 3
16 in part in part
17 Sec. 50-130. Credit for motor fuel retailer
18 Sec. 3
19 in part
20 Sec. 50-135. Manufacturer, importer, or wholesaler payment
21 Sec. 9 Sec. 9 Sec. 3
22 in part in part in part
23 Sec. 50-140. Fair reports
24 Sec. 3
25 in part
26 Sec. 50-145. Examination and correction of return
27 Sec. 4
28 Sec. 50-150. Failure to make return
29 Sec. 5
30 Sec. 50-155. Requirement to file return
31 Sec. 10 Sec. 10
32 Sec. 50-160. Manufacturer's Purchase Credit
33 Sec. 9 Sec. 3
34 in part in part
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1 Article 55. Credits and Refunds
2 Sec. 55-5. Erroneous payment; credit or refund
3 Sec. 6 in
4 in part
5 Sec. 55-10. Erroneous payment; creditor refund; taxes
6 Sec. 19 Sec. 17 Sec. 17
7 in part in part in part
8 Sec. 55-15. Credit or refund; payment and interest
9 Sec. 19 Sec. 17 Sec. 17 Sec.6
10 in part in part in part in part
11 Sec. 55-20. Claims for credit or refund
12 Sec. 19 Sec. 17 Sec. 17 Sec. 6a
13 in part in part in part
14 Sec. 55-25. Determination of claim; hearing
15 Sec. 20 Sec. 18 Sec. 18 Sec. 6b
16 in part in part in part in part
17 Sec. 55-30. Final determination of claim
18 Sec. 20 Sec. 18 Sec. 18 Sec. 6c
19 in part in part in part
20 Sec. 55-35. Limitations
21 Sec. 21 Sec. 19 Sec. 19 Sec. 6
22 in part
23 Sec. 55-40. Application of credit or refund against tax
24 Sec. 22 Sec. 20 Sec. 20
25 Article 60. Collection
26 Sec. 60-5. Tax collected as debt owed to State; exception
27 Sec. 8 Sec. 8 Sec. 8
28 Sec. 60-10. Foreign retailers; permit to collect tax
29 Sec. 6 Sec. 7 Sec. 6
30 in part in part
31 Sec. 60-15. Foreign retailers; revocation of permit to collect
32 Sec. 13 Sec. 14
33 Sec. 60-20. Receipts; list of agents
34 Sec. 5 Sec. 5 Sec. 5
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1 Article 65. Liens
2 Sec. 65-5. Tax lien
3 Sec. 5a
4 Sec. 65-10. Records of State tax liens
5 Sec. 5b
6 Sec. 65-15. Tax liens; certificate of release
7 Sec. 5c
8 Sec. 65-20. Tax liens on realty; enforcement
9 Sec. 5e
10 Sec. 65-25. Demand for payment of tax
11 Sec. 5f
12 Sec. 65-30. Inferior tax judgment
13 Sec. 5g
14 Article 70. Hearings
15 Sec. 70-5. Revocation of certificate of registration
16 Sec. 2b
17 Sec. 70-10. Investigations and hearings
18 Sec. 8
19 Sec. 70-15. Incriminating testimony
20 Sec. 9
21 Sec. 70-20. Subpoenas; witnesses; depositions
22 Sec. 10
23 Article 75. Administrative Procedure
24 Sec. 75-5. Application of Administrative Procedure Act
25 Sec. 12b Sec. 20a Sec. 20a Sec. 11a
26 Article 77. Administrative Review Law
27 Sec. 77-10. Review under Administrative Review Law
28 Sec. 12
29 Article 80. Penalties and Criminal Violations
30 Sec. 80-5. Violations under retailers' occupation tax only
31 Sec. 13
32 Sec. 80-10. Violations
33 Sec. 14 Sec. 15 Sec. 15
34 Sec. 80-15. Misrepresentation of gasohol
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1 Sec. 3-40
2 in part
3 Sec. 80-20. Advertisement of tax absorption
4 Sec. 7 Sec. 7a Sec. 7
5 Article 85. Disposition of funds
6 Sec. 85-5. Disposition of retailers occupation tax receipts
7 Sec. 3
8 in part
9 Sec. 85-10. Disposition of use tax receipts
10 Sec. 9
11 in part
12 Sec. 85-15. Disposition of service occupation tax receipts
13 Sec. 9
14 in part
15 Sec. 85-25. Disposition of service use tax receipts
16 Sec. 9
17 in part
18 Sec. 85-20. Build Illinois Fund
19 Sec. 9 Sec. 9 Sec. 9 Sec. 3
20 in part in part in part in part
21 Sec. 85-30. McCormick Place Expansion Project Fund
22 Sec. 9 Sec. 9 Sec. 9 Sec. 3
23 in part in part in part in part
24 Article 90. Miscellaneous Provisions
25 Sec. 90-5. Appointment of Secretary of State
26 Sec. 12a Sec. 13 Sec. 13 Sec. 5i
27 Sec. 90-10. Bulk sales
28 Sec. 5j
29 Sec. 90-15. Liability because of amendatory Act
30 Sec. 3-80 Sec. 3-65 Sec. 3-50 Sec. 2-65
31 Sec. 90-20. Sunset of exemptions, credits and deductions
32 Sec. 3-90 Sec. 3-75 Sec. 3-55 Sec. 2-70
33 Sec. 90-25. Delivery in State
34 Sec. 4 Sec. 4 Sec. 4
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1 Sec. 90-30. Tax stated as distinct from selling price
2 Sec. 3a Sec. 3a; 3d
3 Sec. 90-35. Severability
4 Sec. 18 Sec. 21 Sec. 21
5 Sec. 90-40. Applicability of Uniform Penalty and Interest Act
6 Sec. 12 Sec. 12 Sec. 12
7 Sec. 90-45. Low sulfur dioxide emission coal fueled
8 devices; declaratory provisions
9 Sec. 2a-1 Sec. 2b Sec. 2b Sec. 1a-1
10 in part in part in part in part
11 PART 10. RETAILERS' OCCUPATION TAX ACT
12 DISPOSITION CHART
13 RETAILERS' OCCUPATION TAX ACT
14 Retailers'
15 Occupation Tax
16 Act (35/120) Occupation and Use Tax Code
17 -------------------------------------------------------------
18 Sec. 1 Sec. 5-115. Sale at retail
19 Sec. 5-95. Purchaser
20 Sec. 5-100. Reseller of motor fuel
21 Sec. 5-120. Selling price
22 Sec. 5-55. Like kind and character
23 Sec. 5-50. Gross receipts
24 Sec. 5-35. Department
25 Sec. 5-65. Person
26 Sec. 5-10. Bulk vending machine
27 Sec. 1a Sec. 5-75. Pollution control facilities
28 Sec. 30-5. Pollution control facilities
29 Sec. 1a-1 Sec. 5-60. Low sulfur dioxide emission
30 coal fueled devices
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1 Sec. 30-15. Low sulfur dioxide emission
2 coal fueled devices
3 Sec. 90-45. Low sulfur dioxide emission
4 coal fueled devices;
5 declaratory provisions
6 Sec. 1c Sec. 5-105. Retailer
7 Sec. 1d Sec. 30-20. Designated tangible personal
8 property
9 Sec. 1e Sec. 30-10. Property used in pollution
10 control facilities
11 Sec. 1f Sec. 35-55. High impact business
12 Sec. 1g Sec. 35-60. Exemption identification number
13 Sec. 1h Sec. 35-65. Exemption identification
14 number; list
15 Sec. 1i Sec. 35-85. High impact service facility
16 Sec. 1j Sec. 30-25. Machinery used in high impact
17 service facility
18 Sec. 1k Sec. 35-80. Aircraft maintenance facility
19 Sec. 1m Sec. 30-35 Machinery used in aircraft
20 maintenance facility
21 Sec. 1n Sec. 30-40. Property used in aircraft
22 maintenance facility
23 Sec. 2 Sec. 10-5. Tax imposed
24 Sec. 2-5(1) Sec. 30-60. Farm chemicals
25 Sec. 2-5(2) Sec. 30-65. Farm machinery and equipment
26 Sec. 2-5(3) Sec. 30-70. Distillation machinery and
27 equipment
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1 Sec. 2-5(4) Sec. 30-90. Graphic arts machinery and
2 equipment
3 Sec. 2-5(5) Sec. 30-105. Motor vehicle used for renting
4 Sec. 2-5(6) Sec. 30-155. Personal property sold by
5 students
6 Sec. 2-5(7) Sec. 30-110. Passenger car subject to
7 replacement tax
8 Sec. 2-5(8) Sec. 30-175. County fair association
9 Sec. 2-5(9) Sec. 30-160. Property sold to non-profit
10 music organization
11 Sec. 2-5(10) Sec. 30-165. Property sold for the benefit
12 of the elderly
13 Sec. 2-5(11) Sec. 30-170. Property sold for charity,
14 religion or education
15 Sec. 2-5(12) Sec. 30-140. Rolling stock; personal
16 property
17 Sec. 2-5(13) Sec. 30-145. Rolling stock; proceeds from
18 sales
19 Sec. 2-5(14) Sec. 30-95. Manufacturing and assembling
20 machinery
21 Sec. 2-5(15) Sec. 30-200. Mandatory service charge
22 Sec. 2-5(16) Sec. 30-120. Petroleum products
23 Sec. 2-5(17) Sec. 30-135. Property sold to rail common
24 carrier
25 Sec. 2-5(18) Sec. 30-205. Legal tender
26 Sec. 2-5(19) Sec. 30-75. Oil field equipment
27 Sec. 2-5(20) Sec. 30-85. Photoprocessing machinery and
28 equipment
29 Sec. 2-5(21) Sec. 30-80. Coal exploration equipment
30 Sec. 2-5(22) Sec. 30-125. Petroleum products sold to
31 air carrier
32 Sec. 2-5(23) Sec. 30-210. Florist
33 Sec. 2-5(24) Sec. 30-130. Fuel consumed by ships
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1 Sec. 2-5(25) Sec. 30-115. Motor vehicle sold to
2 non-resident
3 Sec. 2-5(26) Sec. 30-55. Semen
4 Sec. 2-5(27) Sec. 30-50. Horses
5 Sec. 2-5(28) Sec. 30-185. Computers for hospitals
6 Sec. 2-5(29) Sec. 30-190. Property sold for lease to
7 government
8 Sec. 2-5(30) Sec. 30-180. Property donated for
9 disaster relief
10 Sec. 2-5(31) Sec. 30-45. Personal property used in
11 infrastructure repairs
12 Sec. 2-5.5 Sec. 30-195. Food and drug sold by
13 non-profit organization
14 Sec. 2-10 Sec. 10-15. Rate of tax
15 Sec. 2-15 Sec. 5-70. Photoprocessing
16 Sec. 2-20 Sec. 5-15. Bullion
17 Sec. 2-25 Sec. 5-20. Computer software
18 Sec. 2-30 Sec. 5-45. Graphic arts production
19 Sec. 2-35 Sec. 5-80. Production agriculture
20 Sec. 2-40 Sec. 10-20. Purchaser refunds
21 Sec. 2-45 Sec. 30-100. Manufacturing and assembling
22 exemption
23 Sec. 2-50 Sec. 30-150. Rolling stock exemption
24 Sec. 2-55 Sec. 10-25. Serviceman transfer
25 Sec. 2-60 Sec. 30-215. Interstate commerce exemption
26 Sec. 2-65 Sec. 90-15. Liability because of
27 amendatory Act
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1 Sec. 2-70 Sec. 90-20. Sunset of exemptions, credits,
2 and deductions
3 Sec. 2a Sec. 35-5. Certificate of registration
4 Sec. 35-25. Bonds
5 Sec. 35-30. Issuance of certificate of
6 registration
7 Sec. 35-40. Registrants in default
8 Sec. 35-45. Hearings
9 Sec. 2b Sec. 70-5. Revocation of certificate of
10 registration
11 Sec. 2c Sec. 35-50. Resale number
12 Sec. 2d Sec. 10-30. Prepayment of tax by motor
13 fuel retailer
14 Sec. 2e Sec. 10-35. Motor fuel distributor or
15 supplier; statement
16 Sec. 2f Sec. 10-40. Reseller of motor fuel; filing
17 of returns
18 Sec. 2g Sec. 10-45. Procedures for filing return
19 of motor fuel reseller
20 Sec. 2h Sec. 5-25. Corporations organized for
21 education purposes
22 Sec. 2i Sec. 35-70. Exemption from bonding
23 Sec. 3 Sec. 50-10. Monthly returns
24 Sec. 50-40. Failure to sign a return
25 Sec. 50-50. Statement of prepaid tax
26 Sec. 50-160. Manufacturer's Purchase Credit
27 Sec. 50-30. Quarterly returns
28 Sec. 50-55. Rounding
29 Sec. 50-100. Electronic funds transfer
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1 Sec. 50-35. Filing returns quarterly
2 or annually
3 Sec. 50-60. Cessation of business
4 Sec. 50-65. Multiple businesses
5 Sec. 50-80. Separate return for certain
6 registered property
7 Sec. 5-150. Watercraft
8 Sec. 50-85. Retail of vehicles, watercraft,
9 watercraft, aircraft, or
10 trailers
11 Sec. 50-90. Transaction reporting return
12 Sec. 50-105. Refunds
13 Sec. 50-45. Signature on returns for
14 corporation
15 Sec. 50-110. Payment of tax by retailer
16 or serviceman
17 Sec. 50-120. Quarter-monthly payments
18 Sec. 50-125. Credit memorandum
19 Sec. 50-130. Credit for motor fuel retailer
20 Sec. 85-5. Disposition of retailers'
21 occupation tax receipts
22 Sec. 85-25. Build Illinois Fund
23 Sec. 85-30. McCormick Place Expansion
24 Project Fund
25 Sec. 50-95. Annual information return
26 Sec. 50-135. Manufacturer, importer, or
27 wholesaler payment
28 Sec. 50-140. Fair reports
29 Sec. 4 Sec. 50-145. Examination and correction
30 of returns
31 Sec. 5 Sec. 50-150. Failure to make return
32 Sec. 5a Sec. 65-5. Tax lien
33 Sec. 5b Sec. 65-10. Records of State tax liens
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1 Sec. 5c Sec. 65-15. Tax liens; certificate
2 of release
3 Sec. 5d Sec. 35-75. Exemption from bonding;
4 Dept. of Revenue
5 Sec. 5e Sec. 65-20. Tax liens on realty;
6 enforcement
7 Sec. 5f Sec. 65-25. Demand for payment of tax
8 Sec. 5g Sec. 65-30. Inferior tax judgment
9 Sec. 5i Sec. 90-5. Appointment of Secretary
10 of State
11 Sec. 5j Sec.90-10. Bulk sales
12 Sec. 5k Sec. 35-90. Enterprise zone; building
13 materials
14 Sec. 5l Sec. 30-30. High impact building
15 materials; building materials
16 Sec. 6 Sec. 55-5. Erroneous payment; credit
17 or refund
18 Sec. 55-35. Limitations
19 Sec. 55-15. Credit or refund; payment
20 and interest
21 Sec. 6a Sec. 55-20. Claims for credit or refund
22 Sec. 6b Sec. 55-25. Determination of claim;
23 hearing
24 Sec. 6c Sec. 55-30. Final determination of claim
25 Sec. 7 Sec. 45-10. Records to be kept
26 Sec. 8 Sec. 70-10. Investigations and hearings
27 Sec. 9 Sec. 70-15. Incriminating testimony
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1 Sec. 10 Sec. 70-20. Subpoenas; witnesses;
2 depositions
3 Sec. 11 Sec. 40-5. Information confidential;
4 exceptions
5 Sec. 11a Sec. 75-5. Application of the
6 Administrative Procedure Act
7 Sec. 12 Sec. 77-5. Review under Administrative
8 Review Law
9 Sec. 13 Sec. 80-5. Violations under retailers'
10 occupation tax only
11 Sec. 14 Sec. 10-10. Tax additional
12 (35 ILCS 120/) (Retailers' Occupation Tax Act.)
13 Title: An Act in relation to a tax upon persons engaged in
14 the business of selling tangible personal property.
15 Cite: 35 ILCS 120/1 et seq.
16 From: Ch. 120, par. 440 et seq.
17 Source: L. 1933, p. 924. Title amended by P.A. 83-1080.
18 Date: Approved January 28, 1933.
19 Short title: Retailers' Occupation Tax Act.
20 (35 ILCS 120/1) (from Ch. 120, par. 440)
21 Section 5-115. Sale at retail. Sec. 1. Definitions.
22 (a) "Sale at retail" means any transfer of the ownership
23 of or title to tangible personal property to a purchaser, for
24 the purpose of use or consumption, and not for the purpose of
25 resale in any form as tangible personal property to the
26 extent not first subjected to a use for which it was
27 purchased, for a valuable consideration: provided that the
28 property purchased is deemed to be purchased for the purpose
29 of resale, despite first being used, to the extent to which
30 it is resold as an ingredient of an intentionally produced
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1 product or byproduct of manufacturing. For this purpose,
2 slag produced as an incident to manufacturing pig iron or
3 steel and sold is considered to be an intentionally produced
4 byproduct of manufacturing. "Sale at retail" shall be
5 construed to include any transfer, whether made for or
6 without a valuable consideration, for resale in any form as
7 tangible personal property unless made in compliance with
8 Section 35-50 of this Code. Transactions whereby the
9 possession of the property is transferred but the seller
10 retains the title as security for payment of the selling
11 price shall be deemed to be sales.
12 "Sale at retail" shall be construed to include any
13 Illinois florist's sales transaction in which the purchase
14 order is received in Illinois by a florist and the sale is
15 for use or consumption, but the Illinois florist has a
16 florist in another state deliver the property to the
17 purchaser or the purchaser's donee in such other state.
18 The purchase, employment and transfer of such tangible
19 personal property as newsprint and ink for the primary
20 purpose of conveying news (with or without other information)
21 is not a purchase, use or sale of service or of tangible
22 personal property.
23 (b) For purposes of the retailers' occupation tax, the
24 service occupation tax, and the service use tax, "sale at
25 retail" shall be construed to include any transfer of the
26 ownership of or title to tangible personal property to a
27 purchaser, for use or consumption by any other person to whom
28 such purchaser may transfer the tangible personal property
29 without a valuable consideration, and to include any
30 transfer, whether made for or without a valuable
31 consideration, for resale in any form as tangible personal
32 property unless made in compliance with Section 2c of this
33 Act.
34 Sales of tangible personal property, which property, to
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1 the extent not first subjected to a use for which it was
2 purchased, as an ingredient or constituent, goes into and
3 forms a part of tangible personal property subsequently the
4 subject of a "sale at retail", are not sales at retail as
5 defined in this Code Act: provided that the property
6 purchased is deemed to be purchased for the purpose of
7 resale, despite first being used, to the extent to which it
8 is resold as an ingredient of an intentionally produced
9 product or byproduct of manufacturing.
10 "Sale at retail" shall be construed to include any
11 Illinois florist's sales transaction in which the purchase
12 order is received in Illinois by a florist and the sale is
13 for use or consumption, but the Illinois florist has a
14 florist in another state deliver the property to the
15 purchaser or the purchaser's donee in such other state.
16 The purchase, employment and transfer of such tangible
17 personal property as newsprint and ink for the primary
18 purpose of conveying news (with or without other information)
19 is not a purchase, use or sale of tangible personal property.
20 A person whose activities are organized and conducted
21 primarily as a not-for-profit service enterprise, and who
22 engages in selling tangible personal property at retail
23 (whether to the public or merely to members and their guests)
24 is engaged in the business of selling tangible personal
25 property at retail with respect to such transactions,
26 excepting only a person organized and operated exclusively
27 for charitable, religious or educational purposes either (1),
28 to the extent of sales by such person to its members,
29 students, patients or inmates of tangible personal property
30 to be used primarily for the purposes of such person, or (2),
31 to the extent of sales by such person of tangible personal
32 property which is not sold or offered for sale by persons
33 organized for profit. The selling of school books and school
34 supplies by schools at retail to students is not "primarily
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1 for the purposes of" the school which does such selling. The
2 provisions of this paragraph shall not apply to nor subject
3 to taxation occasional dinners, socials or similar activities
4 of a person organized and operated exclusively for
5 charitable, religious or educational purposes, whether or not
6 such activities are open to the public.
7 A person who is the recipient of a grant or contract
8 under Title VII of the Older Americans Act of 1965 (P.L.
9 92-258) and serves meals to participants in the federal
10 Nutrition Program for the Elderly in return for contributions
11 established in amount by the individual participant pursuant
12 to a schedule of suggested fees as provided for in the
13 federal Act is not engaged in the business of selling
14 tangible personal property at retail with respect to such
15 transactions.
16 The isolated or occasional sale of tangible personal
17 property at retail by a person who does not hold himself out
18 as being engaged (or who does not habitually engage) in
19 selling such tangible personal property at retail, or a sale
20 through a bulk vending machine, does not constitute engaging
21 in a business of selling such tangible personal property at
22 retail within the meaning of this Code; provided that any
23 person who is engaged in a business which is not subject to
24 the taxes imposed by this Code because of involving the sale
25 of or a contract to sell real estate or a construction
26 contract to improve real estate or a construction contract to
27 engineer, install, and maintain an integrated system of
28 products, but who, in the course of conducting such business,
29 transfers tangible personal property to users or consumers in
30 the finished form in which it was purchased, and which does
31 not become real estate or was not engineered and installed,
32 under any provision of a construction contract or real estate
33 sale or real estate sales agreement entered into with some
34 other person arising out of or because of such nontaxable
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1 business, is engaged in the business of selling tangible
2 personal property at retail to the extent of the value of the
3 tangible personal property so transferred. If, in such a
4 transaction, a separate charge is made for the tangible
5 personal property so transferred, the value of such property,
6 for the purpose of this Code, shall be the amount so
7 separately charged, but not less than the cost of such
8 property to the transferor; if no separate charge is made,
9 the value of such property, for the purposes of this Code, is
10 the cost to the transferor of such tangible personal
11 property. Construction contracts for the improvement of real
12 estate consisting of engineering, installation, and
13 maintenance of voice, data, video, security, and all
14 telecommunication systems do not constitute engaging in a
15 business of selling tangible personal property at retail
16 within the meaning of this Code if they are sold at one
17 specified contract price.
18 A person who holds himself or herself out as being
19 engaged (or who habitually engages) in selling tangible
20 personal property at retail is a person engaged in the
21 business of selling tangible personal property at retail
22 hereunder with respect to such sales (and not primarily in a
23 service occupation) notwithstanding the fact that such person
24 designs and produces such tangible personal property on
25 special order for the purchaser and in such a way as to
26 render the property of value only to such purchaser, if such
27 tangible personal property so produced on special order
28 serves substantially the same function as stock or standard
29 items of tangible personal property that are sold at retail.
30 Persons who engage in the business of transferring
31 tangible personal property upon the redemption of trading
32 stamps are engaged in the business of selling such property
33 at retail and shall be liable for and shall pay the tax
34 imposed by this Code on the basis of the retail value of the
-229- LRB9000671KDdvA
1 property transferred upon redemption of such stamps.
2 Section 5-95. Purchaser.
3 (a) For purposes of the retailers' occupation tax and
4 the use tax, "purchaser" means anyone who, through a sale at
5 retail, acquires the ownership of or title to tangible
6 personal property for a valuable consideration.
7 (b) For purposes of the service use tax, "purchaser"
8 means anyone who, through a sale of service, acquires the
9 ownership of, or title to, any tangible personal property.
10 Section 5-100. Reseller of motor fuel. For purposes of
11 the retailers' occupation tax, "reseller of motor fuel" means
12 any person engaged in the business of selling or delivering
13 or transferring title of motor fuel to another person other
14 than for use or consumption. No person shall act as a
15 reseller of motor fuel within this State without first being
16 registered as a reseller pursuant to Section 35-50 2c or a
17 retailer pursuant to Section 35-5 2a.
18 Section 5-120. Selling price.
19 (a) For purposes of the retailers' occupation tax and
20 the use tax, "selling price" or the "amount of sale" means
21 the consideration for a sale valued in money whether received
22 in money or otherwise, including cash, credits, property,
23 other than as hereinafter provided, and services, but not
24 including the value of or credit given for traded-in tangible
25 personal property where the item that is traded-in is of like
26 kind and character as that which is being sold, and shall be
27 determined without any deduction on account of the cost of
28 the property sold, the cost of materials used, labor or
29 service cost or any other expense whatsoever, but does not
30 include, for purposes of the use tax only, interest or
31 finance charges which appear as separate items on the bill of
32 sale or sales contract nor, for purposes of the retailers'
33 occupation tax and the use tax, charges that are added to
34 prices by sellers on account of the seller's tax liability
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1 under Article 10 this Act, or on account of the seller's duty
2 to collect, from the purchaser, the tax that is imposed by
3 Article 15 the Use Tax Act, or on account of the seller's tax
4 liability under Section 8-11-1 of the Illinois Municipal
5 Code, as heretofore and hereafter amended, or on account of
6 the seller's tax liability under the County Retailers'
7 Occupation Tax Act, or on account of the seller's tax
8 liability under the Home Rule Municipal Soft Drink Retailers'
9 Occupation Tax, or on account of the seller's tax liability
10 under any tax imposed under the "Regional Transportation
11 Authority Act", approved December 12, 1973. Effective
12 December 1, 1985, "selling price" shall include charges that
13 are added to prices by sellers on account of the seller's tax
14 liability under the Cigarette Tax Act, on account of the
15 seller's sellers' duty to collect, from the purchaser, the
16 tax imposed under the Cigarette Use Tax Act, and on account
17 of the seller's duty to collect, from the purchaser, any
18 cigarette tax imposed by a home rule unit.
19 (b) For purposes of the retailers' occupation tax,
20 "selling price" does not include charges that are added to
21 prices by sellers on account of the seller's tax liability
22 under the Home Rule Municipal Soft Drink Retailers'
23 Occupation Tax. "Amount of sale" shall have the same meaning
24 as "selling price".
25 (c) For purposes of the service occupation tax and the
26 service use tax, "selling price" means the consideration for
27 a sale valued in money whether received in money or
28 otherwise, including cash, credits and service, and shall be
29 determined without any deduction on account of the
30 serviceman's cost of the property sold, the cost of materials
31 used, labor or service cost or any other expense whatsoever,
32 but does not include interest or finance charges which appear
33 as separate items on the bill of sale or sales contract nor
34 charges that are added to prices by sellers on account of the
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1 seller's duty to collect, from the purchaser, the tax that is
2 imposed by Article 25.
3 Section 5-55. Like kind and character. For purposes of
4 the retailers' occupation tax and the use tax, the phrase
5 "like kind and character" shall be liberally construed
6 (including but not limited to any form of motor vehicle for
7 any form of motor vehicle, or any kind of farm or
8 agricultural implement for any other kind of farm or
9 agricultural implement), while not including a kind of item
10 which, if sold at retail by that retailer, would be exempt
11 from retailers' occupation tax and use tax as an isolated or
12 occasional sale.
13 Section 5-50. Gross receipts. For purposes of the
14 retailers' occupation tax, "gross receipts" from the sales of
15 tangible personal property at retail means the total selling
16 price or the amount of such sales, as hereinbefore defined
17 in this Code. In the case of charge and time sales, the
18 amount thereof shall be included only as and when payments
19 are received by the seller. Receipts or other consideration
20 derived by a seller from the sale, transfer or assignment of
21 accounts receivable to a wholly owned subsidiary will not be
22 deemed payments prior to the time the purchaser makes payment
23 on such accounts.
24 Section 5-35. Department. "Department" means the
25 Department of Revenue.
26 Section 5-65. Person. "Person" means any natural
27 individual, firm, partnership, association, joint stock
28 company, joint venture adventure, public or private
29 corporation, limited liability company, or a receiver,
30 executor, trustee, guardian or other representative appointed
31 by order of any court.
32 The isolated or occasional sale of tangible personal
33 property at retail by a person who does not hold himself out
34 as being engaged (or who does not habitually engage) in
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1 selling such tangible personal property at retail, or a sale
2 through a bulk vending machine, does not constitute engaging
3 in a business of selling such tangible personal property at
4 retail within the meaning of this Act; provided that any
5 person who is engaged in a business which is not subject to
6 the tax imposed by this Act because of involving the sale of
7 or a contract to sell real estate or a construction contract
8 to improve real estate or a construction contract to
9 engineer, install, and maintain an integrated system of
10 products, but who, in the course of conducting such business,
11 transfers tangible personal property to users or consumers in
12 the finished form in which it was purchased, and which does
13 not become real estate or was not engineered and installed,
14 under any provision of a construction contract or real estate
15 sale or real estate sales agreement entered into with some
16 other person arising out of or because of such nontaxable
17 business, is engaged in the business of selling tangible
18 personal property at retail to the extent of the value of the
19 tangible personal property so transferred. If, in such a
20 transaction, a separate charge is made for the tangible
21 personal property so transferred, the value of such property,
22 for the purpose of this Act, shall be the amount so
23 separately charged, but not less than the cost of such
24 property to the transferor; if no separate charge is made,
25 the value of such property, for the purposes of this Act, is
26 the cost to the transferor of such tangible personal
27 property. Construction contracts for the improvement of real
28 estate consisting of engineering, installation, and
29 maintenance of voice, data, video, security, and all
30 telecommunication systems do not constitute engaging in a
31 business of selling tangible personal property at retail
32 within the meaning of this Act if they are sold at one
33 specified contract price.
34 A person who holds himself or herself out as being
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1 engaged (or who habitually engages) in selling tangible
2 personal property at retail is a person engaged in the
3 business of selling tangible personal property at retail
4 hereunder with respect to such sales (and not primarily in a
5 service occupation) notwithstanding the fact that such person
6 designs and produces such tangible personal property on
7 special order for the purchaser and in such a way as to
8 render the property of value only to such purchaser, if such
9 tangible personal property so produced on special order
10 serves substantially the same function as stock or standard
11 items of tangible personal property that are sold at retail.
12 Persons who engage in the business of transferring
13 tangible personal property upon the redemption of trading
14 stamps are engaged in the business of selling such property
15 at retail and shall be liable for and shall pay the tax
16 imposed by this Act on the basis of the retail value of the
17 property transferred upon redemption of such stamps.
18 Section 5-10. Bulk vending machine. For purposes of the
19 retailers' occupation tax and the use tax, "bulk vending
20 machine" means a nonelectrically operated vending machine,
21 containing unsorted confections, nuts or other merchandise
22 which, when a coin of a denomination not larger than one cent
23 is inserted, are dispensed in equal portions, at random and
24 without selection by the customer.
25 (Source: P.A. 88-420; 88-480; 88-507; 88-670, eff. 12-2-94.)
26 (35 ILCS 120/1a) (from Ch. 120, par. 440a)
27 Section 5-75. Pollution control facilities. Sec. 1a.
28 "Pollution control facilities" means any system, method,
29 construction, device or appliance appurtenant thereto (i)
30 used in this State and acquired as an incident to the
31 purchase of a service from a serviceman, (ii) transferred by
32 a serviceman, or (iii) sold, or used, or intended: (I) for
33 the primary purpose of eliminating, preventing, or reducing
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1 air and water pollution as the term "air pollution" or "water
2 pollution" is defined in the "Environmental Protection Act",
3 enacted by the 76th General Assembly, or (II) for the primary
4 purpose of treating, pretreating, modifying or disposing of
5 any potential solid, liquid or gaseous pollutant which if
6 released without such treatment, pretreatment, modification
7 or disposal might be harmful, detrimental or offensive to
8 human, plant or animal life, or to property.
9 Section 30-5. Pollution control facilities. The purchase,
10 employment and transfer of such tangible personal property as
11 pollution control facilities, as defined in Section 5-75, is
12 not (i) a purchase, use or sale of tangible personal property
13 or (ii) a purchase, use, or sale of service, but shall be
14 deemed to be intangible personal property.
15 (Source: P. A. 76-2450.)
16 (35 ILCS 120/1a-1) (from Ch. 120, par. 440a-1)
17 Section 5-60. Low sulfur dioxide emission coal fueled
18 devices. Sec. 1a-1. "Low sulfur dioxide emission coal fueled
19 devices" means any device sold or used or intended for the
20 purpose of burning, combusting or converting locally
21 available coal in a manner which eliminates or significantly
22 reduces the need for additional sulfur dioxide abatement that
23 would otherwise be required under State or federal air
24 emission standards. Such device includes all machinery,
25 equipment, structures and all related apparatus of a coal
26 gasification facility, including coal feeding equipment,
27 designed to convert locally available coal into a low sulfur
28 gaseous fuel and to manage all waste and byproduct streams.
29 Section 30-15. Low sulfur dioxide emission coal fueled
30 devices. The purchase, employment and transfer of such
31 tangible personal property as low sulfur dioxide emission
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1 coal fueled devices, as defined in Section 5-60, is not a
2 purchase, use, or sale of tangible personal property.
3 Section 90-45. Low sulfur dioxide emission coal fueled
4 devices; declaratory provisions. The amendatory provisions of
5 Public Act 82-672 concerning low sulfur dioxide emission coal
6 fueled devices, as those provisions appeared in Section 1a-1
7 of the Retailers' Occupation Tax Act, Section 2a-1 of the Use
8 Tax Act, Section 2b of the Service Occupation Tax Act, and
9 Section 2b of the Service Use Tax Act, (now Sections 5-60 and
10 30-5 of this Code) are This amendatory Act of 1981 is not
11 intended to nor do they does it make any change in the
12 meaning of any provision in those Sections this Section but
13 are is intended to remove possible ambiguities, thereby
14 confirming the existing meaning of those this Sections
15 Section in effect prior to October 28, 1981 the effective
16 date of this amendatory Act of 1981.
17 (Source: P.A. 82-672.)
18 (35 ILCS 120/1c) (from Ch. 120, par. 440c)
19 Section 5-105. Retailer.
20 (a) For purposes of the use tax, "retailer" means and
21 includes every person engaged in the business of making sales
22 at retail as defined in Section 5-115.
23 A person who holds himself or herself out as being
24 engaged (or who habitually engages) in selling tangible
25 personal property at retail is a retailer hereunder with
26 respect to such sales (and not primarily in a service
27 occupation) notwithstanding the fact that such person designs
28 and produces such tangible personal property on special order
29 for the purchaser and in such a way as to render the property
30 of value only to such purchaser, if such tangible personal
31 property so produced on special order serves substantially
32 the same function as stock or standard items of tangible
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1 personal property that are sold at retail.
2 A person whose activities are organized and conducted
3 primarily as a not-for-profit service enterprise, and who
4 engages in selling tangible personal property at retail
5 (whether to the public or merely to members and their guests)
6 is a retailer with respect to such transactions, excepting
7 only a person organized and operated exclusively for
8 charitable, religious or educational purposes either (1), to
9 the extent of sales by such person to its members, students,
10 patients or inmates of tangible personal property to be used
11 primarily for the purposes of such person, or (2), to the
12 extent of sales by such person of tangible personal property
13 which is not sold or offered for sale by persons organized
14 for profit. The selling of school books and school supplies
15 by schools at retail to students is not "primarily for the
16 purposes of" the school which does such selling. This
17 paragraph does not apply to nor subject to taxation
18 occasional dinners, social or similar activities of a person
19 organized and operated exclusively for charitable, religious
20 or educational purposes, whether or not such activities are
21 open to the public.
22 A person who is the recipient of a grant or contract
23 under Title VII of the Older Americans Act of 1965 (P.L.
24 92-258) and serves meals to participants in the federal
25 Nutrition Program for the Elderly in return for contributions
26 established in amount by the individual participant pursuant
27 to a schedule of suggested fees as provided for in the
28 federal Act is not a retailer under Article 15 with respect
29 to such transactions.
30 Persons who engage in the business of transferring
31 tangible personal property upon the redemption of trading
32 stamps are retailers hereunder when engaged in such business.
33 The isolated or occasional sale of tangible personal
34 property at retail by a person who does not hold himself out
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1 as being engaged (or who does not habitually engage) in
2 selling such tangible personal property at retail or a sale
3 through a bulk vending machine does not make such person a
4 re