Sen. Toi W. Hutchinson

Filed: 5/21/2014

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 352

2    AMENDMENT NO. ______. Amend Senate Bill 352 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
52 as follows:
 
6    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
7    (Text of Section before amendment by P.A. 98-628)
8    Sec. 2. Definitions.
9"Use" means the exercise by any person of any right or power
10over tangible personal property incident to the ownership of
11that property, except that it does not include the sale of such
12property in any form as tangible personal property in the
13regular course of business to the extent that such property is
14not first subjected to a use for which it was purchased, and
15does not include the use of such property by its owner for
16demonstration purposes: Provided that the property purchased

 

 

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1is deemed to be purchased for the purpose of resale, despite
2first being used, to the extent to which it is resold as an
3ingredient of an intentionally produced product or by-product
4of manufacturing. "Use" does not mean the demonstration use or
5interim use of tangible personal property by a retailer before
6he sells that tangible personal property. For watercraft or
7aircraft, if the period of demonstration use or interim use by
8the retailer exceeds 18 months, the retailer shall pay on the
9retailers' original cost price the tax imposed by this Act, and
10no credit for that tax is permitted if the watercraft or
11aircraft is subsequently sold by the retailer. "Use" does not
12mean the physical incorporation of tangible personal property,
13to the extent not first subjected to a use for which it was
14purchased, as an ingredient or constituent, into other tangible
15personal property (a) which is sold in the regular course of
16business or (b) which the person incorporating such ingredient
17or constituent therein has undertaken at the time of such
18purchase to cause to be transported in interstate commerce to
19destinations outside the State of Illinois: Provided that the
20property purchased is deemed to be purchased for the purpose of
21resale, despite first being used, to the extent to which it is
22resold as an ingredient of an intentionally produced product or
23by-product of manufacturing.
24    "Watercraft" means a Class 2, Class 3, or Class 4
25watercraft as defined in Section 3-2 of the Boat Registration
26and Safety Act, a personal watercraft, or any boat equipped

 

 

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1with an inboard motor.
2    "Purchase at retail" means the acquisition of the ownership
3of or title to tangible personal property through a sale at
4retail.
5    "Purchaser" means anyone who, through a sale at retail,
6acquires the ownership of tangible personal property for a
7valuable consideration.
8    "Sale at retail" means any transfer of the ownership of or
9title to tangible personal property to a purchaser, for the
10purpose of use, and not for the purpose of resale in any form
11as tangible personal property to the extent not first subjected
12to a use for which it was purchased, for a valuable
13consideration: Provided that the property purchased is deemed
14to be purchased for the purpose of resale, despite first being
15used, to the extent to which it is resold as an ingredient of
16an intentionally produced product or by-product of
17manufacturing. For this purpose, slag produced as an incident
18to manufacturing pig iron or steel and sold is considered to be
19an intentionally produced by-product of manufacturing. "Sale
20at retail" includes any such transfer made for resale unless
21made in compliance with Section 2c of the Retailers' Occupation
22Tax Act, as incorporated by reference into Section 12 of this
23Act. Transactions whereby the possession of the property is
24transferred but the seller retains the title as security for
25payment of the selling price are sales.
26    "Sale at retail" shall also be construed to include any

 

 

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1Illinois florist's sales transaction in which the purchase
2order is received in Illinois by a florist and the sale is for
3use or consumption, but the Illinois florist has a florist in
4another state deliver the property to the purchaser or the
5purchaser's donee in such other state.
6    Nonreusable tangible personal property that is used by
7persons engaged in the business of operating a restaurant,
8cafeteria, or drive-in is a sale for resale when it is
9transferred to customers in the ordinary course of business as
10part of the sale of food or beverages and is used to deliver,
11package, or consume food or beverages, regardless of where
12consumption of the food or beverages occurs. Examples of those
13items include, but are not limited to nonreusable, paper and
14plastic cups, plates, baskets, boxes, sleeves, buckets or other
15containers, utensils, straws, placemats, napkins, doggie bags,
16and wrapping or packaging materials that are transferred to
17customers as part of the sale of food or beverages in the
18ordinary course of business.
19    The purchase, employment and transfer of such tangible
20personal property as newsprint and ink for the primary purpose
21of conveying news (with or without other information) is not a
22purchase, use or sale of tangible personal property.
23    "Selling price" means the consideration for a sale valued
24in money whether received in money or otherwise, including
25cash, credits, property other than as hereinafter provided, and
26services, but not including the value of or credit given for

 

 

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1traded-in tangible personal property where the item that is
2traded-in is of like kind and character as that which is being
3sold, and shall be determined without any deduction on account
4of the cost of the property sold, the cost of materials used,
5labor or service cost or any other expense whatsoever, but does
6not include interest or finance charges which appear as
7separate items on the bill of sale or sales contract nor
8charges that are added to prices by sellers on account of the
9seller's tax liability under the "Retailers' Occupation Tax
10Act", or on account of the seller's duty to collect, from the
11purchaser, the tax that is imposed by this Act, or, except as
12otherwise provided with respect to any cigarette tax imposed by
13a home rule unit, on account of the seller's tax liability
14under any local occupation tax administered by the Department,
15or, except as otherwise provided with respect to any cigarette
16tax imposed by a home rule unit on account of the seller's duty
17to collect, from the purchasers, the tax that is imposed under
18any local use tax administered by the Department. Effective
19December 1, 1985, "selling price" shall include charges that
20are added to prices by sellers on account of the seller's tax
21liability under the Cigarette Tax Act, on account of the
22seller's duty to collect, from the purchaser, the tax imposed
23under the Cigarette Use Tax Act, and on account of the seller's
24duty to collect, from the purchaser, any cigarette tax imposed
25by a home rule unit.
26    The phrase "like kind and character" shall be liberally

 

 

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1construed (including but not limited to any form of motor
2vehicle for any form of motor vehicle, or any kind of farm or
3agricultural implement for any other kind of farm or
4agricultural implement), while not including a kind of item
5which, if sold at retail by that retailer, would be exempt from
6retailers' occupation tax and use tax as an isolated or
7occasional sale.
8    "Department" means the Department of Revenue.
9    "Person" means any natural individual, firm, partnership,
10association, joint stock company, joint adventure, public or
11private corporation, limited liability company, or a receiver,
12executor, trustee, guardian or other representative appointed
13by order of any court.
14    "Retailer" means and includes every person engaged in the
15business of making sales at retail as defined in this Section.
16    A person who holds himself or herself out as being engaged
17(or who habitually engages) in selling tangible personal
18property at retail is a retailer hereunder with respect to such
19sales (and not primarily in a service occupation)
20notwithstanding the fact that such person designs and produces
21such tangible personal property on special order for the
22purchaser and in such a way as to render the property of value
23only to such purchaser, if such tangible personal property so
24produced on special order serves substantially the same
25function as stock or standard items of tangible personal
26property that are sold at retail.

 

 

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1    A person whose activities are organized and conducted
2primarily as a not-for-profit service enterprise, and who
3engages in selling tangible personal property at retail
4(whether to the public or merely to members and their guests)
5is a retailer with respect to such transactions, excepting only
6a person organized and operated exclusively for charitable,
7religious or educational purposes either (1), to the extent of
8sales by such person to its members, students, patients or
9inmates of tangible personal property to be used primarily for
10the purposes of such person, or (2), to the extent of sales by
11such person of tangible personal property which is not sold or
12offered for sale by persons organized for profit. The selling
13of school books and school supplies by schools at retail to
14students is not "primarily for the purposes of" the school
15which does such selling. This paragraph does not apply to nor
16subject to taxation occasional dinners, social or similar
17activities of a person organized and operated exclusively for
18charitable, religious or educational purposes, whether or not
19such activities are open to the public.
20    A person who is the recipient of a grant or contract under
21Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
22serves meals to participants in the federal Nutrition Program
23for the Elderly in return for contributions established in
24amount by the individual participant pursuant to a schedule of
25suggested fees as provided for in the federal Act is not a
26retailer under this Act with respect to such transactions.

 

 

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1    Persons who engage in the business of transferring tangible
2personal property upon the redemption of trading stamps are
3retailers hereunder when engaged in such business.
4    The isolated or occasional sale of tangible personal
5property at retail by a person who does not hold himself out as
6being engaged (or who does not habitually engage) in selling
7such tangible personal property at retail or a sale through a
8bulk vending machine does not make such person a retailer
9hereunder. However, any person who is engaged in a business
10which is not subject to the tax imposed by the "Retailers'
11Occupation Tax Act" because of involving the sale of or a
12contract to sell real estate or a construction contract to
13improve real estate, but who, in the course of conducting such
14business, transfers tangible personal property to users or
15consumers in the finished form in which it was purchased, and
16which does not become real estate, under any provision of a
17construction contract or real estate sale or real estate sales
18agreement entered into with some other person arising out of or
19because of such nontaxable business, is a retailer to the
20extent of the value of the tangible personal property so
21transferred. If, in such transaction, a separate charge is made
22for the tangible personal property so transferred, the value of
23such property, for the purposes of this Act, is the amount so
24separately charged, but not less than the cost of such property
25to the transferor; if no separate charge is made, the value of
26such property, for the purposes of this Act, is the cost to the

 

 

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1transferor of such tangible personal property.
2    "Retailer maintaining a place of business in this State",
3or any like term, means and includes any of the following
4retailers:
5        1. A retailer having or maintaining within this State,
6    directly or by a subsidiary, an office, distribution house,
7    sales house, warehouse or other place of business, or any
8    agent or other representative operating within this State
9    under the authority of the retailer or its subsidiary,
10    irrespective of whether such place of business or agent or
11    other representative is located here permanently or
12    temporarily, or whether such retailer or subsidiary is
13    licensed to do business in this State. However, the
14    ownership of property that is located at the premises of a
15    printer with which the retailer has contracted for printing
16    and that consists of the final printed product, property
17    that becomes a part of the final printed product, or copy
18    from which the printed product is produced shall not result
19    in the retailer being deemed to have or maintain an office,
20    distribution house, sales house, warehouse, or other place
21    of business within this State.
22        1.1. A Beginning July 1, 2011, a retailer having a
23    contract with a person located in this State under which
24    the person, for a commission or other consideration based
25    upon the sale of tangible personal property by the
26    retailer, directly or indirectly refers potential

 

 

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1    customers to the retailer by providing to the potential
2    customers a promotional code or other mechanism that allows
3    the retailer to track purchases referred by such persons.
4    Examples of mechanisms that allow the retailer to track
5    purchases referred by such persons include but are not
6    limited to the use of a link on the person's Internet
7    website, promotional codes distributed through the
8    person's hand-delivered or mailed material, and
9    promotional codes distributed by the person through radio
10    or other broadcast media. The provisions of this paragraph
11    1.1 shall apply only if the cumulative gross receipts from
12    sales of tangible personal property by the retailer to
13    customers who are referred to the retailer by all persons
14    in this State under such contracts exceed $10,000 during
15    the preceding 4 quarterly periods ending on the last day of
16    March, June, September, and December. A retailer meeting
17    the requirements of this paragraph 1.1 shall be presumed to
18    be maintaining a place of business in this State but may
19    rebut this presumption by submitting proof that the
20    referrals or other activities pursued within this State by
21    such persons were not sufficient to meet the nexus
22    standards of the United States Constitution during the
23    preceding 4 quarterly periods.
24        1.2. Beginning July 1, 2011, a retailer having a
25    contract with a person located in this State under which:
26            A. the retailer sells the same or substantially

 

 

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1        similar line of products as the person located in this
2        State and does so using an identical or substantially
3        similar name, trade name, or trademark as the person
4        located in this State; and
5            B. the retailer provides a commission or other
6        consideration to the person located in this State based
7        upon the sale of tangible personal property by the
8        retailer.
9    The provisions of this paragraph 1.2 shall apply only if
10    the cumulative gross receipts from sales of tangible
11    personal property by the retailer to customers in this
12    State under all such contracts exceed $10,000 during the
13    preceding 4 quarterly periods ending on the last day of
14    March, June, September, and December.
15        2. A retailer soliciting orders for tangible personal
16    property by means of a telecommunication or television
17    shopping system (which utilizes toll free numbers) which is
18    intended by the retailer to be broadcast by cable
19    television or other means of broadcasting, to consumers
20    located in this State.
21        3. A retailer, pursuant to a contract with a
22    broadcaster or publisher located in this State, soliciting
23    orders for tangible personal property by means of
24    advertising which is disseminated primarily to consumers
25    located in this State and only secondarily to bordering
26    jurisdictions.

 

 

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1        4. A retailer soliciting orders for tangible personal
2    property by mail if the solicitations are substantial and
3    recurring and if the retailer benefits from any banking,
4    financing, debt collection, telecommunication, or
5    marketing activities occurring in this State or benefits
6    from the location in this State of authorized installation,
7    servicing, or repair facilities.
8        5. A retailer that is owned or controlled by the same
9    interests that own or control any retailer engaging in
10    business in the same or similar line of business in this
11    State.
12        6. A retailer having a franchisee or licensee operating
13    under its trade name if the franchisee or licensee is
14    required to collect the tax under this Section.
15        7. A retailer, pursuant to a contract with a cable
16    television operator located in this State, soliciting
17    orders for tangible personal property by means of
18    advertising which is transmitted or distributed over a
19    cable television system in this State.
20        8. A retailer engaging in activities in Illinois, which
21    activities in the state in which the retail business
22    engaging in such activities is located would constitute
23    maintaining a place of business in that state.
24    "Bulk vending machine" means a vending machine, containing
25unsorted confections, nuts, toys, or other items designed
26primarily to be used or played with by children which, when a

 

 

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1coin or coins of a denomination not larger than $0.50 are
2inserted, are dispensed in equal portions, at random and
3without selection by the customer.
4(Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
 
5    (Text of Section after amendment by P.A. 98-628)
6    Sec. 2. Definitions.
7"Use" means the exercise by any person of any right or power
8over tangible personal property incident to the ownership of
9that property, except that it does not include the sale of such
10property in any form as tangible personal property in the
11regular course of business to the extent that such property is
12not first subjected to a use for which it was purchased, and
13does not include the use of such property by its owner for
14demonstration purposes: Provided that the property purchased
15is deemed to be purchased for the purpose of resale, despite
16first being used, to the extent to which it is resold as an
17ingredient of an intentionally produced product or by-product
18of manufacturing. "Use" does not mean the demonstration use or
19interim use of tangible personal property by a retailer before
20he sells that tangible personal property. For watercraft or
21aircraft, if the period of demonstration use or interim use by
22the retailer exceeds 18 months, the retailer shall pay on the
23retailers' original cost price the tax imposed by this Act, and
24no credit for that tax is permitted if the watercraft or
25aircraft is subsequently sold by the retailer. "Use" does not

 

 

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1mean the physical incorporation of tangible personal property,
2to the extent not first subjected to a use for which it was
3purchased, as an ingredient or constituent, into other tangible
4personal property (a) which is sold in the regular course of
5business or (b) which the person incorporating such ingredient
6or constituent therein has undertaken at the time of such
7purchase to cause to be transported in interstate commerce to
8destinations outside the State of Illinois: Provided that the
9property purchased is deemed to be purchased for the purpose of
10resale, despite first being used, to the extent to which it is
11resold as an ingredient of an intentionally produced product or
12by-product of manufacturing.
13    "Watercraft" means a Class 2, Class 3, or Class 4
14watercraft as defined in Section 3-2 of the Boat Registration
15and Safety Act, a personal watercraft, or any boat equipped
16with an inboard motor.
17    "Purchase at retail" means the acquisition of the ownership
18of or title to tangible personal property through a sale at
19retail.
20    "Purchaser" means anyone who, through a sale at retail,
21acquires the ownership of tangible personal property for a
22valuable consideration.
23    "Sale at retail" means any transfer of the ownership of or
24title to tangible personal property to a purchaser, for the
25purpose of use, and not for the purpose of resale in any form
26as tangible personal property to the extent not first subjected

 

 

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1to a use for which it was purchased, for a valuable
2consideration: Provided that the property purchased is deemed
3to be purchased for the purpose of resale, despite first being
4used, to the extent to which it is resold as an ingredient of
5an intentionally produced product or by-product of
6manufacturing. For this purpose, slag produced as an incident
7to manufacturing pig iron or steel and sold is considered to be
8an intentionally produced by-product of manufacturing. "Sale
9at retail" includes any such transfer made for resale unless
10made in compliance with Section 2c of the Retailers' Occupation
11Tax Act, as incorporated by reference into Section 12 of this
12Act. Transactions whereby the possession of the property is
13transferred but the seller retains the title as security for
14payment of the selling price are sales.
15    "Sale at retail" shall also be construed to include any
16Illinois florist's sales transaction in which the purchase
17order is received in Illinois by a florist and the sale is for
18use or consumption, but the Illinois florist has a florist in
19another state deliver the property to the purchaser or the
20purchaser's donee in such other state.
21    Nonreusable tangible personal property that is used by
22persons engaged in the business of operating a restaurant,
23cafeteria, or drive-in is a sale for resale when it is
24transferred to customers in the ordinary course of business as
25part of the sale of food or beverages and is used to deliver,
26package, or consume food or beverages, regardless of where

 

 

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1consumption of the food or beverages occurs. Examples of those
2items include, but are not limited to nonreusable, paper and
3plastic cups, plates, baskets, boxes, sleeves, buckets or other
4containers, utensils, straws, placemats, napkins, doggie bags,
5and wrapping or packaging materials that are transferred to
6customers as part of the sale of food or beverages in the
7ordinary course of business.
8    The purchase, employment and transfer of such tangible
9personal property as newsprint and ink for the primary purpose
10of conveying news (with or without other information) is not a
11purchase, use or sale of tangible personal property.
12    "Selling price" means the consideration for a sale valued
13in money whether received in money or otherwise, including
14cash, credits, property other than as hereinafter provided, and
15services, but not including the value of or credit given for
16traded-in tangible personal property where the item that is
17traded-in is of like kind and character as that which is being
18sold, and shall be determined without any deduction on account
19of the cost of the property sold, the cost of materials used,
20labor or service cost or any other expense whatsoever, but does
21not include interest or finance charges which appear as
22separate items on the bill of sale or sales contract nor
23charges that are added to prices by sellers on account of the
24seller's tax liability under the "Retailers' Occupation Tax
25Act", or on account of the seller's duty to collect, from the
26purchaser, the tax that is imposed by this Act, or, except as

 

 

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1otherwise provided with respect to any cigarette tax imposed by
2a home rule unit, on account of the seller's tax liability
3under any local occupation tax administered by the Department,
4or, except as otherwise provided with respect to any cigarette
5tax imposed by a home rule unit on account of the seller's duty
6to collect, from the purchasers, the tax that is imposed under
7any local use tax administered by the Department. Effective
8December 1, 1985, "selling price" shall include charges that
9are added to prices by sellers on account of the seller's tax
10liability under the Cigarette Tax Act, on account of the
11seller's duty to collect, from the purchaser, the tax imposed
12under the Cigarette Use Tax Act, and on account of the seller's
13duty to collect, from the purchaser, any cigarette tax imposed
14by a home rule unit.
15    Notwithstanding any law to the contrary, for any motor
16vehicle, as defined in Section 1-146 of the Vehicle Code, that
17is sold on or after July 1, 2014 for the purpose of leasing the
18vehicle for a defined period that is longer than one year and
19(1) is a motor vehicle of the second division that: (A) is a
20self-contained motor vehicle designed or permanently converted
21to provide living quarters for recreational, camping, or travel
22use, with direct walk through access to the living quarters
23from the driver's seat; (B) is of the van configuration
24designed for the transportation of not less than 7 nor more
25than 16 passengers; or (C) has a gross vehicle weight rating of
268,000 pounds or less or (2) is a motor vehicle of the first

 

 

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1division, "selling price" or "amount of sale" means the
2consideration received by the lessor pursuant to the lease
3contract, including amounts due at lease signing and all
4monthly or other regular payments charged over the term of the
5lease. Also included in the selling price is any amount
6received by the lessor from the lessee for the leased vehicle
7that is not calculated at the time the lease is executed,
8including, but not limited to, excess mileage charges and
9charges for excess wear and tear. For sales that occur in
10Illinois, with respect to any amount received by the lessor
11from the lessee for the leased vehicle that is not calculated
12at the time the lease is executed, the lessor who purchased the
13motor vehicle does not incur the tax imposed by the Use Tax Act
14on those amounts, and the retailer who makes the retail sale of
15the motor vehicle to the lessor is not required to collect the
16tax imposed by this Act or to pay the tax imposed by the
17Retailers' Occupation Tax Act on those amounts. However, the
18lessor who purchased the motor vehicle assumes the liability
19for reporting and paying the tax on those amounts directly to
20the Department in the same form (Illinois Retailers' Occupation
21Tax, and local retailers' occupation taxes, if applicable) in
22which the retailer would have reported and paid such tax if the
23retailer had accounted for the tax to the Department. For
24amounts received by the lessor from the lessee that are not
25calculated at the time the lease is executed, the lessor must
26file the return and pay the tax to the Department by the due

 

 

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1date otherwise required by this Act for returns other than
2transaction returns. If the retailer is entitled under this Act
3to a discount for collecting and remitting the tax imposed
4under this Act to the Department with respect to the sale of
5the motor vehicle to the lessor, then the right to the discount
6provided in this Act shall be transferred to the lessor with
7respect to the tax paid by the lessor for any amount received
8by the lessor from the lessee for the leased vehicle that is
9not calculated at the time the lease is executed; provided that
10the discount is only allowed if the return is timely filed and
11for amounts timely paid. The "selling price" of a motor vehicle
12that is sold on or after July 1, 2014 for the purpose of
13leasing for a defined period of longer than one year shall not
14be reduced by the value of or credit given for traded-in
15tangible personal property owned by the lessor, nor shall it be
16reduced by the value of or credit given for traded-in tangible
17personal property owned by the lessee, regardless of whether
18the trade-in value thereof is assigned by the lessee to the
19lessor. In the case of a motor vehicle that is sold for the
20purpose of leasing for a defined period of longer than one
21year, the sale occurs at the time of the delivery of the
22vehicle, regardless of the due date of any lease payments. A
23lessor who incurs a Retailers' Occupation Tax liability on the
24sale of a motor vehicle coming off lease may not take a credit
25against that liability for the Use Tax the lessor paid upon the
26purchase of the motor vehicle (or for any tax the lessor paid

 

 

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1with respect to any amount received by the lessor from the
2lessee for the leased vehicle that was not calculated at the
3time the lease was executed) if the selling price of the motor
4vehicle at the time of purchase was calculated using the
5definition of "selling price" as defined in this paragraph.
6Notwithstanding any other provision of this Act to the
7contrary, lessors shall file all returns and make all payments
8required under this paragraph to the Department by electronic
9means in the manner and form as required by the Department.
10This paragraph does not apply to leases of motor vehicles for
11which, at the time the lease is entered into, the term of the
12lease is not a defined period, including leases with a defined
13initial period with the option to continue the lease on a
14month-to-month or other basis beyond the initial defined
15period.
16    The phrase "like kind and character" shall be liberally
17construed (including but not limited to any form of motor
18vehicle for any form of motor vehicle, or any kind of farm or
19agricultural implement for any other kind of farm or
20agricultural implement), while not including a kind of item
21which, if sold at retail by that retailer, would be exempt from
22retailers' occupation tax and use tax as an isolated or
23occasional sale.
24    "Department" means the Department of Revenue.
25    "Person" means any natural individual, firm, partnership,
26association, joint stock company, joint adventure, public or

 

 

09800SB0352sam001- 21 -LRB098 04568 HLH 59982 a

1private corporation, limited liability company, or a receiver,
2executor, trustee, guardian or other representative appointed
3by order of any court.
4    "Retailer" means and includes every person engaged in the
5business of making sales at retail as defined in this Section.
6    A person who holds himself or herself out as being engaged
7(or who habitually engages) in selling tangible personal
8property at retail is a retailer hereunder with respect to such
9sales (and not primarily in a service occupation)
10notwithstanding the fact that such person designs and produces
11such tangible personal property on special order for the
12purchaser and in such a way as to render the property of value
13only to such purchaser, if such tangible personal property so
14produced on special order serves substantially the same
15function as stock or standard items of tangible personal
16property that are sold at retail.
17    A person whose activities are organized and conducted
18primarily as a not-for-profit service enterprise, and who
19engages in selling tangible personal property at retail
20(whether to the public or merely to members and their guests)
21is a retailer with respect to such transactions, excepting only
22a person organized and operated exclusively for charitable,
23religious or educational purposes either (1), to the extent of
24sales by such person to its members, students, patients or
25inmates of tangible personal property to be used primarily for
26the purposes of such person, or (2), to the extent of sales by

 

 

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1such person of tangible personal property which is not sold or
2offered for sale by persons organized for profit. The selling
3of school books and school supplies by schools at retail to
4students is not "primarily for the purposes of" the school
5which does such selling. This paragraph does not apply to nor
6subject to taxation occasional dinners, social or similar
7activities of a person organized and operated exclusively for
8charitable, religious or educational purposes, whether or not
9such activities are open to the public.
10    A person who is the recipient of a grant or contract under
11Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
12serves meals to participants in the federal Nutrition Program
13for the Elderly in return for contributions established in
14amount by the individual participant pursuant to a schedule of
15suggested fees as provided for in the federal Act is not a
16retailer under this Act with respect to such transactions.
17    Persons who engage in the business of transferring tangible
18personal property upon the redemption of trading stamps are
19retailers hereunder when engaged in such business.
20    The isolated or occasional sale of tangible personal
21property at retail by a person who does not hold himself out as
22being engaged (or who does not habitually engage) in selling
23such tangible personal property at retail or a sale through a
24bulk vending machine does not make such person a retailer
25hereunder. However, any person who is engaged in a business
26which is not subject to the tax imposed by the "Retailers'

 

 

09800SB0352sam001- 23 -LRB098 04568 HLH 59982 a

1Occupation Tax Act" because of involving the sale of or a
2contract to sell real estate or a construction contract to
3improve real estate, but who, in the course of conducting such
4business, transfers tangible personal property to users or
5consumers in the finished form in which it was purchased, and
6which does not become real estate, under any provision of a
7construction contract or real estate sale or real estate sales
8agreement entered into with some other person arising out of or
9because of such nontaxable business, is a retailer to the
10extent of the value of the tangible personal property so
11transferred. If, in such transaction, a separate charge is made
12for the tangible personal property so transferred, the value of
13such property, for the purposes of this Act, is the amount so
14separately charged, but not less than the cost of such property
15to the transferor; if no separate charge is made, the value of
16such property, for the purposes of this Act, is the cost to the
17transferor of such tangible personal property.
18    "Retailer maintaining a place of business in this State",
19or any like term, means and includes any of the following
20retailers:
21        1. A retailer having or maintaining within this State,
22    directly or by a subsidiary, an office, distribution house,
23    sales house, warehouse or other place of business, or any
24    agent or other representative operating within this State
25    under the authority of the retailer or its subsidiary,
26    irrespective of whether such place of business or agent or

 

 

09800SB0352sam001- 24 -LRB098 04568 HLH 59982 a

1    other representative is located here permanently or
2    temporarily, or whether such retailer or subsidiary is
3    licensed to do business in this State. However, the
4    ownership of property that is located at the premises of a
5    printer with which the retailer has contracted for printing
6    and that consists of the final printed product, property
7    that becomes a part of the final printed product, or copy
8    from which the printed product is produced shall not result
9    in the retailer being deemed to have or maintain an office,
10    distribution house, sales house, warehouse, or other place
11    of business within this State.
12        1.1. A Beginning July 1, 2011, a retailer having a
13    contract with a person located in this State under which
14    the person, for a commission or other consideration based
15    upon the sale of tangible personal property by the
16    retailer, directly or indirectly refers potential
17    customers to the retailer by providing to the potential
18    customers a promotional code or other mechanism that allows
19    the retailer to track purchases referred by such persons.
20    Examples of mechanisms that allow the retailer to track
21    purchases referred by such persons include but are not
22    limited to the use of a link on the person's Internet
23    website, promotional codes distributed through the
24    person's hand-delivered or mailed material, and
25    promotional codes distributed by the person through radio
26    or other broadcast media. The provisions of this paragraph

 

 

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1    1.1 shall apply only if the cumulative gross receipts from
2    sales of tangible personal property by the retailer to
3    customers who are referred to the retailer by all persons
4    in this State under such contracts exceed $10,000 during
5    the preceding 4 quarterly periods ending on the last day of
6    March, June, September, and December. A retailer meeting
7    the requirements of this paragraph 1.1 shall be presumed to
8    be maintaining a place of business in this State but may
9    rebut this presumption by submitting proof that the
10    referrals or other activities pursued within this State by
11    such persons were not sufficient to meet the nexus
12    standards of the United States Constitution during the
13    preceding 4 quarterly periods.
14        1.2. Beginning July 1, 2011, a retailer having a
15    contract with a person located in this State under which:
16            A. the retailer sells the same or substantially
17        similar line of products as the person located in this
18        State and does so using an identical or substantially
19        similar name, trade name, or trademark as the person
20        located in this State; and
21            B. the retailer provides a commission or other
22        consideration to the person located in this State based
23        upon the sale of tangible personal property by the
24        retailer.
25    The provisions of this paragraph 1.2 shall apply only if
26    the cumulative gross receipts from sales of tangible

 

 

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1    personal property by the retailer to customers in this
2    State under all such contracts exceed $10,000 during the
3    preceding 4 quarterly periods ending on the last day of
4    March, June, September, and December.
5        2. A retailer soliciting orders for tangible personal
6    property by means of a telecommunication or television
7    shopping system (which utilizes toll free numbers) which is
8    intended by the retailer to be broadcast by cable
9    television or other means of broadcasting, to consumers
10    located in this State.
11        3. A retailer, pursuant to a contract with a
12    broadcaster or publisher located in this State, soliciting
13    orders for tangible personal property by means of
14    advertising which is disseminated primarily to consumers
15    located in this State and only secondarily to bordering
16    jurisdictions.
17        4. A retailer 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 installation,
23    servicing, or repair facilities.
24        5. A retailer that is owned or controlled by the same
25    interests that own or control any retailer engaging in
26    business in the same or similar line of business in this

 

 

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1    State.
2        6. A retailer having a franchisee or licensee operating
3    under its trade name if the franchisee or licensee is
4    required to collect the tax under this Section.
5        7. A retailer, pursuant to a contract with a cable
6    television operator located in this State, soliciting
7    orders for tangible personal property by means of
8    advertising which is transmitted or distributed over a
9    cable television system in this State.
10        8. A retailer engaging in activities in Illinois, which
11    activities in the state in which the retail business
12    engaging in such activities is located would constitute
13    maintaining a place of business in that state.
14    "Bulk vending machine" means a vending machine, containing
15unsorted confections, nuts, toys, or other items designed
16primarily to be used or played with by children which, when a
17coin or coins of a denomination not larger than $0.50 are
18inserted, are dispensed in equal portions, at random and
19without selection by the customer.
20(Source: P.A. 98-628, eff. 1-1-15.)
 
21    Section 10. The Service Use Tax Act is amended by changing
22Section 2 as follows:
 
23    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
24    Sec. 2. Definitions.

 

 

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1    "Use" means the exercise by any person of any right or
2power over tangible personal property incident to the ownership
3of that property, but does not include the sale or use for
4demonstration by him of that property in any form as tangible
5personal property in the regular course of business. "Use" does
6not mean the interim use of tangible personal property nor the
7physical incorporation of tangible personal property, as an
8ingredient or constituent, into other tangible personal
9property, (a) which is sold in the regular course of business
10or (b) which the person incorporating such ingredient or
11constituent therein has undertaken at the time of such purchase
12to cause to be transported in interstate commerce to
13destinations outside the State of Illinois.
14    "Purchased from a serviceman" means the acquisition of the
15ownership of, or title to, tangible personal property through a
16sale of service.
17    "Purchaser" means any person who, through a sale of
18service, acquires the ownership of, or title to, any tangible
19personal property.
20    "Cost price" means the consideration paid by the serviceman
21for a purchase valued in money, whether paid in money or
22otherwise, including cash, credits and services, and shall be
23determined without any deduction on account of the supplier's
24cost of the property sold or on account of any other expense
25incurred by the supplier. When a serviceman contracts out part
26or all of the services required in his sale of service, it

 

 

09800SB0352sam001- 29 -LRB098 04568 HLH 59982 a

1shall be presumed that the cost price to the serviceman of the
2property transferred to him or her by his or her subcontractor
3is equal to 50% of the subcontractor's charges to the
4serviceman in the absence of proof of the consideration paid by
5the subcontractor for the purchase of such property.
6    "Selling price" means the consideration for a sale valued
7in money whether received in money or otherwise, including
8cash, credits and service, and shall be determined without any
9deduction on account of the serviceman's cost of the property
10sold, the cost of materials used, labor or service cost or any
11other expense whatsoever, but does not include interest or
12finance charges which appear as separate items on the bill of
13sale or sales contract nor charges that are added to prices by
14sellers on account of the seller's duty to collect, from the
15purchaser, the tax that is imposed by this Act.
16    "Department" means the Department of Revenue.
17    "Person" means any natural individual, firm, partnership,
18association, joint stock company, joint venture, public or
19private corporation, limited liability company, and any
20receiver, executor, trustee, guardian or other representative
21appointed by order of any court.
22    "Sale of service" means any transaction except:
23        (1) a retail sale of tangible personal property taxable
24    under the Retailers' Occupation Tax Act or under the Use
25    Tax Act.
26        (2) a sale of tangible personal property for the

 

 

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1    purpose of resale made in compliance with Section 2c of the
2    Retailers' Occupation Tax Act.
3        (3) except as hereinafter provided, a sale or transfer
4    of tangible personal property as an incident to the
5    rendering of service for or by any governmental body, or
6    for or by any corporation, society, association,
7    foundation or institution organized and operated
8    exclusively for charitable, religious or educational
9    purposes or any not-for-profit corporation, society,
10    association, foundation, institution or organization which
11    has no compensated officers or employees and which is
12    organized and operated primarily for the recreation of
13    persons 55 years of age or older. A limited liability
14    company may qualify for the exemption under this paragraph
15    only if the limited liability company is organized and
16    operated exclusively for educational purposes.
17        (4) a sale or transfer of tangible personal property as
18    an incident to the rendering of service for interstate
19    carriers for hire for use as rolling stock moving in
20    interstate commerce or by lessors under a lease of one year
21    or longer, executed or in effect at the time of purchase of
22    personal property, to interstate carriers for hire for use
23    as rolling stock moving in interstate commerce so long as
24    so used by such interstate carriers for hire, and equipment
25    operated by a telecommunications provider, licensed as a
26    common carrier by the Federal Communications Commission,

 

 

09800SB0352sam001- 31 -LRB098 04568 HLH 59982 a

1    which is permanently installed in or affixed to aircraft
2    moving in interstate commerce.
3        (4a) a sale or transfer of tangible personal property
4    as an incident to the rendering of service for owners,
5    lessors, or shippers of tangible personal property which is
6    utilized by interstate carriers for hire for use as rolling
7    stock moving in interstate commerce so long as so used by
8    interstate carriers for hire, and equipment operated by a
9    telecommunications provider, licensed as a common carrier
10    by the Federal Communications Commission, which is
11    permanently installed in or affixed to aircraft moving in
12    interstate commerce.
13        (4a-5) on and after July 1, 2003 and through June 30,
14    2004, a sale or transfer of a motor vehicle of the second
15    division with a gross vehicle weight in excess of 8,000
16    pounds as an incident to the rendering of service if that
17    motor vehicle is subject to the commercial distribution fee
18    imposed under Section 3-815.1 of the Illinois Vehicle Code.
19    Beginning on July 1, 2004 and through June 30, 2005, the
20    use in this State of motor vehicles of the second division:
21    (i) with a gross vehicle weight rating in excess of 8,000
22    pounds; (ii) that are subject to the commercial
23    distribution fee imposed under Section 3-815.1 of the
24    Illinois Vehicle Code; and (iii) that are primarily used
25    for commercial purposes. Through June 30, 2005, this
26    exemption applies to repair and replacement parts added

 

 

09800SB0352sam001- 32 -LRB098 04568 HLH 59982 a

1    after the initial purchase of such a motor vehicle if that
2    motor vehicle is used in a manner that would qualify for
3    the rolling stock exemption otherwise provided for in this
4    Act. For purposes of this paragraph, "used for commercial
5    purposes" means the transportation of persons or property
6    in furtherance of any commercial or industrial enterprise
7    whether for-hire or not.
8        (5) a sale or transfer of machinery and equipment used
9    primarily in the process of the manufacturing or
10    assembling, either in an existing, an expanded or a new
11    manufacturing facility, of tangible personal property for
12    wholesale or retail sale or lease, whether such sale or
13    lease is made directly by the manufacturer or by some other
14    person, whether the materials used in the process are owned
15    by the manufacturer or some other person, or whether such
16    sale or lease is made apart from or as an incident to the
17    seller's engaging in a service occupation and the
18    applicable tax is a Service Use Tax or Service Occupation
19    Tax, rather than Use Tax or Retailers' Occupation Tax. The
20    exemption provided by this paragraph (5) does not include
21    machinery and equipment used in (i) the generation of
22    electricity for wholesale or retail sale; (ii) the
23    generation or treatment of natural or artificial gas for
24    wholesale or retail sale that is delivered to customers
25    through pipes, pipelines, or mains; or (iii) the treatment
26    of water for wholesale or retail sale that is delivered to

 

 

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1    customers through pipes, pipelines, or mains. The
2    provisions of this amendatory Act of the 98th General
3    Assembly are declaratory of existing law as to the meaning
4    and scope of this exemption.
5        (5a) the repairing, reconditioning or remodeling, for
6    a common carrier by rail, of tangible personal property
7    which belongs to such carrier for hire, and as to which
8    such carrier receives the physical possession of the
9    repaired, reconditioned or remodeled item of tangible
10    personal property in Illinois, and which such carrier
11    transports, or shares with another common carrier in the
12    transportation of such property, out of Illinois on a
13    standard uniform bill of lading showing the person who
14    repaired, reconditioned or remodeled the property to a
15    destination outside Illinois, for use outside Illinois.
16        (5b) a sale or transfer of tangible personal property
17    which is produced by the seller thereof on special order in
18    such a way as to have made the applicable tax the Service
19    Occupation Tax or the Service Use Tax, rather than the
20    Retailers' Occupation Tax or the Use Tax, for an interstate
21    carrier by rail which receives the physical possession of
22    such property in Illinois, and which transports such
23    property, or shares with another common carrier in the
24    transportation of such property, out of Illinois on a
25    standard uniform bill of lading showing the seller of the
26    property as the shipper or consignor of such property to a

 

 

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1    destination outside Illinois, for use outside Illinois.
2        (6) until July 1, 2003, a sale or transfer of
3    distillation machinery and equipment, sold as a unit or kit
4    and assembled or installed by the retailer, which machinery
5    and equipment is certified by the user to be used only for
6    the production of ethyl alcohol that will be used for
7    consumption as motor fuel or as a component of motor fuel
8    for the personal use of such user and not subject to sale
9    or resale.
10        (7) at the election of any serviceman not required to
11    be otherwise registered as a retailer under Section 2a of
12    the Retailers' Occupation Tax Act, made for each fiscal
13    year sales of service in which the aggregate annual cost
14    price of tangible personal property transferred as an
15    incident to the sales of service is less than 35%, or 75%
16    in the case of servicemen transferring prescription drugs
17    or servicemen engaged in graphic arts production, of the
18    aggregate annual total gross receipts from all sales of
19    service. The purchase of such tangible personal property by
20    the serviceman shall be subject to tax under the Retailers'
21    Occupation Tax Act and the Use Tax Act. However, if a
22    primary serviceman who has made the election described in
23    this paragraph subcontracts service work to a secondary
24    serviceman who has also made the election described in this
25    paragraph, the primary serviceman does not incur a Use Tax
26    liability if the secondary serviceman (i) has paid or will

 

 

09800SB0352sam001- 35 -LRB098 04568 HLH 59982 a

1    pay Use Tax on his or her cost price of any tangible
2    personal property transferred to the primary serviceman
3    and (ii) certifies that fact in writing to the primary
4    serviceman.
5    Tangible personal property transferred incident to the
6completion of a maintenance agreement is exempt from the tax
7imposed pursuant to this Act.
8    Exemption (5) also includes machinery and equipment used in
9the general maintenance or repair of such exempt machinery and
10equipment or for in-house manufacture of exempt machinery and
11equipment. The machinery and equipment exemption does not
12include machinery and equipment used in (i) the generation of
13electricity for wholesale or retail sale; (ii) the generation
14or treatment of natural or artificial gas for wholesale or
15retail sale that is delivered to customers through pipes,
16pipelines, or mains; or (iii) the treatment of water for
17wholesale or retail sale that is delivered to customers through
18pipes, pipelines, or mains. The provisions of this amendatory
19Act of the 98th General Assembly are declaratory of existing
20law as to the meaning and scope of this exemption. For the
21purposes of exemption (5), each of these terms shall have the
22following meanings: (1) "manufacturing process" shall mean the
23production of any article of tangible personal property,
24whether such article is a finished product or an article for
25use in the process of manufacturing or assembling a different
26article of tangible personal property, by procedures commonly

 

 

09800SB0352sam001- 36 -LRB098 04568 HLH 59982 a

1regarded as manufacturing, processing, fabricating, or
2refining which changes some existing material or materials into
3a material with a different form, use or name. In relation to a
4recognized integrated business composed of a series of
5operations which collectively constitute manufacturing, or
6individually constitute manufacturing operations, the
7manufacturing process shall be deemed to commence with the
8first operation or stage of production in the series, and shall
9not be deemed to end until the completion of the final product
10in the last operation or stage of production in the series; and
11further, for purposes of exemption (5), photoprocessing is
12deemed to be a manufacturing process of tangible personal
13property for wholesale or retail sale; (2) "assembling process"
14shall mean the production of any article of tangible personal
15property, whether such article is a finished product or an
16article for use in the process of manufacturing or assembling a
17different article of tangible personal property, by the
18combination of existing materials in a manner commonly regarded
19as assembling which results in a material of a different form,
20use or name; (3) "machinery" shall mean major mechanical
21machines or major components of such machines contributing to a
22manufacturing or assembling process; and (4) "equipment" shall
23include any independent device or tool separate from any
24machinery but essential to an integrated manufacturing or
25assembly process; including computers used primarily in a
26manufacturer's computer assisted design, computer assisted

 

 

09800SB0352sam001- 37 -LRB098 04568 HLH 59982 a

1manufacturing (CAD/CAM) system; or any subunit or assembly
2comprising a component of any machinery or auxiliary, adjunct
3or attachment parts of machinery, such as tools, dies, jigs,
4fixtures, patterns and molds; or any parts which require
5periodic replacement in the course of normal operation; but
6shall not include hand tools. Equipment includes chemicals or
7chemicals acting as catalysts but only if the chemicals or
8chemicals acting as catalysts effect a direct and immediate
9change upon a product being manufactured or assembled for
10wholesale or retail sale or lease. The purchaser of such
11machinery and equipment who has an active resale registration
12number shall furnish such number to the seller at the time of
13purchase. The user of such machinery and equipment and tools
14without an active resale registration number shall prepare a
15certificate of exemption for each transaction stating facts
16establishing the exemption for that transaction, which
17certificate shall be available to the Department for inspection
18or audit. The Department shall prescribe the form of the
19certificate.
20    Any informal rulings, opinions or letters issued by the
21Department in response to an inquiry or request for any opinion
22from any person regarding the coverage and applicability of
23exemption (5) to specific devices shall be published,
24maintained as a public record, and made available for public
25inspection and copying. If the informal ruling, opinion or
26letter contains trade secrets or other confidential

 

 

09800SB0352sam001- 38 -LRB098 04568 HLH 59982 a

1information, where possible the Department shall delete such
2information prior to publication. Whenever such informal
3rulings, opinions, or letters contain any policy of general
4applicability, the Department shall formulate and adopt such
5policy as a rule in accordance with the provisions of the
6Illinois Administrative Procedure Act.
7    On and after July 1, 1987, no entity otherwise eligible
8under exemption (3) of this Section shall make tax free
9purchases unless it has an active exemption identification
10number issued by the Department.
11    The purchase, employment and transfer of such tangible
12personal property as newsprint and ink for the primary purpose
13of conveying news (with or without other information) is not a
14purchase, use or sale of service or of tangible personal
15property within the meaning of this Act.
16    "Serviceman" means any person who is engaged in the
17occupation of making sales of service.
18    "Sale at retail" means "sale at retail" as defined in the
19Retailers' Occupation Tax Act.
20    "Supplier" means any person who makes sales of tangible
21personal property to servicemen for the purpose of resale as an
22incident to a sale of service.
23    "Serviceman maintaining a place of business in this State",
24or any like term, means and includes any serviceman:
25        1. having or maintaining within this State, directly or
26    by a subsidiary, an office, distribution house, sales

 

 

09800SB0352sam001- 39 -LRB098 04568 HLH 59982 a

1    house, warehouse or other place of business, or any agent
2    or other representative operating within this State under
3    the authority of the serviceman or its subsidiary,
4    irrespective of whether such place of business or agent or
5    other representative is located here permanently or
6    temporarily, or whether such serviceman or subsidiary is
7    licensed to do business in this State;
8        1.1. beginning July 1, 2011, having a contract with a
9    person located in this State under which the person, for a
10    commission or other consideration based on the sale of
11    service by the serviceman, directly or indirectly refers
12    potential customers to the serviceman by providing to the
13    potential customers a promotional code or other mechanism
14    that allows the serviceman to track purchases referred by
15    such persons. Examples of mechanisms that allow the
16    serviceman to track purchase referred by such persons
17    include but are not limited to the use of a link on the
18    person's Internet website, promotional codes distributed
19    through the person's hand-delivered or mailed material,
20    and promotional codes distributed by the person through
21    radio or other broadcast media. The provisions of this
22    paragraph 1.1 shall apply only if the cumulative gross
23    receipts from sales of service by the serviceman to
24    customers who are referred to the serviceman by all persons
25    in this State under such contracts exceed $10,000 during
26    the preceding 4 quarterly periods ending on the last day of

 

 

09800SB0352sam001- 40 -LRB098 04568 HLH 59982 a

1    March, June, September, and December; a serviceman meeting
2    the requirements of this paragraph 1.1 shall be presumed to
3    be maintaining a place of business in this State but may
4    rebut this presumption by submitting proof that the
5    referrals or other activities pursued within this State by
6    such persons were not sufficient to meet the nexus
7    standards of the United States Constitution during the
8    preceding 4 quarterly periods;
9        1.2. beginning July 1, 2011, having a contract with a
10    person located in this State under which:
11            A. the serviceman sells the same or substantially
12        similar line of services as the person located in this
13        State and does so using an identical or substantially
14        similar name, trade name, or trademark as the person
15        located in this State; and
16            B. the serviceman provides a commission or other
17        consideration to the person located in this State based
18        upon the sale of services by the serviceman.
19    The provisions of this paragraph 1.2 shall apply only if
20    the cumulative gross receipts from sales of service by the
21    serviceman to customers in this State under all such
22    contracts exceed $10,000 during the preceding 4 quarterly
23    periods ending on the last day of March, June, September,
24    and December;
25        2. soliciting orders for tangible personal property by
26    means of a telecommunication or television shopping system

 

 

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1    (which utilizes toll free numbers) which is intended by the
2    retailer to be broadcast by cable television or other means
3    of broadcasting, to consumers located in this State;
4        3. pursuant to a contract with a broadcaster or
5    publisher located in this State, soliciting orders for
6    tangible personal property by means of advertising which is
7    disseminated primarily to consumers located in this State
8    and only secondarily to bordering jurisdictions;
9        4. soliciting orders for tangible personal property by
10    mail if the solicitations are substantial and recurring and
11    if the retailer benefits from any banking, financing, debt
12    collection, telecommunication, or marketing activities
13    occurring in this State or benefits from the location in
14    this State of authorized installation, servicing, or
15    repair facilities;
16        5. being owned or controlled by the same interests
17    which own or control any retailer engaging in business in
18    the same or similar line of business in this State;
19        6. having a franchisee or licensee operating under its
20    trade name if the franchisee or licensee is required to
21    collect the tax under this Section;
22        7. pursuant to a contract with a cable television
23    operator located in this State, soliciting orders for
24    tangible personal property by means of advertising which is
25    transmitted or distributed over a cable television system
26    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(Source: P.A. 98-583, eff. 1-1-14.)
 
6    Section 95. No acceleration or delay. Where this Act makes
7changes in a statute that is represented in this Act by text
8that is not yet or no longer in effect (for example, a Section
9represented by multiple versions), the use of that text does
10not accelerate or delay the taking effect of (i) the changes
11made by this Act or (ii) provisions derived from any other
12Public Act.".