Sen. Pamela J. Althoff

Filed: 4/15/2016

 

 


 

 


 
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1
AMENDMENT TO SENATE BILL 1041

2    AMENDMENT NO. ______. Amend Senate Bill 1041 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Sections
52, 3-45, 6, 8, and 9 and by adding Section 3-67 as follows:
 
6    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
7    Sec. 2. Definitions.
8    "Use" means the exercise by any person of any right or
9power over tangible personal property incident to the ownership
10of that property, except that it does not include the sale of
11such property in any form as tangible personal property in the
12regular course of business to the extent that such property is
13not first subjected to a use for which it was purchased, and
14does not include the use of such property by its owner for
15demonstration purposes: Provided that the property purchased
16is deemed to be purchased for the purpose of resale, despite

 

 

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

 

 

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

 

 

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

 

 

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1traded-in is of like kind and character as that which is being
2sold, and shall be determined without any deduction on account
3of the cost of the property sold, the cost of materials used,
4labor or service cost or any other expense whatsoever, but does
5not include interest or finance charges which appear as
6separate items on the bill of sale or sales contract nor
7charges that are added to prices by sellers on account of the
8seller's tax liability under the "Retailers' Occupation Tax
9Act", or on account of the seller's duty to collect, from the
10purchaser, the tax that is imposed by this Act, or, except as
11otherwise provided with respect to any cigarette tax imposed by
12a home rule unit, on account of the seller's tax liability
13under any local occupation tax administered by the Department,
14or, except as otherwise provided with respect to any cigarette
15tax imposed by a home rule unit on account of the seller's duty
16to collect, from the purchasers, the tax that is imposed under
17any local use tax administered by the Department. Effective
18December 1, 1985, "selling price" shall include charges that
19are added to prices by sellers on account of the seller's tax
20liability under the Cigarette Tax Act, on account of the
21seller's duty to collect, from the purchaser, the tax imposed
22under the Cigarette Use Tax Act, and on account of the seller's
23duty to collect, from the purchaser, any cigarette tax imposed
24by a home rule unit.
25    Notwithstanding any law to the contrary, for any motor
26vehicle, as defined in Section 1-146 of the Vehicle Code, that

 

 

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1is sold on or after January 1, 2015 for the purpose of leasing
2the vehicle for a defined period that is longer than one year
3and (1) is a motor vehicle of the second division that: (A) is
4a self-contained motor vehicle designed or permanently
5converted to provide living quarters for recreational,
6camping, or travel use, with direct walk through access to the
7living quarters from the driver's seat; (B) is of the van
8configuration designed for the transportation of not less than
97 nor more than 16 passengers; or (C) has a gross vehicle
10weight rating of 8,000 pounds or less or (2) is a motor vehicle
11of the first division, "selling price" or "amount of sale"
12means the consideration received by the lessor pursuant to the
13lease contract, including amounts due at lease signing and all
14monthly or other regular payments charged over the term of the
15lease. Also included in the selling price is any amount
16received by the lessor from the lessee for the leased vehicle
17that is not calculated at the time the lease is executed,
18including, but not limited to, excess mileage charges and
19charges for excess wear and tear. For sales that occur in
20Illinois, with respect to any amount received by the lessor
21from the lessee for the leased vehicle that is not calculated
22at the time the lease is executed, the lessor who purchased the
23motor vehicle does not incur the tax imposed by the Use Tax Act
24on those amounts, and the retailer who makes the retail sale of
25the motor vehicle to the lessor is not required to collect the
26tax imposed by this Act or to pay the tax imposed by the

 

 

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1Retailers' Occupation Tax Act on those amounts. However, the
2lessor who purchased the motor vehicle assumes the liability
3for reporting and paying the tax on those amounts directly to
4the Department in the same form (Illinois Retailers' Occupation
5Tax, and local retailers' occupation taxes, if applicable) in
6which the retailer would have reported and paid such tax if the
7retailer had accounted for the tax to the Department. For
8amounts received by the lessor from the lessee that are not
9calculated at the time the lease is executed, the lessor must
10file the return and pay the tax to the Department by the due
11date otherwise required by this Act for returns other than
12transaction returns. If the retailer is entitled under this Act
13to a discount for collecting and remitting the tax imposed
14under this Act to the Department with respect to the sale of
15the motor vehicle to the lessor, then the right to the discount
16provided in this Act shall be transferred to the lessor with
17respect to the tax paid by the lessor for any amount received
18by the lessor from the lessee for the leased vehicle that is
19not calculated at the time the lease is executed; provided that
20the discount is only allowed if the return is timely filed and
21for amounts timely paid. The "selling price" of a motor vehicle
22that is sold on or after January 1, 2015 for the purpose of
23leasing for a defined period of longer than one year shall not
24be reduced by the value of or credit given for traded-in
25tangible personal property owned by the lessor, nor shall it be
26reduced by the value of or credit given for traded-in tangible

 

 

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1personal property owned by the lessee, regardless of whether
2the trade-in value thereof is assigned by the lessee to the
3lessor. In the case of a motor vehicle that is sold for the
4purpose of leasing for a defined period of longer than one
5year, the sale occurs at the time of the delivery of the
6vehicle, regardless of the due date of any lease payments. A
7lessor who incurs a Retailers' Occupation Tax liability on the
8sale of a motor vehicle coming off lease may not take a credit
9against that liability for the Use Tax the lessor paid upon the
10purchase of the motor vehicle (or for any tax the lessor paid
11with respect to any amount received by the lessor from the
12lessee for the leased vehicle that was not calculated at the
13time the lease was executed) if the selling price of the motor
14vehicle at the time of purchase was calculated using the
15definition of "selling price" as defined in this paragraph.
16Notwithstanding any other provision of this Act to the
17contrary, lessors shall file all returns and make all payments
18required under this paragraph to the Department by electronic
19means in the manner and form as required by the Department.
20This paragraph does not apply to leases of motor vehicles for
21which, at the time the lease is entered into, the term of the
22lease is not a defined period, including leases with a defined
23initial period with the option to continue the lease on a
24month-to-month or other basis beyond the initial defined
25period.
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 a retailer who engages in the following
4acts or methods of transacting business in this State on a
5regular or systematic basis:
6        (1) maintaining within this State, directly,
7    indirectly, or by an affiliate, an office, distribution
8    facility, sales room, warehouse, storage place, or other
9    similar place of business, including the employment of a
10    resident of this State who works from a home office in this
11    State on a regular or systematic basis;
12        (2) engaging in, either directly or indirectly through
13    a marketplace provider, referrer, or other third party,
14    direct response marketing targeted at consumers in this
15    State; for the purposes of this item (2), "direct response
16    marketing" includes, but is not limited to:
17            (A) sending, transmitting, or broadcasting of
18        flyers, newsletters, telephone calls, targeted
19        electronic mail, text messages, social media messages,
20        targeted mailings;
21            (B) collecting analyzing, and utilizing individual
22        data on purchasers or potential purchasers in this
23        State;
24            (C) using information or software, including
25        cached files, cached software, "cookies", or other
26        data tracking tools, that are stored on property

 

 

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1        located in or distributed within this State; or
2            (D) conducting any other actions that use persons,
3        tangible property, intangible property, digital files,
4        or information, or software in this State in an effort
5        to enhance the probability that a person's contacts
6        with a customer in this State will result in a sale to
7        that customer;
8        (3) entering into one or more agreements under which a
9    person or persons who have nexus with this State under the
10    Commerce Clause of the United States Constitution directly
11    or indirectly refer potential purchasers of products to the
12    seller for a commission or other consideration, whether by
13    an Internet-based link, an Internet website, or otherwise;
14    the activities described in this paragraph (3) constitute
15    "maintaining a place of business in this State" regardless
16    of whether or not the referral is related to the sale of
17    tangible personal property; an agreement under which a
18    seller purchases advertisements from a person or persons in
19    this State to be delivered on television, radio, in print,
20    on the Internet, or by any other medium, is not an
21    agreement described in this paragraph unless the
22    advertising revenue paid to the person or persons in this
23    State consists of commissions or other consideration that
24    is based in whole or in part upon sales of products; this
25    paragraph does not apply to an agreement if the seller can
26    demonstrate that no person in this State with whom the

 

 

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1    seller has an agreement engaged in referral activity in
2    this State on behalf of the seller that would satisfy the
3    requirements of the Commerce Clause of the United States
4    Constitution, provided that the seller must:
5            (A) be able to demonstrate that each in-State
6        person with whom the seller has an agreement is
7        prohibited from engaging in any solicitation
8        activities in this State that refer potential
9        customers to the seller; and
10            (B) obtain annually a certification from each such
11        in-State person that the person has complied with the
12        prohibition stated in paragraph (A); or
13        (4) the seller offers its products for sale through one
14    or more marketplaces operated by a marketplace provider
15    that has substantial nexus with the State.
16    A retailer is presumed to be "maintaining a place of
17business in this State" if any part of the sales process occurs
18in the State, including listing products for sale, soliciting
19sales, branding products, selling products, processing orders,
20filling orders, providing customer service, or accepting or
21assisting with returns or exchanges, regardless of whether that
22part of the process has been subcontracted to an affiliate or
23third party. The sales process does not include shipping via a
24common carrier.
25    A retailer is also presumed to be "maintaining a place of
26business in this State" if the retailer's total gross receipts

 

 

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1from sales occurring in Illinois in the previous calendar year
2is $1,000,000 or more. A retailer that is presumed to be
3"maintaining a place of business in this State" under this
4paragraph must collect and remit the tax imposed under this Act
5unless it can prove that it does not have nexus with this State
6under the Commerce Clause of the United States Constitution.
7    A retailer is also presumed to be "maintaining a place of
8business in this State" if the retailer is related to a person
9that has nexus under the Commerce Clause with this State, and
10that related person:
11        (1) sells under the same or a similar business name
12    tangible personal property similar to that sold by the
13    person against whom the presumption is asserted;
14        (2) maintains an office, distribution facility,
15    salesroom, warehouse, storage place, or other similar
16    place of business in this State to facilitate the delivery
17    of tangible personal property or sold by the person against
18    whom the presumption is asserted to such person's in-state
19    customers;
20        (3) uses, with consent or knowledge of the person
21    against whom the presumption is asserted, trademarks,
22    service marks, or trade names in this State that are the
23    same or substantially similar to those used by the person
24    against whom the presumption is asserted;
25        (4) delivers, installs, or assembles tangible personal
26    property in this State, or performs maintenance or repair

 

 

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1    services on tangible personal property in this State, which
2    tangible personal property is sold to in-State customers by
3    the person against whom the presumption is asserted;
4        (5) facilitates the delivery of tangible personal
5    property to in-State customers of the person against whom
6    the presumption is asserted by allowing those customers to
7    pick up tangible personal property sold by the person at an
8    office, distribution facility, salesroom, warehouse,
9    storage place, or other similar place of business
10    maintained in this State; or
11        (6) shares management, business systems, business
12    practices, or employees with the person against whom the
13    presumption is asserted, or engages in intercompany
14    transactions with the person against whom the presumption
15    is asserted related to the activities that establish or
16    maintain the market in this State of the person against
17    whom the presumption is asserted.
18    "Marketplace provider" means a person who facilitates a
19retail sale by a retailer. For purposes of this definition, a
20marketplace provider facilitates a retail sale when the
21marketplace provider both (i) lists or advertises tangible
22personal property for sale in any forum, including a catalog or
23Internet website and (ii) either directly or indirectly through
24agreements or arrangements with third parties collects sales
25receipts from the customer and transmits those receipts to a
26retailer, whether or not the marketplace provider deducts any

 

 

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1fees from the transmission of those receipts to the retailer.
2The Department may adopt rules that further clarify when a
3marketplace provider facilitates a retail sale.
4         and includes any of the following retailers:
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 retailer having a contract with a person located
23    in this State under which the person, for a commission or
24    other consideration based upon the sale of tangible
25    personal property by the retailer, directly or indirectly
26    refers potential customers to the retailer by providing to

 

 

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

 

 

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

 

 

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1    property by mail if the solicitations are substantial and
2    recurring and if the retailer benefits from any banking,
3    financing, debt collection, telecommunication, or
4    marketing activities occurring in this State or benefits
5    from the location in this State of authorized installation,
6    servicing, or repair facilities.
7        5. A retailer that is owned or controlled by the same
8    interests that own or control any retailer engaging in
9    business in the same or similar line of business in this
10    State.
11        6. A retailer having a franchisee or licensee operating
12    under its trade name if the franchisee or licensee is
13    required to collect the tax under this Section.
14        7. A retailer, pursuant to a contract with a cable
15    television operator located in this State, soliciting
16    orders for tangible personal property by means of
17    advertising which is transmitted or distributed over a
18    cable television system in this State.
19        8. A retailer engaging in activities in Illinois, which
20    activities in the state in which the retail business
21    engaging in such activities is located would constitute
22    maintaining a place of business in that state.
23    "Bulk vending machine" means a vending machine, containing
24unsorted confections, nuts, toys, or other items designed
25primarily to be used or played with by children which, when a
26coin or coins of a denomination not larger than $0.50 are

 

 

09900SB1041sam001- 21 -LRB099 05554 HLH 47553 a

1inserted, are dispensed in equal portions, at random and
2without selection by the customer.
3(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14;
498-1089, eff. 1-1-15; 99-78, eff. 7-20-15.)
 
5    (35 ILCS 105/3-45)  (from Ch. 120, par. 439.3-45)
6    Sec. 3-45. Collection. The tax imposed by this Act shall be
7collected from the purchaser by a retailer maintaining a place
8of business in this State or a retailer authorized by the
9Department under Section 6 of this Act, and shall be remitted
10to the Department as provided in Section 9 of this Act, except
11as provided in Section 3-10.5 of this Act.
12    A marketplace provider maintaining a place of business in
13this State is required to collect and remit the tax imposed
14under this Act on any sales facilitated by a marketplace
15provider to a customer in this State. However, no marketplace
16provider is required to collect and remit the tax imposed on a
17sale between a retailer and a customer in this State if (i) the
18retailer provides to the marketplace provider a copy of his or
19her certificate of registration under this Act, the Service Use
20Tax Act, the Service Occupation Tax Act, or the Retailers'
21Occupation Tax Act or (ii) the retailer appears on a list
22published by the Department of the entities registered to
23collect use and occupation taxes in this State. The Department
24shall adopt rules regarding the content a publication of the
25list. Nothing in this Section shall be construed to interfere

 

 

09900SB1041sam001- 22 -LRB099 05554 HLH 47553 a

1with the ability of a marketplace provider and a marketplace
2seller to enter into agreements with each other regarding
3fulfillment of the requirements of this Act. A marketplace
4provider is relieved of liability under this Section for
5failure to collect and remit the correct amount of the tax to
6the extent that the marketplace provider can demonstrate that
7the error was due to incorrect information given to the
8marketplace provider by the retailer; except that the
9marketplace provider is not relieved of liability if the
10marketplace provider and the retailer are related persons.
11    The tax imposed by this Act that is not paid to a retailer
12or a marketplace provider under this Section shall be paid to
13the Department directly by any person using the property within
14this State as provided in Section 10 of this Act.
15    Retailers and marketplace providers shall collect the tax
16from users by adding the tax to the selling price of tangible
17personal property, when sold for use, in the manner prescribed
18by the Department. The Department may adopt and promulgate
19reasonable rules and regulations for the adding of the tax by
20retailers and marketplace providers to selling prices by
21prescribing bracket systems for the purpose of enabling the
22retailers and marketplace providers to add and collect, as far
23as practicable, the amount of the tax.
24    If a seller collects use tax measured by receipts that are
25not subject to use tax, or if a seller, in collecting use tax
26measured by receipts that are subject to tax under this Act,

 

 

09900SB1041sam001- 23 -LRB099 05554 HLH 47553 a

1collects more from the purchaser than the required amount of
2the use tax on the transaction, the purchaser shall have a
3legal right to claim a refund of that amount from the seller.
4If, however, that amount is not refunded to the purchaser for
5any reason, the seller is liable to pay that amount to the
6Department. This paragraph does not apply to an amount
7collected by the seller as use tax on receipts that are subject
8to tax under this Act as long as the collection is made in
9compliance with the tax collection brackets prescribed by the
10Department in its rules and regulations.
11(Source: P.A. 91-51, eff. 6-30-99; 92-484, eff. 8-23-01.)
 
12    (35 ILCS 105/3-67 new)
13    Sec. 3-67. Referrer reporting and registration.
14    (a) As used in this Section, the term "referrer" means
15every person who (i) contracts or otherwise agrees with a
16retailer to list multiple items of tangible personal property
17for sale and the sales price of those items in any forum,
18including a catalog or Internet website, (ii) receives a fee,
19commission, or other consideration from a retailer for the
20listing, (iii) transfers, via telephone, Internet link, or
21otherwise, a customer to the retailer or the retailer's website
22to complete a purchase, and (iv) does not collect receipts from
23the customer for the transaction.
24    As used in this Section, the term "retailer" also includes
25servicemen, as defined in the Service Use Tax Act.

 

 

09900SB1041sam001- 24 -LRB099 05554 HLH 47553 a

1    (b) By the first day of the last month of a calendar year,
2every referrer that received more than $10,000 in fees paid by
3retailers for the services described in this Section in the
4previous calendar year, or that received more than $7,500 for
5such services in the first 3 quarters of the current calendar
6year, must file with the Department a notice, in a form
7prescribed by the Department, stating the referrer's intent to
8provide the services set forth in this Section in the following
9calendar year.
10    (c) The Department shall, within 15 days of receipt of the
11notice, issue a permit to such referrer, without charge, to
12allow the referrer to refer customers in this State to
13retailers.
14    (d) A referrer required to file the notice set forth in
15this Section that fails to obtain a permit shall not refer
16customers in this State to retailers.
17    (e) In addition to any other return or report required to
18be filed under this Act, a referrer that receives more than
19$10,000 in fees paid by retailers for the activities described
20in this Section in the previous calendar year is required to
21file a report annually listing the following:
22        (1) the name and address of each retailer who has
23    contracted with the referrer to refer customers within this
24    State to the retailer;
25        (2) if available, the cumulative sales price and any
26    available transactional-level detail for referrals made by

 

 

09900SB1041sam001- 25 -LRB099 05554 HLH 47553 a

1    the referrer of customers in this State to each retailer,
2    including listed price of items and the number of times
3    referrals were made to retailers for those items; the
4    referrer shall not be required to provide any information
5    that could identify a purchaser; and
6        (3) if available, the number of potential customers
7    located in this State that were referred to the retailer
8    and, if available, the number of customers who made
9    purchases after a referral.
10    If a referrer does not comply with this subsection, its
11permit under this Section shall be revoked.
12    (f) A referrer that receives more than $10,000 from fees
13paid by retailers during the previous calendar year is also
14required to provide notice to retailers that the retailer's
15sales may be subject to the tax under this Act and that the
16retailer's contact information and sales volume into this State
17is being provided to the Department. The Department may
18establish by rule what constitutes notice to retailers
19sufficient to meet the requirements of this Section. If a
20referrer does not comply with this subsection, its permit under
21this Section shall be revoked.
22    (g) A referrer is not required to provide the information
23under this Section for a retailer if the retailer either (i)
24provides a copy of the retailer's certificate of registration
25to the referrer or (ii) the retailer appears on a list
26published by the Department. The Department shall adopt rules

 

 

09900SB1041sam001- 26 -LRB099 05554 HLH 47553 a

1regarding the content and publication of the list.
2    (h) When a referrer refers a customer in this State to a
3retailer and the retailer makes a retail sale to that customer,
4liability for the use and occupation tax on the transaction due
5from the customer is imposed on the referrer in the amount of
6the tax that would have been due on the transaction based on
7the sales price listed by the retailer, unless the retailer
8either (i) provides a copy of the retailer's certificate of
9registration to the referrer or (ii) the retailer appears on a
10list published by the Department. The Department shall adopt
11rules regarding the content and publication of the list.
 
12    (35 ILCS 105/6)  (from Ch. 120, par. 439.6)
13    Sec. 6. A retailer or marketplace provider maintaining a
14place of business in this State, if required to register under
15the Retailers' Occupation Tax Act, need not obtain an
16additional Certificate of Registration under this Act, but
17shall be deemed to be sufficiently registered by virtue of his
18being registered under the Retailers' Occupation Tax Act. Every
19retailer or marketplace provider maintaining a place of
20business in this State, if not required to register under the
21Retailers' Occupation Tax Act, shall apply to the Department
22(upon a form prescribed and furnished by the Department) for a
23Certificate of Registration under this Act. In completing such
24application, the applicant shall furnish such information as
25the Department may reasonably require. Upon approval of an

 

 

09900SB1041sam001- 27 -LRB099 05554 HLH 47553 a

1application for Certificate of Registration, the Department
2shall issue, without charge, a Certificate of Registration to
3the applicant. Such Certificate of Registration shall be
4displayed at the address which the applicant states in his
5application to be the principal place of business or location
6from which he will act as a retailer in this State. If the
7applicant will act as a retailer or marketplace provider in
8this State from other places of business or locations, he shall
9list the addresses of such additional places of business or
10locations in this application for Certificate of Registration,
11and the Department shall issue a Sub-Certificate of
12Registration to the applicant for each such additional place of
13business or location. Each Sub-Certificate of Registration
14shall be conspicuously displayed at the place for which it is
15issued. Such Sub-Certificate of Registration shall bear the
16same registration number as that appearing upon the Certificate
17of Registration to which such Sub-Certificates relate. Where a
18retailer operates more than one place of business which is
19subject to registration under this Section and such businesses
20are substantially different in character or are engaged in
21under different trade names or are engaged in under other
22substantially dissimilar circumstances (so that it is more
23practicable, from an accounting, auditing or bookkeeping
24standpoint, for such businesses to be separately registered),
25the Department may require or permit such person to apply for
26and obtain a separate Certificate of Registration for each such

 

 

09900SB1041sam001- 28 -LRB099 05554 HLH 47553 a

1business or for any of such businesses instead of registering
2such person, as to all such businesses, under a single
3Certificate of Registration supplemented by related
4Sub-Certificates of Registration. No Certificate of
5Registration shall be issued to any person who is in default to
6the State of Illinois for moneys due hereunder.
7    The Department may, in its discretion, upon application,
8authorize the collection of the tax herein imposed by any
9retailer not maintaining a place of business within this State,
10who, to the satisfaction of the Department, furnishes adequate
11security to insure collection and payment of the tax. Such
12retailer shall be issued, without charge, a permit to collect
13such tax. When so authorized, it shall be the duty of such
14retailer to collect the tax upon all tangible personal property
15sold to his knowledge for use within this State, in the same
16manner and subject to the same requirements, including the
17furnishing of a receipt to the purchaser (if demanded by the
18purchaser), as a retailer maintaining a place of business
19within this State. The receipt given to the purchaser shall be
20sufficient to relieve him from further liability for the tax to
21which such receipt may refer. Such permit may be revoked by the
22Department as provided herein.
23(Source: Laws 1955, p. 2027.)
 
24    (35 ILCS 105/8)  (from Ch. 120, par. 439.8)
25    Sec. 8. Any retailer, marketplace provider, or referrer

 

 

09900SB1041sam001- 29 -LRB099 05554 HLH 47553 a

1required to collect the tax imposed by this Act shall be liable
2to the Department for such tax, whether or not the tax has been
3collected by the retailer, except when the retailer,
4marketplace provider, or referrer is relieved of the duty of
5remitting the tax to the Department by virtue of having paid a
6tax imposed by the Retailers' Occupation Tax Act upon his or
7her gross receipts from the same transactions. To the extent
8that a retailer, marketplace provider, or referrer required to
9collect the tax imposed by this Act has actually collected that
10tax, such tax is held in trust for the benefit of the
11Department.
12(Source: P.A. 91-203, eff. 7-20-99.)
 
13    (35 ILCS 105/9)  (from Ch. 120, par. 439.9)
14    Sec. 9. Except as to motor vehicles, watercraft, aircraft,
15and trailers that are required to be registered with an agency
16of this State, each retailer required or authorized to collect
17the tax imposed by this Act shall pay to the Department the
18amount of such tax (except as otherwise provided) at the time
19when he is required to file his return for the period during
20which such tax was collected, less a discount of 2.1% prior to
21January 1, 1990, and 1.75% on and after January 1, 1990, or $5
22per calendar year, whichever is greater, which is allowed to
23reimburse the retailer for expenses incurred in collecting the
24tax, keeping records, preparing and filing returns, remitting
25the tax and supplying data to the Department on request. In the

 

 

09900SB1041sam001- 30 -LRB099 05554 HLH 47553 a

1case of retailers who report and pay the tax on a transaction
2by transaction basis, as provided in this Section, such
3discount shall be taken with each such tax remittance instead
4of when such retailer files his periodic return. The Department
5may disallow the discount for retailers whose certificate of
6registration is revoked at the time the return is filed, but
7only if the Department's decision to revoke the certificate of
8registration has become final. A retailer need not remit that
9part of any tax collected by him to the extent that he is
10required to remit and does remit the tax imposed by the
11Retailers' Occupation Tax Act, with respect to the sale of the
12same property.
13    Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the retailer, in collecting the tax (except as to motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State), may collect for
20each tax return period, only the tax applicable to that part of
21the selling price actually received during such tax return
22period.
23    Except as provided in this Section, on or before the
24twentieth day of each calendar month, such retailer shall file
25a return for the preceding calendar month. Such return shall be
26filed on forms prescribed by the Department and shall furnish

 

 

09900SB1041sam001- 31 -LRB099 05554 HLH 47553 a

1such information as the Department may reasonably require.
2    The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9        1. The name of the seller;
10        2. The address of the principal place of business from
11    which he engages in the business of selling tangible
12    personal property at retail in this State;
13        3. The total amount of taxable receipts received by him
14    during the preceding calendar month from sales of tangible
15    personal property by him during such preceding calendar
16    month, including receipts from charge and time sales, but
17    less all deductions allowed by law;
18        4. The amount of credit provided in Section 2d of this
19    Act;
20        5. The amount of tax due;
21        5-5. The signature of the taxpayer; and
22        6. Such other reasonable information as the Department
23    may require.
24    If a taxpayer fails to sign a return within 30 days after
25the proper notice and demand for signature by the Department,
26the return shall be considered valid and any amount shown to be

 

 

09900SB1041sam001- 32 -LRB099 05554 HLH 47553 a

1due on the return shall be deemed assessed.
2    Beginning October 1, 1993, a taxpayer who has an average
3monthly tax liability of $150,000 or more shall make all
4payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 1994, a taxpayer who has
6an average monthly tax liability of $100,000 or more shall make
7all payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1995, a taxpayer who has
9an average monthly tax liability of $50,000 or more shall make
10all payments required by rules of the Department by electronic
11funds transfer. Beginning October 1, 2000, a taxpayer who has
12an annual tax liability of $200,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. The term "annual tax liability" shall be the
15sum of the taxpayer's liabilities under this Act, and under all
16other State and local occupation and use tax laws administered
17by the Department, for the immediately preceding calendar year.
18The term "average monthly tax liability" means the sum of the
19taxpayer's liabilities under this Act, and under all other
20State and local occupation and use tax laws administered by the
21Department, for the immediately preceding calendar year
22divided by 12. Beginning on October 1, 2002, a taxpayer who has
23a tax liability in the amount set forth in subsection (b) of
24Section 2505-210 of the Department of Revenue Law shall make
25all payments required by rules of the Department by electronic
26funds transfer.

 

 

09900SB1041sam001- 33 -LRB099 05554 HLH 47553 a

1    Before August 1 of each year beginning in 1993, the
2Department shall notify all taxpayers required to make payments
3by electronic funds transfer. All taxpayers required to make
4payments by electronic funds transfer shall make those payments
5for a minimum of one year beginning on October 1.
6    Any taxpayer not required to make payments by electronic
7funds transfer may make payments by electronic funds transfer
8with the permission of the Department.
9    All taxpayers required to make payment by electronic funds
10transfer and any taxpayers authorized to voluntarily make
11payments by electronic funds transfer shall make those payments
12in the manner authorized by the Department.
13    The Department shall adopt such rules as are necessary to
14effectuate a program of electronic funds transfer and the
15requirements of this Section.
16    Before October 1, 2000, if the taxpayer's average monthly
17tax liability to the Department under this Act, the Retailers'
18Occupation Tax Act, the Service Occupation Tax Act, the Service
19Use Tax Act was $10,000 or more during the preceding 4 complete
20calendar quarters, he shall file a return with the Department
21each month by the 20th day of the month next following the
22month during which such tax liability is incurred and shall
23make payments to the Department on or before the 7th, 15th,
2422nd and last day of the month during which such liability is
25incurred. On and after October 1, 2000, if the taxpayer's
26average monthly tax liability to the Department under this Act,

 

 

09900SB1041sam001- 34 -LRB099 05554 HLH 47553 a

1the Retailers' Occupation Tax Act, the Service Occupation Tax
2Act, and the Service Use Tax Act was $20,000 or more during the
3preceding 4 complete calendar quarters, he shall file a return
4with the Department each month by the 20th day of the month
5next following the month during which such tax liability is
6incurred and shall make payment to the Department on or before
7the 7th, 15th, 22nd and last day of the month during which such
8liability is incurred. If the month during which such tax
9liability is incurred began prior to January 1, 1985, each
10payment shall be in an amount equal to 1/4 of the taxpayer's
11actual liability for the month or an amount set by the
12Department not to exceed 1/4 of the average monthly liability
13of the taxpayer to the Department for the preceding 4 complete
14calendar quarters (excluding the month of highest liability and
15the month of lowest liability in such 4 quarter period). If the
16month during which such tax liability is incurred begins on or
17after January 1, 1985, and prior to January 1, 1987, each
18payment shall be in an amount equal to 22.5% of the taxpayer's
19actual liability for the month or 27.5% of the taxpayer's
20liability for the same calendar month of the preceding year. If
21the month during which such tax liability is incurred begins on
22or after January 1, 1987, and prior to January 1, 1988, each
23payment shall be in an amount equal to 22.5% of the taxpayer's
24actual liability for the month or 26.25% of the taxpayer's
25liability for the same calendar month of the preceding year. If
26the month during which such tax liability is incurred begins on

 

 

09900SB1041sam001- 35 -LRB099 05554 HLH 47553 a

1or after January 1, 1988, and prior to January 1, 1989, or
2begins on or after January 1, 1996, each payment shall be in an
3amount equal to 22.5% of the taxpayer's actual liability for
4the month or 25% of the taxpayer's liability for the same
5calendar month of the preceding year. If the month during which
6such tax liability is incurred begins on or after January 1,
71989, and prior to January 1, 1996, each payment shall be in an
8amount equal to 22.5% of the taxpayer's actual liability for
9the month or 25% of the taxpayer's liability for the same
10calendar month of the preceding year or 100% of the taxpayer's
11actual liability for the quarter monthly reporting period. The
12amount of such quarter monthly payments shall be credited
13against the final tax liability of the taxpayer's return for
14that month. Before October 1, 2000, once applicable, the
15requirement of the making of quarter monthly payments to the
16Department shall continue until such taxpayer's average
17monthly liability to the Department during the preceding 4
18complete calendar quarters (excluding the month of highest
19liability and the month of lowest liability) is less than
20$9,000, or until such taxpayer's average monthly liability to
21the Department as computed for each calendar quarter of the 4
22preceding complete calendar quarter period is less than
23$10,000. However, if a taxpayer can show the Department that a
24substantial change in the taxpayer's business has occurred
25which causes the taxpayer to anticipate that his average
26monthly tax liability for the reasonably foreseeable future

 

 

09900SB1041sam001- 36 -LRB099 05554 HLH 47553 a

1will fall below the $10,000 threshold stated above, then such
2taxpayer may petition the Department for change in such
3taxpayer's reporting status. On and after October 1, 2000, once
4applicable, the requirement of the making of quarter monthly
5payments to the Department shall continue until such taxpayer's
6average monthly liability to the Department during the
7preceding 4 complete calendar quarters (excluding the month of
8highest liability and the month of lowest liability) is less
9than $19,000 or until such taxpayer's average monthly liability
10to the Department as computed for each calendar quarter of the
114 preceding complete calendar quarter period is less than
12$20,000. However, if a taxpayer can show the Department that a
13substantial change in the taxpayer's business has occurred
14which causes the taxpayer to anticipate that his average
15monthly tax liability for the reasonably foreseeable future
16will fall below the $20,000 threshold stated above, then such
17taxpayer may petition the Department for a change in such
18taxpayer's reporting status. The Department shall change such
19taxpayer's reporting status unless it finds that such change is
20seasonal in nature and not likely to be long term. If any such
21quarter monthly payment is not paid at the time or in the
22amount required by this Section, then the taxpayer shall be
23liable for penalties and interest on the difference between the
24minimum amount due and the amount of such quarter monthly
25payment actually and timely paid, except insofar as the
26taxpayer has previously made payments for that month to the

 

 

09900SB1041sam001- 37 -LRB099 05554 HLH 47553 a

1Department in excess of the minimum payments previously due as
2provided in this Section. The Department shall make reasonable
3rules and regulations to govern the quarter monthly payment
4amount and quarter monthly payment dates for taxpayers who file
5on other than a calendar monthly basis.
6    If any such payment provided for in this Section exceeds
7the taxpayer's liabilities under this Act, the Retailers'
8Occupation Tax Act, the Service Occupation Tax Act and the
9Service Use Tax Act, as shown by an original monthly return,
10the Department shall issue to the taxpayer a credit memorandum
11no later than 30 days after the date of payment, which
12memorandum may be submitted by the taxpayer to the Department
13in payment of tax liability subsequently to be remitted by the
14taxpayer to the Department or be assigned by the taxpayer to a
15similar taxpayer under this Act, the Retailers' Occupation Tax
16Act, the Service Occupation Tax Act or the Service Use Tax Act,
17in accordance with reasonable rules and regulations to be
18prescribed by the Department, except that if such excess
19payment is shown on an original monthly return and is made
20after December 31, 1986, no credit memorandum shall be issued,
21unless requested by the taxpayer. If no such request is made,
22the taxpayer may credit such excess payment against tax
23liability subsequently to be remitted by the taxpayer to the
24Department under this Act, the Retailers' Occupation Tax Act,
25the Service Occupation Tax Act or the Service Use Tax Act, in
26accordance with reasonable rules and regulations prescribed by

 

 

09900SB1041sam001- 38 -LRB099 05554 HLH 47553 a

1the Department. If the Department subsequently determines that
2all or any part of the credit taken was not actually due to the
3taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
4be reduced by 2.1% or 1.75% of the difference between the
5credit taken and that actually due, and the taxpayer shall be
6liable for penalties and interest on such difference.
7    If the retailer is otherwise required to file a monthly
8return and if the retailer's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February, and March of a given
12year being due by April 20 of such year; with the return for
13April, May and June of a given year being due by July 20 of such
14year; with the return for July, August and September of a given
15year being due by October 20 of such year, and with the return
16for October, November and December of a given year being due by
17January 20 of the following year.
18    If the retailer is otherwise required to file a monthly or
19quarterly return and if the retailer's average monthly tax
20liability to the Department does not exceed $50, the Department
21may authorize his returns to be filed on an annual basis, with
22the return for a given year being due by January 20 of the
23following year.
24    Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as monthly
26returns.

 

 

09900SB1041sam001- 39 -LRB099 05554 HLH 47553 a

1    Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8    In addition, with respect to motor vehicles, watercraft,
9aircraft, and trailers that are required to be registered with
10an agency of this State, every retailer selling this kind of
11tangible personal property shall file, with the Department,
12upon a form to be prescribed and supplied by the Department, a
13separate return for each such item of tangible personal
14property which the retailer sells, except that if, in the same
15transaction, (i) a retailer of aircraft, watercraft, motor
16vehicles or trailers transfers more than one aircraft,
17watercraft, motor vehicle or trailer to another aircraft,
18watercraft, motor vehicle or trailer retailer for the purpose
19of resale or (ii) a retailer of aircraft, watercraft, motor
20vehicles, or trailers transfers more than one aircraft,
21watercraft, motor vehicle, or trailer to a purchaser for use as
22a qualifying rolling stock as provided in Section 3-55 of this
23Act, then that seller may report the transfer of all the
24aircraft, watercraft, motor vehicles or trailers involved in
25that transaction to the Department on the same uniform
26invoice-transaction reporting return form. For purposes of

 

 

09900SB1041sam001- 40 -LRB099 05554 HLH 47553 a

1this Section, "watercraft" means a Class 2, Class 3, or Class 4
2watercraft as defined in Section 3-2 of the Boat Registration
3and Safety Act, a personal watercraft, or any boat equipped
4with an inboard motor.
5    The transaction reporting return in the case of motor
6vehicles or trailers that are required to be registered with an
7agency of this State, shall be the same document as the Uniform
8Invoice referred to in Section 5-402 of the Illinois Vehicle
9Code and must show the name and address of the seller; the name
10and address of the purchaser; the amount of the selling price
11including the amount allowed by the retailer for traded-in
12property, if any; the amount allowed by the retailer for the
13traded-in tangible personal property, if any, to the extent to
14which Section 2 of this Act allows an exemption for the value
15of traded-in property; the balance payable after deducting such
16trade-in allowance from the total selling price; the amount of
17tax due from the retailer with respect to such transaction; the
18amount of tax collected from the purchaser by the retailer on
19such transaction (or satisfactory evidence that such tax is not
20due in that particular instance, if that is claimed to be the
21fact); the place and date of the sale; a sufficient
22identification of the property sold; such other information as
23is required in Section 5-402 of the Illinois Vehicle Code, and
24such other information as the Department may reasonably
25require.
26    The transaction reporting return in the case of watercraft

 

 

09900SB1041sam001- 41 -LRB099 05554 HLH 47553 a

1and aircraft must show the name and address of the seller; the
2name and address of the purchaser; the amount of the selling
3price including the amount allowed by the retailer for
4traded-in property, if any; the amount allowed by the retailer
5for the traded-in tangible personal property, if any, to the
6extent to which Section 2 of this Act allows an exemption for
7the value of traded-in property; the balance payable after
8deducting such trade-in allowance from the total selling price;
9the amount of tax due from the retailer with respect to such
10transaction; the amount of tax collected from the purchaser by
11the retailer on such transaction (or satisfactory evidence that
12such tax is not due in that particular instance, if that is
13claimed to be the fact); the place and date of the sale, a
14sufficient identification of the property sold, and such other
15information as the Department may reasonably require.
16    Such transaction reporting return shall be filed not later
17than 20 days after the date of delivery of the item that is
18being sold, but may be filed by the retailer at any time sooner
19than that if he chooses to do so. The transaction reporting
20return and tax remittance or proof of exemption from the tax
21that is imposed by this Act may be transmitted to the
22Department by way of the State agency with which, or State
23officer with whom, the tangible personal property must be
24titled or registered (if titling or registration is required)
25if the Department and such agency or State officer determine
26that this procedure will expedite the processing of

 

 

09900SB1041sam001- 42 -LRB099 05554 HLH 47553 a

1applications for title or registration.
2    With each such transaction reporting return, the retailer
3shall remit the proper amount of tax due (or shall submit
4satisfactory evidence that the sale is not taxable if that is
5the case), to the Department or its agents, whereupon the
6Department shall issue, in the purchaser's name, a tax receipt
7(or a certificate of exemption if the Department is satisfied
8that the particular sale is tax exempt) which such purchaser
9may submit to the agency with which, or State officer with
10whom, he must title or register the tangible personal property
11that is involved (if titling or registration is required) in
12support of such purchaser's application for an Illinois
13certificate or other evidence of title or registration to such
14tangible personal property.
15    No retailer's failure or refusal to remit tax under this
16Act precludes a user, who has paid the proper tax to the
17retailer, from obtaining his certificate of title or other
18evidence of title or registration (if titling or registration
19is required) upon satisfying the Department that such user has
20paid the proper tax (if tax is due) to the retailer. The
21Department shall adopt appropriate rules to carry out the
22mandate of this paragraph.
23    If the user who would otherwise pay tax to the retailer
24wants the transaction reporting return filed and the payment of
25tax or proof of exemption made to the Department before the
26retailer is willing to take these actions and such user has not

 

 

09900SB1041sam001- 43 -LRB099 05554 HLH 47553 a

1paid the tax to the retailer, such user may certify to the fact
2of such delay by the retailer, and may (upon the Department
3being satisfied of the truth of such certification) transmit
4the information required by the transaction reporting return
5and the remittance for tax or proof of exemption directly to
6the Department and obtain his tax receipt or exemption
7determination, in which event the transaction reporting return
8and tax remittance (if a tax payment was required) shall be
9credited by the Department to the proper retailer's account
10with the Department, but without the 2.1% or 1.75% discount
11provided for in this Section being allowed. When the user pays
12the tax directly to the Department, he shall pay the tax in the
13same amount and in the same form in which it would be remitted
14if the tax had been remitted to the Department by the retailer.
15    Where a retailer collects the tax with respect to the
16selling price of tangible personal property which he sells and
17the purchaser thereafter returns such tangible personal
18property and the retailer refunds the selling price thereof to
19the purchaser, such retailer shall also refund, to the
20purchaser, the tax so collected from the purchaser. When filing
21his return for the period in which he refunds such tax to the
22purchaser, the retailer may deduct the amount of the tax so
23refunded by him to the purchaser from any other use tax which
24such retailer may be required to pay or remit to the
25Department, as shown by such return, if the amount of the tax
26to be deducted was previously remitted to the Department by

 

 

09900SB1041sam001- 44 -LRB099 05554 HLH 47553 a

1such retailer. If the retailer has not previously remitted the
2amount of such tax to the Department, he is entitled to no
3deduction under this Act upon refunding such tax to the
4purchaser.
5    Any retailer filing a return under this Section shall also
6include (for the purpose of paying tax thereon) the total tax
7covered by such return upon the selling price of tangible
8personal property purchased by him at retail from a retailer,
9but as to which the tax imposed by this Act was not collected
10from the retailer filing such return, and such retailer shall
11remit the amount of such tax to the Department when filing such
12return.
13    If experience indicates such action to be practicable, the
14Department may prescribe and furnish a combination or joint
15return which will enable retailers, who are required to file
16returns hereunder and also under the Retailers' Occupation Tax
17Act, to furnish all the return information required by both
18Acts on the one form.
19    Where the retailer has more than one business registered
20with the Department under separate registration under this Act,
21such retailer may not file each return that is due as a single
22return covering all such registered businesses, but shall file
23separate returns for each such registered business.
24    Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund, a special
26fund in the State Treasury which is hereby created, the net

 

 

09900SB1041sam001- 45 -LRB099 05554 HLH 47553 a

1revenue realized for the preceding month from the 1% tax on
2sales of food for human consumption which is to be consumed off
3the premises where it is sold (other than alcoholic beverages,
4soft drinks and food which has been prepared for immediate
5consumption) and prescription and nonprescription medicines,
6drugs, medical appliances and insulin, urine testing
7materials, syringes and needles used by diabetics.
8    Beginning January 1, 1990, each month the Department shall
9pay into the County and Mass Transit District Fund 4% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on the selling price of tangible personal property
12which is purchased outside Illinois at retail from a retailer
13and which is titled or registered by an agency of this State's
14government.
15    Beginning January 1, 1990, each month the Department shall
16pay into the State and Local Sales Tax Reform Fund, a special
17fund in the State Treasury, 20% of the net revenue realized for
18the preceding month from the 6.25% general rate on the selling
19price of tangible personal property, other than tangible
20personal property which is purchased outside Illinois at retail
21from a retailer and which is titled or registered by an agency
22of this State's government.
23    Beginning August 1, 2000, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 100% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol. Beginning

 

 

09900SB1041sam001- 46 -LRB099 05554 HLH 47553 a

1September 1, 2010, each month the Department shall pay into the
2State and Local Sales Tax Reform Fund 100% of the net revenue
3realized for the preceding month from the 1.25% rate on the
4selling price of sales tax holiday items.
5    Beginning January 1, 1990, each month the Department shall
6pay into the Local Government Tax Fund 16% of the net revenue
7realized for the preceding month from the 6.25% general rate on
8the selling price of tangible personal property which is
9purchased outside Illinois at retail from a retailer and which
10is titled or registered by an agency of this State's
11government.
12    Beginning October 1, 2009, each month the Department shall
13pay into the Capital Projects Fund an amount that is equal to
14an amount estimated by the Department to represent 80% of the
15net revenue realized for the preceding month from the sale of
16candy, grooming and hygiene products, and soft drinks that had
17been taxed at a rate of 1% prior to September 1, 2009 but that
18are now taxed at 6.25%.
19    Beginning July 1, 2011, each month the Department shall pay
20into the Clean Air Act (CAA) Permit Fund 80% of the net revenue
21realized for the preceding month from the 6.25% general rate on
22the selling price of sorbents used in Illinois in the process
23of sorbent injection as used to comply with the Environmental
24Protection Act or the federal Clean Air Act, but the total
25payment into the Clean Air Act (CAA) Permit Fund under this Act
26and the Retailers' Occupation Tax Act shall not exceed

 

 

09900SB1041sam001- 47 -LRB099 05554 HLH 47553 a

1$2,000,000 in any fiscal year.
2    Beginning July 1, 2013, each month the Department shall pay
3into the Underground Storage Tank Fund from the proceeds
4collected under this Act, the Service Use Tax Act, the Service
5Occupation Tax Act, and the Retailers' Occupation Tax Act an
6amount equal to the average monthly deficit in the Underground
7Storage Tank Fund during the prior year, as certified annually
8by the Illinois Environmental Protection Agency, but the total
9payment into the Underground Storage Tank Fund under this Act,
10the Service Use Tax Act, the Service Occupation Tax Act, and
11the Retailers' Occupation Tax Act shall not exceed $18,000,000
12in any State fiscal year. As used in this paragraph, the
13"average monthly deficit" shall be equal to the difference
14between the average monthly claims for payment by the fund and
15the average monthly revenues deposited into the fund, excluding
16payments made pursuant to this paragraph.
17    Beginning July 1, 2015, of the remainder of the moneys
18received by the Department under this Act, the Service Use Tax
19Act, the Service Occupation Tax Act, and the Retailers'
20Occupation Tax Act, each month the Department shall deposit
21$500,000 into the State Crime Laboratory Fund.
22    Of the remainder of the moneys received by the Department
23pursuant to this Act, (a) 1.75% thereof shall be paid into the
24Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
25and after July 1, 1989, 3.8% thereof shall be paid into the
26Build Illinois Fund; provided, however, that if in any fiscal

 

 

09900SB1041sam001- 48 -LRB099 05554 HLH 47553 a

1year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
2may be, of the moneys received by the Department and required
3to be paid into the Build Illinois Fund pursuant to Section 3
4of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
5Act, Section 9 of the Service Use Tax Act, and Section 9 of the
6Service Occupation Tax Act, such Acts being hereinafter called
7the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
8may be, of moneys being hereinafter called the "Tax Act
9Amount", and (2) the amount transferred to the Build Illinois
10Fund from the State and Local Sales Tax Reform Fund shall be
11less than the Annual Specified Amount (as defined in Section 3
12of the Retailers' Occupation Tax Act), an amount equal to the
13difference shall be immediately paid into the Build Illinois
14Fund from other moneys received by the Department pursuant to
15the Tax Acts; and further provided, that if on the last
16business day of any month the sum of (1) the Tax Act Amount
17required to be deposited into the Build Illinois Bond Account
18in the Build Illinois Fund during such month and (2) the amount
19transferred during such month to the Build Illinois Fund from
20the State and Local Sales Tax Reform Fund shall have been less
21than 1/12 of the Annual Specified Amount, an amount equal to
22the difference shall be immediately paid into the Build
23Illinois Fund from other moneys received by the Department
24pursuant to the Tax Acts; and, further provided, that in no
25event shall the payments required under the preceding proviso
26result in aggregate payments into the Build Illinois Fund

 

 

09900SB1041sam001- 49 -LRB099 05554 HLH 47553 a

1pursuant to this clause (b) for any fiscal year in excess of
2the greater of (i) the Tax Act Amount or (ii) the Annual
3Specified Amount for such fiscal year; and, further provided,
4that the amounts payable into the Build Illinois Fund under
5this clause (b) shall be payable only until such time as the
6aggregate amount on deposit under each trust indenture securing
7Bonds issued and outstanding pursuant to the Build Illinois
8Bond Act is sufficient, taking into account any future
9investment income, to fully provide, in accordance with such
10indenture, for the defeasance of or the payment of the
11principal of, premium, if any, and interest on the Bonds
12secured by such indenture and on any Bonds expected to be
13issued thereafter and all fees and costs payable with respect
14thereto, all as certified by the Director of the Bureau of the
15Budget (now Governor's Office of Management and Budget). If on
16the last business day of any month in which Bonds are
17outstanding pursuant to the Build Illinois Bond Act, the
18aggregate of the moneys deposited in the Build Illinois Bond
19Account in the Build Illinois Fund in such month shall be less
20than the amount required to be transferred in such month from
21the Build Illinois Bond Account to the Build Illinois Bond
22Retirement and Interest Fund pursuant to Section 13 of the
23Build Illinois Bond Act, an amount equal to such deficiency
24shall be immediately paid from other moneys received by the
25Department pursuant to the Tax Acts to the Build Illinois Fund;
26provided, however, that any amounts paid to the Build Illinois

 

 

09900SB1041sam001- 50 -LRB099 05554 HLH 47553 a

1Fund in any fiscal year pursuant to this sentence shall be
2deemed to constitute payments pursuant to clause (b) of the
3preceding sentence and shall reduce the amount otherwise
4payable for such fiscal year pursuant to clause (b) of the
5preceding sentence. The moneys received by the Department
6pursuant to this Act and required to be deposited into the
7Build Illinois Fund are subject to the pledge, claim and charge
8set forth in Section 12 of the Build Illinois Bond Act.
9    Subject to payment of amounts into the Build Illinois Fund
10as provided in the preceding paragraph or in any amendment
11thereto hereafter enacted, the following specified monthly
12installment of the amount requested in the certificate of the
13Chairman of the Metropolitan Pier and Exposition Authority
14provided under Section 8.25f of the State Finance Act, but not
15in excess of the sums designated as "Total Deposit", shall be
16deposited in the aggregate from collections under Section 9 of
17the Use Tax Act, Section 9 of the Service Use Tax Act, Section
189 of the Service Occupation Tax Act, and Section 3 of the
19Retailers' Occupation Tax Act into the McCormick Place
20Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit
221993         $0
231994 53,000,000
241995 58,000,000
251996 61,000,000
261997 64,000,000

 

 

09900SB1041sam001- 51 -LRB099 05554 HLH 47553 a

11998 68,000,000
21999 71,000,000
32000 75,000,000
42001 80,000,000
52002 93,000,000
62003 99,000,000
72004103,000,000
82005108,000,000
92006113,000,000
102007119,000,000
112008126,000,000
122009132,000,000
132010139,000,000
142011146,000,000
152012153,000,000
162013161,000,000
172014170,000,000
182015179,000,000
192016189,000,000
202017199,000,000
212018210,000,000
222019221,000,000
232020233,000,000
242021246,000,000
252022260,000,000
262023275,000,000

 

 

09900SB1041sam001- 52 -LRB099 05554 HLH 47553 a

12024 275,000,000
22025 275,000,000
32026 279,000,000
42027 292,000,000
52028 307,000,000
62029 322,000,000
72030 338,000,000
82031 350,000,000
92032 350,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18    Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

 

 

09900SB1041sam001- 53 -LRB099 05554 HLH 47553 a

1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total Deposit",
4has been deposited.
5    Subject to payment of amounts into the Build Illinois Fund
6and the McCormick Place Expansion Project Fund pursuant to the
7preceding paragraphs or in any amendments thereto hereafter
8enacted, beginning July 1, 1993 and ending on September 30,
92013, the Department shall each month pay into the Illinois Tax
10Increment Fund 0.27% of 80% of the net revenue realized for the
11preceding month from the 6.25% general rate on the selling
12price of tangible personal property.
13    Subject to payment of amounts into the Build Illinois Fund
14and the McCormick Place Expansion Project Fund pursuant to the
15preceding paragraphs or in any amendments thereto hereafter
16enacted, beginning with the receipt of the first report of
17taxes paid by an eligible business and continuing for a 25-year
18period, the Department shall each month pay into the Energy
19Infrastructure Fund 80% of the net revenue realized from the
206.25% general rate on the selling price of Illinois-mined coal
21that was sold to an eligible business. For purposes of this
22paragraph, the term "eligible business" means a new electric
23generating facility certified pursuant to Section 605-332 of
24the Department of Commerce and Economic Opportunity Law of the
25Civil Administrative Code of Illinois.
26    Subject to payment of amounts into the Build Illinois Fund,

 

 

09900SB1041sam001- 54 -LRB099 05554 HLH 47553 a

1the McCormick Place Expansion Project Fund, the Illinois Tax
2Increment Fund, and the Energy Infrastructure Fund pursuant to
3the preceding paragraphs or in any amendments to this Section
4hereafter enacted, beginning on the first day of the first
5calendar month to occur on or after the effective date of this
6amendatory Act of the 98th General Assembly, each month, from
7the collections made under Section 9 of the Use Tax Act,
8Section 9 of the Service Use Tax Act, Section 9 of the Service
9Occupation Tax Act, and Section 3 of the Retailers' Occupation
10Tax Act, the Department shall pay into the Tax Compliance and
11Administration Fund, to be used, subject to appropriation, to
12fund additional auditors and compliance personnel at the
13Department of Revenue, an amount equal to 1/12 of 5% of 80% of
14the cash receipts collected during the preceding fiscal year by
15the Audit Bureau of the Department under the Use Tax Act, the
16Service Use Tax Act, the Service Occupation Tax Act, the
17Retailers' Occupation Tax Act, and associated local occupation
18and use taxes administered by the Department.
19    Of the remainder of the moneys received by the Department
20pursuant to this Act, 75% thereof shall be paid into the State
21Treasury and 25% shall be reserved in a special account and
22used only for the transfer to the Common School Fund as part of
23the monthly transfer from the General Revenue Fund in
24accordance with Section 8a of the State Finance Act.
25    As soon as possible after the first day of each month, upon
26certification of the Department of Revenue, the Comptroller

 

 

09900SB1041sam001- 55 -LRB099 05554 HLH 47553 a

1shall order transferred and the Treasurer shall transfer from
2the General Revenue Fund to the Motor Fuel Tax Fund an amount
3equal to 1.7% of 80% of the net revenue realized under this Act
4for the second preceding month. Beginning April 1, 2000, this
5transfer is no longer required and shall not be made.
6    Net revenue realized for a month shall be the revenue
7collected by the State pursuant to this Act, less the amount
8paid out during that month as refunds to taxpayers for
9overpayment of liability.
10    For greater simplicity of administration, manufacturers,
11importers and wholesalers whose products are sold at retail in
12Illinois by numerous retailers, and who wish to do so, may
13assume the responsibility for accounting and paying to the
14Department all tax accruing under this Act with respect to such
15sales, if the retailers who are affected do not make written
16objection to the Department to this arrangement.
17    References in this Section to "retailers" also include
18marketplace providers and referrers that are required to
19collect and remit the tax under this Act.
20(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2198-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
228-26-14; 99-352, eff. 8-12-15.)
 
23    Section 10. The Service Use Tax Act is amended by changing
24Sections 2, 3-40, 6, 8, and 9 and by adding Section 3-43 as
25follows:
 

 

 

09900SB1041sam001- 56 -LRB099 05554 HLH 47553 a

1    (35 ILCS 110/2)  (from Ch. 120, par. 439.32)
2    Sec. 2. Definitions.
3    "Use" means the exercise by any person of any right or
4power over tangible personal property incident to the ownership
5of that property, but does not include the sale or use for
6demonstration by him of that property in any form as tangible
7personal property in the regular course of business. "Use" does
8not mean the interim use of tangible personal property nor the
9physical incorporation of tangible personal property, as an
10ingredient or constituent, into other tangible personal
11property, (a) which is sold in the regular course of business
12or (b) which the person incorporating such ingredient or
13constituent therein has undertaken at the time of such purchase
14to cause to be transported in interstate commerce to
15destinations outside the State of Illinois.
16    "Purchased from a serviceman" means the acquisition of the
17ownership of, or title to, tangible personal property through a
18sale of service.
19    "Purchaser" means any person who, through a sale of
20service, acquires the ownership of, or title to, any tangible
21personal property.
22    "Cost price" means the consideration paid by the serviceman
23for a purchase valued in money, whether paid in money or
24otherwise, including cash, credits and services, and shall be
25determined without any deduction on account of the supplier's

 

 

09900SB1041sam001- 57 -LRB099 05554 HLH 47553 a

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

 

 

09900SB1041sam001- 58 -LRB099 05554 HLH 47553 a

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

 

 

09900SB1041sam001- 59 -LRB099 05554 HLH 47553 a

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

 

 

09900SB1041sam001- 60 -LRB099 05554 HLH 47553 a

1    Illinois Vehicle Code; and (iii) that are primarily used
2    for commercial purposes. Through June 30, 2005, this
3    exemption applies to repair and replacement parts added
4    after the initial purchase of such a motor vehicle if that
5    motor vehicle is used in a manner that would qualify for
6    the rolling stock exemption otherwise provided for in this
7    Act. For purposes of this paragraph, "used for commercial
8    purposes" means the transportation of persons or property
9    in furtherance of any commercial or industrial enterprise
10    whether for-hire or not.
11        (5) a sale or transfer of machinery and equipment used
12    primarily in the process of the manufacturing or
13    assembling, either in an existing, an expanded or a new
14    manufacturing facility, of tangible personal property for
15    wholesale or retail sale or lease, whether such sale or
16    lease is made directly by the manufacturer or by some other
17    person, whether the materials used in the process are owned
18    by the manufacturer or some other person, or whether such
19    sale or lease is made apart from or as an incident to the
20    seller's engaging in a service occupation and the
21    applicable tax is a Service Use Tax or Service Occupation
22    Tax, rather than Use Tax or Retailers' Occupation Tax. The
23    exemption provided by this paragraph (5) does not include
24    machinery and equipment used in (i) the generation of
25    electricity for wholesale or retail sale; (ii) the
26    generation or treatment of natural or artificial gas for

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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

 

 

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1or any like term, means a serviceman who engages in the
2following acts or methods of transacting business in this State
3on a regular or systematic basis:
4        (1) maintaining within this State, directly,
5    indirectly, or by an affiliate, an office, distribution
6    facility, sales room, warehouse, storage place, or other
7    similar place of business, including the employment of a
8    resident of this State who works from a home office in this
9    State on a regular or systematic basis;
10        (2) engaging in, either directly or indirectly through
11    a marketplace provider, referrer, or other third party,
12    direct response marketing targeted at consumers in this
13    State; for the purposes of this item (2), "direct response
14    marketing" includes, but is not limited to:
15            (A) sending, transmitting, or broadcasting of
16        flyers, newsletters, telephone calls, targeted
17        electronic mail, text messages, social media messages,
18        targeted mailings;
19            (B) collecting analyzing, and utilizing individual
20        data on purchasers or potential purchasers in this
21        State;
22            (C) using information or software, including
23        cached files, cached software, "cookies", or other
24        data tracking tools, that are stored on property
25        located in or distributed within this State; or
26            (D) conducting any other actions that use persons,

 

 

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1        tangible property, intangible property, digital files,
2        or information, or software in this State in an effort
3        to enhance the probability that a person's contacts
4        with a customer in this State will result in a sale to
5        that customer;
6        (3) entering into one or more agreements under which a
7    person or persons who have nexus with this State under the
8    Commerce Clause of the United States Constitution directly
9    or indirectly refer potential purchasers of products to the
10    seller for a commission or other consideration, whether by
11    an Internet-based link, an Internet website, or otherwise;
12    the activities described in this paragraph (3) constitute
13    "maintaining a place of business in this State" regardless
14    of whether or not the referral is related to the sale of
15    tangible personal property; an agreement under which a
16    seller purchases advertisements from a person or persons in
17    this State to be delivered on television, radio, in print,
18    on the Internet, or by any other medium, is not an
19    agreement described in this paragraph unless the
20    advertising revenue paid to the person or persons in this
21    State consists of commissions or other consideration that
22    is based in whole or in part upon sales of products; this
23    paragraph does not apply to an agreement if the seller can
24    demonstrate that no person in this State with whom the
25    seller has an agreement engaged in referral activity in
26    this State on behalf of the seller that would satisfy the

 

 

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1    requirements of the Commerce Clause of the United States
2    Constitution, provided that the seller must:
3            (A) be able to demonstrate that each in-State
4        person with whom the seller has an agreement is
5        prohibited from engaging in any solicitation
6        activities in this State that refer potential
7        customers to the seller; and
8            (B) obtain annually a certification from each such
9        in-State person that the person has complied with the
10        prohibition stated in paragraph (A); or
11        (4) the seller offers its products for sale through one
12    or more marketplaces operated by a marketplace provider
13    that has substantial nexus with the State.
14    A serviceman is presumed to be "maintaining a place of
15business in this State" if any part of the sales process occurs
16in the State, including listing products for sale, soliciting
17sales, branding products, selling products, processing orders,
18filling orders, providing customer service, or accepting or
19assisting with returns or exchanges, regardless of whether that
20part of the process has been subcontracted to an affiliate or
21third party. The sales process does not include shipping via a
22common carrier.
23    A serviceman is also presumed to be "maintaining a place of
24business in this State" if the serviceman's total gross
25receipts from sales occurring in Illinois in the previous
26calendar year is $1,000,000 or more. A serviceman that is

 

 

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1presumed to be "maintaining a place of business in this State"
2under this paragraph must collect and remit the tax imposed
3under this Act unless it can prove that it does not have nexus
4with this State under the Commerce Clause of the United States
5Constitution.
6    A serviceman is also presumed to be "maintaining a place of
7business in this State" if the serviceman is related to a
8person that has nexus under the Commerce Clause with this
9State, and that related person:
10        (1) sells under the same or a similar business name
11    tangible personal property similar to that sold by the
12    person against whom the presumption is asserted;
13        (2) maintains an office, distribution facility,
14    salesroom, warehouse, storage place, or other similar
15    place of business in this State to facilitate the delivery
16    of tangible personal property or sold by the person against
17    whom the presumption is asserted to such person's in-state
18    customers;
19        (3) uses, with consent or knowledge of the person
20    against whom the presumption is asserted, trademarks,
21    service marks, or trade names in this State that are the
22    same or substantially similar to those used by the person
23    against whom the presumption is asserted;
24        (4) delivers, installs, or assembles tangible personal
25    property in this State, or performs maintenance or repair
26    services on tangible personal property in this State, which

 

 

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1    tangible personal property is sold to in-State customers by
2    the person against whom the presumption is asserted;
3        (5) facilitates the delivery of tangible personal
4    property to in-State customers of the person against whom
5    the presumption is asserted by allowing those customers to
6    pick up tangible personal property sold by the person at an
7    office, distribution facility, salesroom, warehouse,
8    storage place, or other similar place of business
9    maintained in this State; or
10        (6) shares management, business systems, business
11    practices, or employees with the person against whom the
12    presumption is asserted, or engages in intercompany
13    transactions with the person against whom the presumption
14    is asserted related to the activities that establish or
15    maintain the market in this State of the person against
16    whom the presumption is asserted.
17    "Marketplace provider" means a person who facilitates a
18retail sale by a serviceman. For purposes of this definition, a
19marketplace provider facilitates a retail sale when the
20marketplace provider both (i) lists or advertises tangible
21personal property for sale in any forum, including a catalog or
22Internet website and (ii) either directly or indirectly through
23agreements or arrangements with third parties collects sales
24receipts from the customer and transmits those receipts to a
25retailer, whether or not the marketplace provider deducts any
26fees from the transmission of those receipts to the retailer.

 

 

09900SB1041sam001- 72 -LRB099 05554 HLH 47553 a

1The Department may adopt rules that further clarify when a
2marketplace provider facilitates a retail sale.
3and includes any serviceman:
4        1. having or maintaining within this State, directly or
5    by a subsidiary, an office, distribution house, sales
6    house, warehouse or other place of business, or any agent
7    or other representative operating within this State under
8    the authority of the serviceman or its subsidiary,
9    irrespective of whether such place of business or agent or
10    other representative is located here permanently or
11    temporarily, or whether such serviceman or subsidiary is
12    licensed to do business in this State;
13        1.1. having a contract with a person located in this
14    State under which the person, for a commission or other
15    consideration based on the sale of service by the
16    serviceman, directly or indirectly refers potential
17    customers to the serviceman by providing to the potential
18    customers a promotional code or other mechanism that allows
19    the serviceman to track purchases referred by such persons.
20    Examples of mechanisms that allow the serviceman 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 service by the serviceman to customers who are
3    referred to the serviceman by all persons in this State
4    under such contracts exceed $10,000 during the preceding 4
5    quarterly periods ending on the last day of March, June,
6    September, and December; a serviceman meeting the
7    requirements of this paragraph 1.1 shall be presumed to be
8    maintaining a place of business in this State but may rebut
9    this presumption by submitting proof that the referrals or
10    other activities pursued within this State by such persons
11    were not sufficient to meet the nexus standards of the
12    United States Constitution during the preceding 4
13    quarterly periods;
14        1.2. beginning July 1, 2011, having a contract with a
15    person located in this State under which:
16            A. the serviceman sells the same or substantially
17        similar line of services 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 serviceman provides a commission or other
22        consideration to the person located in this State based
23        upon the sale of services by the serviceman.
24    The provisions of this paragraph 1.2 shall apply only if
25    the cumulative gross receipts from sales of service by the
26    serviceman to customers in this State under all such

 

 

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1    contracts exceed $10,000 during the preceding 4 quarterly
2    periods ending on the last day of March, June, September,
3    and December;
4        2. soliciting orders for tangible personal property by
5    means of a telecommunication or television shopping system
6    (which utilizes toll free numbers) which is intended by the
7    retailer to be broadcast by cable television or other means
8    of broadcasting, to consumers located in this State;
9        3. pursuant to a contract with a broadcaster or
10    publisher located in this State, soliciting orders for
11    tangible personal property by means of advertising which is
12    disseminated primarily to consumers located in this State
13    and only secondarily to bordering jurisdictions;
14        4. soliciting orders for tangible personal property by
15    mail if the solicitations are substantial and recurring and
16    if the retailer benefits from any banking, financing, debt
17    collection, telecommunication, or marketing activities
18    occurring in this State or benefits from the location in
19    this State of authorized installation, servicing, or
20    repair facilities;
21        5. being owned or controlled by the same interests
22    which own or control any retailer engaging in business in
23    the same or similar line of business in this State;
24        6. having a franchisee or licensee operating under its
25    trade name if the franchisee or licensee is required to
26    collect the tax under this Section;

 

 

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1        7. pursuant to a contract with a cable television
2    operator located in this State, soliciting orders for
3    tangible personal property by means of advertising which is
4    transmitted or distributed over a cable television system
5    in this State; or
6        8. engaging in activities in Illinois, which
7    activities in the state in which the supply business
8    engaging in such activities is located would constitute
9    maintaining a place of business in that state.
10(Source: P.A. 98-583, eff. 1-1-14; 98-1089, eff. 1-1-15.)
 
11    (35 ILCS 110/3-40)  (from Ch. 120, par. 439.33-40)
12    Sec. 3-40. Collection. The tax imposed by this Act shall be
13collected at the time of purchase in the manner prescribed by
14the Department from the user by a serviceman maintaining a
15place of business in this State or by a serviceman authorized
16by the Department under Section 7 of this Act, and the tax
17shall be remitted to the Department as provided in Section 9 of
18this Act.
19    A marketplace provider maintaining a place of business in
20this State is required to collect and remit the tax imposed
21under this Act on any sales facilitated by a marketplace
22provider to a customer in this State. However, no marketplace
23provider is required to collect and remit the tax imposed on a
24sale between a serviceman and a customer in this State if (i)
25the serviceman provides to the marketplace provider a copy of

 

 

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1his or her certificate of registration under this Act, the Use
2Tax Act, the Service Occupation Tax Act, or the Retailers'
3Occupation Tax Act or (ii) the serviceman appears on a list
4published by the Department of the entities registered to
5collect use and occupation taxes in this State. The Department
6shall adopt rules regarding the content a publication of the
7list. Nothing in this Section shall be construed to interfere
8with the ability of a marketplace provider and a serviceman to
9enter into agreements with each other regarding fulfillment of
10the requirements of this Act. A marketplace provider is
11relieved of liability under this Section for failure to collect
12and remit the correct amount of the tax to the extent that the
13marketplace provider can demonstrate that the error was due to
14incorrect information given to the marketplace provider by the
15serviceman; except that the marketplace provider is not
16relieved of liability if the marketplace provider and the
17serviceman are related persons.
18    The tax imposed by this Act that is not paid to a
19serviceman or a marketplace provider under this Section shall
20be paid to the Department directly by any person using the
21property within this State as provided in Section 10 of this
22Act.
23    If a serviceman or marketplace provider collects Service
24Use Tax measured by receipts or selling prices that are not
25subject to Service Use Tax, or if a serviceman or marketplace
26provider, in collecting Service Use Tax measured by receipts or

 

 

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1selling prices that are subject to tax under this Act, collects
2more from the purchaser than the required amount of the Service
3Use Tax on the transaction, the purchaser shall have a legal
4right to claim a refund of that amount from the serviceman or
5marketplace provider. If, however, that amount is not refunded
6to the purchaser for any reason, the serviceman or marketplace
7provider is liable to pay that amount to the Department. This
8paragraph does not apply to an amount collected by the
9serviceman or marketplace provider as Service Use Tax on
10receipts or selling prices that are subject to tax under this
11Act as long as the collection is made in compliance with the
12tax collection brackets prescribed by the Department in its
13rules and regulations.
14(Source: P.A. 91-51, eff. 6-30-99.)
 
15    (35 ILCS 110/3-43 new)
16    Sec. 3-43. Referrer reporting and registration. A referrer
17is required to collect and remit the tax imposed under this Act
18in the manner and under the conditions provided in Section 3-67
19of the Use Tax Act.
 
20    (35 ILCS 110/6)  (from Ch. 120, par. 439.36)
21    Sec. 6. A serviceman or marketplace provider maintaining a
22place of business in this State, if required to register under
23the Retailers' Occupation Tax Act, or under the Use Tax Act, or
24under the Service Occupation Tax Act, need not obtain an

 

 

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1additional Certificate of Registration under this Act, but
2shall be deemed to be sufficiently registered by virtue of his
3being registered under the Retailers' Occupation Tax Act, or
4under the Use Tax Act, or under the Service Occupation Tax Act.
5Every serviceman or marketplace provider maintaining a place of
6business in this State, if not required to register under the
7Retailers' Occupation Tax Act, or under the Use Tax Act, or
8under the Service Occupation Tax Act, shall apply to the
9Department (upon a form prescribed and furnished by the
10Department) for a Certificate of Registration under this Act.
11In completing such application, the applicant shall furnish
12such information as the Department may reasonably require. Upon
13approval of an application for Certificate of Registration, the
14Department shall issue, without charge, a Certificate of
15Registration to the applicant. Such Certificate of
16Registration shall be displayed at the address which the
17applicant states in his application to be the principal place
18of business or location from which he will act as a serviceman
19or marketplace provider in this State. If the applicant will
20act as a serviceman or marketplace provider in this State from
21other places of business or locations, he shall list the
22addresses of such additional places of business or locations in
23his application for Certificate of Registration, and the
24Department shall issue a Sub-Certificate of Registration to the
25applicant for each such additional place of business or
26location. Each Sub-Certificate of Registration shall be

 

 

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1conspicuously displayed at the place for which it is issued.
2Such Sub-Certificate of Registration shall bear the same
3registration number as that appearing upon the Certificate of
4Registration to which such Sub-Certificates relate. Where a
5serviceman or marketplace provider operates more than one place
6of business which is subject to registration under this Section
7and such businesses are substantially different in character or
8are engaged in under different trade names or are engaged in
9under other substantially dissimilar circumstances (so that it
10is more practicable, from an accounting, auditing or
11bookkeeping standpoint, for such businesses to be separately
12registered), the Department may require or permit such person
13to apply for and obtain a separate Certificate of Registration
14for each such business or for any of such businesses instead of
15registering such person, as to all such businesses, under a
16single Certificate of Registration supplemented by related
17Sub-Certificates of Registration. No Certificate of
18Registration shall be issued to any person who is in default to
19the State of Illinois for moneys due hereunder.
20(Source: Laws 1961, p. 1757.)
 
21    (35 ILCS 110/8)  (from Ch. 120, par. 439.38)
22    Sec. 8. Any serviceman, marketplace provider, or referrer
23required to collect the tax imposed by this Act shall be liable
24to the Department for the tax, whether or not the tax has been
25collected by the serviceman, marketplace provider, or

 

 

09900SB1041sam001- 80 -LRB099 05554 HLH 47553 a

1referrer, except when the serviceman, marketplace provider, or
2referrer is relieved of the duty of remitting the tax to the
3Department by virtue of having paid a tax imposed by the
4Service Occupation Tax Act upon his or her sale of service
5involving the incidental transfer by him or her of the same
6property. To the extent that a serviceman, marketplace
7provider, or referrer required to collect the tax imposed by
8this Act has actually collected that tax, the tax is held in
9trust for the benefit of the Department.
10(Source: P.A. 91-203, eff. 7-20-99.)
 
11    (35 ILCS 110/9)  (from Ch. 120, par. 439.39)
12    Sec. 9. Each serviceman required or authorized to collect
13the tax herein imposed shall pay to the Department the amount
14of such tax (except as otherwise provided) at the time when he
15is required to file his return for the period during which such
16tax was collected, less a discount of 2.1% prior to January 1,
171990 and 1.75% on and after January 1, 1990, or $5 per calendar
18year, whichever is greater, which is allowed to reimburse the
19serviceman for expenses incurred in collecting the tax, keeping
20records, preparing and filing returns, remitting the tax and
21supplying data to the Department on request. The Department may
22disallow the discount for servicemen whose certificate of
23registration is revoked at the time the return is filed, but
24only if the Department's decision to revoke the certificate of
25registration has become final. A serviceman need not remit that

 

 

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1part of any tax collected by him to the extent that he is
2required to pay and does pay the tax imposed by the Service
3Occupation Tax Act with respect to his sale of service
4involving the incidental transfer by him of the same property.
5    Except as provided hereinafter in this Section, on or
6before the twentieth day of each calendar month, such
7serviceman shall file a return for the preceding calendar month
8in accordance with reasonable Rules and Regulations to be
9promulgated by the Department. Such return shall be filed on a
10form prescribed by the Department and shall contain such
11information as the Department may reasonably require.
12    The Department may require returns to be filed on a
13quarterly basis. If so required, a return for each calendar
14quarter shall be filed on or before the twentieth day of the
15calendar month following the end of such calendar quarter. The
16taxpayer shall also file a return with the Department for each
17of the first two months of each calendar quarter, on or before
18the twentieth day of the following calendar month, stating:
19        1. The name of the seller;
20        2. The address of the principal place of business from
21    which he engages in business as a serviceman in this State;
22        3. The total amount of taxable receipts received by him
23    during the preceding calendar month, including receipts
24    from charge and time sales, but less all deductions allowed
25    by law;
26        4. The amount of credit provided in Section 2d of this

 

 

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1    Act;
2        5. The amount of tax due;
3        5-5. The signature of the taxpayer; and
4        6. Such other reasonable information as the Department
5    may require.
6    If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10    Beginning October 1, 1993, a taxpayer who has an average
11monthly tax liability of $150,000 or more shall make all
12payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1994, a taxpayer who has
14an average monthly tax liability of $100,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1995, a taxpayer who has
17an average monthly tax liability of $50,000 or more shall make
18all payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 2000, a taxpayer who has
20an annual tax liability of $200,000 or more shall make all
21payments required by rules of the Department by electronic
22funds transfer. The term "annual tax liability" shall be the
23sum of the taxpayer's liabilities under this Act, and under all
24other State and local occupation and use tax laws administered
25by the Department, for the immediately preceding calendar year.
26The term "average monthly tax liability" means the sum of the

 

 

09900SB1041sam001- 83 -LRB099 05554 HLH 47553 a

1taxpayer's liabilities under this Act, and under all other
2State and local occupation and use tax laws administered by the
3Department, for the immediately preceding calendar year
4divided by 12. Beginning on October 1, 2002, a taxpayer who has
5a tax liability in the amount set forth in subsection (b) of
6Section 2505-210 of the Department of Revenue Law shall make
7all payments required by rules of the Department by electronic
8funds transfer.
9    Before August 1 of each year beginning in 1993, the
10Department shall notify all taxpayers required to make payments
11by electronic funds transfer. All taxpayers required to make
12payments by electronic funds transfer shall make those payments
13for a minimum of one year beginning on October 1.
14    Any taxpayer not required to make payments by electronic
15funds transfer may make payments by electronic funds transfer
16with the permission of the Department.
17    All taxpayers required to make payment by electronic funds
18transfer and any taxpayers authorized to voluntarily make
19payments by electronic funds transfer shall make those payments
20in the manner authorized by the Department.
21    The Department shall adopt such rules as are necessary to
22effectuate a program of electronic funds transfer and the
23requirements of this Section.
24    If the serviceman is otherwise required to file a monthly
25return and if the serviceman's average monthly tax liability to
26the Department does not exceed $200, the Department may

 

 

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1authorize his returns to be filed on a quarter annual basis,
2with the return for January, February and March of a given year
3being due by April 20 of such year; with the return for April,
4May and June of a given year being due by July 20 of such year;
5with the return for July, August and September of a given year
6being due by October 20 of such year, and with the return for
7October, November and December of a given year being due by
8January 20 of the following year.
9    If the serviceman is otherwise required to file a monthly
10or quarterly return and if the serviceman's average monthly tax
11liability to the Department does not exceed $50, the Department
12may authorize his returns to be filed on an annual basis, with
13the return for a given year being due by January 20 of the
14following year.
15    Such quarter annual and annual returns, as to form and
16substance, shall be subject to the same requirements as monthly
17returns.
18    Notwithstanding any other provision in this Act concerning
19the time within which a serviceman may file his return, in the
20case of any serviceman who ceases to engage in a kind of
21business which makes him responsible for filing returns under
22this Act, such serviceman shall file a final return under this
23Act with the Department not more than 1 month after
24discontinuing such business.
25    Where a serviceman collects the tax with respect to the
26selling price of property which he sells and the purchaser

 

 

09900SB1041sam001- 85 -LRB099 05554 HLH 47553 a

1thereafter returns such property and the serviceman refunds the
2selling price thereof to the purchaser, such serviceman shall
3also refund, to the purchaser, the tax so collected from the
4purchaser. When filing his return for the period in which he
5refunds such tax to the purchaser, the serviceman may deduct
6the amount of the tax so refunded by him to the purchaser from
7any other Service Use Tax, Service Occupation Tax, retailers'
8occupation tax or use tax which such serviceman may be required
9to pay or remit to the Department, as shown by such return,
10provided that the amount of the tax to be deducted shall
11previously have been remitted to the Department by such
12serviceman. If the serviceman shall not previously have
13remitted the amount of such tax to the Department, he shall be
14entitled to no deduction hereunder upon refunding such tax to
15the purchaser.
16    Any serviceman filing a return hereunder shall also include
17the total tax upon the selling price of tangible personal
18property purchased for use by him as an incident to a sale of
19service, and such serviceman shall remit the amount of such tax
20to the Department when filing such return.
21    If experience indicates such action to be practicable, the
22Department may prescribe and furnish a combination or joint
23return which will enable servicemen, who are required to file
24returns hereunder and also under the Service Occupation Tax
25Act, to furnish all the return information required by both
26Acts on the one form.

 

 

09900SB1041sam001- 86 -LRB099 05554 HLH 47553 a

1    Where the serviceman has more than one business registered
2with the Department under separate registration hereunder,
3such serviceman shall not file each return that is due as a
4single return covering all such registered businesses, but
5shall file separate returns for each such registered business.
6    Beginning January 1, 1990, each month the Department shall
7pay into the State and Local Tax Reform Fund, a special fund in
8the State Treasury, the net revenue realized for the preceding
9month from the 1% tax on sales of food for human consumption
10which is to be consumed off the premises where it is sold
11(other than alcoholic beverages, soft drinks and food which has
12been prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances and
14insulin, urine testing materials, syringes and needles used by
15diabetics.
16    Beginning January 1, 1990, each month the Department shall
17pay into the State and Local Sales Tax Reform Fund 20% of the
18net revenue realized for the preceding month from the 6.25%
19general rate on transfers of tangible personal property, other
20than tangible personal property which is purchased outside
21Illinois at retail from a retailer and which is titled or
22registered by an agency of this State's government.
23    Beginning August 1, 2000, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund 100% of the
25net revenue realized for the preceding month from the 1.25%
26rate on the selling price of motor fuel and gasohol.

 

 

09900SB1041sam001- 87 -LRB099 05554 HLH 47553 a

1    Beginning October 1, 2009, each month the Department shall
2pay into the Capital Projects Fund an amount that is equal to
3an amount estimated by the Department to represent 80% of the
4net revenue realized for the preceding month from the sale of
5candy, grooming and hygiene products, and soft drinks that had
6been taxed at a rate of 1% prior to September 1, 2009 but that
7are now taxed at 6.25%.
8    Beginning July 1, 2013, each month the Department shall pay
9into the Underground Storage Tank Fund from the proceeds
10collected under this Act, the Use Tax Act, the Service
11Occupation Tax Act, and the Retailers' Occupation Tax Act an
12amount equal to the average monthly deficit in the Underground
13Storage Tank Fund during the prior year, as certified annually
14by the Illinois Environmental Protection Agency, but the total
15payment into the Underground Storage Tank Fund under this Act,
16the Use Tax Act, the Service Occupation Tax Act, and the
17Retailers' Occupation Tax Act shall not exceed $18,000,000 in
18any State fiscal year. As used in this paragraph, the "average
19monthly deficit" shall be equal to the difference between the
20average monthly claims for payment by the fund and the average
21monthly revenues deposited into the fund, excluding payments
22made pursuant to this paragraph.
23    Beginning July 1, 2015, of the remainder of the moneys
24received by the Department under the Use Tax Act, this Act, the
25Service Occupation Tax Act, and the Retailers' Occupation Tax
26Act, each month the Department shall deposit $500,000 into the

 

 

09900SB1041sam001- 88 -LRB099 05554 HLH 47553 a

1State Crime Laboratory Fund.
2    Of the remainder of the moneys received by the Department
3pursuant to this Act, (a) 1.75% thereof shall be paid into the
4Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
5and after July 1, 1989, 3.8% thereof shall be paid into the
6Build Illinois Fund; provided, however, that if in any fiscal
7year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
8may be, of the moneys received by the Department and required
9to be paid into the Build Illinois Fund pursuant to Section 3
10of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
11Act, Section 9 of the Service Use Tax Act, and Section 9 of the
12Service Occupation Tax Act, such Acts being hereinafter called
13the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
14may be, of moneys being hereinafter called the "Tax Act
15Amount", and (2) the amount transferred to the Build Illinois
16Fund from the State and Local Sales Tax Reform Fund shall be
17less than the Annual Specified Amount (as defined in Section 3
18of the Retailers' Occupation Tax Act), an amount equal to the
19difference shall be immediately paid into the Build Illinois
20Fund from other moneys received by the Department pursuant to
21the Tax Acts; and further provided, that if on the last
22business day of any month the sum of (1) the Tax Act Amount
23required to be deposited into the Build Illinois Bond Account
24in the Build Illinois Fund during such month and (2) the amount
25transferred during such month to the Build Illinois Fund from
26the State and Local Sales Tax Reform Fund shall have been less

 

 

09900SB1041sam001- 89 -LRB099 05554 HLH 47553 a

1than 1/12 of the Annual Specified Amount, an amount equal to
2the difference shall be immediately paid into the Build
3Illinois Fund from other moneys received by the Department
4pursuant to the Tax Acts; and, further provided, that in no
5event shall the payments required under the preceding proviso
6result in aggregate payments into the Build Illinois Fund
7pursuant to this clause (b) for any fiscal year in excess of
8the greater of (i) the Tax Act Amount or (ii) the Annual
9Specified Amount for such fiscal year; and, further provided,
10that the amounts payable into the Build Illinois Fund under
11this clause (b) shall be payable only until such time as the
12aggregate amount on deposit under each trust indenture securing
13Bonds issued and outstanding pursuant to the Build Illinois
14Bond Act is sufficient, taking into account any future
15investment income, to fully provide, in accordance with such
16indenture, for the defeasance of or the payment of the
17principal of, premium, if any, and interest on the Bonds
18secured by such indenture and on any Bonds expected to be
19issued thereafter and all fees and costs payable with respect
20thereto, all as certified by the Director of the Bureau of the
21Budget (now Governor's Office of Management and Budget). If on
22the last business day of any month in which Bonds are
23outstanding pursuant to the Build Illinois Bond Act, the
24aggregate of the moneys deposited in the Build Illinois Bond
25Account in the Build Illinois Fund in such month shall be less
26than the amount required to be transferred in such month from

 

 

09900SB1041sam001- 90 -LRB099 05554 HLH 47553 a

1the Build Illinois Bond Account to the Build Illinois Bond
2Retirement and Interest Fund pursuant to Section 13 of the
3Build Illinois Bond Act, an amount equal to such deficiency
4shall be immediately paid from other moneys received by the
5Department pursuant to the Tax Acts to the Build Illinois Fund;
6provided, however, that any amounts paid to the Build Illinois
7Fund in any fiscal year pursuant to this sentence shall be
8deemed to constitute payments pursuant to clause (b) of the
9preceding sentence and shall reduce the amount otherwise
10payable for such fiscal year pursuant to clause (b) of the
11preceding sentence. The moneys received by the Department
12pursuant to this Act and required to be deposited into the
13Build Illinois Fund are subject to the pledge, claim and charge
14set forth in Section 12 of the Build Illinois Bond Act.
15    Subject to payment of amounts into the Build Illinois Fund
16as provided in the preceding paragraph or in any amendment
17thereto hereafter enacted, the following specified monthly
18installment of the amount requested in the certificate of the
19Chairman of the Metropolitan Pier and Exposition Authority
20provided under Section 8.25f of the State Finance Act, but not
21in excess of the sums designated as "Total Deposit", shall be
22deposited in the aggregate from collections under Section 9 of
23the Use Tax Act, Section 9 of the Service Use Tax Act, Section
249 of the Service Occupation Tax Act, and Section 3 of the
25Retailers' Occupation Tax Act into the McCormick Place
26Expansion Project Fund in the specified fiscal years.

 

 

09900SB1041sam001- 91 -LRB099 05554 HLH 47553 a

1Fiscal YearTotal Deposit
21993         $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

 

 

09900SB1041sam001- 92 -LRB099 05554 HLH 47553 a

12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25    Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

 

 

09900SB1041sam001- 93 -LRB099 05554 HLH 47553 a

1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12    Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois Tax
17Increment Fund 0.27% of 80% of the net revenue realized for the
18preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20    Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a 25-year
25period, the Department shall each month pay into the Energy
26Infrastructure Fund 80% of the net revenue realized from the

 

 

09900SB1041sam001- 94 -LRB099 05554 HLH 47553 a

16.25% general rate on the selling price of Illinois-mined coal
2that was sold to an eligible business. For purposes of this
3paragraph, the term "eligible business" means a new electric
4generating facility certified pursuant to Section 605-332 of
5the Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7    Subject to payment of amounts into the Build Illinois Fund,
8the McCormick Place Expansion Project Fund, the Illinois Tax
9Increment Fund, and the Energy Infrastructure Fund pursuant to
10the preceding paragraphs or in any amendments to this Section
11hereafter enacted, beginning on the first day of the first
12calendar month to occur on or after the effective date of this
13amendatory Act of the 98th General Assembly, each month, from
14the collections made under Section 9 of the Use Tax Act,
15Section 9 of the Service Use Tax Act, Section 9 of the Service
16Occupation Tax Act, and Section 3 of the Retailers' Occupation
17Tax Act, the Department shall pay into the Tax Compliance and
18Administration Fund, to be used, subject to appropriation, to
19fund additional auditors and compliance personnel at the
20Department of Revenue, an amount equal to 1/12 of 5% of 80% of
21the cash receipts collected during the preceding fiscal year by
22the Audit Bureau of the Department under the Use Tax Act, the
23Service Use Tax Act, the Service Occupation Tax Act, the
24Retailers' Occupation Tax Act, and associated local occupation
25and use taxes administered by the Department.
26    Of the remainder of the moneys received by the Department

 

 

09900SB1041sam001- 95 -LRB099 05554 HLH 47553 a

1pursuant to this Act, 75% thereof shall be paid into the
2General Revenue Fund of the State Treasury and 25% shall be
3reserved in a special account and used only for the transfer to
4the Common School Fund as part of the monthly transfer from the
5General Revenue Fund in accordance with Section 8a of the State
6Finance Act.
7    As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14    Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18    References in this Section to "servicemen" also include
19marketplace providers and referrers that are required to
20collect and remit the tax under this Act.
21(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2298-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
2398-1098, eff. 8-26-14; 99-352, eff. 8-12-15.)
 
24    Section 99. Effective date. This Act takes effect July 1,
252016.".