Bill Text: IL HB3882 | 2013-2014 | 98th General Assembly | Amended
Bill Title: Amends the Economic Development for a Growing Economy Tax Credit Act. Makes a technical change in a Section concerning the purpose of the Act.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Failed) 2014-12-03 - Session Sine Die [HB3882 Detail]
Download: Illinois-2013-HB3882-Amended.html
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1 | AMENDMENT TO HOUSE BILL 3882
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2 | AMENDMENT NO. ______. Amend House Bill 3882 by replacing | ||||||
3 | everything after the enacting clause with the following:
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4 | "Section 1. Short title. This Act may be cited as the | ||||||
5 | Illinois Certainty and Fairness in Local Tax Sourcing Act.
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6 | Section 5. Sourcing local taxes. In allocating or sourcing | ||||||
7 | any municipal, county, special district, or other local | ||||||
8 | retailers' occupation tax or the local share of the State's | ||||||
9 | retailers' occupation tax, for sales occurring in this State, | ||||||
10 | the sales location for such allocation or sourcing purposes | ||||||
11 | shall
be the office location where the order for the purchase | ||||||
12 | of the tangible personal property is accepted by the retailer | ||||||
13 | or its authorized representative, except as provided elsewhere | ||||||
14 | in this Act. In determining the acceptance location for a sale, | ||||||
15 | the office where the order is first received by the retailer or | ||||||
16 | its authorized representative shall be presumptively deemed |
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1 | the acceptance
location, unless the retailer or the Department | ||||||
2 | of Revenue clearly proves that the final event or activity | ||||||
3 | giving rise to the retailer's acceptance of the order, or the | ||||||
4 | binding contract for such sale, occurred at a different office | ||||||
5 | location. This final event or activity giving rise to the | ||||||
6 | retailer's acceptance of the order, or the binding contract for | ||||||
7 | the sale, refers to the single identifiable event or action by | ||||||
8 | the retailer or its authorized representative that, when it | ||||||
9 | occurs, it creates a binding sale without any further | ||||||
10 | acceptance or approval action by the retailer or its authorized | ||||||
11 | representative.
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12 | Section 10. Electronic receipt. For purposes of this Act, | ||||||
13 | if the order is received by electronic means, including, but | ||||||
14 | not limited to, e-mail or facsimile transmission, and the first | ||||||
15 | electronic receipt of the order is not addressed to or | ||||||
16 | otherwise identified with a specific office location of the | ||||||
17 | retailer or its authorized representative, then the order shall | ||||||
18 | be deemed first received at the office location of the retailer | ||||||
19 | or its authorized representative to whom the addressee of the | ||||||
20 | electronic order is primarily assigned or stationed, but in the | ||||||
21 | event such
addressee has no identifiable office location then | ||||||
22 | the order shall be deemed first received at the office location | ||||||
23 | that first records the receipt of such electronic order.
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24 | Section 15. Definitions. For purposes of this Act: |
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1 | "Office location" means a temporary or permanent | ||||||
2 | structure, or part thereof, held out to the public as being an | ||||||
3 | office of the retailer or its authorized representative, where | ||||||
4 | at least one individual performs authorized services for the | ||||||
5 | retailer or its authorized representative with respect to the | ||||||
6 | purchase of tangible personal property from the retailer. | ||||||
7 | "Order" means the request (in writing, orally, or | ||||||
8 | electronically) by the purchaser to buy tangible personal | ||||||
9 | property.
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10 | Section 20. Multiple office locations. If a retailer has | ||||||
11 | more than one office location in Illinois at which order | ||||||
12 | receipt or acceptance services are performed for the retailer, | ||||||
13 | then an office location is not a sales location unless the | ||||||
14 | office location also has one or more individuals who are | ||||||
15 | employees or authorized representatives of the retailer who, on | ||||||
16 | a regular basis, perform authorized services at that location | ||||||
17 | exclusively on behalf of the retailer or any of the retailer's | ||||||
18 | affiliates that relate in some fashion, other than simply order | ||||||
19 | receipt and acceptance, to order processing or the overall | ||||||
20 | sales process for that sale, including, but not limited to, | ||||||
21 | order input, order review, credit review, credit approval, | ||||||
22 | price verification, shipment period verification, price | ||||||
23 | approval, providing price quotes, customer interaction, | ||||||
24 | billing, payment receipt, inventory verification, inventory | ||||||
25 | procurement, accepting returns, or customer service. If an |
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1 | office location does not meet these requirements, then the | ||||||
2 | retailer's primary office location in this State shall be | ||||||
3 | deemed to be the sales
location for the sale. The term "primary | ||||||
4 | office location" means the office location of the retailer in | ||||||
5 | this State where the majority of the retailer's employees, | ||||||
6 | officers, and representatives in this State who are involved in | ||||||
7 | the retailer's order processing or the sales approval process | ||||||
8 | are located, and the term "affiliate" means an entity in which | ||||||
9 | the retailer owns, either directly or indirectly, 50% or more | ||||||
10 | of that entity's outstanding voting stock or equitable | ||||||
11 | controlling
interest.
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12 | Section 25. Physical delivery location. Except as | ||||||
13 | otherwise provided in this Act, neither the delivery location | ||||||
14 | nor the location of the acceptance of the tangible personal | ||||||
15 | property by the purchaser (either before or after inspection or | ||||||
16 | installation) shall determine the sales location for | ||||||
17 | allocation
or sourcing purposes under this Act.
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18 | Section 30. Special rule. Notwithstanding provision of law | ||||||
19 | to the contrary, for purposes of this Act, the sales location | ||||||
20 | for the allocation or sourcing of any municipal, county, | ||||||
21 | special district, or other local retailers' occupation tax, or | ||||||
22 | the local share of the State's retailers'
occupation tax, shall | ||||||
23 | be as follows: | ||||||
24 | (1) if the acceptance of the order by the retailer |
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1 | occurs outside of the State (whether or not the receipt of | ||||||
2 | the order occurs within the State), then the sales location | ||||||
3 | shall be deemed outside of the State, and no local sourcing | ||||||
4 | of retailers' occupation tax applies, except when the | ||||||
5 | tangible personal property that is being sold has been | ||||||
6 | specifically identified in the sales contract and is in the | ||||||
7 | inventory of the retailer at a location within the State at | ||||||
8 | the time of sale (or is subsequently produced by the | ||||||
9 | retailer at a location in this State); in that event, the | ||||||
10 | inventory location shall be deemed the sales location; | ||||||
11 | (2) if the retailer sends to the purchaser a complete
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12 | and unconditional offer to sell, then the sales location | ||||||
13 | shall be the office location where the retailer or its | ||||||
14 | authorized representative first receives the purchaser's | ||||||
15 | acceptance of that offer; | ||||||
16 | (3) for keep full or similar requirements contracts | ||||||
17 | where the retailer agrees to supply tangible personal | ||||||
18 | property to a purchaser on a continuous basis until | ||||||
19 | notified to stop by the purchaser, the sales location shall | ||||||
20 | be the office location where the retailer or its authorized | ||||||
21 | representative receives the initial order to start the | ||||||
22 | deliveries under the contract, provided that, if the | ||||||
23 | contract is a written contract not requiring a separate | ||||||
24 | initial order to start the continuous supply process, then | ||||||
25 | the sales location shall be the
office location where the | ||||||
26 | retailer or its authorized representative signed the |
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1 | contract; | ||||||
2 | (4) for sales accepted in Illinois under a long-term | ||||||
3 | blanket or master contract that (though definite as to | ||||||
4 | price and quantity) must be implemented by the purchaser's | ||||||
5 | placing of specific orders when
goods are wanted, the | ||||||
6 | office location of the retailer or its authorized | ||||||
7 | representative at which such subsequent specific orders | ||||||
8 | are received (rather than the place where the seller signed | ||||||
9 | the master contract) shall be the sales location; | ||||||
10 | (5) if the order for the purchase of tangible personal | ||||||
11 | property is received by the retailer or its authorized | ||||||
12 | representative, and, prior to final acceptance of the order | ||||||
13 | by the retailer or its authorized representative, the | ||||||
14 | ordered tangible personal property is delivered or shipped | ||||||
15 | from the inventory of the retailer at a location in this | ||||||
16 | State, then the sales location shall be the retailer's or | ||||||
17 | its authorized representative's office location in this | ||||||
18 | State where the purchase order for such tangible personal | ||||||
19 | property is first received or if such order is first | ||||||
20 | received at an office location outside the State then the | ||||||
21 | sales location shall be the inventory location from which | ||||||
22 | the tangible personal property was shipped or delivered; | ||||||
23 | and | ||||||
24 | (6) in those situations where the order for the | ||||||
25 | purchase of tangible personal property is placed in person | ||||||
26 | by
the purchaser at a retailer's retail sales location and |
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1 | the delivery or shipment of the property occurs from that | ||||||
2 | location, then that retail sales location shall be deemed | ||||||
3 | the sales location for that sale even if the acceptance of | ||||||
4 | the order by the retailer occurs at a different office | ||||||
5 | location.
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6 | Section 35. Mobile or temporary sales locations. | ||||||
7 | Notwithstanding any provision of law to the contrary, for | ||||||
8 | purposes of this Act: | ||||||
9 | (1) where the initial receipt of a purchase order from | ||||||
10 | a purchaser is made by a retailer or its authorized | ||||||
11 | representative during an in person meeting with the | ||||||
12 | purchaser and (A) a vehicle, vessel, aircraft or other | ||||||
13 | mobile form of transportation is used to facilitate that | ||||||
14 | meeting, and delivery of the property is immediately made | ||||||
15 | from uncommitted inventory located in or on that mobile | ||||||
16 | form of transportation, then the sales location shall be | ||||||
17 | deemed to be the location of the mobile transportation at | ||||||
18 | the time of the sale, or (B) the meeting occurs at a | ||||||
19 | temporary sales location, such
as a tent, outdoor fair, or | ||||||
20 | other location that is not contained within a structure, | ||||||
21 | and delivery of the property is made immediately from | ||||||
22 | uncommitted inventory located at that sales
location, then | ||||||
23 | the sales location shall be deemed to be the temporary sale | ||||||
24 | location; and | ||||||
25 | (2) where a purchase order is received from the |
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1 | purchaser by a salesman or other authorized individual | ||||||
2 | acting on behalf of a retailer, and that purchase order (A) | ||||||
3 | is accepted by by those individuals on behalf of the | ||||||
4 | retailer while traveling on business or for other reasons, | ||||||
5 | (B) involves the future delivery of the property being | ||||||
6 | sold, and (C) is not accepted at an office location or a | ||||||
7 | temporary sales office of the retailer when the acceptance | ||||||
8 | occurs, then the sales location shall be deemed to be the | ||||||
9 | office location where the individual who receives the | ||||||
10 | purchase order is primarily assigned or stationed, unless | ||||||
11 | item (1) of Section 30 applies.
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12 | Section 40. No office or mobile or temporary sales location | ||||||
13 | in State. If the final event or activity giving rise to the | ||||||
14 | retailer's acceptance of the order, or the binding contract for | ||||||
15 | a sale, occurs in this State and a retailer does not have a | ||||||
16 | office location or a mobile or temporary sales location in this | ||||||
17 | State, then the sales location shall be deemed the location | ||||||
18 | where such acceptance or binding contract occurs.
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19 | Section 45. Minerals. Except as otherwise specifically | ||||||
20 | provided by law, for the purpose of determining allocation of | ||||||
21 | tax to a the local government unit, a retail sale by a producer | ||||||
22 | of coal or other mineral mined in Illinois is a sale at retail | ||||||
23 | at the place where the coal or other mineral mined in Illinois | ||||||
24 | is extracted from the earth. With respect to minerals (i) the |
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1 | term "extracted
from the earth" means the location at which the | ||||||
2 | coal or other mineral is extracted from the mouth of the mine, | ||||||
3 | and (ii) a "mineral" includes not only coal, but also oil, | ||||||
4 | sand, stone taken from a quarry, gravel and any other thing | ||||||
5 | commonly regarded as a mineral and extracted from the earth. | ||||||
6 | This Section does not apply to coal or another mineral when it | ||||||
7 | is delivered or shipped by the seller to the purchaser at a | ||||||
8 | point outside Illinois so that the sale is exempt under the | ||||||
9 | United States Constitution as a sale in interstate or foreign | ||||||
10 | commerce.
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11 | Section 50. Out-of-State delivery. When property is sold | ||||||
12 | for delivery or shipment by the seller or its authorized | ||||||
13 | representative to the purchaser at a point outside this state, | ||||||
14 | which results in no retailer's occupation tax due on the sale, | ||||||
15 | then no local sourcing or allocation of state or local | ||||||
16 | retailers' occupation tax applies.
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17 | Section 55. Applicability. This Act applies to sales made | ||||||
18 | on or after its effective date and to sales made during past | ||||||
19 | periods not yet closed by any applicable limitations period. | ||||||
20 | The retailer may
apply the changes made by this Act in the | ||||||
21 | allocation of its past sales only to the extent it
does not | ||||||
22 | change the retailer's previous filing location for that sale.
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23 | Section 99. Effective date. This Act takes effect upon |
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1 | becoming law.".
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