Rep. Lawrence M. Walsh, Jr.
Filed: 3/26/2014
 
 


 




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1
AMENDMENT TO HOUSE BILL 3882




2 AMENDMENT NO. ______. Amend House Bill 3882 by replacing 
3everything after the enacting clause with the following:


4 "Section 1. Short title. This Act may be cited as the 
5Illinois Certainty and Fairness in Local Tax Sourcing Act.

6 Section 5. Sourcing local taxes. In allocating or sourcing 
7any municipal, county, special district, or other local 
8retailers' occupation tax or the local share of the State's 
9retailers' occupation tax, for sales occurring in this State, 
10the sales location for such allocation or sourcing purposes 
11shall
be the office location where the order for the purchase 
12of the tangible personal property is accepted by the retailer 
13or its authorized representative, except as provided elsewhere 
14in this Act. In determining the acceptance location for a sale, 
15the office where the order is first received by the retailer or 
16its authorized representative shall be presumptively deemed 
 
 
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1the acceptance
location, unless the retailer or the Department 
2of Revenue clearly proves that the final event or activity 
3giving rise to the retailer's acceptance of the order, or the 
4binding contract for such sale, occurred at a different office 
5location. This final event or activity giving rise to the 
6retailer's acceptance of the order, or the binding contract for 
7the sale, refers to the single identifiable event or action by 
8the retailer or its authorized representative that, when it 
9occurs, it creates a binding sale without any further 
10acceptance or approval action by the retailer or its authorized 
11representative.

12 Section 10. Electronic receipt. For purposes of this Act, 
13if the order is received by electronic means, including, but 
14not limited to, e-mail or facsimile transmission, and the first 
15electronic receipt of the order is not addressed to or 
16otherwise identified with a specific office location of the 
17retailer or its authorized representative, then the order shall 
18be deemed first received at the office location of the retailer 
19or its authorized representative to whom the addressee of the 
20electronic order is primarily assigned or stationed, but in the 
21event such
addressee has no identifiable office location then 
22the order shall be deemed first received at the office location 
23that first records the receipt of such electronic order.

24 Section 15. Definitions. For purposes of this Act:
 
 
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1 "Office location" means a temporary or permanent 
2structure, or part thereof, held out to the public as being an 
3office of the retailer or its authorized representative, where 
4at least one individual performs authorized services for the 
5retailer or its authorized representative with respect to the 
6purchase of tangible personal property from the retailer.
7 "Order" means the request (in writing, orally, or 
8electronically) by the purchaser to buy tangible personal 
9property.

10 Section 20. Multiple office locations. If a retailer has 
11more than one office location in Illinois at which order 
12receipt or acceptance services are performed for the retailer, 
13then an office location is not a sales location unless the 
14office location also has one or more individuals who are 
15employees or authorized representatives of the retailer who, on 
16a regular basis, perform authorized services at that location 
17exclusively on behalf of the retailer or any of the retailer's 
18affiliates that relate in some fashion, other than simply order 
19receipt and acceptance, to order processing or the overall 
20sales process for that sale, including, but not limited to, 
21order input, order review, credit review, credit approval, 
22price verification, shipment period verification, price 
23approval, providing price quotes, customer interaction, 
24billing, payment receipt, inventory verification, inventory 
25procurement, accepting returns, or customer service. If an 
 
 
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1office location does not meet these requirements, then the 
2retailer's primary office location in this State shall be 
3deemed to be the sales
location for the sale. The term "primary 
4office location" means the office location of the retailer in 
5this State where the majority of the retailer's employees, 
6officers, and representatives in this State who are involved in 
7the retailer's order processing or the sales approval process 
8are located, and the term "affiliate" means an entity in which 
9the retailer owns, either directly or indirectly, 50% or more 
10of that entity's outstanding voting stock or equitable 
11controlling
interest.

12 Section 25. Physical delivery location. Except as 
13otherwise provided in this Act, neither the delivery location 
14nor the location of the acceptance of the tangible personal 
15property by the purchaser (either before or after inspection or 
16installation) shall determine the sales location for 
17allocation
or sourcing purposes under this Act.

18 Section 30. Special rule. Notwithstanding provision of law 
19to the contrary, for purposes of this Act, the sales location 
20for the allocation or sourcing of any municipal, county, 
21special district, or other local retailers' occupation tax, or 
22the local share of the State's retailers'
occupation tax, shall 
23be 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

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.

6 Section 35. Mobile or temporary sales locations. 
7Notwithstanding any provision of law to the contrary, for 
8purposes 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.

12 Section 40. No office or mobile or temporary sales location 
13in State.  If the final event or activity giving rise to the 
14retailer's acceptance of the order, or the binding contract for 
15a sale, occurs in this State and a retailer does not have a 
16office location or a mobile or temporary sales location in this 
17State, then the sales location shall be deemed the location 
18where such acceptance or binding contract occurs.

19 Section 45. Minerals. Except as otherwise specifically 
20provided by law, for the purpose of determining allocation of 
21tax to a the local government unit, a retail sale by a producer 
22of coal or other mineral mined in Illinois is a sale at retail 
23at the place where the coal or other mineral mined in Illinois 
24is extracted from the earth. With respect to minerals (i) the 
 
 
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1term "extracted
from the earth" means the location at which the 
2coal or other mineral is extracted from the mouth of the mine, 
3and (ii) a "mineral" includes not only coal, but also oil, 
4sand, stone taken from a quarry, gravel and any other thing 
5commonly regarded as a mineral and extracted from the earth. 
6This Section does not apply to coal or another mineral when it 
7is delivered or shipped by the seller to the purchaser at a 
8point outside Illinois so that the sale is exempt under the 
9United States Constitution as a sale in interstate or foreign 
10commerce.

11 Section 50. Out-of-State delivery.  When property is sold 
12for delivery or shipment by the seller or its authorized 
13representative to the purchaser at a point outside this state, 
14which results in no retailer's occupation tax due on the sale, 
15then no local sourcing or allocation of state or local 
16retailers' occupation tax applies.

17 Section 55. Applicability. This Act applies to sales made 
18on or after its effective date and to sales made during past 
19periods not yet closed by any applicable limitations period. 
20The retailer may
apply the changes made by this Act in the 
21allocation of its past sales only to the extent it
does not 
22change the retailer's previous filing location for that sale.


23 Section 99. Effective date. This Act takes effect upon 
 
 
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1becoming law.".