Bill Text: IL HB5684 | 2013-2014 | 98th General Assembly | Enrolled
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Illinois Vehicle Code. Provides that the Secretary of State shall suspend or refuse to issue or renew the license of a motor vehicle dealer, transporter, wrecker, or rebuilder for violations of any tax administered by the Department of Revenue (currently, the Retailers' Occupation Tax Act only). Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1080 [HB5684 Detail]
Download: Illinois-2013-HB5684-Enrolled.html
Bill Title: Amends the Illinois Vehicle Code. Provides that the Secretary of State shall suspend or refuse to issue or renew the license of a motor vehicle dealer, transporter, wrecker, or rebuilder for violations of any tax administered by the Department of Revenue (currently, the Retailers' Occupation Tax Act only). Effective immediately.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Passed) 2014-08-26 - Public Act . . . . . . . . . 98-1080 [HB5684 Detail]
Download: Illinois-2013-HB5684-Enrolled.html
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1 | AN ACT concerning finance.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. If and only if House Bill 2317 of the 98th | ||||||
5 | General Assembly becomes law, then the Use Tax Act is amended | ||||||
6 | by changing Section 2 as follows:
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7 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
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8 | Sec. 2. "Use" means the exercise by any person of any right | ||||||
9 | or power over
tangible personal property incident to the | ||||||
10 | ownership of that property,
except that it does not include the | ||||||
11 | sale of such property in any form as
tangible personal property | ||||||
12 | in the regular course of business to the extent
that such | ||||||
13 | property is not first subjected to a use for which it was
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14 | purchased, and does not include the use of such property by its | ||||||
15 | owner for
demonstration purposes: Provided that the property | ||||||
16 | purchased is deemed to
be purchased for the purpose of resale, | ||||||
17 | despite first being used, to the
extent to which it is resold | ||||||
18 | as an ingredient of an intentionally produced
product or | ||||||
19 | by-product of manufacturing. "Use" does not mean the | ||||||
20 | demonstration
use or interim use of tangible personal property | ||||||
21 | by a retailer before he sells
that tangible personal property. | ||||||
22 | For watercraft or aircraft, if the period of
demonstration use | ||||||
23 | or interim use by the retailer exceeds 18 months,
the retailer
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1 | shall pay on the retailers' original cost price the tax imposed | ||||||
2 | by this Act,
and no credit for that tax is permitted if the | ||||||
3 | watercraft or aircraft is
subsequently sold by the retailer. | ||||||
4 | "Use" does not mean the physical
incorporation of tangible | ||||||
5 | personal property, to the extent not first subjected
to a use | ||||||
6 | for which it was purchased, as an ingredient or constituent, | ||||||
7 | into
other tangible personal property (a) which is sold in the | ||||||
8 | regular course of
business or (b) which the person | ||||||
9 | incorporating such ingredient or constituent
therein has | ||||||
10 | undertaken at the time of such purchase to cause to be | ||||||
11 | transported
in interstate commerce to destinations outside the | ||||||
12 | State of Illinois: Provided
that the property purchased is | ||||||
13 | deemed to be purchased for the purpose of
resale, despite first | ||||||
14 | being used, to the extent to which it is resold as an
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15 | ingredient of an intentionally produced product or by-product | ||||||
16 | of manufacturing.
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17 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
18 | watercraft as defined in
Section 3-2 of the Boat Registration | ||||||
19 | and Safety Act, a personal watercraft, or
any boat equipped | ||||||
20 | with an inboard motor.
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21 | "Purchase at retail" means the acquisition of the ownership | ||||||
22 | of or title
to tangible personal property through a sale at | ||||||
23 | retail.
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24 | "Purchaser" means anyone who, through a sale at retail, | ||||||
25 | acquires the
ownership of tangible personal property for a | ||||||
26 | valuable consideration.
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1 | "Sale at retail" means any transfer of the ownership of or | ||||||
2 | title to
tangible personal property to a purchaser, for the | ||||||
3 | purpose of use, and not
for the purpose of resale in any form | ||||||
4 | as tangible personal property to the
extent not first subjected | ||||||
5 | to a use for which it was purchased, for a
valuable | ||||||
6 | consideration: Provided that the property purchased is deemed | ||||||
7 | to
be purchased for the purpose of resale, despite first being | ||||||
8 | used, to the
extent to which it is resold as an ingredient of | ||||||
9 | an intentionally produced
product or by-product of | ||||||
10 | manufacturing. For this purpose, slag produced as
an incident | ||||||
11 | to manufacturing pig iron or steel and sold is considered to be
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12 | an intentionally produced by-product of manufacturing. "Sale | ||||||
13 | at retail"
includes any such transfer made for resale unless | ||||||
14 | made in compliance with
Section 2c of the Retailers' Occupation | ||||||
15 | Tax Act, as incorporated by
reference into Section 12 of this | ||||||
16 | Act. Transactions whereby the possession
of the property is | ||||||
17 | transferred but the seller retains the title as security
for | ||||||
18 | payment of the selling price are sales.
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19 | "Sale at retail" shall also be construed to include any | ||||||
20 | Illinois
florist's sales transaction in which the purchase | ||||||
21 | order is received in
Illinois by a florist and the sale is for | ||||||
22 | use or consumption, but the
Illinois florist has a florist in | ||||||
23 | another state deliver the property to the
purchaser or the | ||||||
24 | purchaser's donee in such other state.
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25 | Nonreusable tangible personal property that is used by | ||||||
26 | persons engaged in
the business of operating a restaurant, |
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1 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
2 | transferred to customers in the ordinary course of business
as | ||||||
3 | part of the sale of food or beverages and is used to deliver, | ||||||
4 | package, or
consume food or beverages, regardless of where | ||||||
5 | consumption of the food or
beverages occurs. Examples of those | ||||||
6 | items include, but are not limited to
nonreusable, paper and | ||||||
7 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
8 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
9 | and
wrapping or packaging
materials that are transferred to | ||||||
10 | customers as part of the sale of food or
beverages in the | ||||||
11 | ordinary course of business.
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12 | The purchase, employment and transfer of such tangible | ||||||
13 | personal property
as newsprint and ink for the primary purpose | ||||||
14 | of conveying news (with or
without other information) is not a | ||||||
15 | purchase, use or sale of tangible
personal property.
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16 | "Selling price" means the consideration for a sale valued | ||||||
17 | in money
whether received in money or otherwise, including | ||||||
18 | cash, credits, property
other than as hereinafter provided, and | ||||||
19 | services, but not including the
value of or credit given for | ||||||
20 | traded-in tangible personal property where the
item that is | ||||||
21 | traded-in is of like kind and character as that which is being
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22 | sold, and shall be determined without any deduction on account | ||||||
23 | of the cost
of the property sold, the cost of materials used, | ||||||
24 | labor or service cost or
any other expense whatsoever, but does | ||||||
25 | not include interest or finance
charges which appear as | ||||||
26 | separate items on the bill of sale or sales
contract nor |
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1 | charges that are added to prices by sellers on account of the
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2 | seller's tax liability under the "Retailers' Occupation Tax | ||||||
3 | Act", or on
account of the seller's duty to collect, from the | ||||||
4 | purchaser, the tax that
is imposed by this Act, or, except as | ||||||
5 | otherwise provided with respect to any cigarette tax imposed by | ||||||
6 | a home rule unit, on account of the seller's tax liability | ||||||
7 | under any local occupation tax administered by the Department, | ||||||
8 | or, except as otherwise provided with respect to any cigarette | ||||||
9 | tax imposed by a home rule unit on account of the seller's duty | ||||||
10 | to collect, from the purchasers, the tax that is imposed under | ||||||
11 | any local use tax administered by the Department. Effective | ||||||
12 | December 1, 1985, "selling price"
shall include charges that | ||||||
13 | are added to prices by sellers on account of the
seller's tax | ||||||
14 | liability under the Cigarette Tax Act, on account of the | ||||||
15 | seller's
duty to collect, from the purchaser, the tax imposed | ||||||
16 | under the Cigarette Use
Tax Act, and on account of the seller's | ||||||
17 | duty to collect, from the purchaser,
any cigarette tax imposed | ||||||
18 | by a home rule unit.
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19 | Notwithstanding any law to the contrary, for any motor | ||||||
20 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
21 | is sold on or after January 1, 2015 July 1, 2014 for the | ||||||
22 | purpose of leasing the vehicle for a defined period that is | ||||||
23 | longer than one year and (1) is a motor vehicle of the second | ||||||
24 | division that: (A) is a self-contained motor vehicle designed | ||||||
25 | or permanently converted to provide living quarters for | ||||||
26 | recreational, camping, or travel use, with direct walk through |
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1 | access to the living quarters from the driver's seat; (B) is of | ||||||
2 | the van configuration designed for the transportation of not | ||||||
3 | less than 7 nor more than 16 passengers; or (C) has a gross | ||||||
4 | vehicle weight rating of 8,000 pounds or less or (2) is a motor | ||||||
5 | vehicle of the first division, "selling price" or "amount of | ||||||
6 | sale" means the consideration received by the lessor pursuant | ||||||
7 | to the lease contract, including amounts due at lease signing | ||||||
8 | and all monthly or other regular payments charged over the term | ||||||
9 | of the lease. Also included in the selling price is any amount | ||||||
10 | received by the lessor from the lessee for the leased vehicle | ||||||
11 | that is not calculated at the time the lease is executed, | ||||||
12 | including, but not limited to, excess mileage charges and | ||||||
13 | charges for excess wear and tear. For sales that occur in | ||||||
14 | Illinois, with respect to any amount received by the lessor | ||||||
15 | from the lessee for the leased vehicle that is not calculated | ||||||
16 | at the time the lease is executed, the lessor who purchased the | ||||||
17 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
18 | on those amounts, and the retailer who makes the retail sale of | ||||||
19 | the motor vehicle to the lessor is not required to collect the | ||||||
20 | tax imposed by this Act or to pay the tax imposed by the | ||||||
21 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
22 | lessor who purchased the motor vehicle assumes the liability | ||||||
23 | for reporting and paying the tax on those amounts directly to | ||||||
24 | the Department in the same form (Illinois Retailers' Occupation | ||||||
25 | Tax, and local retailers' occupation taxes, if applicable) in | ||||||
26 | which the retailer would have reported and paid such tax if the |
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1 | retailer had accounted for the tax to the Department. For | ||||||
2 | amounts received by the lessor from the lessee that are not | ||||||
3 | calculated at the time the lease is executed, the lessor must | ||||||
4 | file the return and pay the tax to the Department by the due | ||||||
5 | date otherwise required by this Act for returns other than | ||||||
6 | transaction returns. If the retailer is entitled under this Act | ||||||
7 | to a discount for collecting and remitting the tax imposed | ||||||
8 | under this Act to the Department with respect to the sale of | ||||||
9 | the motor vehicle to the lessor, then the right to the discount | ||||||
10 | provided in this Act shall be transferred to the lessor with | ||||||
11 | respect to the tax paid by the lessor for any amount received | ||||||
12 | by the lessor from the lessee for the leased vehicle that is | ||||||
13 | not calculated at the time the lease is executed; provided that | ||||||
14 | the discount is only allowed if the return is timely filed and | ||||||
15 | for amounts timely paid. The "selling price" of a motor vehicle | ||||||
16 | that is sold on or after January 1, 2015 July 1, 2014 for the | ||||||
17 | purpose of leasing for a defined period of longer than one year | ||||||
18 | shall not be reduced by the value of or credit given for | ||||||
19 | traded-in tangible personal property owned by the lessor, nor | ||||||
20 | shall it be reduced by the value of or credit given for | ||||||
21 | traded-in tangible personal property owned by the lessee, | ||||||
22 | regardless of whether the trade-in value thereof is assigned by | ||||||
23 | the lessee to the lessor. In the case of a motor vehicle that | ||||||
24 | is sold for the purpose of leasing for a defined period of | ||||||
25 | longer than one year, the sale occurs at the time of the | ||||||
26 | delivery of the vehicle, regardless of the due date of any |
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1 | lease payments. A lessor who incurs a Retailers' Occupation Tax | ||||||
2 | liability on the sale of a motor vehicle coming off lease may | ||||||
3 | not take a credit against that liability for the Use Tax the | ||||||
4 | lessor paid upon the purchase of the motor vehicle (or for any | ||||||
5 | tax the lessor paid with respect to any amount received by the | ||||||
6 | lessor from the lessee for the leased vehicle that was not | ||||||
7 | calculated at the time the lease was executed) if the selling | ||||||
8 | price of the motor vehicle at the time of purchase was | ||||||
9 | calculated using the definition of "selling price" as defined | ||||||
10 | in this paragraph. Notwithstanding any other provision of this | ||||||
11 | Act to the contrary, lessors shall file all returns and make | ||||||
12 | all payments required under this paragraph to the Department by | ||||||
13 | electronic means in the manner and form as required by the | ||||||
14 | Department. This paragraph does not apply to leases of motor | ||||||
15 | vehicles for which, at the time the lease is entered into, the | ||||||
16 | term of the lease is not a defined period, including leases | ||||||
17 | with a defined initial period with the option to continue the | ||||||
18 | lease on a month-to-month or other basis beyond the initial | ||||||
19 | defined period. | ||||||
20 | The phrase "like kind and character" shall be liberally | ||||||
21 | construed
(including but not limited to any form of motor | ||||||
22 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
23 | agricultural implement for any other
kind of farm or | ||||||
24 | agricultural implement), while not including a kind of item
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25 | which, if sold at retail by that retailer, would be exempt from | ||||||
26 | retailers'
occupation tax and use tax as an isolated or |
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1 | occasional sale.
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2 | "Department" means the Department of Revenue.
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3 | "Person" means any natural individual, firm, partnership, | ||||||
4 | association,
joint stock company, joint adventure, public or | ||||||
5 | private corporation, limited
liability company, or a
receiver, | ||||||
6 | executor, trustee, guardian or other representative appointed
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7 | by order of any court.
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8 | "Retailer" means and includes every person engaged in the | ||||||
9 | business of
making sales at retail as defined in this Section.
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10 | A person who holds himself or herself out as being engaged | ||||||
11 | (or who habitually
engages) in selling tangible personal | ||||||
12 | property at retail is a retailer
hereunder with respect to such | ||||||
13 | sales (and not primarily in a service
occupation) | ||||||
14 | notwithstanding the fact that such person designs and produces
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15 | such tangible personal property on special order for the | ||||||
16 | purchaser and in
such a way as to render the property of value | ||||||
17 | only to such purchaser, if
such tangible personal property so | ||||||
18 | produced on special order serves
substantially the same | ||||||
19 | function as stock or standard items of tangible
personal | ||||||
20 | property that are sold at retail.
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21 | A person whose activities are organized and conducted | ||||||
22 | primarily as a
not-for-profit service enterprise, and who | ||||||
23 | engages in selling tangible
personal property at retail | ||||||
24 | (whether to the public or merely to members and
their guests) | ||||||
25 | is a retailer with respect to such transactions, excepting
only | ||||||
26 | a person organized and operated exclusively for charitable, |
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1 | religious
or educational purposes either (1), to the extent of | ||||||
2 | sales by such person
to its members, students, patients or | ||||||
3 | inmates of tangible personal property
to be used primarily for | ||||||
4 | the purposes of such person, or (2), to the extent
of sales by | ||||||
5 | such person of tangible personal property which is not sold or
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6 | offered for sale by persons organized for profit. The selling | ||||||
7 | of school
books and school supplies by schools at retail to | ||||||
8 | students is not
"primarily for the purposes of" the school | ||||||
9 | which does such selling. This
paragraph does not apply to nor | ||||||
10 | subject to taxation occasional dinners,
social or similar | ||||||
11 | activities of a person organized and operated exclusively
for | ||||||
12 | charitable, religious or educational purposes, whether or not | ||||||
13 | such
activities are open to the public.
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14 | A person who is the recipient of a grant or contract under | ||||||
15 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
16 | serves meals to
participants in the federal Nutrition Program | ||||||
17 | for the Elderly in return for
contributions established in | ||||||
18 | amount by the individual participant pursuant
to a schedule of | ||||||
19 | suggested fees as provided for in the federal Act is not a
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20 | retailer under this Act with respect to such transactions.
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21 | Persons who engage in the business of transferring tangible | ||||||
22 | personal
property upon the redemption of trading stamps are | ||||||
23 | retailers hereunder when
engaged in such business.
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24 | The isolated or occasional sale of tangible personal | ||||||
25 | property at retail
by a person who does not hold himself out as | ||||||
26 | being engaged (or who does not
habitually engage) in selling |
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1 | such tangible personal property at retail or
a sale through a | ||||||
2 | bulk vending machine does not make such person a retailer
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3 | hereunder. However, any person who is engaged in a business | ||||||
4 | which is not
subject to the tax imposed by the "Retailers' | ||||||
5 | Occupation Tax Act" because
of involving the sale of or a | ||||||
6 | contract to sell real estate or a
construction contract to | ||||||
7 | improve real estate, but who, in the course of
conducting such | ||||||
8 | business, transfers tangible personal property to users or
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9 | consumers in the finished form in which it was purchased, and | ||||||
10 | which does
not become real estate, under any provision of a | ||||||
11 | construction contract or
real estate sale or real estate sales | ||||||
12 | agreement entered into with some
other person arising out of or | ||||||
13 | because of such nontaxable business, is a
retailer to the | ||||||
14 | extent of the value of the tangible personal property so
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15 | transferred. If, in such transaction, a separate charge is made | ||||||
16 | for the
tangible personal property so transferred, the value of | ||||||
17 | such property, for
the purposes of this Act, is the amount so | ||||||
18 | separately charged, but not less
than the cost of such property | ||||||
19 | to the transferor; if no separate charge is
made, the value of | ||||||
20 | such property, for the purposes of this Act, is the cost
to the | ||||||
21 | transferor of such tangible personal property.
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22 | "Retailer maintaining a place of business in this State", | ||||||
23 | or any like
term, means and includes any of the following | ||||||
24 | retailers:
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25 | 1. A retailer having or maintaining within this State, | ||||||
26 | directly or by
a subsidiary, an office, distribution house, |
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1 | sales house, warehouse or other
place of business, or any | ||||||
2 | agent or other representative operating within this
State | ||||||
3 | under the authority of the retailer or its subsidiary, | ||||||
4 | irrespective of
whether such place of business or agent or | ||||||
5 | other representative is located here
permanently or | ||||||
6 | temporarily, or whether such retailer or subsidiary is | ||||||
7 | licensed
to do business in this State. However, the | ||||||
8 | ownership of property that is
located at the premises of a | ||||||
9 | printer with which the retailer has contracted for
printing | ||||||
10 | and that consists of the final printed product, property | ||||||
11 | that becomes
a part of the final printed product, or copy | ||||||
12 | from which the printed product is
produced shall not result | ||||||
13 | in the retailer being deemed to have or maintain an
office, | ||||||
14 | distribution house, sales house, warehouse, or other place | ||||||
15 | of business
within this State. | ||||||
16 | 1.1. Beginning July 1, 2011, a retailer having a | ||||||
17 | contract with a person located in this State under which | ||||||
18 | the person, for a commission or other consideration based | ||||||
19 | upon the sale of tangible personal property by the | ||||||
20 | retailer, directly or indirectly refers potential | ||||||
21 | customers to the retailer by a link on the person's | ||||||
22 | Internet website. The provisions of this paragraph 1.1 | ||||||
23 | shall apply only if the cumulative gross receipts from | ||||||
24 | sales of tangible personal property by the retailer to | ||||||
25 | customers who are referred to the retailer by all persons | ||||||
26 | in this State under such contracts exceed $10,000 during |
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1 | the preceding 4 quarterly periods ending on the last day of | ||||||
2 | March, June, September, and December. | ||||||
3 | 1.2. Beginning July 1, 2011, a retailer having a | ||||||
4 | contract with a person located in this State under which: | ||||||
5 | A. the retailer sells the same or substantially | ||||||
6 | similar line of products as the person located in this | ||||||
7 | State and does so using an identical or substantially | ||||||
8 | similar name, trade name, or trademark as the person | ||||||
9 | located in this State; and | ||||||
10 | B. the retailer provides a commission or other | ||||||
11 | consideration to the person located in this State based | ||||||
12 | upon the sale of tangible personal property by the | ||||||
13 | retailer. | ||||||
14 | The provisions of this paragraph 1.2 shall apply only if | ||||||
15 | the cumulative gross receipts from sales of tangible | ||||||
16 | personal property by the retailer to customers in this | ||||||
17 | State under all such contracts exceed $10,000 during the | ||||||
18 | preceding 4 quarterly periods ending on the last day of | ||||||
19 | March, June, September, and December.
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20 | 2. A retailer soliciting orders for tangible personal | ||||||
21 | property by
means of a telecommunication or television | ||||||
22 | shopping system (which utilizes toll
free numbers) which is | ||||||
23 | intended by the retailer to be broadcast by cable
| ||||||
24 | television or other means of broadcasting, to consumers | ||||||
25 | located in this State.
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26 | 3. A retailer, pursuant to a contract with a |
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1 | broadcaster or publisher
located in this State, soliciting | ||||||
2 | orders for tangible personal property by
means of | ||||||
3 | advertising which is disseminated primarily to consumers | ||||||
4 | located in
this State and only secondarily to bordering | ||||||
5 | jurisdictions.
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6 | 4. A retailer soliciting orders for tangible personal | ||||||
7 | property by mail
if the solicitations are substantial and | ||||||
8 | recurring and if the retailer benefits
from any banking, | ||||||
9 | financing, debt collection, telecommunication, or | ||||||
10 | marketing
activities occurring in this State or benefits | ||||||
11 | from the location in this State
of authorized installation, | ||||||
12 | servicing, or repair facilities.
| ||||||
13 | 5. A retailer that is owned or controlled by the same | ||||||
14 | interests that own
or control any retailer engaging in | ||||||
15 | business in the same or similar line of
business in this | ||||||
16 | State.
| ||||||
17 | 6. A retailer having a franchisee or licensee operating | ||||||
18 | under its trade
name if the franchisee or licensee is | ||||||
19 | required to collect the tax under this
Section.
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20 | 7. A retailer, pursuant to a contract with a cable | ||||||
21 | television operator
located in this State, soliciting | ||||||
22 | orders for tangible personal property by
means of | ||||||
23 | advertising which is transmitted or distributed over a | ||||||
24 | cable
television system in this State.
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25 | 8. A retailer engaging in activities in Illinois, which | ||||||
26 | activities in
the state in which the retail business |
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| |||||||
1 | engaging in such activities is located
would constitute | ||||||
2 | maintaining a place of business in that state.
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3 | "Bulk vending machine" means a vending machine,
containing | ||||||
4 | unsorted confections, nuts, toys, or other items designed
| ||||||
5 | primarily to be used or played with by children
which, when a | ||||||
6 | coin or coins of a denomination not larger than $0.50 are | ||||||
7 | inserted, are dispensed in equal portions, at random and
| ||||||
8 | without selection by the customer.
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9 | (Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11; | ||||||
10 | 09800HB2317enr.)
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11 | Section 10. If and only if House Bill 2317 of the 98th | ||||||
12 | General Assembly becomes law, then the Retailers' Occupation | ||||||
13 | Tax Act is amended by changing Section 1 as follows:
| ||||||
14 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
15 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
16 | the
ownership of or title to
tangible personal property to a | ||||||
17 | purchaser, for the purpose of use or
consumption, and not for | ||||||
18 | the purpose of resale in any form as tangible
personal property | ||||||
19 | to the extent not first subjected to a use for which it
was | ||||||
20 | purchased, for a valuable consideration: Provided that the | ||||||
21 | property
purchased is deemed to be purchased for the purpose of | ||||||
22 | resale, despite
first being used, to the extent to which it is | ||||||
23 | resold as an ingredient of
an intentionally produced product or | ||||||
24 | byproduct of manufacturing. For this
purpose, slag produced as |
| |||||||
| |||||||
1 | an incident to manufacturing pig iron or steel
and sold is | ||||||
2 | considered to be an intentionally produced byproduct of
| ||||||
3 | manufacturing. Transactions whereby the possession of the | ||||||
4 | property is
transferred but the seller retains the title as | ||||||
5 | security for payment of the
selling price shall be deemed to be | ||||||
6 | sales.
| ||||||
7 | "Sale at retail" shall be construed to include any transfer | ||||||
8 | of the
ownership of or title to tangible personal property to a | ||||||
9 | purchaser, for use
or consumption by any other person to whom | ||||||
10 | such purchaser may transfer the
tangible personal property | ||||||
11 | without a valuable consideration, and to include
any transfer, | ||||||
12 | whether made for or without a valuable consideration, for
| ||||||
13 | resale in any form as tangible personal property unless made in | ||||||
14 | compliance
with Section 2c of this Act.
| ||||||
15 | Sales of tangible personal property, which property, to the | ||||||
16 | extent not
first subjected to a use for which it was purchased, | ||||||
17 | as an ingredient or
constituent, goes into and forms a part of | ||||||
18 | tangible personal property
subsequently the subject of a "Sale | ||||||
19 | at retail", are not sales at retail as
defined in this Act: | ||||||
20 | Provided that the property purchased is deemed to be
purchased | ||||||
21 | for the purpose of resale, despite first being used, to the
| ||||||
22 | extent to which it is resold as an ingredient of an | ||||||
23 | intentionally produced
product or byproduct of manufacturing.
| ||||||
24 | "Sale at retail" shall be construed to include any Illinois | ||||||
25 | florist's
sales transaction in which the purchase order is | ||||||
26 | received in Illinois by a
florist and the sale is for use or |
| |||||||
| |||||||
1 | consumption, but the Illinois florist
has a florist in another | ||||||
2 | state deliver the property to the purchaser or the
purchaser's | ||||||
3 | donee in such other state.
| ||||||
4 | Nonreusable tangible personal property that is used by | ||||||
5 | persons engaged in
the business of operating a restaurant, | ||||||
6 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
7 | transferred to customers in the ordinary course of business
as | ||||||
8 | part of the sale of food or beverages and is used to deliver, | ||||||
9 | package, or
consume food or beverages, regardless of where | ||||||
10 | consumption of the food or
beverages occurs. Examples of those | ||||||
11 | items include, but are not limited to
nonreusable, paper and | ||||||
12 | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | ||||||
13 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
14 | and
wrapping or packaging
materials that are transferred to | ||||||
15 | customers as part of the sale of food or
beverages in the | ||||||
16 | ordinary course of business.
| ||||||
17 | The purchase, employment and transfer of such tangible | ||||||
18 | personal property
as newsprint and ink for the primary purpose | ||||||
19 | of conveying news (with or
without other information) is not a | ||||||
20 | purchase, use or sale of tangible
personal property.
| ||||||
21 | A person whose activities are organized and conducted | ||||||
22 | primarily as a
not-for-profit service enterprise, and who | ||||||
23 | engages in selling tangible
personal property at retail | ||||||
24 | (whether to the public or merely to members and
their guests) | ||||||
25 | is engaged in the business of selling tangible personal
| ||||||
26 | property at retail with respect to such transactions, excepting |
| |||||||
| |||||||
1 | only a
person organized and operated exclusively for | ||||||
2 | charitable, religious or
educational purposes either (1), to | ||||||
3 | the extent of sales by such person to
its members, students, | ||||||
4 | patients or inmates of tangible personal property to
be used | ||||||
5 | primarily for the purposes of such person, or (2), to the | ||||||
6 | extent of
sales by such person of tangible personal property | ||||||
7 | which is not sold or
offered for sale by persons organized for | ||||||
8 | profit. The selling of school
books and school supplies by | ||||||
9 | schools at retail to students is not
"primarily for the | ||||||
10 | purposes of" the school which does such selling. The
provisions | ||||||
11 | of this paragraph shall not apply to nor subject to taxation
| ||||||
12 | occasional dinners, socials or similar activities of a person | ||||||
13 | organized and
operated exclusively for charitable, religious | ||||||
14 | or educational purposes,
whether or not such activities are | ||||||
15 | open to the public.
| ||||||
16 | A person who is the recipient of a grant or contract under | ||||||
17 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
18 | serves meals to
participants in the federal Nutrition Program | ||||||
19 | for the Elderly in return for
contributions established in | ||||||
20 | amount by the individual participant pursuant
to a schedule of | ||||||
21 | suggested fees as provided for in the federal Act is not
| ||||||
22 | engaged in the business of selling tangible personal property | ||||||
23 | at retail
with respect to such transactions.
| ||||||
24 | "Purchaser" means anyone who, through a sale at retail, | ||||||
25 | acquires the
ownership of or title to tangible personal | ||||||
26 | property for a valuable
consideration.
|
| |||||||
| |||||||
1 | "Reseller of motor fuel" means any person engaged in the | ||||||
2 | business of selling
or delivering or transferring title of | ||||||
3 | motor fuel to another person
other than for use or consumption.
| ||||||
4 | No person shall act as a reseller of motor fuel within this | ||||||
5 | State without
first being registered as a reseller pursuant to | ||||||
6 | Section 2c or a retailer
pursuant to Section 2a.
| ||||||
7 | "Selling price" or the "amount of sale" means the | ||||||
8 | consideration for a
sale valued in money whether received in | ||||||
9 | money or otherwise, including
cash, credits, property, other | ||||||
10 | than as hereinafter provided, and services,
but not including | ||||||
11 | the value of or credit given for traded-in tangible
personal | ||||||
12 | property where the item that is traded-in is of like kind and
| ||||||
13 | character as that which is being sold, and shall be determined | ||||||
14 | without any
deduction on account of the cost of the property | ||||||
15 | sold, the cost of
materials used, labor or service cost or any | ||||||
16 | other expense whatsoever, but
does not include charges that are | ||||||
17 | added to prices by sellers on account of
the seller's tax | ||||||
18 | liability under this Act, or on account of the seller's
duty to | ||||||
19 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
20 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
21 | cigarette tax imposed by a home rule unit, on account of the | ||||||
22 | seller's tax liability under any local occupation tax | ||||||
23 | administered by the Department, or, except as otherwise | ||||||
24 | provided with respect to any cigarette tax imposed by a home | ||||||
25 | rule unit on account of the seller's duty to collect, from the | ||||||
26 | purchasers, the tax that is imposed under any local use tax |
| |||||||
| |||||||
1 | administered by the Department.
Effective December 1, 1985, | ||||||
2 | "selling price" shall include charges that
are added to prices | ||||||
3 | by sellers on account of the seller's
tax liability under the | ||||||
4 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
5 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
6 | Act, and on account of the seller's duty to collect, from the
| ||||||
7 | purchaser, any cigarette tax imposed by a home rule unit.
| ||||||
8 | Notwithstanding any law to the contrary, for any motor | ||||||
9 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
10 | is sold on or after January 1, 2015 July 1, 2014 for the | ||||||
11 | purpose of leasing the vehicle for a defined period that is | ||||||
12 | longer than one year and (1) is a motor vehicle of the second | ||||||
13 | division that: (A) is a self-contained motor vehicle designed | ||||||
14 | or permanently converted to provide living quarters for | ||||||
15 | recreational, camping, or travel use, with direct walk through | ||||||
16 | access to the living quarters from the driver's seat; (B) is of | ||||||
17 | the van configuration designed for the transportation of not | ||||||
18 | less than 7 nor more than 16 passengers; or (C) has a gross | ||||||
19 | vehicle weight rating of 8,000 pounds or less or (2) is a motor | ||||||
20 | vehicle of the first division, "selling price" or "amount of | ||||||
21 | sale" means the consideration received by the lessor pursuant | ||||||
22 | to the lease contract, including amounts due at lease signing | ||||||
23 | and all monthly or other regular payments charged over the term | ||||||
24 | of the lease. Also included in the selling price is any amount | ||||||
25 | received by the lessor from the lessee for the leased vehicle | ||||||
26 | that is not calculated at the time the lease is executed, |
| |||||||
| |||||||
1 | including, but not limited to, excess mileage charges and | ||||||
2 | charges for excess wear and tear. For sales that occur in | ||||||
3 | Illinois, with respect to any amount received by the lessor | ||||||
4 | from the lessee for the leased vehicle that is not calculated | ||||||
5 | at the time the lease is executed, the lessor who purchased the | ||||||
6 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
7 | on those amounts, and the retailer who makes the retail sale of | ||||||
8 | the motor vehicle to the lessor is not required to collect the | ||||||
9 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
10 | Act on those amounts. However, the lessor who purchased the | ||||||
11 | motor vehicle assumes the liability for reporting and paying | ||||||
12 | the tax on those amounts directly to the Department in the same | ||||||
13 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
14 | occupation taxes, if applicable) in which the retailer would | ||||||
15 | have reported and paid such tax if the retailer had accounted | ||||||
16 | for the tax to the Department. For amounts received by the | ||||||
17 | lessor from the lessee that are not calculated at the time the | ||||||
18 | lease is executed, the lessor must file the return and pay the | ||||||
19 | tax to the Department by the due date otherwise required by | ||||||
20 | this Act for returns other than transaction returns. If the | ||||||
21 | retailer is entitled under this Act to a discount for | ||||||
22 | collecting and remitting the tax imposed under this Act to the | ||||||
23 | Department with respect to the sale of the motor vehicle to the | ||||||
24 | lessor, then the right to the discount provided in this Act | ||||||
25 | shall be transferred to the lessor with respect to the tax paid | ||||||
26 | by the lessor for any amount received by the lessor from the |
| |||||||
| |||||||
1 | lessee for the leased vehicle that is not calculated at the | ||||||
2 | time the lease is executed; provided that the discount is only | ||||||
3 | allowed if the return is timely filed and for amounts timely | ||||||
4 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
5 | after January 1, 2015 July 1, 2014 for the purpose of leasing | ||||||
6 | for a defined period of longer than one year shall not be | ||||||
7 | reduced by the value of or credit given for traded-in tangible | ||||||
8 | personal property owned by the lessor, nor shall it be reduced | ||||||
9 | by the value of or credit given for traded-in tangible personal | ||||||
10 | property owned by the lessee, regardless of whether the | ||||||
11 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
12 | In the case of a motor vehicle that is sold for the purpose of | ||||||
13 | leasing for a defined period of longer than one year, the sale | ||||||
14 | occurs at the time of the delivery of the vehicle, regardless | ||||||
15 | of the due date of any lease payments. A lessor who incurs a | ||||||
16 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
17 | vehicle coming off lease may not take a credit against that | ||||||
18 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
19 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
20 | to any amount received by the lessor from the lessee for the | ||||||
21 | leased vehicle that was not calculated at the time the lease | ||||||
22 | was executed) if the selling price of the motor vehicle at the | ||||||
23 | time of purchase was calculated using the definition of | ||||||
24 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
25 | any other provision of this Act to the contrary, lessors shall | ||||||
26 | file all returns and make all payments required under this |
| |||||||
| |||||||
1 | paragraph to the Department by electronic means in the manner | ||||||
2 | and form as required by the Department. This paragraph does not | ||||||
3 | apply to leases of motor vehicles for which, at the time the | ||||||
4 | lease is entered into, the term of the lease is not a defined | ||||||
5 | period, including leases with a defined initial period with the | ||||||
6 | option to continue the lease on a month-to-month or other basis | ||||||
7 | beyond the initial defined period. | ||||||
8 | The phrase "like kind and character" shall be liberally | ||||||
9 | construed
(including but not limited to any form of motor | ||||||
10 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
11 | agricultural implement for any other
kind of farm or | ||||||
12 | agricultural implement), while not including a kind of item
| ||||||
13 | which, if sold at retail by that retailer, would be exempt from | ||||||
14 | retailers'
occupation tax and use tax as an isolated or | ||||||
15 | occasional sale.
| ||||||
16 | "Gross receipts" from the sales of tangible personal | ||||||
17 | property at retail
means the total selling price or the amount | ||||||
18 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
19 | and time sales, the amount thereof shall be
included only as | ||||||
20 | and when payments are received by the seller.
Receipts or other | ||||||
21 | consideration derived by a seller from
the sale, transfer or | ||||||
22 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
23 | will not be deemed payments prior to the time the purchaser
| ||||||
24 | makes payment on such accounts.
| ||||||
25 | "Department" means the Department of Revenue.
| ||||||
26 | "Person" means any natural individual, firm, partnership, |
| |||||||
| |||||||
1 | association,
joint stock company, joint adventure, public or | ||||||
2 | private corporation, limited
liability company, or a receiver, | ||||||
3 | executor, trustee, guardian or other
representative appointed | ||||||
4 | by order of any court.
| ||||||
5 | The isolated or occasional sale of tangible personal | ||||||
6 | property at retail
by a person who does not hold himself out as | ||||||
7 | being engaged (or who does not
habitually engage) in selling | ||||||
8 | such tangible personal property at retail, or
a sale through a | ||||||
9 | bulk vending machine, does not constitute engaging in a
| ||||||
10 | business of selling such tangible personal property at retail | ||||||
11 | within the
meaning of this Act; provided that any person who is | ||||||
12 | engaged in a business
which is not subject to the tax imposed | ||||||
13 | by this Act because of involving
the sale of or a contract to | ||||||
14 | sell real estate or a construction contract to
improve real | ||||||
15 | estate or a construction contract to engineer, install, and
| ||||||
16 | maintain an integrated system of products, but who, in the | ||||||
17 | course of
conducting such business,
transfers tangible | ||||||
18 | personal property to users or consumers in the finished
form in | ||||||
19 | which it was purchased, and which does not become real estate | ||||||
20 | or was
not engineered and installed, under any provision of a | ||||||
21 | construction contract or
real estate sale or real estate sales | ||||||
22 | agreement entered into with some other
person arising out of or | ||||||
23 | because of such nontaxable business, is engaged in the
business | ||||||
24 | of selling tangible personal property at retail to the extent | ||||||
25 | of the
value of the tangible personal property so transferred. | ||||||
26 | If, in such a
transaction, a separate charge is made for the |
| |||||||
| |||||||
1 | tangible personal property so
transferred, the value of such | ||||||
2 | property, for the purpose of this Act, shall be
the amount so | ||||||
3 | separately charged, but not less than the cost of such property
| ||||||
4 | to the transferor; if no separate charge is made, the value of | ||||||
5 | such property,
for the purposes of this Act, is the cost to the | ||||||
6 | transferor of such tangible
personal property. Construction | ||||||
7 | contracts for the improvement of real estate
consisting of | ||||||
8 | engineering, installation, and maintenance of voice, data, | ||||||
9 | video,
security, and all telecommunication systems do not | ||||||
10 | constitute engaging in a
business of selling tangible personal | ||||||
11 | property at retail within the meaning of
this Act if they are | ||||||
12 | sold at one specified contract price.
| ||||||
13 | A person who holds himself or herself out as being engaged | ||||||
14 | (or who habitually
engages) in selling tangible personal | ||||||
15 | property at retail is a person
engaged in the business of | ||||||
16 | selling tangible personal property at retail
hereunder with | ||||||
17 | respect to such sales (and not primarily in a service
| ||||||
18 | occupation) notwithstanding the fact that such person designs | ||||||
19 | and produces
such tangible personal property on special order | ||||||
20 | for the purchaser and in
such a way as to render the property | ||||||
21 | of value only to such purchaser, if
such tangible personal | ||||||
22 | property so produced on special order serves
substantially the | ||||||
23 | same function as stock or standard items of tangible
personal | ||||||
24 | property that are sold at retail.
| ||||||
25 | Persons who engage in the business of transferring tangible | ||||||
26 | personal
property upon the redemption of trading stamps are |
| |||||||
| |||||||
1 | engaged in the business
of selling such property at retail and | ||||||
2 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
3 | on the basis of the retail value of the
property transferred | ||||||
4 | upon redemption of such stamps.
| ||||||
5 | "Bulk vending machine" means a vending machine,
containing | ||||||
6 | unsorted confections, nuts, toys, or other items designed
| ||||||
7 | primarily to be used or played with by children
which, when a | ||||||
8 | coin or coins of a denomination not larger than $0.50 are
| ||||||
9 | inserted, are dispensed in equal portions, at random and
| ||||||
10 | without selection by the customer.
| ||||||
11 | (Source: P.A. 95-723, eff. 6-23-08; 09800HB2317enr.)
| ||||||
12 | Section 15. The Illinois Vehicle Code is amended by | ||||||
13 | changing Section 5-501 as follows:
| ||||||
14 | (625 ILCS 5/5-501) (from Ch. 95 1/2, par. 5-501)
| ||||||
15 | Sec. 5-501. Denial, suspension or revocation or | ||||||
16 | cancellation of a license. | ||||||
17 | (a) The license of a person issued under this Chapter may | ||||||
18 | be denied,
revoked or suspended if the Secretary of State finds | ||||||
19 | that the applicant,
or the officer, director, shareholder | ||||||
20 | having a ten percent or
greater ownership interest in the | ||||||
21 | corporation, owner, partner, trustee,
manager, employee or the | ||||||
22 | licensee
has:
| ||||||
23 | 1. Violated this Act;
| ||||||
24 | 2. Made any material misrepresentation to the |
| |||||||
| |||||||
1 | Secretary of State in
connection with an application for a | ||||||
2 | license, junking certificate,
salvage certificate, title | ||||||
3 | or registration;
| ||||||
4 | 3. Committed a fraudulent act in connection with | ||||||
5 | selling,
bartering, exchanging, offering for sale or | ||||||
6 | otherwise dealing in
vehicles, chassis, essential parts, | ||||||
7 | or vehicle shells;
| ||||||
8 | 4. As a new vehicle dealer has no contract with a | ||||||
9 | manufacturer or
enfranchised distributor to sell that new | ||||||
10 | vehicle in this State;
| ||||||
11 | 5. Not maintained an established place of business as | ||||||
12 | defined in
this Code;
| ||||||
13 | 6. Failed to file or produce for the Secretary of State | ||||||
14 | any
application, report, document or other pertinent | ||||||
15 | books, records,
documents, letters, contracts, required to | ||||||
16 | be filed or produced under
this Code or any rule or | ||||||
17 | regulation made by the Secretary of State
pursuant to this | ||||||
18 | Code;
| ||||||
19 | 7. Previously had, within 3 years, such a license | ||||||
20 | denied, suspended,
revoked, or cancelled under the | ||||||
21 | provisions of subsection (c)(2)
of this Section;
| ||||||
22 | 8. Has committed in any calendar year 3 or more | ||||||
23 | violations, as
determined in any civil or criminal | ||||||
24 | proceeding, of any one or more of
the following Acts:
| ||||||
25 | a. the "Consumer Finance Act";
| ||||||
26 | b. the "Consumer Installment Loan Act";
|
| |||||||
| |||||||
1 | c. the "Retail Installment Sales Act";
| ||||||
2 | d. the "Motor Vehicle Retail Installment Sales | ||||||
3 | Act";
| ||||||
4 | e. "An Act in relation to the rate of interest and | ||||||
5 | other charges in
connection with sales on credit and | ||||||
6 | the lending of money", approved May
24, 1879, as | ||||||
7 | amended;
| ||||||
8 | f. "An Act to promote the welfare of wage-earners | ||||||
9 | by regulating the
assignment of wages, and prescribing | ||||||
10 | a penalty for the violation
thereof", approved July 1, | ||||||
11 | 1935, as amended;
| ||||||
12 | g. Part 8 of Article XII of the Code of Civil | ||||||
13 | Procedure; or
| ||||||
14 | h. the "Consumer Fraud Act";
| ||||||
15 | 9. Failed to pay any fees or taxes due under this Act, | ||||||
16 | or has
failed to transmit any fees or taxes received by him | ||||||
17 | for transmittal by
him to the Secretary of State or the | ||||||
18 | State of Illinois;
| ||||||
19 | 10. Converted an abandoned vehicle;
| ||||||
20 | 11. Used a vehicle identification plate or number | ||||||
21 | assigned to a
vehicle other than the one to which | ||||||
22 | originally assigned;
| ||||||
23 | 12. Violated the provisions of Chapter 5 of this Act, | ||||||
24 | as amended;
| ||||||
25 | 13. Violated the provisions of Chapter 4 of this Act, | ||||||
26 | as amended;
|
| |||||||
| |||||||
1 | 14. Violated the provisions of Chapter 3 of this Act, | ||||||
2 | as amended;
| ||||||
3 | 15. Violated Section 21-2 of the Criminal Code of 1961 | ||||||
4 | or the Criminal Code of 2012, Criminal Trespass
to | ||||||
5 | Vehicles;
| ||||||
6 | 16. Made or concealed a material fact in connection | ||||||
7 | with his application
for a license;
| ||||||
8 | 17. Acted in the capacity of a person licensed or acted | ||||||
9 | as a licensee
under this Chapter without having a license | ||||||
10 | therefor;
| ||||||
11 | 18. Failed to pay, within 90 days after a final | ||||||
12 | judgment, any fines
assessed against the licensee pursuant | ||||||
13 | to an action brought under Section 5-404;
| ||||||
14 | 19. Failed to pay the Dealer Recovery Trust Fund fee | ||||||
15 | under Section 5-102.7 of this Code; | ||||||
16 | 20. Failed to pay, within 90 days after notice has been | ||||||
17 | given, any fine or fee owed as a result of an | ||||||
18 | administrative citation issued by the Secretary under this | ||||||
19 | Code. | ||||||
20 | (b) In addition to other grounds specified in this Chapter, | ||||||
21 | the
Secretary of State, on complaint of the Department of | ||||||
22 | Revenue, shall
refuse the issuance or renewal of a license, or | ||||||
23 | suspend or revoke such
license, for any of the following | ||||||
24 | violations of the "Retailers'
Occupation Tax Act" , the tax | ||||||
25 | imposed on corporations under subsection (b) of Section 201 of | ||||||
26 | the Illinois Income Tax Act, the Personal Property Tax |
| |||||||
| |||||||
1 | Replacement Income Tax imposed under subsections (c) and (d) of | ||||||
2 | Section 201 of the Illinois Income Tax Act, or the tax imposed | ||||||
3 | under Section 704A of the Illinois Income Tax Act :
| ||||||
4 | 1. Failure to make a tax return;
| ||||||
5 | 2. The filing of a fraudulent return;
| ||||||
6 | 3. Failure to pay all or part of any tax or penalty | ||||||
7 | finally
determined to be due;
| ||||||
8 | 4. Failure to comply with the bonding requirements of | ||||||
9 | the
"Retailers' Occupation Tax Act".
| ||||||
10 | (b-1) In addition to other grounds specified in this | ||||||
11 | Chapter, the
Secretary of State, on complaint of the Motor | ||||||
12 | Vehicle Review Board, shall
refuse the issuance or renewal of a | ||||||
13 | license, or suspend or revoke that
license, if costs or fees | ||||||
14 | assessed under Section 29 or Section 30 of the Motor Vehicle | ||||||
15 | Franchise Act have remained unpaid for a period in excess of 90 | ||||||
16 | days after the licensee received from the Motor Vehicle Board a | ||||||
17 | second notice and demand for the costs or fees. The Motor | ||||||
18 | Vehicle Review Board must send the licensee written notice and | ||||||
19 | demand for payment of the fees or costs at least 2 times, and | ||||||
20 | the second notice and demand must be sent by certified mail.
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21 | (c) Cancellation of a license.
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22 | 1. The license of a person issued under this Chapter | ||||||
23 | may be cancelled
by the Secretary of State prior to its | ||||||
24 | expiration in any of the following
situations:
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25 | A. When a license is voluntarily surrendered, by | ||||||
26 | the licensed person;
or
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1 | B. If the business enterprise is a sole | ||||||
2 | proprietorship, which is not a
franchised dealership, | ||||||
3 | when the sole proprietor dies or is imprisoned for
any | ||||||
4 | period of time exceeding 30 days; or
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5 | C. If the license was issued to the wrong person or | ||||||
6 | corporation, or
contains an error on its face. If any | ||||||
7 | person above whose license
has been cancelled wishes to | ||||||
8 | apply for another license, whether during the
same | ||||||
9 | license year or any other year, that person shall be | ||||||
10 | treated as any
other new applicant and the cancellation | ||||||
11 | of the person's prior license
shall not, in and of | ||||||
12 | itself, be a bar to the issuance of a new license.
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13 | 2. The license of a person issued under this Chapter | ||||||
14 | may be cancelled
without a hearing when the Secretary of | ||||||
15 | State is notified that the
applicant, or any officer, | ||||||
16 | director, shareholder having a 10 per cent or
greater | ||||||
17 | ownership interest in the corporation, owner, partner, | ||||||
18 | trustee,
manager, employee or member of the applicant or | ||||||
19 | the licensee has been
convicted of any felony involving the | ||||||
20 | selling, bartering, exchanging,
offering for sale, or | ||||||
21 | otherwise dealing in vehicles, chassis, essential
parts, | ||||||
22 | vehicle shells, or ownership documents relating to any of | ||||||
23 | the
above items.
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24 | (Source: P.A. 97-480, eff. 10-1-11; 97-838, eff. 7-20-12; | ||||||
25 | 97-1150, eff. 1-25-13.)
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26 | Section 99. Effective date. This Act takes effect upon |
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