Bill Text: IL SB0058 | 2021-2022 | 102nd General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2022, the term "selling price" no longer includes the value of traded-in motor vehicles. Amends the Illinois Vehicle Code. Defines "utility trailer". Provides for a flat weight trailer tax of $36 for utility trailers. Decreases the flat weight tax for Class TA trailers from $118 to $36. Increases the certificate of title fee for vehicles other than all-terrain vehicles, off-highway motorcycles, motor homes, mini motor homes, and van campers from $150 to $155 and provides that the additional fee amount shall be deposited into the Road Fund. In a Section concerning the use tax on motor vehicles, makes changes concerning the amount of the tax. Effective January 1, 2022.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-08-13 - Public Act . . . . . . . . . 102-0353 [SB0058 Detail]
Download: Illinois-2021-SB0058-Introduced.html
Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that, beginning on January 1, 2022, the term "selling price" no longer includes the value of traded-in motor vehicles. Amends the Illinois Vehicle Code. Defines "utility trailer". Provides for a flat weight trailer tax of $36 for utility trailers. Decreases the flat weight tax for Class TA trailers from $118 to $36. Increases the certificate of title fee for vehicles other than all-terrain vehicles, off-highway motorcycles, motor homes, mini motor homes, and van campers from $150 to $155 and provides that the additional fee amount shall be deposited into the Road Fund. In a Section concerning the use tax on motor vehicles, makes changes concerning the amount of the tax. Effective January 1, 2022.
Spectrum: Bipartisan Bill
Status: (Passed) 2021-08-13 - Public Act . . . . . . . . . 102-0353 [SB0058 Detail]
Download: Illinois-2021-SB0058-Introduced.html
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1 | AN ACT concerning revenue.
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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. The Use Tax Act is amended by changing Section 2 | ||||||||||||||||||||||||||||
5 | as follows:
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6 | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
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7 | Sec. 2. Definitions. | ||||||||||||||||||||||||||||
8 | "Use" means the exercise by any person of any right or | ||||||||||||||||||||||||||||
9 | power over
tangible personal property incident to the | ||||||||||||||||||||||||||||
10 | ownership of that property,
except that it does not include | ||||||||||||||||||||||||||||
11 | the sale of such property in any form as
tangible personal | ||||||||||||||||||||||||||||
12 | property in the regular course of business to the extent
that | ||||||||||||||||||||||||||||
13 | such 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 | ||||||
2 | imposed by this Act,
and no credit for that tax is permitted if | ||||||
3 | the watercraft or aircraft is
subsequently sold by the | ||||||
4 | retailer. "Use" does not mean the physical
incorporation of | ||||||
5 | tangible personal property, to the extent not first subjected
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6 | to a use for which it was purchased, as an ingredient or | ||||||
7 | constituent, into
other tangible personal property (a) which | ||||||
8 | is sold in the regular course of
business or (b) which the | ||||||
9 | person incorporating such ingredient or constituent
therein | ||||||
10 | has 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 | ||||||
14 | first 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 | ||||||
22 | ownership of or title
to tangible personal property through a | ||||||
23 | sale at 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 | ||||||
5 | subjected 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' | ||||||
15 | Occupation Tax Act, as incorporated by
reference into Section | ||||||
16 | 12 of this Act. Transactions whereby the possession
of the | ||||||
17 | property is transferred but the seller retains the title as | ||||||
18 | security
for 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 | ||||||
8 | other containers, utensils, straws, placemats, napkins, doggie | ||||||
9 | bags, and
wrapping or packaging
materials that are transferred | ||||||
10 | to 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, | ||||||
19 | and services, but, prior to January 1, 2020 and beginning | ||||||
20 | again 120 days after the effective date of this amendatory Act | ||||||
21 | of the 102nd General Assembly , not including the
value of or | ||||||
22 | credit given for traded-in tangible personal property where | ||||||
23 | the
item that is traded-in is of like kind and character as | ||||||
24 | that which is being
sold; beginning January 1, 2020 and until | ||||||
25 | 120 days after the effective date of this amendatory Act of the | ||||||
26 | 102nd General Assembly , "selling price" includes the portion |
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1 | of the value of or credit given for traded-in motor vehicles of | ||||||
2 | the First Division as defined in Section 1-146 of the Illinois | ||||||
3 | Vehicle Code of like kind and character as that which is being | ||||||
4 | sold that exceeds $10,000. "Selling price" shall be determined | ||||||
5 | without any deduction on account of the cost
of the property | ||||||
6 | sold, the cost of materials used, labor or service cost or
any | ||||||
7 | other expense whatsoever, but does not include interest or | ||||||
8 | finance
charges which appear as separate items on the bill of | ||||||
9 | sale or sales
contract nor charges that are added to prices by | ||||||
10 | sellers on account of the
seller's tax liability under the | ||||||
11 | Retailers' Occupation Tax Act, or on
account of the seller's | ||||||
12 | duty to collect, from the purchaser, the tax that
is imposed by | ||||||
13 | this Act, or, except as otherwise provided with respect to any | ||||||
14 | cigarette tax imposed by a home rule unit, on account of the | ||||||
15 | seller's tax liability under any local occupation tax | ||||||
16 | administered by the Department, or, except as otherwise | ||||||
17 | provided with respect to any cigarette tax imposed by a home | ||||||
18 | rule unit on account of the seller's duty to collect, from the | ||||||
19 | purchasers, the tax that is imposed under any local use tax | ||||||
20 | administered by the Department. Effective December 1, 1985, | ||||||
21 | "selling price"
shall include charges that are added to prices | ||||||
22 | by sellers on account of the
seller's tax liability under the | ||||||
23 | Cigarette Tax Act, on account of the seller's
duty to collect, | ||||||
24 | from the purchaser, the tax imposed under the Cigarette Use
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25 | Tax Act, and on account of the seller's duty to collect, from | ||||||
26 | the purchaser,
any cigarette tax imposed by a home rule unit.
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1 | Notwithstanding any law to the contrary, for any motor | ||||||
2 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
3 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
4 | the vehicle for a defined period that is longer than one year | ||||||
5 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
6 | a self-contained motor vehicle designed or permanently | ||||||
7 | converted to provide living quarters for recreational, | ||||||
8 | camping, or travel use, with direct walk through access to the | ||||||
9 | living quarters from the driver's seat; (B) is of the van | ||||||
10 | configuration designed for the transportation of not less than | ||||||
11 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
12 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
13 | of the first division, "selling price" or "amount of sale" | ||||||
14 | means the consideration received by the lessor pursuant to the | ||||||
15 | lease contract, including amounts due at lease signing and all | ||||||
16 | monthly or other regular payments charged over the term of the | ||||||
17 | lease. Also included in the selling price is any amount | ||||||
18 | received by the lessor from the lessee for the leased vehicle | ||||||
19 | that is not calculated at the time the lease is executed, | ||||||
20 | including, but not limited to, excess mileage charges and | ||||||
21 | charges for excess wear and tear. For sales that occur in | ||||||
22 | Illinois, with respect to any amount received by the lessor | ||||||
23 | from the lessee for the leased vehicle that is not calculated | ||||||
24 | at the time the lease is executed, the lessor who purchased the | ||||||
25 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
26 | on those amounts, and the retailer who makes the retail sale of |
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1 | the motor vehicle to the lessor is not required to collect the | ||||||
2 | tax imposed by this Act or to pay the tax imposed by the | ||||||
3 | Retailers' Occupation Tax Act on those amounts. However, the | ||||||
4 | lessor who purchased the motor vehicle assumes the liability | ||||||
5 | for reporting and paying the tax on those amounts directly to | ||||||
6 | the Department in the same form (Illinois Retailers' | ||||||
7 | Occupation Tax, and local retailers' occupation taxes, if | ||||||
8 | applicable) in which the retailer would have reported and paid | ||||||
9 | such tax if the retailer had accounted for the tax to the | ||||||
10 | Department. For amounts received by the lessor from the lessee | ||||||
11 | that are not calculated at the time the lease is executed, the | ||||||
12 | lessor must file the return and pay the tax to the Department | ||||||
13 | by the due date otherwise required by this Act for returns | ||||||
14 | other than transaction returns. If the retailer is entitled | ||||||
15 | under this Act to a discount for collecting and remitting the | ||||||
16 | tax imposed under this Act to the Department with respect to | ||||||
17 | the sale of the motor vehicle to the lessor, then the right to | ||||||
18 | the discount provided in this Act shall be transferred to the | ||||||
19 | lessor with respect to the tax paid by the lessor for any | ||||||
20 | amount received by the lessor from the lessee for the leased | ||||||
21 | vehicle that is not calculated at the time the lease is | ||||||
22 | executed; provided that the discount is only allowed if the | ||||||
23 | return is timely filed and for amounts timely paid. The | ||||||
24 | "selling price" of a motor vehicle that is sold on or after | ||||||
25 | January 1, 2015 for the purpose of leasing for a defined period | ||||||
26 | of longer than one year shall not be reduced by the value of or |
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1 | credit given for traded-in tangible personal property owned by | ||||||
2 | the lessor, nor shall it be reduced by the value of or credit | ||||||
3 | given for traded-in tangible personal property owned by the | ||||||
4 | lessee, regardless of whether the trade-in value thereof is | ||||||
5 | assigned by the lessee to the lessor. In the case of a motor | ||||||
6 | vehicle that is sold for the purpose of leasing for a defined | ||||||
7 | period of longer than one year, the sale occurs at the time of | ||||||
8 | the delivery of the vehicle, regardless of the due date of any | ||||||
9 | lease payments. A lessor who incurs a Retailers' Occupation | ||||||
10 | Tax liability on the sale of a motor vehicle coming off lease | ||||||
11 | may not take a credit against that liability for the Use Tax | ||||||
12 | the lessor paid upon the purchase of the motor vehicle (or for | ||||||
13 | any tax the lessor paid with respect to any amount received by | ||||||
14 | the lessor from the lessee for the leased vehicle that was not | ||||||
15 | calculated at the time the lease was executed) if the selling | ||||||
16 | price of the motor vehicle at the time of purchase was | ||||||
17 | calculated using the definition of "selling price" as defined | ||||||
18 | in this paragraph. Notwithstanding any other provision of this | ||||||
19 | Act to the contrary, lessors shall file all returns and make | ||||||
20 | all payments required under this paragraph to the Department | ||||||
21 | by electronic means in the manner and form as required by the | ||||||
22 | Department. This paragraph does not apply to leases of motor | ||||||
23 | vehicles for which, at the time the lease is entered into, the | ||||||
24 | term of the lease is not a defined period, including leases | ||||||
25 | with a defined initial period with the option to continue the | ||||||
26 | lease on a month-to-month or other basis beyond the initial |
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1 | defined period. | ||||||
2 | The phrase "like kind and character" shall be liberally | ||||||
3 | construed
(including but not limited to any form of motor | ||||||
4 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
5 | agricultural implement for any other
kind of farm or | ||||||
6 | agricultural implement), while not including a kind of item
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7 | which, if sold at retail by that retailer, would be exempt from | ||||||
8 | retailers'
occupation tax and use tax as an isolated or | ||||||
9 | occasional sale.
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10 | "Department" means the Department of Revenue.
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11 | "Person" means any natural individual, firm, partnership, | ||||||
12 | association,
joint stock company, joint adventure, public or | ||||||
13 | private corporation, limited
liability company, or a
receiver, | ||||||
14 | executor, trustee, guardian or other representative appointed
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15 | by order of any court.
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16 | "Retailer" means and includes every person engaged in the | ||||||
17 | business of
making sales at retail as defined in this Section.
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18 | A person who holds himself or herself out as being engaged | ||||||
19 | (or who habitually
engages) in selling tangible personal | ||||||
20 | property at retail is a retailer
hereunder with respect to | ||||||
21 | such sales (and not primarily in a service
occupation) | ||||||
22 | notwithstanding the fact that such person designs and produces
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23 | such tangible personal property on special order for the | ||||||
24 | purchaser and in
such a way as to render the property of value | ||||||
25 | only to such purchaser, if
such tangible personal property so | ||||||
26 | produced on special order serves
substantially the same |
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1 | function as stock or standard items of tangible
personal | ||||||
2 | property that are sold at retail.
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3 | A person whose activities are organized and conducted | ||||||
4 | primarily as a
not-for-profit service enterprise, and who | ||||||
5 | engages in selling tangible
personal property at retail | ||||||
6 | (whether to the public or merely to members and
their guests) | ||||||
7 | is a retailer with respect to such transactions, excepting
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8 | only a person organized and operated exclusively for | ||||||
9 | charitable, religious
or educational purposes either (1), to | ||||||
10 | the extent of sales by such person
to its members, students, | ||||||
11 | patients or inmates of tangible personal property
to be used | ||||||
12 | primarily for the purposes of such person, or (2), to the | ||||||
13 | extent
of sales by such person of tangible personal property | ||||||
14 | which is not sold or
offered for sale by persons organized for | ||||||
15 | profit. The selling of school
books and school supplies by | ||||||
16 | schools at retail to students is not
"primarily for the | ||||||
17 | purposes of" the school which does such selling. This
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18 | paragraph does not apply to nor subject to taxation occasional | ||||||
19 | dinners,
social or similar activities of a person organized | ||||||
20 | and operated exclusively
for charitable, religious or | ||||||
21 | educational purposes, whether or not such
activities are open | ||||||
22 | to the public.
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23 | A person who is the recipient of a grant or contract under | ||||||
24 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
25 | serves meals to
participants in the federal Nutrition Program | ||||||
26 | for the Elderly in return for
contributions established in |
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1 | amount by the individual participant pursuant
to a schedule of | ||||||
2 | suggested fees as provided for in the federal Act is not a
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3 | retailer under this Act with respect to such transactions.
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4 | Persons who engage in the business of transferring | ||||||
5 | tangible personal
property upon the redemption of trading | ||||||
6 | stamps are retailers hereunder when
engaged in such business.
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7 | The isolated or occasional sale of tangible personal | ||||||
8 | property at retail
by a person who does not hold himself out as | ||||||
9 | being engaged (or who does not
habitually engage) in selling | ||||||
10 | such tangible personal property at retail or
a sale through a | ||||||
11 | bulk vending machine does not make such person a retailer
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12 | hereunder. However, any person who is engaged in a business | ||||||
13 | which is not
subject to the tax imposed by the Retailers' | ||||||
14 | Occupation Tax Act because
of involving the sale of or a | ||||||
15 | contract to sell real estate or a
construction contract to | ||||||
16 | improve real estate, but who, in the course of
conducting such | ||||||
17 | business, transfers tangible personal property to users or
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18 | consumers in the finished form in which it was purchased, and | ||||||
19 | which does
not become real estate, under any provision of a | ||||||
20 | construction contract or
real estate sale or real estate sales | ||||||
21 | agreement entered into with some
other person arising out of | ||||||
22 | or because of such nontaxable business, is a
retailer to the | ||||||
23 | extent of the value of the tangible personal property so
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24 | transferred. If, in such transaction, a separate charge is | ||||||
25 | made for the
tangible personal property so transferred, the | ||||||
26 | value of such property, for
the purposes of this Act, is the |
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1 | amount so separately charged, but not less
than the cost of | ||||||
2 | such property to the transferor; if no separate charge is
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3 | made, the value of such property, for the purposes of this Act, | ||||||
4 | is the cost
to the transferor of such tangible personal | ||||||
5 | property.
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6 | "Retailer maintaining a place of business in this State", | ||||||
7 | or any like
term, means and includes any of the following | ||||||
8 | retailers:
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9 | (1) A retailer having or maintaining within this | ||||||
10 | State, directly or by
a subsidiary, an office, | ||||||
11 | distribution house, sales house, warehouse or other
place | ||||||
12 | of business, or any agent or other representative | ||||||
13 | operating within this
State under the authority of the | ||||||
14 | retailer or its subsidiary, irrespective of
whether such | ||||||
15 | place of business or agent or other representative is | ||||||
16 | located here
permanently or temporarily, or whether such | ||||||
17 | retailer or subsidiary is licensed
to do business in this | ||||||
18 | State. However, the ownership of property that is
located | ||||||
19 | at the premises of a printer with which the retailer has | ||||||
20 | contracted for
printing and that consists of the final | ||||||
21 | printed product, property that becomes
a part of the final | ||||||
22 | printed product, or copy from which the printed product is
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23 | produced shall not result in the retailer being deemed to | ||||||
24 | have or maintain an
office, distribution house, sales | ||||||
25 | house, warehouse, or other place of business
within this | ||||||
26 | State. |
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1 | (1.1) A retailer having a contract with a person | ||||||
2 | located in this State under which the person, for a | ||||||
3 | commission or other consideration based upon the sale of | ||||||
4 | tangible personal property by the retailer, directly or | ||||||
5 | indirectly refers potential customers to the retailer by | ||||||
6 | providing to the potential customers a promotional code or | ||||||
7 | other mechanism that allows the retailer to track | ||||||
8 | purchases referred by such persons. Examples of mechanisms | ||||||
9 | that allow the retailer to track purchases referred by | ||||||
10 | such persons include but are not limited to the use of a | ||||||
11 | link on the person's Internet website, promotional codes | ||||||
12 | distributed through the person's hand-delivered or mailed | ||||||
13 | material, and promotional codes distributed by the person | ||||||
14 | through radio or other broadcast media. The provisions of | ||||||
15 | this paragraph (1.1) shall apply only if the cumulative | ||||||
16 | gross receipts from sales of tangible personal property by | ||||||
17 | the retailer to customers who are referred to the retailer | ||||||
18 | by all persons in this State under such contracts exceed | ||||||
19 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
20 | the last day of March, June, September, and December. A | ||||||
21 | retailer meeting the requirements of this paragraph (1.1) | ||||||
22 | shall be presumed to be maintaining a place of business in | ||||||
23 | this State but may rebut this presumption by submitting | ||||||
24 | proof that the referrals or other activities pursued | ||||||
25 | within this State by such persons were not sufficient to | ||||||
26 | meet the nexus standards of the United States Constitution |
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1 | during the preceding 4 quarterly periods. | ||||||
2 | (1.2) Beginning July 1, 2011, a retailer having a | ||||||
3 | contract with a person located in this State under which: | ||||||
4 | (A) the retailer sells the same or substantially | ||||||
5 | similar line of products as the person located in this | ||||||
6 | State and does so using an identical or substantially | ||||||
7 | similar name, trade name, or trademark as the person | ||||||
8 | located in this State; and | ||||||
9 | (B) the retailer provides a commission or other | ||||||
10 | consideration to the person located in this State | ||||||
11 | based upon the sale of tangible personal property by | ||||||
12 | the retailer. | ||||||
13 | The provisions of this paragraph (1.2) shall apply | ||||||
14 | only if the cumulative gross receipts from sales of | ||||||
15 | tangible personal property by the retailer to customers in | ||||||
16 | this State under all such contracts exceed $10,000 during | ||||||
17 | the preceding 4 quarterly periods ending on the last day | ||||||
18 | of March, June, September, and December.
| ||||||
19 | (2) (Blank).
| ||||||
20 | (3) (Blank).
| ||||||
21 | (4) (Blank).
| ||||||
22 | (5) (Blank).
| ||||||
23 | (6) (Blank).
| ||||||
24 | (7) (Blank).
| ||||||
25 | (8) (Blank).
| ||||||
26 | (9) Beginning October 1, 2018, a retailer making sales |
| |||||||
| |||||||
1 | of tangible personal property to purchasers in Illinois | ||||||
2 | from outside of Illinois if: | ||||||
3 | (A) the cumulative gross receipts from sales of | ||||||
4 | tangible personal property to purchasers in Illinois | ||||||
5 | are $100,000 or more; or | ||||||
6 | (B) the retailer enters into 200 or more separate | ||||||
7 | transactions for the sale of tangible personal | ||||||
8 | property to purchasers in Illinois. | ||||||
9 | The retailer shall determine on a quarterly basis, | ||||||
10 | ending on the last day of March, June, September, and | ||||||
11 | December, whether he or she meets the criteria of either | ||||||
12 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
13 | preceding 12-month period. If the retailer meets the | ||||||
14 | threshold of either subparagraph (A) or (B) for a 12-month | ||||||
15 | period, he or she is considered a retailer maintaining a | ||||||
16 | place of business in this State and is required to collect | ||||||
17 | and remit the tax imposed under this Act and file returns | ||||||
18 | for one year. At the end of that one-year period, the | ||||||
19 | retailer shall determine whether he or she met the | ||||||
20 | threshold of either subparagraph (A) or (B) during the | ||||||
21 | preceding 12-month period. If the retailer met the | ||||||
22 | criteria in either subparagraph (A) or (B) for the | ||||||
23 | preceding 12-month period, he or she is considered a | ||||||
24 | retailer maintaining a place of business in this State and | ||||||
25 | is required to collect and remit the tax imposed under | ||||||
26 | this Act and file returns for the subsequent year. If at |
| |||||||
| |||||||
1 | the end of a one-year period a retailer that was required | ||||||
2 | to collect and remit the tax imposed under this Act | ||||||
3 | determines that he or she did not meet the threshold in | ||||||
4 | either subparagraph (A) or (B) during the preceding | ||||||
5 | 12-month period, the retailer shall subsequently determine | ||||||
6 | on a quarterly basis, ending on the last day of March, | ||||||
7 | June, September, and December, whether he or she meets the | ||||||
8 | threshold of either subparagraph (A) or (B) for the | ||||||
9 | preceding 12-month period. | ||||||
10 | Beginning January 1, 2020, neither the gross receipts | ||||||
11 | from nor the number of separate transactions for sales of | ||||||
12 | tangible personal property to purchasers in Illinois that | ||||||
13 | a retailer makes through a marketplace facilitator and for | ||||||
14 | which the retailer has received a certification from the | ||||||
15 | marketplace facilitator pursuant to Section 2d of this Act | ||||||
16 | shall be included for purposes of determining whether he | ||||||
17 | or she has met the thresholds of this paragraph (9). | ||||||
18 | (10) Beginning January 1, 2020, a marketplace | ||||||
19 | facilitator that meets a threshold set forth in subsection | ||||||
20 | (b) of Section 2d of this Act. | ||||||
21 | "Bulk vending machine" means a vending machine,
containing | ||||||
22 | unsorted confections, nuts, toys, or other items designed
| ||||||
23 | primarily to be used or played with by children
which, when a | ||||||
24 | coin or coins of a denomination not larger than $0.50 are | ||||||
25 | inserted, are dispensed in equal portions, at random and
| ||||||
26 | without selection by the customer.
|
| |||||||
| |||||||
1 | (Source: P.A. 100-587, eff. 6-4-18; 101-9, eff. 6-5-19; | ||||||
2 | 101-31, eff. 1-1-20; 101-604, eff. 1-1-20.)
| ||||||
3 | Section 10. The Retailers' Occupation Tax Act is amended | ||||||
4 | by changing Section 1 as follows:
| ||||||
5 | (35 ILCS 120/1) (from Ch. 120, par. 440)
| ||||||
6 | Sec. 1. Definitions. "Sale at retail" means any transfer | ||||||
7 | of the
ownership of or title to
tangible personal property to a | ||||||
8 | purchaser, for the purpose of use or
consumption, and not for | ||||||
9 | the purpose of resale in any form as tangible
personal | ||||||
10 | property to the extent not first subjected to a use for which | ||||||
11 | it
was purchased, for a valuable consideration: Provided that | ||||||
12 | the property
purchased is deemed to be purchased for the | ||||||
13 | purpose of resale, despite
first being used, to the extent to | ||||||
14 | which it is resold as an ingredient of
an intentionally | ||||||
15 | produced product or byproduct of manufacturing. For this
| ||||||
16 | purpose, slag produced as an incident to manufacturing pig | ||||||
17 | iron or steel
and sold is considered to be an intentionally | ||||||
18 | produced byproduct of
manufacturing. Transactions whereby the | ||||||
19 | possession of the property is
transferred but the seller | ||||||
20 | retains the title as security for payment of the
selling price | ||||||
21 | shall be deemed to be sales.
| ||||||
22 | "Sale at retail" shall be construed to include any | ||||||
23 | transfer of the
ownership of or title to tangible personal | ||||||
24 | property to a purchaser, for use
or consumption by any other |
| |||||||
| |||||||
1 | person to whom such purchaser may transfer the
tangible | ||||||
2 | personal property without a valuable consideration, and to | ||||||
3 | include
any transfer, whether made for or without a valuable | ||||||
4 | consideration, for
resale in any form as tangible personal | ||||||
5 | property unless made in compliance
with Section 2c of this | ||||||
6 | Act.
| ||||||
7 | Sales of tangible personal property, which property, to | ||||||
8 | the extent not
first subjected to a use for which it was | ||||||
9 | purchased, as an ingredient or
constituent, goes into and | ||||||
10 | forms a part of tangible personal property
subsequently the | ||||||
11 | subject of a "Sale at retail", are not sales at retail as
| ||||||
12 | defined in this Act: Provided that the property purchased is | ||||||
13 | deemed to be
purchased for the purpose of resale, despite | ||||||
14 | first being used, to the
extent to which it is resold as an | ||||||
15 | ingredient of an intentionally produced
product or byproduct | ||||||
16 | of manufacturing.
| ||||||
17 | "Sale at retail" shall be construed to include any | ||||||
18 | Illinois florist's
sales transaction in which the purchase | ||||||
19 | order is received in Illinois by a
florist and the sale is for | ||||||
20 | use or consumption, but the Illinois florist
has a florist in | ||||||
21 | another state deliver the property to the purchaser or the
| ||||||
22 | purchaser's donee in such other state.
| ||||||
23 | Nonreusable tangible personal property that is used by | ||||||
24 | persons engaged in
the business of operating a restaurant, | ||||||
25 | cafeteria, or drive-in is a sale for
resale when it is | ||||||
26 | transferred to customers in the ordinary course of business
as |
| |||||||
| |||||||
1 | part of the sale of food or beverages and is used to deliver, | ||||||
2 | package, or
consume food or beverages, regardless of where | ||||||
3 | consumption of the food or
beverages occurs. Examples of those | ||||||
4 | items include, but are not limited to
nonreusable, paper and | ||||||
5 | plastic cups, plates, baskets, boxes, sleeves, buckets
or | ||||||
6 | other containers, utensils, straws, placemats, napkins, doggie | ||||||
7 | bags, and
wrapping or packaging
materials that are transferred | ||||||
8 | to customers as part of the sale of food or
beverages in the | ||||||
9 | ordinary course of business.
| ||||||
10 | The purchase, employment and transfer of such tangible | ||||||
11 | personal property
as newsprint and ink for the primary purpose | ||||||
12 | of conveying news (with or
without other information) is not a | ||||||
13 | purchase, use or sale of tangible
personal property.
| ||||||
14 | A person whose activities are organized and conducted | ||||||
15 | primarily as a
not-for-profit service enterprise, and who | ||||||
16 | engages in selling tangible
personal property at retail | ||||||
17 | (whether to the public or merely to members and
their guests) | ||||||
18 | is engaged in the business of selling tangible personal
| ||||||
19 | property at retail with respect to such transactions, | ||||||
20 | excepting only a
person organized and operated exclusively for | ||||||
21 | charitable, religious or
educational purposes either (1), to | ||||||
22 | the extent of sales by such person to
its members, students, | ||||||
23 | patients or inmates of tangible personal property to
be used | ||||||
24 | primarily for the purposes of such person, or (2), to the | ||||||
25 | extent of
sales by such person of tangible personal property | ||||||
26 | which is not sold or
offered for sale by persons organized for |
| |||||||
| |||||||
1 | profit. The selling of school
books and school supplies by | ||||||
2 | schools at retail to students is not
"primarily for the | ||||||
3 | purposes of" the school which does such selling. The
| ||||||
4 | provisions of this paragraph shall not apply to nor subject to | ||||||
5 | taxation
occasional dinners, socials or similar activities of | ||||||
6 | a person organized and
operated exclusively for charitable, | ||||||
7 | religious or educational purposes,
whether or not such | ||||||
8 | activities are open to the public.
| ||||||
9 | A person who is the recipient of a grant or contract under | ||||||
10 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
11 | serves meals to
participants in the federal Nutrition Program | ||||||
12 | for the Elderly in return for
contributions established in | ||||||
13 | amount by the individual participant pursuant
to a schedule of | ||||||
14 | suggested fees as provided for in the federal Act is not
| ||||||
15 | engaged in the business of selling tangible personal property | ||||||
16 | at retail
with respect to such transactions.
| ||||||
17 | "Purchaser" means anyone who, through a sale at retail, | ||||||
18 | acquires the
ownership of or title to tangible personal | ||||||
19 | property for a valuable
consideration.
| ||||||
20 | "Reseller of motor fuel" means any person engaged in the | ||||||
21 | business of selling
or delivering or transferring title of | ||||||
22 | motor fuel to another person
other than for use or | ||||||
23 | consumption.
No person shall act as a reseller of motor fuel | ||||||
24 | within this State without
first being registered as a reseller | ||||||
25 | pursuant to Section 2c or a retailer
pursuant to Section 2a.
| ||||||
26 | "Selling price" or the "amount of sale" means the |
| |||||||
| |||||||
1 | consideration for a
sale valued in money whether received in | ||||||
2 | money or otherwise, including
cash, credits, property, other | ||||||
3 | than as hereinafter provided, and services,
but, prior to | ||||||
4 | January 1, 2020 and beginning again 120 days after the | ||||||
5 | effective date of this amendatory Act of the 102nd General | ||||||
6 | Assembly , not including the value of or credit given for | ||||||
7 | traded-in tangible
personal property where the item that is | ||||||
8 | traded-in is of like kind and
character as that which is being | ||||||
9 | sold; beginning January 1, 2020 and until 120 days after the | ||||||
10 | effective date of this amendatory Act of the 102nd General | ||||||
11 | Assembly , "selling price" includes the portion of the value of | ||||||
12 | or credit given for traded-in motor vehicles of the First | ||||||
13 | Division as defined in Section 1-146 of the Illinois Vehicle | ||||||
14 | Code of like kind and character as that which is being sold | ||||||
15 | that exceeds $10,000. "Selling price" shall be determined | ||||||
16 | without any
deduction on account of the cost of the property | ||||||
17 | sold, the cost of
materials used, labor or service cost or any | ||||||
18 | other expense whatsoever, but
does not include charges that | ||||||
19 | are added to prices by sellers on account of
the seller's tax | ||||||
20 | liability under this Act, or on account of the seller's
duty to | ||||||
21 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
22 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
23 | cigarette tax imposed by a home rule unit, on account of the | ||||||
24 | seller's tax liability under any local occupation tax | ||||||
25 | administered by the Department, or, except as otherwise | ||||||
26 | provided with respect to any cigarette tax imposed by a home |
| |||||||
| |||||||
1 | rule unit on account of the seller's duty to collect, from the | ||||||
2 | purchasers, the tax that is imposed under any local use tax | ||||||
3 | administered by the Department.
Effective December 1, 1985, | ||||||
4 | "selling price" shall include charges that
are added to prices | ||||||
5 | by sellers on account of the seller's
tax liability under the | ||||||
6 | Cigarette Tax Act, on account of the sellers'
duty to collect, | ||||||
7 | from the purchaser, the tax imposed under the Cigarette
Use | ||||||
8 | Tax Act, and on account of the seller's duty to collect, from | ||||||
9 | the
purchaser, any cigarette tax imposed by a home rule unit.
| ||||||
10 | Notwithstanding any law to the contrary, for any motor | ||||||
11 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
12 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
13 | the vehicle for a defined period that is longer than one year | ||||||
14 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
15 | a self-contained motor vehicle designed or permanently | ||||||
16 | converted to provide living quarters for recreational, | ||||||
17 | camping, or travel use, with direct walk through access to the | ||||||
18 | living quarters from the driver's seat; (B) is of the van | ||||||
19 | configuration designed for the transportation of not less than | ||||||
20 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
21 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
22 | of the first division, "selling price" or "amount of sale" | ||||||
23 | means the consideration received by the lessor pursuant to the | ||||||
24 | lease contract, including amounts due at lease signing and all | ||||||
25 | monthly or other regular payments charged over the term of the | ||||||
26 | lease. Also included in the selling price is any amount |
| |||||||
| |||||||
1 | received by the lessor from the lessee for the leased vehicle | ||||||
2 | that is not calculated at the time the lease is executed, | ||||||
3 | including, but not limited to, excess mileage charges and | ||||||
4 | charges for excess wear and tear. For sales that occur in | ||||||
5 | Illinois, with respect to any amount received by the lessor | ||||||
6 | from the lessee for the leased vehicle that is not calculated | ||||||
7 | at the time the lease is executed, the lessor who purchased the | ||||||
8 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
9 | on those amounts, and the retailer who makes the retail sale of | ||||||
10 | the motor vehicle to the lessor is not required to collect the | ||||||
11 | tax imposed by the Use Tax Act or to pay the tax imposed by | ||||||
12 | this Act on those amounts. However, the lessor who purchased | ||||||
13 | the motor vehicle assumes the liability for reporting and | ||||||
14 | paying the tax on those amounts directly to the Department in | ||||||
15 | the same form (Illinois Retailers' Occupation Tax, and local | ||||||
16 | retailers' occupation taxes, if applicable) in which the | ||||||
17 | retailer would have reported and paid such tax if the retailer | ||||||
18 | had accounted for the tax to the Department. For amounts | ||||||
19 | received by the lessor from the lessee that are not calculated | ||||||
20 | at the time the lease is executed, the lessor must file the | ||||||
21 | return and pay the tax to the Department by the due date | ||||||
22 | otherwise required by this Act for returns other than | ||||||
23 | transaction returns. If the retailer is entitled under this | ||||||
24 | Act to a discount for collecting and remitting the tax imposed | ||||||
25 | under this Act to the Department with respect to the sale of | ||||||
26 | the motor vehicle to the lessor, then the right to the discount |
| |||||||
| |||||||
1 | provided in this Act shall be transferred to the lessor with | ||||||
2 | respect to the tax paid by the lessor for any amount received | ||||||
3 | by the lessor from the lessee for the leased vehicle that is | ||||||
4 | not calculated at the time the lease is executed; provided | ||||||
5 | that the discount is only allowed if the return is timely filed | ||||||
6 | and for amounts timely paid. The "selling price" of a motor | ||||||
7 | vehicle that is sold on or after January 1, 2015 for the | ||||||
8 | purpose of leasing for a defined period of longer than one year | ||||||
9 | shall not be reduced by the value of or credit given for | ||||||
10 | traded-in tangible personal property owned by the lessor, nor | ||||||
11 | shall it be reduced by the value of or credit given for | ||||||
12 | traded-in tangible personal property owned by the lessee, | ||||||
13 | regardless of whether the trade-in value thereof is assigned | ||||||
14 | by the lessee to the lessor. In the case of a motor vehicle | ||||||
15 | that is sold for the purpose of leasing for a defined period of | ||||||
16 | longer than one year, the sale occurs at the time of the | ||||||
17 | delivery of the vehicle, regardless of the due date of any | ||||||
18 | lease payments. A lessor who incurs a Retailers' Occupation | ||||||
19 | Tax liability on the sale of a motor vehicle coming off lease | ||||||
20 | may not take a credit against that liability for the Use Tax | ||||||
21 | the lessor paid upon the purchase of the motor vehicle (or for | ||||||
22 | any tax the lessor paid with respect to any amount received by | ||||||
23 | the lessor from the lessee for the leased vehicle that was not | ||||||
24 | calculated at the time the lease was executed) if the selling | ||||||
25 | price of the motor vehicle at the time of purchase was | ||||||
26 | calculated using the definition of "selling price" as defined |
| |||||||
| |||||||
1 | in this paragraph.
Notwithstanding any other provision of this | ||||||
2 | Act to the contrary, lessors shall file all returns and make | ||||||
3 | all payments required under this paragraph to the Department | ||||||
4 | by electronic means in the manner and form as required by the | ||||||
5 | Department. This paragraph does not apply to leases of motor | ||||||
6 | vehicles for which, at the time the lease is entered into, the | ||||||
7 | term of the lease is not a defined period, including leases | ||||||
8 | with a defined initial period with the option to continue the | ||||||
9 | lease on a month-to-month or other basis beyond the initial | ||||||
10 | defined period. | ||||||
11 | The phrase "like kind and character" shall be liberally | ||||||
12 | construed
(including but not limited to any form of motor | ||||||
13 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
14 | agricultural implement for any other
kind of farm or | ||||||
15 | agricultural implement), while not including a kind of item
| ||||||
16 | which, if sold at retail by that retailer, would be exempt from | ||||||
17 | retailers'
occupation tax and use tax as an isolated or | ||||||
18 | occasional sale.
| ||||||
19 | "Gross receipts" from the sales of tangible personal | ||||||
20 | property at retail
means the total selling price or the amount | ||||||
21 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
22 | and time sales, the amount thereof shall be
included only as | ||||||
23 | and when payments are received by the seller.
Receipts or | ||||||
24 | other consideration derived by a seller from
the sale, | ||||||
25 | transfer or assignment of accounts receivable to a wholly | ||||||
26 | owned
subsidiary will not be deemed payments prior to the time |
| |||||||
| |||||||
1 | the purchaser
makes payment on such accounts.
| ||||||
2 | "Department" means the Department of Revenue.
| ||||||
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 | ||||||
7 | by order of any court.
| ||||||
8 | The isolated or occasional sale of tangible personal | ||||||
9 | property at retail
by a person who does not hold himself out as | ||||||
10 | being engaged (or who does not
habitually engage) in selling | ||||||
11 | such tangible personal property at retail, or
a sale through a | ||||||
12 | bulk vending machine, does not constitute engaging in a
| ||||||
13 | business of selling such tangible personal property at retail | ||||||
14 | within the
meaning of this Act; provided that any person who is | ||||||
15 | engaged in a business
which is not subject to the tax imposed | ||||||
16 | by this Act because of involving
the sale of or a contract to | ||||||
17 | sell real estate or a construction contract to
improve real | ||||||
18 | estate or a construction contract to engineer, install, and
| ||||||
19 | maintain an integrated system of products, but who, in the | ||||||
20 | course of
conducting such business,
transfers tangible | ||||||
21 | personal property to users or consumers in the finished
form | ||||||
22 | in which it was purchased, and which does not become real | ||||||
23 | estate or was
not engineered and installed, under any | ||||||
24 | provision of a construction contract or
real estate sale or | ||||||
25 | real estate sales agreement entered into with some other
| ||||||
26 | person arising out of or because of such nontaxable business, |
| |||||||
| |||||||
1 | is engaged in the
business of selling tangible personal | ||||||
2 | property at retail to the extent of the
value of the tangible | ||||||
3 | personal property so transferred. If, in such a
transaction, a | ||||||
4 | separate charge is made for the tangible personal property so
| ||||||
5 | transferred, the value of such property, for the purpose of | ||||||
6 | this Act, shall be
the amount so separately charged, but not | ||||||
7 | less than the cost of such property
to the transferor; if no | ||||||
8 | separate charge is made, the value of such property,
for the | ||||||
9 | purposes of this Act, is the cost to the transferor of such | ||||||
10 | tangible
personal property. Construction contracts for the | ||||||
11 | improvement of real estate
consisting of engineering, | ||||||
12 | installation, and maintenance of voice, data, video,
security, | ||||||
13 | and all telecommunication systems do not constitute engaging | ||||||
14 | in a
business of selling tangible personal property at retail | ||||||
15 | within the meaning of
this Act if they are sold at one | ||||||
16 | specified contract price.
| ||||||
17 | A person who holds himself or herself out as being engaged | ||||||
18 | (or who habitually
engages) in selling tangible personal | ||||||
19 | property at retail is a person
engaged in the business of | ||||||
20 | selling tangible personal property at retail
hereunder with | ||||||
21 | respect to such sales (and not primarily in a service
| ||||||
22 | occupation) notwithstanding the fact that such person designs | ||||||
23 | and produces
such tangible personal property on special order | ||||||
24 | for the purchaser and in
such a way as to render the property | ||||||
25 | of value only to such purchaser, if
such tangible personal | ||||||
26 | property so produced on special order serves
substantially the |
| |||||||
| |||||||
1 | same function as stock or standard items of tangible
personal | ||||||
2 | property that are sold at retail.
| ||||||
3 | Persons who engage in the business of transferring | ||||||
4 | tangible personal
property upon the redemption of trading | ||||||
5 | stamps are engaged in the business
of selling such property at | ||||||
6 | retail and shall be liable for and shall pay
the tax imposed by | ||||||
7 | this Act on the basis of the retail value of the
property | ||||||
8 | transferred upon redemption of such stamps.
| ||||||
9 | "Bulk vending machine" means a vending machine,
containing | ||||||
10 | unsorted confections, nuts, toys, or other items designed
| ||||||
11 | primarily to be used or played with by children
which, when a | ||||||
12 | coin or coins of a denomination not larger than $0.50 are
| ||||||
13 | inserted, are dispensed in equal portions, at random and
| ||||||
14 | without selection by the customer.
| ||||||
15 | "Remote retailer" means a retailer that does not maintain | ||||||
16 | within this State, directly or by a subsidiary, an office, | ||||||
17 | distribution house, sales house, warehouse or other place of | ||||||
18 | business, or any agent or other representative operating | ||||||
19 | within this State under the authority of the retailer or its | ||||||
20 | subsidiary, irrespective of whether such place of business or | ||||||
21 | agent is located here permanently or temporarily or whether | ||||||
22 | such retailer or subsidiary is licensed to do business in this | ||||||
23 | State. | ||||||
24 | "Marketplace" means a physical or electronic place, forum, | ||||||
25 | platform, application, or other method by which a marketplace | ||||||
26 | seller sells or offers to sell items. |
| |||||||
| |||||||
1 | "Marketplace facilitator" means a person who, pursuant to | ||||||
2 | an agreement with an unrelated third-party marketplace seller, | ||||||
3 | directly or indirectly through one or more affiliates | ||||||
4 | facilitates a retail sale by an unrelated third party | ||||||
5 | marketplace seller by: | ||||||
6 | (1) listing or advertising for sale by the marketplace | ||||||
7 | seller in a marketplace, tangible personal property that | ||||||
8 | is subject to tax under this Act; and | ||||||
9 | (2) either directly or indirectly, through agreements | ||||||
10 | or arrangements with third parties, collecting payment | ||||||
11 | from the customer and transmitting that payment to the | ||||||
12 | marketplace seller regardless of whether the marketplace | ||||||
13 | facilitator receives compensation or other consideration | ||||||
14 | in exchange for its services. | ||||||
15 | A person who provides advertising services, including | ||||||
16 | listing products for sale, is not considered a marketplace | ||||||
17 | facilitator, so long as the advertising service platform or | ||||||
18 | forum does not engage, directly or indirectly through one or | ||||||
19 | more affiliated persons, in the activities described in | ||||||
20 | paragraph (2) of this definition of "marketplace facilitator". | ||||||
21 | "Marketplace seller" means a person that makes sales | ||||||
22 | through a marketplace operated by an unrelated third party | ||||||
23 | marketplace facilitator. | ||||||
24 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
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25 | Section 15. The Illinois Vehicle Code is amended by |
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| |||||||
1 | changing Section 3-1001 as follows:
| ||||||
2 | (625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)
| ||||||
3 | Sec. 3-1001. A tax is hereby imposed on the privilege of | ||||||
4 | using, in this
State, any motor vehicle as defined in Section | ||||||
5 | 1-146 of this Code acquired by
gift, transfer, or purchase, | ||||||
6 | and having a year model designation preceding the
year of | ||||||
7 | application for title by 5 or fewer years prior to October 1, | ||||||
8 | 1985 and
10 or fewer years on and after October 1, 1985 and | ||||||
9 | prior to January 1, 1988.
On and after January 1, 1988, the tax | ||||||
10 | shall apply to all motor vehicles without
regard to model | ||||||
11 | year. Except that the tax shall not apply
| ||||||
12 | (i) if the use of the motor vehicle is otherwise taxed | ||||||
13 | under the Use Tax
Act;
| ||||||
14 | (ii) if the motor vehicle is bought and used by a
| ||||||
15 | governmental agency or a society, association, foundation | ||||||
16 | or institution
organized and operated exclusively for | ||||||
17 | charitable, religious or
educational purposes;
| ||||||
18 | (iii) if the use of the motor vehicle is not subject to | ||||||
19 | the Use Tax Act by
reason of subsection (a), (b), (c), (d), | ||||||
20 | (e) or (f) of Section 3-55 of that Act
dealing with the | ||||||
21 | prevention of actual or likely multistate taxation;
| ||||||
22 | (iv) to implements of husbandry;
| ||||||
23 | (v) when a junking certificate is issued pursuant to | ||||||
24 | Section 3-117(a)
of this Code;
| ||||||
25 | (vi) when a vehicle is subject to the replacement |
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| ||||||||||||||||||||||||||||||||||||||||||||||||||||||
1 | vehicle tax imposed
by Section 3-2001 of this Act;
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
2 | (vii) when the transfer is a gift to a beneficiary in | |||||||||||||||||||||||||||||||||||||||||||||||||||||
3 | the
administration of an estate and the beneficiary is a | |||||||||||||||||||||||||||||||||||||||||||||||||||||
4 | surviving spouse.
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5 | Prior to January 1, 1988, the rate of tax shall be 5% of | |||||||||||||||||||||||||||||||||||||||||||||||||||||
6 | the selling
price for each purchase of a motor vehicle covered | |||||||||||||||||||||||||||||||||||||||||||||||||||||
7 | by Section 3-1001 of
this Code. Except as hereinafter | |||||||||||||||||||||||||||||||||||||||||||||||||||||
8 | provided, beginning January 1, 1988 and until 120 days after | |||||||||||||||||||||||||||||||||||||||||||||||||||||
9 | the effective date of this amendatory Act of the 102nd General | |||||||||||||||||||||||||||||||||||||||||||||||||||||
10 | Assembly , the
rate of tax shall be as follows for transactions | |||||||||||||||||||||||||||||||||||||||||||||||||||||
11 | in which the selling price
of the motor vehicle is less than | |||||||||||||||||||||||||||||||||||||||||||||||||||||
12 | $15,000:
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26 | Except as hereinafter provided, beginning January 1, 1988 and |
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1 | until 120 days after the effective date of this amendatory Act | |||||||||||||||||||||
2 | of the 102nd General Assembly , the rate of
tax shall be as | |||||||||||||||||||||
3 | follows for transactions in which the selling price of the
| |||||||||||||||||||||
4 | motor vehicle is $15,000 or more:
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10 | Except as hereinafter provided, beginning 120 days after | |||||||||||||||||||||
11 | the effective date of this amendatory Act of the 102nd General | |||||||||||||||||||||
12 | Assembly, the rate of tax shall be as follows for transactions | |||||||||||||||||||||
13 | in which the selling price of the motor vehicle is less than | |||||||||||||||||||||
14 | $15,000: | |||||||||||||||||||||
15 | (1) if one year or less has transpired after the model | |||||||||||||||||||||
16 | year of the vehicle, then the applicable tax is $465; | |||||||||||||||||||||
17 | (2) if 2 years have transpired after the model year of | |||||||||||||||||||||
18 | the motor vehicle, then the applicable tax is $365; | |||||||||||||||||||||
19 | (3) if 3 years have transpired after the model year of | |||||||||||||||||||||
20 | the motor vehicle, then the applicable tax is $290; | |||||||||||||||||||||
21 | (4) if 4 years have transpired after the model year of | |||||||||||||||||||||
22 | the motor vehicle, then the applicable tax is $240; | |||||||||||||||||||||
23 | (5) if 5 years have transpired after the model year of | |||||||||||||||||||||
24 | the motor vehicle, then the applicable tax is $190; | |||||||||||||||||||||
25 | (6) if 6 years have transpired after the model year of | |||||||||||||||||||||
26 | the motor vehicle, then the applicable tax is $165; |
| |||||||
| |||||||
1 | (7) if 7 years have transpired after the model year of | ||||||
2 | the motor vehicle, then the applicable tax is $155; | ||||||
3 | (8) if 8 years have transpired after the model year of | ||||||
4 | the motor vehicle, then the applicable tax is $140; | ||||||
5 | (9) if 9 years have transpired after the model year of | ||||||
6 | the motor vehicle, then the applicable tax is $125; | ||||||
7 | (10) if 10 years have transpired after the model year | ||||||
8 | of the motor vehicle, then the applicable tax is $115; and | ||||||
9 | (11) if more than 10 years have transpired after the | ||||||
10 | model year of the motor vehicle, then the applicable tax | ||||||
11 | is $100. | ||||||
12 | Except as hereinafter provided, beginning 120 days after | ||||||
13 | the effective date of this amendatory Act of the 102nd General | ||||||
14 | Assembly, the rate of tax shall be as follows for transactions | ||||||
15 | in which the selling price of the motor vehicle is $15,000 or | ||||||
16 | more: | ||||||
17 | (1) if the selling price is $15,000 or more, but less | ||||||
18 | than $20,000, then the applicable tax shall be $850; | ||||||
19 | (2) if the selling price is $20,000 or more, but less | ||||||
20 | than $25,000, then the applicable tax shall be $1,100; | ||||||
21 | (3) if the selling price is $25,000 or more, but less | ||||||
22 | than $30,000, then the applicable tax shall be $1,350; | ||||||
23 | (4) if the selling price is $30,000 or more, but less | ||||||
24 | than $50,000, then the applicable tax shall be $1,600; | ||||||
25 | (5) if the selling price is $50,000 or more, but less | ||||||
26 | than $100,000, then the applicable tax shall be $2,600; |
| |||||||
| |||||||
1 | (6) if the selling price is $100,000 or more, but less | ||||||
2 | than $1,000,000, then the applicable tax shall be $5,100; | ||||||
3 | and | ||||||
4 | (7) if the selling price is $1,000,000 or more, then | ||||||
5 | the applicable tax shall be $10,100. | ||||||
6 | For the following transactions, the tax rate shall be $15 for | ||||||
7 | each
motor vehicle acquired in such transaction:
| ||||||
8 | (i) when the transferee or purchaser is the spouse, | ||||||
9 | mother, father,
brother, sister or child of the | ||||||
10 | transferor;
| ||||||
11 | (ii) when the transfer is a gift to a beneficiary in | ||||||
12 | the administration
of an estate and the beneficiary is not | ||||||
13 | a surviving spouse;
| ||||||
14 | (iii) when a motor vehicle which has once been | ||||||
15 | subjected to the Illinois
retailers' occupation tax or use | ||||||
16 | tax is transferred in connection with the
organization, | ||||||
17 | reorganization, dissolution or partial liquidation of an
| ||||||
18 | incorporated or unincorporated business wherein the | ||||||
19 | beneficial ownership
is not changed.
| ||||||
20 | A claim that the transaction is taxable under subparagraph | ||||||
21 | (i) shall be
supported by such proof of family relationship as | ||||||
22 | provided by rules of the
Department.
| ||||||
23 | For a transaction in which a motorcycle, motor driven | ||||||
24 | cycle or moped is acquired the tax rate shall be $25.
| ||||||
25 | On and after October 1, 1985 and until the first day of the | ||||||
26 | first month to begin not less than 120 days after the effective |
| |||||||
| |||||||
1 | date of this amendatory Act of the 102nd General Assembly , | ||||||
2 | 1/12 of $5,000,000 of the moneys received
by the Department of | ||||||
3 | Revenue pursuant to this Section shall be paid each
month into | ||||||
4 | the Build Illinois Fund ; on and after the first day of the | ||||||
5 | first month to begin not less than 120 days after the effective | ||||||
6 | date of this amendatory Act of the 102nd General Assembly, | ||||||
7 | 1/12 of $40,000,000 of the moneys received
by the Department | ||||||
8 | of Revenue pursuant to this Section shall be paid each
month | ||||||
9 | into the Build Illinois Fund; and the remainder shall be paid | ||||||
10 | into the General
Revenue Fund.
| ||||||
11 | The tax imposed by this Section shall be abated and no | ||||||
12 | longer imposed
when the amount deposited to secure the bonds | ||||||
13 | issued pursuant to the Build
Illinois Bond Act is sufficient | ||||||
14 | to provide for the payment of the principal
of, and interest | ||||||
15 | and premium, if any, on the bonds, as certified to the
State | ||||||
16 | Comptroller and the Director of Revenue by the Director of the
| ||||||
17 | Governor's Office of Management and Budget.
| ||||||
18 | (Source: P.A. 96-554, eff. 1-1-10 .)
| ||||||
19 | Section 99. Effective date. This Act takes effect upon | ||||||
20 | becoming law.
|