Bill Text: IL SB2668 | 2017-2018 | 100th General Assembly | Engrossed
Bill Title: Amends the Automobile Renting Occupation and Use Tax Act. Makes a technical change in a Section concerning the short title.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Failed) 2019-01-09 - Session Sine Die [SB2668 Detail]
Download: Illinois-2017-SB2668-Engrossed.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, | ||||||
3 | represented in the General Assembly:
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4 | Section 5. The Retailers' Occupation Tax Act is amended by | ||||||
5 | changing Section 1 as follows:
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6 | (35 ILCS 120/1) (from Ch. 120, par. 440)
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7 | Sec. 1. Definitions. "Sale at retail" means any transfer of | ||||||
8 | the
ownership of or title to
tangible personal property to a | ||||||
9 | purchaser, for the purpose of use or
consumption, and not for | ||||||
10 | the purpose of resale in any form as tangible
personal property | ||||||
11 | to the extent not first subjected to a use for which it
was | ||||||
12 | purchased, for a valuable consideration: Provided that the | ||||||
13 | property
purchased is deemed to be purchased for the purpose of | ||||||
14 | resale, despite
first being used, to the extent to which it is | ||||||
15 | resold as an ingredient of
an intentionally produced product or | ||||||
16 | byproduct of manufacturing. For this
purpose, slag produced as | ||||||
17 | an incident to manufacturing pig iron or steel
and sold is | ||||||
18 | considered to be an intentionally produced byproduct of
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19 | manufacturing. Transactions whereby the possession of the | ||||||
20 | property is
transferred but the seller retains the title as | ||||||
21 | security for payment of the
selling price shall be deemed to be | ||||||
22 | sales.
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23 | "Sale at retail" shall be construed to include any transfer |
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1 | of the
ownership of or title to tangible personal property to a | ||||||
2 | purchaser, for use
or consumption by any other person to whom | ||||||
3 | such purchaser may transfer the
tangible personal property | ||||||
4 | without a valuable consideration, and to include
any transfer, | ||||||
5 | whether made for or without a valuable consideration, for
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6 | resale in any form as tangible personal property unless made in | ||||||
7 | compliance
with Section 2c of this Act.
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8 | Sales of tangible personal property, which property, to the | ||||||
9 | extent not
first subjected to a use for which it was purchased, | ||||||
10 | as an ingredient or
constituent, goes into and forms a part of | ||||||
11 | tangible personal property
subsequently the subject of a "Sale | ||||||
12 | at retail", are not sales at retail as
defined in this Act: | ||||||
13 | Provided that the property purchased is deemed to be
purchased | ||||||
14 | for the purpose of resale, despite first being used, to the
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15 | extent to which it is resold as an ingredient of an | ||||||
16 | intentionally produced
product or byproduct of manufacturing.
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17 | "Sale at retail" shall be construed to include any Illinois | ||||||
18 | florist's
sales transaction in which the purchase order is | ||||||
19 | received in Illinois by a
florist and the sale is for use or | ||||||
20 | consumption, but the Illinois florist
has a florist in another | ||||||
21 | state deliver the property to the purchaser or the
purchaser's | ||||||
22 | donee in such other state.
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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 |
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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 other | ||||||
6 | containers, utensils, straws, placemats, napkins, doggie bags, | ||||||
7 | and
wrapping or packaging
materials that are transferred to | ||||||
8 | customers as part of the sale of food or
beverages in the | ||||||
9 | ordinary course of business. | ||||||
10 | "Sale at retail" does not include the selling of food at | ||||||
11 | retail to students, teachers, or staff at a school serving some | ||||||
12 | or all of grades kindergarten through 12.
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13 | The purchase, employment and transfer of such tangible | ||||||
14 | personal property
as newsprint and ink for the primary purpose | ||||||
15 | of conveying news (with or
without other information) is not a | ||||||
16 | purchase, use or sale of tangible
personal property.
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17 | A person whose activities are organized and conducted | ||||||
18 | primarily as a
not-for-profit service enterprise, and who | ||||||
19 | engages in selling tangible
personal property at retail | ||||||
20 | (whether to the public or merely to members and
their guests) | ||||||
21 | is engaged in the business of selling tangible personal
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22 | property at retail with respect to such transactions, excepting | ||||||
23 | only a
person organized and operated exclusively for | ||||||
24 | charitable, religious or
educational purposes either (1), to | ||||||
25 | the extent of sales by such person to
its members, students, | ||||||
26 | patients or inmates of tangible personal property to
be used |
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1 | primarily for the purposes of such person, or (2), to the | ||||||
2 | extent of
sales by such person of tangible personal property | ||||||
3 | which is not sold or
offered for sale by persons organized for | ||||||
4 | profit. The selling of school
books and school supplies by | ||||||
5 | schools at retail to students is not
"primarily for the | ||||||
6 | purposes of" the school which does such selling. The
provisions | ||||||
7 | of this paragraph shall not apply to nor subject to taxation
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8 | occasional dinners, socials or similar activities of a person | ||||||
9 | organized and
operated exclusively for charitable, religious | ||||||
10 | or educational purposes,
whether or not such activities are | ||||||
11 | open to the public.
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12 | A person who is the recipient of a grant or contract under | ||||||
13 | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
14 | serves meals to
participants in the federal Nutrition Program | ||||||
15 | for the Elderly in return for
contributions established in | ||||||
16 | amount by the individual participant pursuant
to a schedule of | ||||||
17 | suggested fees as provided for in the federal Act is not
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18 | engaged in the business of selling tangible personal property | ||||||
19 | at retail
with respect to such transactions.
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20 | "Purchaser" means anyone who, through a sale at retail, | ||||||
21 | acquires the
ownership of or title to tangible personal | ||||||
22 | property for a valuable
consideration.
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23 | "Reseller of motor fuel" means any person engaged in the | ||||||
24 | business of selling
or delivering or transferring title of | ||||||
25 | motor fuel to another person
other than for use or consumption.
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26 | No person shall act as a reseller of motor fuel within this |
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1 | State without
first being registered as a reseller pursuant to | ||||||
2 | Section 2c or a retailer
pursuant to Section 2a.
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3 | "Selling price" or the "amount of sale" means the | ||||||
4 | consideration for a
sale valued in money whether received in | ||||||
5 | money or otherwise, including
cash, credits, property, other | ||||||
6 | than as hereinafter provided, and services,
but not including | ||||||
7 | the value of or credit given for traded-in tangible
personal | ||||||
8 | property where the item that is traded-in is of like kind and
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9 | character as that which is being sold, and shall be determined | ||||||
10 | without any
deduction on account of the cost of the property | ||||||
11 | sold, the cost of
materials used, labor or service cost or any | ||||||
12 | other expense whatsoever, but
does not include charges that are | ||||||
13 | added to prices by sellers on account of
the seller's tax | ||||||
14 | liability under this Act, or on account of the seller's
duty to | ||||||
15 | collect, from the purchaser, the tax that is imposed by the Use | ||||||
16 | Tax
Act, or, except as otherwise provided with respect to any | ||||||
17 | cigarette tax imposed by a home rule unit, on account of the | ||||||
18 | seller's tax liability under any local occupation tax | ||||||
19 | administered by the Department, or, except as otherwise | ||||||
20 | provided with respect to any cigarette tax imposed by a home | ||||||
21 | rule unit on account of the seller's duty to collect, from the | ||||||
22 | purchasers, the tax that is imposed under any local use tax | ||||||
23 | administered by the Department.
Effective December 1, 1985, | ||||||
24 | "selling price" shall include charges that
are added to prices | ||||||
25 | by sellers on account of the seller's
tax liability under the | ||||||
26 | Cigarette Tax Act, on account of the sellers'
duty to collect, |
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1 | from the purchaser, the tax imposed under the Cigarette
Use Tax | ||||||
2 | Act, and on account of the seller's duty to collect, from the
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3 | purchaser, any cigarette tax imposed by a home rule unit.
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4 | Notwithstanding any law to the contrary, for any motor | ||||||
5 | vehicle, as defined in Section 1-146 of the Vehicle Code, that | ||||||
6 | is sold on or after January 1, 2015 for the purpose of leasing | ||||||
7 | the vehicle for a defined period that is longer than one year | ||||||
8 | and (1) is a motor vehicle of the second division that: (A) is | ||||||
9 | a self-contained motor vehicle designed or permanently | ||||||
10 | converted to provide living quarters for recreational, | ||||||
11 | camping, or travel use, with direct walk through access to the | ||||||
12 | living quarters from the driver's seat; (B) is of the van | ||||||
13 | configuration designed for the transportation of not less than | ||||||
14 | 7 nor more than 16 passengers; or (C) has a gross vehicle | ||||||
15 | weight rating of 8,000 pounds or less or (2) is a motor vehicle | ||||||
16 | of the first division, "selling price" or "amount of sale" | ||||||
17 | means the consideration received by the lessor pursuant to the | ||||||
18 | lease contract, including amounts due at lease signing and all | ||||||
19 | monthly or other regular payments charged over the term of the | ||||||
20 | lease. Also included in the selling price is any amount | ||||||
21 | received by the lessor from the lessee for the leased vehicle | ||||||
22 | that is not calculated at the time the lease is executed, | ||||||
23 | including, but not limited to, excess mileage charges and | ||||||
24 | charges for excess wear and tear. For sales that occur in | ||||||
25 | Illinois, with respect to any amount received by the lessor | ||||||
26 | from the lessee for the leased vehicle that is not calculated |
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1 | at the time the lease is executed, the lessor who purchased the | ||||||
2 | motor vehicle does not incur the tax imposed by the Use Tax Act | ||||||
3 | on those amounts, and the retailer who makes the retail sale of | ||||||
4 | the motor vehicle to the lessor is not required to collect the | ||||||
5 | tax imposed by the Use Tax Act or to pay the tax imposed by this | ||||||
6 | Act on those amounts. However, the lessor who purchased the | ||||||
7 | motor vehicle assumes the liability for reporting and paying | ||||||
8 | the tax on those amounts directly to the Department in the same | ||||||
9 | form (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
10 | occupation taxes, if applicable) in which the retailer would | ||||||
11 | have reported and paid such tax if the retailer had accounted | ||||||
12 | for the tax to the Department. For amounts received by the | ||||||
13 | lessor from the lessee that are not calculated at the time the | ||||||
14 | lease is executed, the lessor must file the return and pay the | ||||||
15 | tax to the Department by the due date otherwise required by | ||||||
16 | this Act for returns other than transaction returns. If the | ||||||
17 | retailer is entitled under this Act to a discount for | ||||||
18 | collecting and remitting the tax imposed under this Act to the | ||||||
19 | Department with respect to the sale of the motor vehicle to the | ||||||
20 | lessor, then the right to the discount provided in this Act | ||||||
21 | shall be transferred to the lessor with respect to the tax paid | ||||||
22 | by the lessor for any amount received by the lessor from the | ||||||
23 | lessee for the leased vehicle that is not calculated at the | ||||||
24 | time the lease is executed; provided that the discount is only | ||||||
25 | allowed if the return is timely filed and for amounts timely | ||||||
26 | paid. The "selling price" of a motor vehicle that is sold on or |
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1 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
2 | period of longer than one year shall not be reduced by the | ||||||
3 | value of or credit given for traded-in tangible personal | ||||||
4 | property owned by the lessor, nor shall it be reduced by the | ||||||
5 | value of or credit given for traded-in tangible personal | ||||||
6 | property owned by the lessee, regardless of whether the | ||||||
7 | trade-in value thereof is assigned by the lessee to the lessor. | ||||||
8 | In the case of a motor vehicle that is sold for the purpose of | ||||||
9 | leasing for a defined period of longer than one year, the sale | ||||||
10 | occurs at the time of the delivery of the vehicle, regardless | ||||||
11 | of the due date of any lease payments. A lessor who incurs a | ||||||
12 | Retailers' Occupation Tax liability on the sale of a motor | ||||||
13 | vehicle coming off lease may not take a credit against that | ||||||
14 | liability for the Use Tax the lessor paid upon the purchase of | ||||||
15 | the motor vehicle (or for any tax the lessor paid with respect | ||||||
16 | to any amount received by the lessor from the lessee for the | ||||||
17 | leased vehicle that was not calculated at the time the lease | ||||||
18 | was executed) if the selling price of the motor vehicle at the | ||||||
19 | time of purchase was calculated using the definition of | ||||||
20 | "selling price" as defined in this paragraph.
Notwithstanding | ||||||
21 | any other provision of this Act to the contrary, lessors shall | ||||||
22 | file all returns and make all payments required under this | ||||||
23 | paragraph to the Department by electronic means in the manner | ||||||
24 | and form as required by the Department. This paragraph does not | ||||||
25 | apply to leases of motor vehicles for which, at the time the | ||||||
26 | lease is entered into, the term of the lease is not a defined |
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1 | period, including leases with a defined initial period with the | ||||||
2 | option to continue the lease on a month-to-month or other basis | ||||||
3 | beyond the initial defined period. | ||||||
4 | The phrase "like kind and character" shall be liberally | ||||||
5 | construed
(including but not limited to any form of motor | ||||||
6 | vehicle for any form of
motor vehicle, or any kind of farm or | ||||||
7 | agricultural implement for any other
kind of farm or | ||||||
8 | agricultural implement), while not including a kind of item
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9 | which, if sold at retail by that retailer, would be exempt from | ||||||
10 | retailers'
occupation tax and use tax as an isolated or | ||||||
11 | occasional sale.
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12 | "Gross receipts" from the sales of tangible personal | ||||||
13 | property at retail
means the total selling price or the amount | ||||||
14 | of such sales, as hereinbefore
defined. In the case of charge | ||||||
15 | and time sales, the amount thereof shall be
included only as | ||||||
16 | and when payments are received by the seller.
Receipts or other | ||||||
17 | consideration derived by a seller from
the sale, transfer or | ||||||
18 | assignment of accounts receivable to a wholly owned
subsidiary | ||||||
19 | will not be deemed payments prior to the time the purchaser
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20 | makes payment on such accounts.
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21 | "Department" means the Department of Revenue.
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22 | "Person" means any natural individual, firm, partnership, | ||||||
23 | association,
joint stock company, joint adventure, public or | ||||||
24 | private corporation, limited
liability company, or a receiver, | ||||||
25 | executor, trustee, guardian or other
representative appointed | ||||||
26 | by order of any court.
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1 | The isolated or occasional sale of tangible personal | ||||||
2 | property at retail
by a person who does not hold himself out as | ||||||
3 | being engaged (or who does not
habitually engage) in selling | ||||||
4 | such tangible personal property at retail, or
a sale through a | ||||||
5 | bulk vending machine, does not constitute engaging in a
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6 | business of selling such tangible personal property at retail | ||||||
7 | within the
meaning of this Act; provided that any person who is | ||||||
8 | engaged in a business
which is not subject to the tax imposed | ||||||
9 | by this Act because of involving
the sale of or a contract to | ||||||
10 | sell real estate or a construction contract to
improve real | ||||||
11 | estate or a construction contract to engineer, install, and
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12 | maintain an integrated system of products, but who, in the | ||||||
13 | course of
conducting such business,
transfers tangible | ||||||
14 | personal property to users or consumers in the finished
form in | ||||||
15 | which it was purchased, and which does not become real estate | ||||||
16 | or was
not engineered and installed, under any provision of a | ||||||
17 | construction contract or
real estate sale or real estate sales | ||||||
18 | agreement entered into with some other
person arising out of or | ||||||
19 | because of such nontaxable business, is engaged in the
business | ||||||
20 | of selling tangible personal property at retail to the extent | ||||||
21 | of the
value of the tangible personal property so transferred. | ||||||
22 | If, in such a
transaction, a separate charge is made for the | ||||||
23 | tangible personal property so
transferred, the value of such | ||||||
24 | property, for the purpose of this Act, shall be
the amount so | ||||||
25 | separately charged, but not less than the cost of such property
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26 | to the transferor; if no separate charge is made, the value of |
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1 | such property,
for the purposes of this Act, is the cost to the | ||||||
2 | transferor of such tangible
personal property. Construction | ||||||
3 | contracts for the improvement of real estate
consisting of | ||||||
4 | engineering, installation, and maintenance of voice, data, | ||||||
5 | video,
security, and all telecommunication systems do not | ||||||
6 | constitute engaging in a
business of selling tangible personal | ||||||
7 | property at retail within the meaning of
this Act if they are | ||||||
8 | sold at one specified contract price.
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9 | A person who holds himself or herself out as being engaged | ||||||
10 | (or who habitually
engages) in selling tangible personal | ||||||
11 | property at retail is a person
engaged in the business of | ||||||
12 | selling tangible personal property at retail
hereunder with | ||||||
13 | respect to such sales (and not primarily in a service
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14 | occupation) notwithstanding the fact that such person designs | ||||||
15 | and produces
such tangible personal property on special order | ||||||
16 | for the purchaser and in
such a way as to render the property | ||||||
17 | of value only to such purchaser, if
such tangible personal | ||||||
18 | property so produced on special order serves
substantially the | ||||||
19 | same function as stock or standard items of tangible
personal | ||||||
20 | property that are sold at retail.
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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 | engaged in the business
of selling such property at retail and | ||||||
24 | shall be liable for and shall pay
the tax imposed by this Act | ||||||
25 | on the basis of the retail value of the
property transferred | ||||||
26 | upon redemption of such stamps.
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1 | "Bulk vending machine" means a vending machine,
containing | ||||||
2 | unsorted confections, nuts, toys, or other items designed
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3 | primarily to be used or played with by children
which, when a | ||||||
4 | coin or coins of a denomination not larger than $0.50 are
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5 | inserted, are dispensed in equal portions, at random and
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6 | without selection by the customer.
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7 | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
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