Public Act 096-1544
Public Act 1544 96TH GENERAL ASSEMBLY
|
Public Act 096-1544
| | HB3659 Enrolled | LRB096 09388 RCE 19545 b |
|
| AN ACT concerning revenue.
| Be it enacted by the People of the State of Illinois,
| represented in the General Assembly:
| Section 5. The Use Tax Act is amended by changing Section 2 | as follows:
| (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| Sec. 2. "Use" means the exercise by any person of any right | or power over
tangible personal property incident to the | ownership of that property,
except that it does not include the | sale of such property in any form as
tangible personal property | in the regular course of business to the extent
that such | property is not first subjected to a use for which it was
| purchased, and does not include the use of such property by its | owner for
demonstration purposes: Provided that the property | purchased is deemed to
be purchased for the purpose of resale, | despite first being used, to the
extent to which it is resold | as an ingredient of an intentionally produced
product or | by-product of manufacturing. "Use" does not mean the | demonstration
use or interim use of tangible personal property | by a retailer before he sells
that tangible personal property. | For watercraft or aircraft, if the period of
demonstration use | or interim use by the retailer exceeds 18 months,
the retailer
| shall pay on the retailers' original cost price the tax imposed |
| by this Act,
and no credit for that tax is permitted if the | watercraft or aircraft is
subsequently sold by the retailer. | "Use" does not mean the physical
incorporation of tangible | personal property, to the extent not first subjected
to a use | for which it was purchased, as an ingredient or constituent, | into
other tangible personal property (a) which is sold in the | regular course of
business or (b) which the person | incorporating such ingredient or constituent
therein has | undertaken at the time of such purchase to cause to be | transported
in interstate commerce to destinations outside the | State of Illinois: Provided
that the property purchased is | deemed to be purchased for the purpose of
resale, despite first | being used, to the extent to which it is resold as an
| ingredient of an intentionally produced product or by-product | of manufacturing.
| "Watercraft" means a Class 2, Class 3, or Class 4 | watercraft as defined in
Section 3-2 of the Boat Registration | and Safety Act, a personal watercraft, or
any boat equipped | with an inboard motor.
| "Purchase at retail" means the acquisition of the ownership | of or title
to tangible personal property through a sale at | retail.
| "Purchaser" means anyone who, through a sale at retail, | acquires the
ownership of tangible personal property for a | valuable consideration.
| "Sale at retail" means any transfer of the ownership of or |
| title to
tangible personal property to a purchaser, for the | purpose of use, and not
for the purpose of resale in any form | as tangible personal property to the
extent not first subjected | to a use for which it was purchased, for a
valuable | consideration: Provided that the property purchased is deemed | to
be purchased for the purpose of resale, despite first being | used, to the
extent to which it is resold as an ingredient of | an intentionally produced
product or by-product of | manufacturing. For this purpose, slag produced as
an incident | to manufacturing pig iron or steel and sold is considered to be
| an intentionally produced by-product of manufacturing. "Sale | at retail"
includes any such transfer made for resale unless | made in compliance with
Section 2c of the Retailers' Occupation | Tax Act, as incorporated by
reference into Section 12 of this | Act. Transactions whereby the possession
of the property is | transferred but the seller retains the title as security
for | payment of the selling price are sales.
| "Sale at retail" shall also be construed to include any | Illinois
florist's sales transaction in which the purchase | order is received in
Illinois by a florist and the sale is for | use or consumption, but the
Illinois florist has a florist in | another state deliver the property to the
purchaser or the | purchaser's donee in such other state.
| Nonreusable tangible personal property that is used by | persons engaged in
the business of operating a restaurant, | cafeteria, or drive-in is a sale for
resale when it is |
| transferred to customers in the ordinary course of business
as | part of the sale of food or beverages and is used to deliver, | package, or
consume food or beverages, regardless of where | consumption of the food or
beverages occurs. Examples of those | items include, but are not limited to
nonreusable, paper and | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | containers, utensils, straws, placemats, napkins, doggie bags, | and
wrapping or packaging
materials that are transferred to | customers as part of the sale of food or
beverages in the | ordinary course of business.
| The purchase, employment and transfer of such tangible | personal property
as newsprint and ink for the primary purpose | of conveying news (with or
without other information) is not a | purchase, use or sale of tangible
personal property.
| "Selling price" means the consideration for a sale valued | in money
whether received in money or otherwise, including | cash, credits, property
other than as hereinafter provided, and | services, but not including the
value of or credit given for | traded-in tangible personal property where the
item that is | traded-in is of like kind and character as that which is being
| sold, and shall be determined without any deduction on account | of the cost
of the property sold, the cost of materials used, | labor or service cost or
any other expense whatsoever, but does | not include interest or finance
charges which appear as | separate items on the bill of sale or sales
contract nor | charges that are added to prices by sellers on account of the
|
| seller's tax liability under the "Retailers' Occupation Tax | Act", or on
account of the seller's duty to collect, from the | purchaser, the tax that
is imposed by this Act, or, except as | otherwise provided with respect to any cigarette tax imposed by | a home rule unit, on account of the seller's tax liability | under any local occupation tax administered by the Department, | or, except as otherwise provided with respect to any cigarette | tax imposed by a home rule unit on account of the seller's duty | to collect, from the purchasers, the tax that is imposed under | any local use tax administered by the Department. Effective | December 1, 1985, "selling price"
shall include charges that | are added to prices by sellers on account of the
seller's tax | liability under the Cigarette Tax Act, on account of the | seller's
duty to collect, from the purchaser, the tax imposed | under the Cigarette Use
Tax Act, and on account of the seller's | duty to collect, from the purchaser,
any cigarette tax imposed | by a home rule unit.
| The phrase "like kind and character" shall be liberally | construed
(including but not limited to any form of motor | vehicle for any form of
motor vehicle, or any kind of farm or | agricultural implement for any other
kind of farm or | agricultural implement), while not including a kind of item
| which, if sold at retail by that retailer, would be exempt from | retailers'
occupation tax and use tax as an isolated or | occasional sale.
| "Department" means the Department of Revenue.
|
| "Person" means any natural individual, firm, partnership, | association,
joint stock company, joint adventure, public or | private corporation, limited
liability company, or a
receiver, | executor, trustee, guardian or other representative appointed
| by order of any court.
| "Retailer" means and includes every person engaged in the | business of
making sales at retail as defined in this Section.
| A person who holds himself or herself out as being engaged | (or who habitually
engages) in selling tangible personal | property at retail is a retailer
hereunder with respect to such | sales (and not primarily in a service
occupation) | notwithstanding the fact that such person designs and produces
| such tangible personal property on special order for the | purchaser and in
such a way as to render the property of value | only to such purchaser, if
such tangible personal property so | produced on special order serves
substantially the same | function as stock or standard items of tangible
personal | property that are sold at retail.
| A person whose activities are organized and conducted | primarily as a
not-for-profit service enterprise, and who | engages in selling tangible
personal property at retail | (whether to the public or merely to members and
their guests) | is a retailer with respect to such transactions, excepting
only | a person organized and operated exclusively for charitable, | religious
or educational purposes either (1), to the extent of | sales by such person
to its members, students, patients or |
| inmates of tangible personal property
to be used primarily for | the purposes of such person, or (2), to the extent
of sales by | such person of tangible personal property which is not sold or
| offered for sale by persons organized for profit. The selling | of school
books and school supplies by schools at retail to | students is not
"primarily for the purposes of" the school | which does such selling. This
paragraph does not apply to nor | subject to taxation occasional dinners,
social or similar | activities of a person organized and operated exclusively
for | charitable, religious or educational purposes, whether or not | such
activities are open to the public.
| A person who is the recipient of a grant or contract under | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | serves meals to
participants in the federal Nutrition Program | for the Elderly in return for
contributions established in | amount by the individual participant pursuant
to a schedule of | suggested fees as provided for in the federal Act is not a
| retailer under this Act with respect to such transactions.
| Persons who engage in the business of transferring tangible | personal
property upon the redemption of trading stamps are | retailers hereunder when
engaged in such business.
| The isolated or occasional sale of tangible personal | property at retail
by a person who does not hold himself out as | being engaged (or who does not
habitually engage) in selling | such tangible personal property at retail or
a sale through a | bulk vending machine does not make such person a retailer
|
| hereunder. However, any person who is engaged in a business | which is not
subject to the tax imposed by the "Retailers' | Occupation Tax Act" because
of involving the sale of or a | contract to sell real estate or a
construction contract to | improve real estate, but who, in the course of
conducting such | business, transfers tangible personal property to users or
| consumers in the finished form in which it was purchased, and | which does
not become real estate, under any provision of a | construction contract or
real estate sale or real estate sales | agreement entered into with some
other person arising out of or | because of such nontaxable business, is a
retailer to the | extent of the value of the tangible personal property so
| transferred. If, in such transaction, a separate charge is made | for the
tangible personal property so transferred, the value of | such property, for
the purposes of this Act, is the amount so | separately charged, but not less
than the cost of such property | to the transferor; if no separate charge is
made, the value of | such property, for the purposes of this Act, is the cost
to the | transferor of such tangible personal property.
| "Retailer maintaining a place of business in this State", | or any like
term, means and includes any of the following | retailers:
| 1. A retailer having or maintaining within this State, | directly or by
a subsidiary, an office, distribution house, | sales house, warehouse or other
place of business, or any | agent or other representative operating within this
State |
| under the authority of the retailer or its subsidiary, | irrespective of
whether such place of business or agent or | other representative is located here
permanently or | temporarily, or whether such retailer or subsidiary is | licensed
to do business in this State. However, the | ownership of property that is
located at the premises of a | printer with which the retailer has contracted for
printing | and that consists of the final printed product, property | that becomes
a part of the final printed product, or copy | from which the printed product is
produced shall not result | in the retailer being deemed to have or maintain an
office, | distribution house, sales house, warehouse, or other place | of business
within this State. | 1.1. Beginning July 1, 2011, a retailer having a | contract with a person located in this State under which | the person, for a commission or other consideration based | upon the sale of tangible personal property by the | retailer, directly or indirectly refers potential | customers to the retailer by a link on the person's | Internet website. The provisions of this paragraph 1.1 | shall apply only if the cumulative gross receipts from | sales of tangible personal property by the retailer to | customers who are referred to the retailer by all persons | in this State under such contracts exceed $10,000 during | the preceding 4 quarterly periods ending on the last day of | March, June, September, and December. |
| 1.2. Beginning July 1, 2011, a retailer having a | contract with a person located in this State under which: | A. the retailer sells the same or substantially | similar line of products as the person located in this | State and does so using an identical or substantially | similar name, trade name, or trademark as the person | located in this State; and | B. the retailer provides a commission or other | consideration to the person located in this State based | upon the sale of tangible personal property by the | retailer. | The provisions of this paragraph 1.2 shall apply only if | the cumulative gross receipts from sales of tangible | personal property by the retailer to customers in this | State under all such contracts exceed $10,000 during the | preceding 4 quarterly periods ending on the last day of | March, June, September, and December.
| 2. A retailer soliciting orders for tangible personal | property by
means of a telecommunication or television | shopping system (which utilizes toll
free numbers) which is | intended by the retailer to be broadcast by cable
| television or other means of broadcasting, to consumers | located in this State.
| 3. A retailer, pursuant to a contract with a | broadcaster or publisher
located in this State, soliciting | orders for tangible personal property by
means of |
| advertising which is disseminated primarily to consumers | located in
this State and only secondarily to bordering | jurisdictions.
| 4. A retailer soliciting orders for tangible personal | property by mail
if the solicitations are substantial and | recurring and if the retailer benefits
from any banking, | financing, debt collection, telecommunication, or | marketing
activities occurring in this State or benefits | from the location in this State
of authorized installation, | servicing, or repair facilities.
| 5. A retailer that is owned or controlled by the same | interests that own
or control any retailer engaging in | business in the same or similar line of
business in this | State.
| 6. A retailer having a franchisee or licensee operating | under its trade
name if the franchisee or licensee is | required to collect the tax under this
Section.
| 7. A retailer, pursuant to a contract with a cable | television operator
located in this State, soliciting | orders for tangible personal property by
means of | advertising which is transmitted or distributed over a | cable
television system in this State.
| 8. A retailer engaging in activities in Illinois, which | activities in
the state in which the retail business | engaging in such activities is located
would constitute | maintaining a place of business in that state.
|
| "Bulk vending machine" means a vending machine,
containing | unsorted confections, nuts, toys, or other items designed
| primarily to be used or played with by children
which, when a | coin or coins of a denomination not larger than $0.50 are | inserted, are dispensed in equal portions, at random and
| without selection by the customer.
| (Source: P.A. 94-1074, eff. 12-26-06; 95-723, eff. 6-23-08.)
| Section 10. The Service Use Tax Act is amended by changing | Section 2 as follows:
| (35 ILCS 110/2) (from Ch. 120, par. 439.32)
| Sec. 2. "Use" means the exercise by any person of any right | or power
over tangible personal property incident to the | ownership of that
property, but does not include the sale or | use for demonstration by him
of that property in any form as | tangible personal property in the
regular course of business.
| "Use" does not mean the interim
use of
tangible personal | property nor the physical incorporation of tangible
personal | property, as an ingredient or constituent, into other tangible
| personal property, (a) which is sold in the regular course of | business
or (b) which the person incorporating such ingredient | or constituent
therein has undertaken at the time of such | purchase to cause to be
transported in interstate commerce to | destinations outside the State of
Illinois.
| "Purchased from a serviceman" means the acquisition of the |
| ownership
of, or title to, tangible personal property through a | sale of service.
| "Purchaser" means any person who, through a sale of | service, acquires
the ownership of, or title to, any tangible | personal property.
| "Cost price" means the consideration paid by the serviceman | for a
purchase valued in money, whether paid in money or | otherwise, including
cash, credits and services, and shall be | determined without any
deduction on account of the supplier's | cost of the property sold or on
account of any other expense | incurred by the supplier. When a serviceman
contracts out part | or all of the services required in his sale of service,
it | shall be presumed that the cost price to the serviceman of the | property
transferred to him or her by his or her subcontractor | is equal to 50% of
the subcontractor's charges to the | serviceman in the absence of proof of
the consideration paid by | the subcontractor for the purchase of such property.
| "Selling price" means the consideration for a sale valued | in money
whether received in money or otherwise, including | cash, credits and
service, and shall be determined without any | deduction on account of the
serviceman's cost of the property | sold, the cost of materials used,
labor or service cost or any | other expense whatsoever, but does not
include interest or | finance charges which appear as separate items on
the bill of | sale or sales contract nor charges that are added to prices
by | sellers on account of the seller's duty to collect, from the
|
| purchaser, the tax that is imposed by this Act.
| "Department" means the Department of Revenue.
| "Person" means any natural individual, firm, partnership,
| association, joint stock company, joint venture, public or | private
corporation, limited liability company, and any | receiver, executor, trustee,
guardian or other representative | appointed by order of any court.
| "Sale of service" means any transaction except:
| (1) a retail sale of tangible personal property taxable | under the
Retailers' Occupation Tax Act or under the Use | Tax Act.
| (2) a sale of tangible personal property for the | purpose of resale
made in compliance with Section 2c of the | Retailers' Occupation Tax Act.
| (3) except as hereinafter provided, a sale or transfer | of tangible
personal property as an incident to the | rendering of service for or by
any governmental body, or | for or by any corporation, society,
association, | foundation or institution organized and operated
| exclusively for charitable, religious or educational | purposes or any
not-for-profit corporation, society, | association, foundation,
institution or organization which | has no compensated officers or
employees and which is | organized and operated primarily for the
recreation of | persons 55 years of age or older. A limited liability | company
may qualify for the exemption under this paragraph |
| only if the limited
liability company is organized and | operated exclusively for educational
purposes.
| (4) a sale or transfer of tangible personal
property as | an incident to the
rendering of service for interstate | carriers for hire for use as rolling stock
moving in | interstate commerce or by lessors under a lease of one year | or
longer, executed or in effect at the time of purchase of | personal property, to
interstate carriers for hire for use | as rolling stock moving in interstate
commerce so long as | so used by such interstate carriers for hire, and equipment
| operated by a telecommunications provider, licensed as a | common carrier by the
Federal Communications Commission, | which is permanently installed in or affixed
to aircraft | moving in interstate commerce.
| (4a) a sale or transfer of tangible personal
property | as an incident
to the rendering of service for owners, | lessors, or shippers of tangible
personal property which is | utilized by interstate carriers for hire for
use as rolling | stock moving in interstate commerce so long as so used by
| interstate carriers for hire, and equipment operated by a
| telecommunications provider, licensed as a common carrier | by the Federal
Communications Commission, which is | permanently installed in or affixed to
aircraft moving in | interstate commerce.
| (4a-5) on and after July 1, 2003 and through June 30, | 2004, a sale or transfer of a motor vehicle
of
the
second |
| division with a gross vehicle weight in excess of 8,000 | pounds as an
incident to the rendering of service if that | motor
vehicle is subject
to the commercial distribution fee | imposed under Section 3-815.1 of the
Illinois Vehicle
Code. | Beginning on July 1, 2004 and through June 30, 2005, the | use in this State of motor vehicles of the second division: | (i) with a gross vehicle weight rating in excess of 8,000 | pounds; (ii) that are subject to the commercial | distribution fee imposed under Section 3-815.1 of the | Illinois Vehicle Code; and (iii) that are primarily used | for commercial purposes. Through June 30, 2005, this
| exemption applies to repair and replacement parts added | after the
initial
purchase of such a motor vehicle if that | motor vehicle is used in a manner that
would
qualify for | the rolling stock exemption otherwise provided for in this | Act. For purposes of this paragraph, "used for commercial | purposes" means the transportation of persons or property | in furtherance of any commercial or industrial enterprise | whether for-hire or not.
| (5) a sale or transfer of machinery and equipment used | primarily in the
process of the manufacturing or | assembling, either in an existing, an expanded
or a new | manufacturing facility, of tangible personal property for | wholesale or
retail sale or lease, whether such sale or | lease is made directly by the
manufacturer or by some other | person, whether the materials used in the process
are owned |
| by the manufacturer or some other person, or whether such | sale or
lease is made apart from or as an incident to the | seller's engaging in a
service occupation and the | applicable tax is a Service Use Tax or Service
Occupation | Tax, rather than Use Tax or Retailers' Occupation Tax.
| (5a) the repairing, reconditioning or remodeling, for | a
common carrier by rail, of tangible personal property | which belongs to such
carrier for hire, and as to which | such carrier receives the physical possession
of the | repaired, reconditioned or remodeled item of tangible | personal property
in Illinois, and which such carrier | transports, or shares with another common
carrier in the | transportation of such property, out of Illinois on a | standard
uniform bill of lading showing the person who | repaired, reconditioned or
remodeled the property to a | destination outside Illinois, for use outside
Illinois.
| (5b) a sale or transfer of tangible personal property | which is produced by
the seller thereof on special order in | such a way as to have made the
applicable tax the Service | Occupation Tax or the Service Use Tax, rather than
the | Retailers' Occupation Tax or the Use Tax, for an interstate | carrier by rail
which receives the physical possession of | such property in Illinois, and which
transports such | property, or shares with another common carrier in the
| transportation of such property, out of Illinois on a | standard uniform bill of
lading showing the seller of the |
| property as the shipper or consignor of such
property to a | destination outside Illinois, for use outside Illinois.
| (6) until July 1, 2003, a sale or transfer of | distillation machinery
and equipment, sold
as a unit or kit | and assembled or installed by the retailer, which
machinery | and equipment is certified by the user to be used only for | the
production of ethyl alcohol that will be used for | consumption as motor fuel
or as a component of motor fuel | for the personal use of such user and not
subject to sale | or resale.
| (7) at the election of any serviceman not required to | be
otherwise registered as a retailer under Section 2a of | the Retailers'
Occupation Tax Act, made for each fiscal | year sales
of service in which the aggregate annual cost | price of tangible
personal property transferred as an | incident to the sales of service is
less than 35%, or 75% | in the case of servicemen transferring prescription
drugs | or servicemen engaged in graphic arts production, of the | aggregate
annual total gross receipts from all sales of | service. The purchase of
such tangible personal property by | the serviceman shall be subject to tax
under the Retailers' | Occupation Tax Act and the Use Tax Act.
However, if a
| primary serviceman who has made the election described in | this paragraph
subcontracts service work to a secondary | serviceman who has also made the
election described in this | paragraph, the primary serviceman does not
incur a Use Tax |
| liability if the secondary serviceman (i) has paid or will | pay
Use
Tax on his or her cost price of any tangible | personal property transferred
to the primary serviceman | and (ii) certifies that fact in writing to the
primary
| serviceman.
| Tangible personal property transferred incident to the | completion of a
maintenance agreement is exempt from the tax | imposed pursuant to this Act.
| Exemption (5) also includes machinery and equipment used in | the general
maintenance or repair of such exempt machinery and | equipment or for in-house
manufacture of exempt machinery and | equipment. For the purposes of exemption
(5), each of these | terms shall have the following meanings: (1) "manufacturing
| process" shall mean the production of any article of tangible | personal
property, whether such article is a finished product | or an article for use in
the process of manufacturing or | assembling a different article of tangible
personal property, | by procedures commonly regarded as manufacturing,
processing, | fabricating, or refining which changes some existing
material | or materials into a material with a different form, use or
| name. In relation to a recognized integrated business composed | of a
series of operations which collectively constitute | manufacturing, or
individually constitute manufacturing | operations, the manufacturing
process shall be deemed to | commence with the first operation or stage of
production in the | series, and shall not be deemed to end until the
completion of |
| the final product in the last operation or stage of
production | in the series; and further, for purposes of exemption (5),
| photoprocessing is deemed to be a manufacturing process of | tangible
personal property for wholesale or retail sale; (2) | "assembling process" shall
mean the production of any article | of tangible personal property, whether such
article is a | finished product or an article for use in the process of
| manufacturing or assembling a different article of tangible | personal
property, by the combination of existing materials in | a manner commonly
regarded as assembling which results in a | material of a different form,
use or name; (3) "machinery" | shall mean major mechanical machines or
major components of | such machines contributing to a manufacturing or
assembling | process; and (4) "equipment" shall include any independent
| device or tool separate from any machinery but essential to an
| integrated manufacturing or assembly process; including | computers
used primarily in a manufacturer's computer
assisted | design, computer assisted manufacturing (CAD/CAM) system;
or | any subunit or assembly comprising a component of any machinery | or
auxiliary, adjunct or attachment parts of machinery, such as | tools, dies,
jigs, fixtures, patterns and molds; or any parts | which require periodic
replacement in the course of normal | operation; but shall not include hand
tools.
Equipment includes | chemicals or chemicals acting as catalysts but only if the
| chemicals or chemicals acting as catalysts effect a direct and | immediate change
upon a
product being manufactured or assembled |
| for wholesale or retail sale or
lease.
The purchaser of such | machinery and equipment who has an active
resale registration | number shall furnish such number to the seller at the
time of | purchase. The user of such machinery and equipment and tools
| without an active resale registration number shall prepare a | certificate of
exemption for each transaction stating facts | establishing the exemption for
that transaction, which | certificate shall be available to the Department
for inspection | or audit. The Department shall prescribe the form of the
| certificate.
| Any informal rulings, opinions or letters issued by the | Department in
response to an inquiry or request for any opinion | from any person
regarding the coverage and applicability of | exemption (5) to specific
devices shall be published, | maintained as a public record, and made
available for public | inspection and copying. If the informal ruling,
opinion or | letter contains trade secrets or other confidential
| information, where possible the Department shall delete such | information
prior to publication. Whenever such informal | rulings, opinions, or
letters contain any policy of general | applicability, the Department
shall formulate and adopt such | policy as a rule in accordance with the
provisions of the | Illinois Administrative Procedure Act.
| On and after July 1, 1987, no entity otherwise eligible | under exemption
(3) of this Section shall make tax free | purchases unless it has an active
exemption identification |
| number issued by the Department.
| The purchase, employment and transfer of such tangible | personal
property as newsprint and ink for the primary purpose | of conveying news
(with or without other information) is not a | purchase, use or sale of
service or of tangible personal | property within the meaning of this Act.
| "Serviceman" means any person who is engaged in the | occupation of
making sales of service.
| "Sale at retail" means "sale at retail" as defined in the | Retailers'
Occupation Tax Act.
| "Supplier" means any person who makes sales of tangible | personal
property to servicemen for the purpose of resale as an | incident to a
sale of service.
| "Serviceman maintaining a place of business in this State", | or any
like term, means and includes any serviceman:
| 1. having or maintaining within this State, directly or | by a
subsidiary, an office, distribution house, sales | house, warehouse or
other place of business, or any agent | or other representative operating
within this State under | the authority of the serviceman or its
subsidiary, | irrespective of whether such place of business or agent or
| other representative is located here permanently or | temporarily, or
whether such serviceman or subsidiary is | licensed to do business in this
State; | 1.1. beginning July 1, 2011, having a contract with a | person located in this State under which the person, for a |
| commission or other consideration based on the sale of | service by the serviceman, directly or indirectly refers | potential customers to the serviceman by a link on the | person's Internet website. The provisions of this | paragraph 1.1 shall apply only if the cumulative gross | receipts from sales of service by the serviceman to | customers who are referred to the serviceman by all persons | in this State under such contracts exceed $10,000 during | the preceding 4 quarterly periods ending on the last day of | March, June, September, and December; | 1.2. beginning July 1, 2011, having a contract with a | person located in this State under which: | A. the serviceman sells the same or substantially | similar line of services as the person located in this | State and does so using an identical or substantially | similar name, trade name, or trademark as the person | located in this State; and | B. the serviceman provides a commission or other | consideration to the person located in this State based | upon the sale of services by the serviceman. | The provisions of this paragraph 1.2 shall apply only if | the cumulative gross receipts from sales of service by the | serviceman to customers in this State under all such | contracts exceed $10,000 during the preceding 4 quarterly | periods ending on the last day of March, June, September, | and December;
|
| 2. soliciting orders for tangible personal property by | means of a
telecommunication or television shopping system | (which utilizes toll free
numbers) which is intended by the | retailer to be broadcast by cable
television or other means | of broadcasting, to consumers located in this State;
| 3. pursuant to a contract with a broadcaster or | publisher located in this
State, soliciting orders for | tangible personal property by means of advertising
which is | disseminated primarily to consumers located in this State | and only
secondarily to bordering jurisdictions;
| 4. soliciting orders for tangible personal property by | mail if the
solicitations are substantial and recurring and | if the retailer benefits
from any banking, financing, debt | collection, telecommunication, or
marketing activities | occurring in this State or benefits from the location
in | this State of authorized installation, servicing, or | repair facilities;
| 5. being owned or controlled by the same interests | which own or
control any retailer engaging in business in | the same or similar line of
business in this State;
| 6. having a franchisee or licensee operating under its | trade name if
the franchisee or licensee is required to | collect the tax under this Section;
| 7. pursuant to a contract with a cable television | operator located in
this State, soliciting orders for | tangible personal property by means of
advertising which is |
| transmitted or distributed over a cable television
system | in this State; or
| 8. engaging in activities in Illinois, which | activities in the
state in which the supply business | engaging in such activities is located
would constitute | maintaining a place of business in that state.
| (Source: P.A. 92-484, eff. 8-23-01; 93-23, eff. 6-20-03; 93-24, | eff. 6-20-03; 93-1033, eff. 9-3-04.)
| Section 97. Severability. The provisions of this Act are | severable under Section 1.31 of the Statute on Statutes.
| Section 99. Effective date. This Act takes effect upon | becoming law.
|
Effective Date: 3/10/2011
|
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