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Public Act 098-0628
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| HB2317 Enrolled | LRB098 09941 JWD 40099 b |
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AN ACT concerning revenue.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 3. The Use Tax Act is amended by changing Section 2 |
as follows:
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(35 ILCS 105/2) (from Ch. 120, par. 439.2)
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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
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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
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shall pay on the retailers' original cost price the tax imposed |
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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
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ingredient of an intentionally produced product or by-product |
of manufacturing.
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"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.
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"Purchase at retail" means the acquisition of the ownership |
of or title
to tangible personal property through a sale at |
retail.
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"Purchaser" means anyone who, through a sale at retail, |
acquires the
ownership of tangible personal property for a |
valuable consideration.
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"Sale at retail" means any transfer of the ownership of or |
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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
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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.
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"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.
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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 |
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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.
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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.
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"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
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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
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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.
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Notwithstanding any law to the contrary, for any motor |
vehicle, as defined in Section 1-146 of the Vehicle Code, that |
is sold on or after July 1, 2014 for the purpose of leasing the |
vehicle for a defined period that is longer than one year and |
(1) is a motor vehicle of the second division that: (A) is a |
self-contained motor vehicle designed or permanently converted |
to provide living quarters for recreational, camping, or travel |
use, with direct walk through access to the living quarters |
from the driver's seat; (B) is of the van configuration |
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designed for the transportation of not less than 7 nor more |
than 16 passengers; or (C) has a gross vehicle weight rating of |
8,000 pounds or less or (2) is a motor vehicle of the first |
division, "selling price" or "amount of sale" means the |
consideration received by the lessor pursuant to the lease |
contract, including amounts due at lease signing and all |
monthly or other regular payments charged over the term of the |
lease. Also included in the selling price is any amount |
received by the lessor from the lessee for the leased vehicle |
that is not calculated at the time the lease is executed, |
including, but not limited to, excess mileage charges and |
charges for excess wear and tear. For sales that occur in |
Illinois, with respect to any amount received by the lessor |
from the lessee for the leased vehicle that is not calculated |
at the time the lease is executed, the lessor who purchased the |
motor vehicle does not incur the tax imposed by the Use Tax Act |
on those amounts, and the retailer who makes the retail sale of |
the motor vehicle to the lessor is not required to collect the |
tax imposed by this Act or to pay the tax imposed by the |
Retailers' Occupation Tax Act on those amounts. However, the |
lessor who purchased the motor vehicle assumes the liability |
for reporting and paying the tax on those amounts directly to |
the Department in the same form (Illinois Retailers' Occupation |
Tax, and local retailers' occupation taxes, if applicable) in |
which the retailer would have reported and paid such tax if the |
retailer had accounted for the tax to the Department. For |
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amounts received by the lessor from the lessee that are not |
calculated at the time the lease is executed, the lessor must |
file the return and pay the tax to the Department by the due |
date otherwise required by this Act for returns other than |
transaction returns. If the retailer is entitled under this Act |
to a discount for collecting and remitting the tax imposed |
under this Act to the Department with respect to the sale of |
the motor vehicle to the lessor, then the right to the discount |
provided in this Act shall be transferred to the lessor with |
respect to the tax paid by the lessor for any amount received |
by the lessor from the lessee for the leased vehicle that is |
not calculated at the time the lease is executed; provided that |
the discount is only allowed if the return is timely filed and |
for amounts timely paid. The "selling price" of a motor vehicle |
that is sold on or after July 1, 2014 for the purpose of |
leasing for a defined period of longer than one year shall not |
be reduced by the value of or credit given for traded-in |
tangible personal property owned by the lessor, nor shall it be |
reduced by the value of or credit given for traded-in tangible |
personal property owned by the lessee, regardless of whether |
the trade-in value thereof is assigned by the lessee to the |
lessor. In the case of a motor vehicle that is sold for the |
purpose of leasing for a defined period of longer than one |
year, the sale occurs at the time of the delivery of the |
vehicle, regardless of the due date of any lease payments. A |
lessor who incurs a Retailers' Occupation Tax liability on the |
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sale of a motor vehicle coming off lease may not take a credit |
against that liability for the Use Tax the lessor paid upon the |
purchase of the motor vehicle (or for any tax the lessor paid |
with respect to any amount received by the lessor from the |
lessee for the leased vehicle that was not calculated at the |
time the lease was executed) if the selling price of the motor |
vehicle at the time of purchase was calculated using the |
definition of "selling price" as defined in this paragraph. |
Notwithstanding any other provision of this Act to the |
contrary, lessors shall file all returns and make all payments |
required under this paragraph to the Department by electronic |
means in the manner and form as required by the Department. |
This paragraph does not apply to leases of motor vehicles for |
which, at the time the lease is entered into, the term of the |
lease is not a defined period, including leases with a defined |
initial period with the option to continue the lease on a |
month-to-month or other basis beyond the initial defined |
period. |
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
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which, if sold at retail by that retailer, would be exempt from |
retailers'
occupation tax and use tax as an isolated or |
occasional sale.
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"Department" means the Department of Revenue.
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"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
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by order of any court.
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"Retailer" means and includes every person engaged in the |
business of
making sales at retail as defined in this Section.
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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
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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.
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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 |
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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
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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.
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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
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retailer under this Act with respect to such transactions.
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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.
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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 |
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bulk vending machine does not make such person a retailer
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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
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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
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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.
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"Retailer maintaining a place of business in this State", |
or any like
term, means and includes any of the following |
retailers:
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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 |
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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 |
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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.
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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
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television or other means of broadcasting, to consumers |
located in this State.
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3. A retailer, pursuant to a contract with a |
broadcaster or publisher
located in this State, soliciting |
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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.
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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.
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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.
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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.
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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.
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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 |
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maintaining a place of business in that state.
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"Bulk vending machine" means a vending machine,
containing |
unsorted confections, nuts, toys, or other items designed
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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
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without selection by the customer.
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(Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
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Section 4. The Retailers' Occupation Tax Act is amended by |
changing Section 1 as follows:
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(35 ILCS 120/1) (from Ch. 120, par. 440)
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Sec. 1. Definitions. "Sale at retail" means any transfer of |
the
ownership of or title to
tangible personal property to a |
purchaser, for the purpose of use or
consumption, 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 |
byproduct 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 byproduct of
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manufacturing. Transactions whereby the possession of the |
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property is
transferred but the seller retains the title as |
security for payment of the
selling price shall be deemed to be |
sales.
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"Sale at retail" shall be construed to include any transfer |
of the
ownership of or title to tangible personal property to a |
purchaser, for use
or consumption by any other person to whom |
such purchaser may transfer the
tangible personal property |
without a valuable consideration, and to include
any transfer, |
whether made for or without a valuable consideration, for
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resale in any form as tangible personal property unless made in |
compliance
with Section 2c of this Act.
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Sales of tangible personal property, which property, to the |
extent not
first subjected to a use for which it was purchased, |
as an ingredient or
constituent, goes into and forms a part of |
tangible personal property
subsequently the subject of a "Sale |
at retail", are not sales at retail as
defined in this Act: |
Provided that the property purchased is deemed to be
purchased |
for the purpose of resale, despite first being used, to the
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extent to which it is resold as an ingredient of an |
intentionally produced
product or byproduct of manufacturing.
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"Sale at retail" shall 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.
|
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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.
|
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 engaged in the business of selling tangible personal
|
property at retail 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. The
provisions |
of this paragraph shall not apply to nor subject to taxation
|
occasional dinners, socials 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
|
engaged in the business of selling tangible personal property |
at retail
with respect to such transactions.
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"Purchaser" means anyone who, through a sale at retail, |
acquires the
ownership of or title to tangible personal |
property for a valuable
consideration.
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"Reseller of motor fuel" means any person engaged in the |
business of selling
or delivering or transferring title of |
motor fuel to another person
other than for use or consumption.
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No person shall act as a reseller of motor fuel within this |
State without
first being registered as a reseller pursuant to |
Section 2c or a retailer
pursuant to Section 2a.
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"Selling price" or the "amount of sale" 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 charges that are |
added to prices by sellers on account of
the seller's tax |
liability under this Act, or on account of the seller's
duty to |
collect, from the purchaser, the tax that is imposed by the Use |
Tax
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 sellers'
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.
|
Notwithstanding any law to the contrary, for any motor |
vehicle, as defined in Section 1-146 of the Vehicle Code, that |
is sold on or after July 1, 2014 for the purpose of leasing the |
vehicle for a defined period that is longer than one year and |
(1) is a motor vehicle of the second division that: (A) is a |
self-contained motor vehicle designed or permanently converted |
to provide living quarters for recreational, camping, or travel |
use, with direct walk through access to the living quarters |
from the driver's seat; (B) is of the van configuration |
designed for the transportation of not less than 7 nor more |
than 16 passengers; or (C) has a gross vehicle weight rating of |
8,000 pounds or less or (2) is a motor vehicle of the first |
division, "selling price" or "amount of sale" means the |
consideration received by the lessor pursuant to the lease |
contract, including amounts due at lease signing and all |
monthly or other regular payments charged over the term of the |
lease. Also included in the selling price is any amount |
received by the lessor from the lessee for the leased vehicle |
that is not calculated at the time the lease is executed, |
including, but not limited to, excess mileage charges and |
charges for excess wear and tear. For sales that occur in |
Illinois, with respect to any amount received by the lessor |
|
from the lessee for the leased vehicle that is not calculated |
at the time the lease is executed, the lessor who purchased the |
motor vehicle does not incur the tax imposed by the Use Tax Act |
on those amounts, and the retailer who makes the retail sale of |
the motor vehicle to the lessor is not required to collect the |
tax imposed by the Use Tax Act or to pay the tax imposed by this |
Act on those amounts. However, the lessor who purchased the |
motor vehicle assumes the liability for reporting and paying |
the tax on those amounts directly to the Department in the same |
form (Illinois Retailers' Occupation Tax, and local retailers' |
occupation taxes, if applicable) in which the retailer would |
have reported and paid such tax if the retailer had accounted |
for the tax to the Department. For amounts received by the |
lessor from the lessee that are not calculated at the time the |
lease is executed, the lessor must file the return and pay the |
tax to the Department by the due date otherwise required by |
this Act for returns other than transaction returns. If the |
retailer is entitled under this Act to a discount for |
collecting and remitting the tax imposed under this Act to the |
Department with respect to the sale of the motor vehicle to the |
lessor, then the right to the discount provided in this Act |
shall be transferred to the lessor with respect to the tax paid |
by the lessor for any amount received by the lessor from the |
lessee for the leased vehicle that is not calculated at the |
time the lease is executed; provided that the discount is only |
allowed if the return is timely filed and for amounts timely |
|
paid. The "selling price" of a motor vehicle that is sold on or |
after July 1, 2014 for the purpose of leasing for a defined |
period of longer than one year shall not be reduced by the |
value of or credit given for traded-in tangible personal |
property owned by the lessor, nor shall it be reduced by the |
value of or credit given for traded-in tangible personal |
property owned by the lessee, regardless of whether the |
trade-in value thereof is assigned by the lessee to the lessor. |
In the case of a motor vehicle that is sold for the purpose of |
leasing for a defined period of longer than one year, the sale |
occurs at the time of the delivery of the vehicle, regardless |
of the due date of any lease payments. A lessor who incurs a |
Retailers' Occupation Tax liability on the sale of a motor |
vehicle coming off lease may not take a credit against that |
liability for the Use Tax the lessor paid upon the purchase of |
the motor vehicle (or for any tax the lessor paid with respect |
to any amount received by the lessor from the lessee for the |
leased vehicle that was not calculated at the time the lease |
was executed) if the selling price of the motor vehicle at the |
time of purchase was calculated using the definition of |
"selling price" as defined in this paragraph.
Notwithstanding |
any other provision of this Act to the contrary, lessors shall |
file all returns and make all payments required under this |
paragraph to the Department by electronic means in the manner |
and form as required by the Department. This paragraph does not |
apply to leases of motor vehicles for which, at the time the |
|
lease is entered into, the term of the lease is not a defined |
period, including leases with a defined initial period with the |
option to continue the lease on a month-to-month or other basis |
beyond the initial defined period. |
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.
|
"Gross receipts" from the sales of tangible personal |
property at retail
means the total selling price or the amount |
of such sales, as hereinbefore
defined. In the case of charge |
and time sales, the amount thereof shall be
included only as |
and when payments are received by the seller.
Receipts or other |
consideration derived by a seller from
the sale, transfer or |
assignment of accounts receivable to a wholly owned
subsidiary |
will not be deemed payments prior to the time the purchaser
|
makes payment on such accounts.
|
"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.
|
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 constitute engaging in a
|
business of selling such tangible personal property at retail |
within the
meaning of this Act; provided that any person who is |
engaged in a business
which is not subject to the tax imposed |
by this Act because of involving
the sale of or a contract to |
sell real estate or a construction contract to
improve real |
estate or a construction contract to engineer, install, and
|
maintain an integrated system of products, 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 |
or was
not engineered and installed, 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 engaged in the
business |
of selling tangible personal property at retail to the extent |
of the
value of the tangible personal property so transferred. |
If, in such a
transaction, a separate charge is made for the |
tangible personal property so
transferred, the value of such |
property, for the purpose of this Act, shall be
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. Construction |
contracts for the improvement of real estate
consisting of |
engineering, installation, and maintenance of voice, data, |
video,
security, and all telecommunication systems do not |
constitute engaging in a
business of selling tangible personal |
property at retail within the meaning of
this Act if they are |
sold at one specified contract price.
|
A person who holds himself or herself out as being engaged |
(or who habitually
engages) in selling tangible personal |
property at retail is a person
engaged in the business of |
selling tangible personal property at retail
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.
|
Persons who engage in the business of transferring tangible |
personal
property upon the redemption of trading stamps are |
engaged in the business
of selling such property at retail and |
shall be liable for and shall pay
the tax imposed by this Act |
on the basis of the retail value of the
property transferred |
|
upon redemption of such stamps.
|
"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. 95-723, eff. 6-23-08.)
|
Section 5. The Property Tax Code is amended by changing |
Sections 20-5 and 20-20 as follows:
|
(35 ILCS 200/20-5)
|
Sec. 20-5. Mailing or e-mailing tax bill to owner. |
(a) Every township collector, and every
county collector in |
cases where there is no township collector, upon receiving
the |
tax book or books, shall prepare tax bills showing each |
installment of
property taxes assessed, which shall be filled |
out in accordance with Section
20-40. A copy of the bill shall |
be mailed by the collector, at least 30 days
prior to the date |
upon which unpaid taxes become delinquent, to the owner of
the |
property taxed or to the person in whose name the property is |
taxed. |
(b) The collector may send the bill via e-mail as provided |
in subsection (b) of Section 20-20. However, no bill shall be |
sent to a property owner or taxpayer via e-mail unless that |
|
owner or taxpayer shall have first made such a request to the |
collector in writing.
|
(Source: P.A. 86-957; 87-818; 88-455.)
|
(35 ILCS 200/20-20)
|
Sec. 20-20. Changes in address for mailing tax bill. |
(a) To insure that a person
requesting a change of the |
address to which a property tax bill is sent has a
legal |
interest in the property or authority to act on behalf of the |
owner of
the property, the county collector in every county |
with less than 3,000,000
inhabitants or less shall establish |
and enforce a procedure for requiring
identification or |
certification of the identity of taxpayers who request a
change |
in the address to which their tax bill is mailed. No change of |
address
shall be implemented unless the person requesting the |
change is the owner of
the property, a trustee or a person |
holding the power of attorney from the
owner or trustee of the |
property. However, if a property owner conveys a permanent |
change of address in writing to the United States Postal |
Service, then, on or after the effective date of that change of |
address, the county collector may mail a property tax bill to |
the property owner at his or her new address regardless of |
whether or not the owner notifies the collector of the address |
change.
|
(b) As an alternative to mailing a copy of the bill, the |
collector may send the tax bill via e-mail at the request of |