HB5448 100TH GENERAL ASSEMBLY

LRB100 18888 HLH 34132 b

100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB5448

Introduced , by Rep. Robert W. Pritchard

SYNOPSIS AS INTRODUCED:

35 ILCS 105/8a new

Amends the Use Tax Act. Provides that retailers that have more than $100,000 in gross sales to Illinois purchasers in the previous year and do not collect the tax under the Act must do the following: (1) provide a notice to each Illinois purchaser that the tax under the Act is due on purchases that are not tax exempt and that the State requires the Illinois purchaser to file a return under the Act; (2) provide a notice to each Illinois purchaser who purchases more than $500 worth of goods in a year containing specific information about purchases that may result in Illinois use tax liability; and (3) file an annual report with the Department of Revenue showing the total amount paid for purchases by those Illinois purchasers during the preceding calendar year. Requires retailers to include transactional notices at checkout. Sets forth penalties for failure to submit those notices and reports. Provides that the term "Illinois purchaser" means a purchaser (i) with a billing address in this State or (ii) who makes a purchase for delivery to an address in this State. Effective immediately.

A BILL FOR

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 adding Section 8a as follows:

(35 ILCS 105/8a new)

Sec. 8a. Retailer notifications.

(a) Each retailer that sells to Illinois purchasers but does not collect and remit use tax under this Act shall notify each Illinois purchaser at the time of sale that the tax under this Act is due on all purchases that are not exempt and that the State requires the Illinois purchaser to file a return under this Act. Failure to provide the notice required in this subsection shall subject the retailer to a penalty of $5 for each such failure unless the retailer shows reasonable cause for the failure.

(a-1) For all purchases made online, a transactional notice shall be prominently located in close proximity to the "Tax" or "Sales Tax" line at checkout, or if no "Tax" line is available, in close proximity to the "Total Price" line shown at checkout. If it is impracticable for the retailer subject to the provisions of this Section to display the transactional notice as described above, the retailer shall prominently display a hyperlink. The hyperlink shall read "See here for information about the State tax you may owe" or use similar language. The hyperlink shall direct the Illinois purchaser to the transactional notice. The hyperlink shall appear in close proximity to the "Tax" or "Total Price" line shown at checkout, on the invoice or order confirmation, or on the webpage for the product purchased.

(b) Each retailer that has more than $100,000 in gross sales to Illinois purchasers in the previous year and does not collect the tax under this Act shall, by January 31 of each year, send notification to all Illinois purchasers who purchase more than $500 worth of goods in a year showing the following:

(1) the total amount paid by the purchaser for purchases made from the retailer in the previous calendar year;

(2) the dates of each purchase;

(3) the amounts of each purchase;

(4) whether or not the purchase is exempt from taxation under this Act; and

(5) such information as the Department shall require by rule.

The notification shall state that the State of Illinois requires a use tax return to be filed and use tax to be paid on certain purchases made by the purchaser from the retailer.

The notification specified in this subsection shall be sent separately to all Illinois purchasers by first-class mail and shall not be included with any other shipments, unless the retailer subject to the provisions of this Section, as determined by a rule adopted by the Department, is allowed to deliver the notification by electronic means. The notification shall include the words "Important Tax Document Enclosed" on the exterior of the mailing, unless the retailer subject to the provisions of this Section, as determined by a rule adopted by the Department, is allowed to deliver the notification by electronic means. The notification shall include the name of the retailer.

Failure to send the notification required in this subsection shall subject the retailer to a penalty of $10 for each such failure unless the retailer shows reasonable cause for the failure.

(c) Each retailer mentioned in subsection (b) that does not collect the tax under this Act shall file with the Department, in the form and manner required by the Department, an annual statement for all Illinois purchasers who purchase more than $500 worth of goods in year showing the total amount paid for purchases by Illinois purchasers during the preceding calendar year or any portion thereof. That annual statement shall be filed on or before March 1 of each year. Failure to file the annual statement required under this subsection shall subject the retailer to a penalty of $10 for each purchaser that should have been included in the annual statement unless the retailer shows reasonable cause for the failure.

(d) As used in this Section:

"Illinois purchaser" means a purchaser with a billing address in this State.

"Transactional notice" means the notice required to be provided by a retailer subject to the provisions of this Section to an Illinois purchaser at the time of purchase notifying the Illinois purchaser of the information required pursuant to this Section.

Section 99. Effective date. This Act takes effect upon becoming law.