Rep. Sara Feigenholtz

Filed: 3/2/2012

 

 


 

 


 
09700HB5423ham001LRB097 19513 HLH 65974 a

1
AMENDMENT TO HOUSE BILL 5423

2    AMENDMENT NO. ______. Amend House Bill 5423 by replacing
3everything after the enacting clause with the following:
 
4    "Section 5. The Use Tax Act is amended by changing Section
52 as follows:
 
6    (35 ILCS 105/2)  (from Ch. 120, par. 439.2)
7    Sec. 2. "Use" means the exercise by any person of any right
8or power over tangible personal property incident to the
9ownership of that property, except that it does not include the
10sale of such property in any form as tangible personal property
11in the regular course of business to the extent that such
12property is not first subjected to a use for which it was
13purchased, and does not include the use of such property by its
14owner for demonstration purposes: Provided that the property
15purchased is deemed to be purchased for the purpose of resale,
16despite first being used, to the extent to which it is resold

 

 

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1as an ingredient of an intentionally produced product or
2by-product of manufacturing. "Use" does not mean the
3demonstration use or interim use of tangible personal property
4by a retailer before he sells that tangible personal property.
5For watercraft or aircraft, if the period of demonstration use
6or interim use by the retailer exceeds 18 months, the retailer
7shall pay on the retailers' original cost price the tax imposed
8by this Act, and no credit for that tax is permitted if the
9watercraft or aircraft is subsequently sold by the retailer.
10"Use" does not mean the physical incorporation of tangible
11personal property, to the extent not first subjected to a use
12for which it was purchased, as an ingredient or constituent,
13into other tangible personal property (a) which is sold in the
14regular course of business or (b) which the person
15incorporating such ingredient or constituent therein has
16undertaken at the time of such purchase to cause to be
17transported in interstate commerce to destinations outside the
18State of Illinois: Provided that the property purchased is
19deemed to be purchased for the purpose of resale, despite first
20being used, to the extent to which it is resold as an
21ingredient of an intentionally produced product or by-product
22of manufacturing.
23    "Watercraft" means a Class 2, Class 3, or Class 4
24watercraft as defined in Section 3-2 of the Boat Registration
25and Safety Act, a personal watercraft, or any boat equipped
26with an inboard motor.

 

 

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1    "Purchase at retail" means the acquisition of the ownership
2of or title to tangible personal property through a sale at
3retail.
4    "Purchaser" means anyone who, through a sale at retail,
5acquires the ownership of tangible personal property for a
6valuable consideration.
7    "Sale at retail" means any transfer of the ownership of or
8title to tangible personal property to a purchaser, for the
9purpose of use, and not for the purpose of resale in any form
10as tangible personal property to the extent not first subjected
11to a use for which it was purchased, for a valuable
12consideration: Provided that the property purchased is deemed
13to be purchased for the purpose of resale, despite first being
14used, to the extent to which it is resold as an ingredient of
15an intentionally produced product or by-product of
16manufacturing. For this purpose, slag produced as an incident
17to manufacturing pig iron or steel and sold is considered to be
18an intentionally produced by-product of manufacturing. "Sale
19at retail" includes any such transfer made for resale unless
20made in compliance with Section 2c of the Retailers' Occupation
21Tax Act, as incorporated by reference into Section 12 of this
22Act. Transactions whereby the possession of the property is
23transferred but the seller retains the title as security for
24payment of the selling price are sales.
25    "Sale at retail" shall also be construed to include any
26Illinois florist's sales transaction in which the purchase

 

 

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1order is received in Illinois by a florist and the sale is for
2use or consumption, but the Illinois florist has a florist in
3another state deliver the property to the purchaser or the
4purchaser's donee in such other state.
5    Nonreusable tangible personal property that is used by
6persons engaged in the business of operating a restaurant,
7cafeteria, or drive-in is a sale for resale when it is
8transferred to customers in the ordinary course of business as
9part of the sale of food or beverages and is used to deliver,
10package, or consume food or beverages, regardless of where
11consumption of the food or beverages occurs. Examples of those
12items include, but are not limited to nonreusable, paper and
13plastic cups, plates, baskets, boxes, sleeves, buckets or other
14containers, utensils, straws, placemats, napkins, doggie bags,
15and wrapping or packaging materials that are transferred to
16customers as part of the sale of food or beverages in the
17ordinary course of business.
18    The purchase, employment and transfer of such tangible
19personal property as newsprint and ink for the primary purpose
20of conveying news (with or without other information) is not a
21purchase, use or sale of tangible personal property.
22    "Selling price" means the consideration for a sale valued
23in money whether received in money or otherwise, including
24cash, credits, property other than as hereinafter provided, and
25services, but not including the value of or credit given for
26traded-in tangible personal property where the item that is

 

 

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1traded-in is of like kind and character as that which is being
2sold, and shall be determined without any deduction on account
3of the cost of the property sold, the cost of materials used,
4labor or service cost or any other expense whatsoever, but does
5not include interest or finance charges which appear as
6separate items on the bill of sale or sales contract nor
7charges that are added to prices by sellers on account of the
8seller's tax liability under the "Retailers' Occupation Tax
9Act", or on account of the seller's duty to collect, from the
10purchaser, the tax that is imposed by this Act, or, except as
11otherwise provided with respect to any cigarette tax imposed by
12a home rule unit, on account of the seller's tax liability
13under any local occupation tax administered by the Department,
14or, except as otherwise provided with respect to any cigarette
15tax imposed by a home rule unit on account of the seller's duty
16to collect, from the purchasers, the tax that is imposed under
17any local use tax administered by the Department. Effective
18December 1, 1985, "selling price" shall include charges that
19are added to prices by sellers on account of the seller's tax
20liability under the Cigarette Tax Act, on account of the
21seller's duty to collect, from the purchaser, the tax imposed
22under the Cigarette Use Tax Act, and on account of the seller's
23duty to collect, from the purchaser, any cigarette tax imposed
24by a home rule unit.
25    The phrase "like kind and character" shall be liberally
26construed (including but not limited to any form of motor

 

 

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1vehicle for any form of motor vehicle, or any kind of farm or
2agricultural implement for any other kind of farm or
3agricultural implement), while not including a kind of item
4which, if sold at retail by that retailer, would be exempt from
5retailers' occupation tax and use tax as an isolated or
6occasional sale.
7    "Department" means the Department of Revenue.
8    "Person" means any natural individual, firm, partnership,
9association, joint stock company, joint adventure, public or
10private corporation, limited liability company, or a receiver,
11executor, trustee, guardian or other representative appointed
12by order of any court.
13    "Retailer" means and includes every person engaged in the
14business of making sales at retail as defined in this Section.
15    A person who holds himself or herself out as being engaged
16(or who habitually engages) in selling tangible personal
17property at retail is a retailer hereunder with respect to such
18sales (and not primarily in a service occupation)
19notwithstanding the fact that such person designs and produces
20such tangible personal property on special order for the
21purchaser and in such a way as to render the property of value
22only to such purchaser, if such tangible personal property so
23produced on special order serves substantially the same
24function as stock or standard items of tangible personal
25property that are sold at retail.
26    A person whose activities are organized and conducted

 

 

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1primarily as a not-for-profit service enterprise, and who
2engages in selling tangible personal property at retail
3(whether to the public or merely to members and their guests)
4is a retailer with respect to such transactions, excepting only
5a person organized and operated exclusively for charitable,
6religious or educational purposes either (1), to the extent of
7sales by such person to its members, students, patients or
8inmates of tangible personal property to be used primarily for
9the purposes of such person, or (2), to the extent of sales by
10such person of tangible personal property which is not sold or
11offered for sale by persons organized for profit. The selling
12of school books and school supplies by schools at retail to
13students is not "primarily for the purposes of" the school
14which does such selling. This paragraph does not apply to nor
15subject to taxation occasional dinners, socials, social or
16similar activities of a person organized and operated
17exclusively for charitable, religious or educational purposes,
18whether or not such activities are open to the public. As used
19in this paragraph, "occasional" means not more than 2 such
20activities in any calendar year, to be chosen by the person
21organized and operated exclusively for charitable, religious,
22or educational purposes. Any sales of tangible personal
23property at retail at an activity that would otherwise qualify
24as an exempt occasional dinner, social, or similar activity are
25taxable if that activity exceeds the 2-activity limit in a
26calendar year. Notwithstanding any other provision of this

 

 

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1paragraph to the contrary, on and after July 1, 2012, sales of
2tangible personal property at retail at an occasional dinner,
3social, or similar activity that falls within the 2-activity
4limit and is held by a person organized and operated
5exclusively for charitable, religious, or educational purposes
6are exempt from taxation under this Act only if 100% of the
7gross revenues generated from the activity, after reasonable
8expenses, are paid to that person and used for charitable,
9religious, or educational purposes. As used in this paragraph,
10the phrase "gross revenues generated from the activity"
11includes, but is not limited to, revenues from: admission or
12ticket sales, sales of tangible personal property,
13sponsorships, and broadcast rights. As used in this paragraph a
14"dinner, social, or similar activity" includes, but is not
15limited to, a dinner, ice cream social, fun fair, carnival,
16rummage sale, bazaar, bake sale, charity auction or other
17fundraising event, street fair, indoor or outdoor concert or
18performance, and the like. If an occasional dinner, social, or
19similar activity otherwise meets the requirements of this
20paragraph, then the exemption for sales of tangible personal
21property at retail at that activity applies whether or not the
22items that are sold are purchased or donated for the purpose of
23the sale, and whether or not the activity is open to the
24public. If an occasional dinner, social, or similar activity
25otherwise meets the requirements of this paragraph, then the
26exemption for sales of tangible personal property at retail at

 

 

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1that activity applies whether or not items sold at the
2occasional dinner, social, or similar activity are also sold or
3offered for sale by persons organized for profit. The
4Department by rule shall determine what constitutes reasonable
5expenses under this paragraph.
6    A person who is the recipient of a grant or contract under
7Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
8serves meals to participants in the federal Nutrition Program
9for the Elderly in return for contributions established in
10amount by the individual participant pursuant to a schedule of
11suggested fees as provided for in the federal Act is not a
12retailer under this Act with respect to such transactions.
13    Persons who engage in the business of transferring tangible
14personal property upon the redemption of trading stamps are
15retailers hereunder when engaged in such business.
16    The isolated or occasional sale of tangible personal
17property at retail by a person who does not hold himself out as
18being engaged (or who does not habitually engage) in selling
19such tangible personal property at retail or a sale through a
20bulk vending machine does not make such person a retailer
21hereunder. However, any person who is engaged in a business
22which is not subject to the tax imposed by the "Retailers'
23Occupation Tax Act" because of involving the sale of or a
24contract to sell real estate or a construction contract to
25improve real estate, but who, in the course of conducting such
26business, transfers tangible personal property to users or

 

 

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1consumers in the finished form in which it was purchased, and
2which does not become real estate, under any provision of a
3construction contract or real estate sale or real estate sales
4agreement entered into with some other person arising out of or
5because of such nontaxable business, is a retailer to the
6extent of the value of the tangible personal property so
7transferred. If, in such transaction, a separate charge is made
8for the tangible personal property so transferred, the value of
9such property, for the purposes of this Act, is the amount so
10separately charged, but not less than the cost of such property
11to the transferor; if no separate charge is made, the value of
12such property, for the purposes of this Act, is the cost to the
13transferor of such tangible personal property.
14    "Retailer maintaining a place of business in this State",
15or any like term, means and includes any of the following
16retailers:
17        1. A retailer having or maintaining within this State,
18    directly or by a subsidiary, an office, distribution house,
19    sales house, warehouse or other place of business, or any
20    agent or other representative operating within this State
21    under the authority of the retailer or its subsidiary,
22    irrespective of whether such place of business or agent or
23    other representative is located here permanently or
24    temporarily, or whether such retailer or subsidiary is
25    licensed to do business in this State. However, the
26    ownership of property that is located at the premises of a

 

 

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1    printer with which the retailer has contracted for printing
2    and that consists of the final printed product, property
3    that becomes a part of the final printed product, or copy
4    from which the printed product is produced shall not result
5    in the retailer being deemed to have or maintain an office,
6    distribution house, sales house, warehouse, or other place
7    of business within this State.
8        1.1. Beginning July 1, 2011, a retailer having a
9    contract with a person located in this State under which
10    the person, for a commission or other consideration based
11    upon the sale of tangible personal property by the
12    retailer, directly or indirectly refers potential
13    customers to the retailer by a link on the person's
14    Internet website. The provisions of this paragraph 1.1
15    shall apply only if the cumulative gross receipts from
16    sales of tangible personal property by the retailer to
17    customers who are referred to the retailer by all persons
18    in this State under such contracts exceed $10,000 during
19    the preceding 4 quarterly periods ending on the last day of
20    March, June, September, and December.
21        1.2. Beginning July 1, 2011, a retailer having a
22    contract with a person located in this State under which:
23            A. the retailer sells the same or substantially
24        similar line of products as the person located in this
25        State and does so using an identical or substantially
26        similar name, trade name, or trademark as the person

 

 

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1        located in this State; and
2            B. the retailer provides a commission or other
3        consideration to the person located in this State based
4        upon the sale of tangible personal property by the
5        retailer.
6    The provisions of this paragraph 1.2 shall apply only if
7    the cumulative gross receipts from sales of tangible
8    personal property by the retailer to customers in this
9    State under all such contracts exceed $10,000 during the
10    preceding 4 quarterly periods ending on the last day of
11    March, June, September, and December.
12        2. A retailer soliciting orders for tangible personal
13    property by means of a telecommunication or television
14    shopping system (which utilizes toll free numbers) which is
15    intended by the retailer to be broadcast by cable
16    television or other means of broadcasting, to consumers
17    located in this State.
18        3. A retailer, pursuant to a contract with a
19    broadcaster or publisher located in this State, soliciting
20    orders for tangible personal property by means of
21    advertising which is disseminated primarily to consumers
22    located in this State and only secondarily to bordering
23    jurisdictions.
24        4. A retailer soliciting orders for tangible personal
25    property by mail if the solicitations are substantial and
26    recurring and if the retailer benefits from any banking,

 

 

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1    financing, debt collection, telecommunication, or
2    marketing activities occurring in this State or benefits
3    from the location in this State of authorized installation,
4    servicing, or repair facilities.
5        5. A retailer that is owned or controlled by the same
6    interests that own or control any retailer engaging in
7    business in the same or similar line of business in this
8    State.
9        6. A retailer having a franchisee or licensee operating
10    under its trade name if the franchisee or licensee is
11    required to collect the tax under this Section.
12        7. A retailer, pursuant to a contract with a cable
13    television operator located in this State, soliciting
14    orders for tangible personal property by means of
15    advertising which is transmitted or distributed over a
16    cable television system in this State.
17        8. A retailer engaging in activities in Illinois, which
18    activities in the state in which the retail business
19    engaging in such activities is located would constitute
20    maintaining a place of business in that state.
21    "Bulk vending machine" means a vending machine, containing
22unsorted confections, nuts, toys, or other items designed
23primarily to be used or played with by children which, when a
24coin or coins of a denomination not larger than $0.50 are
25inserted, are dispensed in equal portions, at random and
26without selection by the customer.

 

 

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1(Source: P.A. 95-723, eff. 6-23-08; 96-1544, eff. 3-10-11.)
 
2    Section 10. The Retailers' Occupation Tax Act is amended by
3changing Section 1 as follows:
 
4    (35 ILCS 120/1)  (from Ch. 120, par. 440)
5    Sec. 1. Definitions. "Sale at retail" means any transfer of
6the ownership of or title to tangible personal property to a
7purchaser, for the purpose of use or consumption, and not for
8the purpose of resale in any form as tangible personal property
9to the extent not first subjected to a use for which it was
10purchased, for a valuable consideration: Provided that the
11property purchased is deemed to be purchased for the purpose of
12resale, despite first being used, to the extent to which it is
13resold as an ingredient of an intentionally produced product or
14byproduct of manufacturing. For this purpose, slag produced as
15an incident to manufacturing pig iron or steel and sold is
16considered to be an intentionally produced byproduct of
17manufacturing. Transactions whereby the possession of the
18property is transferred but the seller retains the title as
19security for payment of the selling price shall be deemed to be
20sales.
21    "Sale at retail" shall be construed to include any transfer
22of the ownership of or title to tangible personal property to a
23purchaser, for use or consumption by any other person to whom
24such purchaser may transfer the tangible personal property

 

 

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1without a valuable consideration, and to include any transfer,
2whether made for or without a valuable consideration, for
3resale in any form as tangible personal property unless made in
4compliance with Section 2c of this Act.
5    Sales of tangible personal property, which property, to the
6extent not first subjected to a use for which it was purchased,
7as an ingredient or constituent, goes into and forms a part of
8tangible personal property subsequently the subject of a "Sale
9at retail", are not sales at retail as defined in this Act:
10Provided that the property purchased is deemed to be purchased
11for the purpose of resale, despite first being used, to the
12extent to which it is resold as an ingredient of an
13intentionally produced product or byproduct of manufacturing.
14    "Sale at retail" shall be construed to include any Illinois
15florist's sales transaction in which the purchase order is
16received in Illinois by a florist and the sale is for use or
17consumption, but the Illinois florist has a florist in another
18state deliver the property to the purchaser or the purchaser's
19donee in such other state.
20    Nonreusable tangible personal property that is used by
21persons engaged in the business of operating a restaurant,
22cafeteria, or drive-in is a sale for resale when it is
23transferred to customers in the ordinary course of business as
24part of the sale of food or beverages and is used to deliver,
25package, or consume food or beverages, regardless of where
26consumption of the food or beverages occurs. Examples of those

 

 

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1items include, but are not limited to nonreusable, paper and
2plastic cups, plates, baskets, boxes, sleeves, buckets or other
3containers, utensils, straws, placemats, napkins, doggie bags,
4and wrapping or packaging materials that are transferred to
5customers as part of the sale of food or beverages in the
6ordinary course of business.
7    The purchase, employment and transfer of such tangible
8personal property as newsprint and ink for the primary purpose
9of conveying news (with or without other information) is not a
10purchase, use or sale of tangible personal property.
11    A person whose activities are organized and conducted
12primarily as a not-for-profit service enterprise, and who
13engages in selling tangible personal property at retail
14(whether to the public or merely to members and their guests)
15is engaged in the business of selling tangible personal
16property at retail with respect to such transactions, excepting
17only a person organized and operated exclusively for
18charitable, religious or educational purposes either (1), to
19the extent of sales by such person to its members, students,
20patients or inmates of tangible personal property to be used
21primarily for the purposes of such person, or (2), to the
22extent of sales by such person of tangible personal property
23which is not sold or offered for sale by persons organized for
24profit. The selling of school books and school supplies by
25schools at retail to students is not "primarily for the
26purposes of" the school which does such selling. The provisions

 

 

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1of this paragraph shall not apply to nor subject to taxation
2occasional dinners, socials or similar activities of a person
3organized and operated exclusively for charitable, religious
4or educational purposes, whether or not such activities are
5open to the public. As used in this paragraph, "occasional"
6means not more than 2 such activities in any calendar year, to
7be chosen by the person organized and operated exclusively for
8charitable, religious, or educational purposes. Any sales of
9tangible personal property at retail at an activity that would
10otherwise qualify as an exempt occasional dinner, social, or
11similar activity are taxable if that activity exceeds the
122-activity limit in a calendar year. Notwithstanding any other
13provision of this paragraph to the contrary, on and after July
141, 2012, sales of tangible personal property at retail at an
15occasional dinner, social, or similar activity that falls
16within the 2-activity limit and is held by a person organized
17and operated exclusively for charitable, religious, or
18educational purposes are exempt from taxation under this Act
19only if 100% of the gross revenues generated from the activity,
20after reasonable expenses, are paid to that person and used for
21charitable, religious, or educational purposes. As used in this
22paragraph, the phrase "gross revenues generated from the
23activity" includes, but is not limited to, revenues from:
24admission or ticket sales, sales of tangible personal property,
25sponsorships, and broadcast rights. As used in this paragraph a
26"dinner, social, or similar activity" includes, but is not

 

 

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1limited to, a dinner, ice cream social, fun fair, carnival,
2rummage sale, bazaar, bake sale, charity auction or other
3fundraising event, street fair, indoor or outdoor concert or
4performance, and the like. If an occasional dinner, social, or
5similar activity otherwise meets the requirements of this
6paragraph, then the exemption for sales of tangible personal
7property at retail at that activity applies whether or not the
8items that are sold are purchased or donated for the purpose of
9the sale, and whether or not the activity is open to the
10public. If an occasional dinner, social, or similar activity
11otherwise meets the requirements of this paragraph, then the
12exemption for sales of tangible personal property at retail at
13that activity applies whether or not items sold at the
14occasional dinner, social, or similar activity are also sold or
15offered for sale by persons organized for profit. The
16Department by rule shall determine what constitutes reasonable
17expenses under this paragraph.
18    A person who is the recipient of a grant or contract under
19Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
20serves meals to participants in the federal Nutrition Program
21for the Elderly in return for contributions established in
22amount by the individual participant pursuant to a schedule of
23suggested fees as provided for in the federal Act is not
24engaged in the business of selling tangible personal property
25at retail with respect to such transactions.
26    "Purchaser" means anyone who, through a sale at retail,

 

 

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1acquires the ownership of or title to tangible personal
2property for a valuable consideration.
3    "Reseller of motor fuel" means any person engaged in the
4business of selling or delivering or transferring title of
5motor fuel to another person other than for use or consumption.
6No person shall act as a reseller of motor fuel within this
7State without first being registered as a reseller pursuant to
8Section 2c or a retailer pursuant to Section 2a.
9    "Selling price" or the "amount of sale" means the
10consideration for a sale valued in money whether received in
11money or otherwise, including cash, credits, property, other
12than as hereinafter provided, and services, but not including
13the value of or credit given for traded-in tangible personal
14property where the item that is traded-in is of like kind and
15character as that which is being sold, and shall be determined
16without any deduction on account of the cost of the property
17sold, the cost of materials used, labor or service cost or any
18other expense whatsoever, but does not include charges that are
19added to prices by sellers on account of the seller's tax
20liability under this Act, or on account of the seller's duty to
21collect, from the purchaser, the tax that is imposed by the Use
22Tax Act, or, except as otherwise provided with respect to any
23cigarette tax imposed by a home rule unit, on account of the
24seller's tax liability under any local occupation tax
25administered by the Department, or, except as otherwise
26provided with respect to any cigarette tax imposed by a home

 

 

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1rule unit on account of the seller's duty to collect, from the
2purchasers, the tax that is imposed under any local use tax
3administered by the Department. Effective December 1, 1985,
4"selling price" shall include charges that are added to prices
5by sellers on account of the seller's tax liability under the
6Cigarette Tax Act, on account of the sellers' duty to collect,
7from the purchaser, the tax imposed under the Cigarette Use Tax
8Act, and on account of the seller's duty to collect, from the
9purchaser, any cigarette tax imposed by a home rule unit.
10    The phrase "like kind and character" shall be liberally
11construed (including but not limited to any form of motor
12vehicle for any form of motor vehicle, or any kind of farm or
13agricultural implement for any other kind of farm or
14agricultural implement), while not including a kind of item
15which, if sold at retail by that retailer, would be exempt from
16retailers' occupation tax and use tax as an isolated or
17occasional sale.
18    "Gross receipts" from the sales of tangible personal
19property at retail means the total selling price or the amount
20of such sales, as hereinbefore defined. In the case of charge
21and time sales, the amount thereof shall be included only as
22and when payments are received by the seller. Receipts or other
23consideration derived by a seller from the sale, transfer or
24assignment of accounts receivable to a wholly owned subsidiary
25will not be deemed payments prior to the time the purchaser
26makes payment on such accounts.

 

 

09700HB5423ham001- 21 -LRB097 19513 HLH 65974 a

1    "Department" means the Department of Revenue.
2    "Person" means any natural individual, firm, partnership,
3association, joint stock company, joint adventure, public or
4private corporation, limited liability company, or a receiver,
5executor, trustee, guardian or other representative appointed
6by order of any court.
7    The isolated or occasional sale of tangible personal
8property at retail by a person who does not hold himself out as
9being engaged (or who does not habitually engage) in selling
10such tangible personal property at retail, or a sale through a
11bulk vending machine, does not constitute engaging in a
12business of selling such tangible personal property at retail
13within the meaning of this Act; provided that any person who is
14engaged in a business which is not subject to the tax imposed
15by this Act because of involving the sale of or a contract to
16sell real estate or a construction contract to improve real
17estate or a construction contract to engineer, install, and
18maintain an integrated system of products, but who, in the
19course of conducting such business, transfers tangible
20personal property to users or consumers in the finished form in
21which it was purchased, and which does not become real estate
22or was not engineered and installed, under any provision of a
23construction contract or real estate sale or real estate sales
24agreement entered into with some other person arising out of or
25because of such nontaxable business, is engaged in the business
26of selling tangible personal property at retail to the extent

 

 

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1of the value of the tangible personal property so transferred.
2If, in such a transaction, a separate charge is made for the
3tangible personal property so transferred, the value of such
4property, for the purpose of this Act, shall be the amount so
5separately charged, but not less than the cost of such property
6to the transferor; if no separate charge is made, the value of
7such property, for the purposes of this Act, is the cost to the
8transferor of such tangible personal property. Construction
9contracts for the improvement of real estate consisting of
10engineering, installation, and maintenance of voice, data,
11video, security, and all telecommunication systems do not
12constitute engaging in a business of selling tangible personal
13property at retail within the meaning of this Act if they are
14sold at one specified contract price.
15    A person who holds himself or herself out as being engaged
16(or who habitually engages) in selling tangible personal
17property at retail is a person engaged in the business of
18selling tangible personal property at retail hereunder with
19respect to such sales (and not primarily in a service
20occupation) notwithstanding the fact that such person designs
21and produces such tangible personal property on special order
22for the purchaser and in such a way as to render the property
23of value only to such purchaser, if such tangible personal
24property so produced on special order serves substantially the
25same function as stock or standard items of tangible personal
26property that are sold at retail.

 

 

09700HB5423ham001- 23 -LRB097 19513 HLH 65974 a

1    Persons who engage in the business of transferring tangible
2personal property upon the redemption of trading stamps are
3engaged in the business of selling such property at retail and
4shall be liable for and shall pay the tax imposed by this Act
5on the basis of the retail value of the property transferred
6upon redemption of such stamps.
7    "Bulk vending machine" means a vending machine, containing
8unsorted confections, nuts, toys, or other items designed
9primarily to be used or played with by children which, when a
10coin or coins of a denomination not larger than $0.50 are
11inserted, are dispensed in equal portions, at random and
12without selection by the customer.
13(Source: P.A. 95-723, eff. 6-23-08.)
 
14    Section 99. Effective date. This Act takes effect upon
15becoming law.".