Full Text of HB3882 98th General Assembly
HB3882ham001 98TH GENERAL ASSEMBLY | Rep. Lawrence M. Walsh, Jr. Filed: 3/26/2014
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| 1 | | AMENDMENT TO HOUSE BILL 3882
| 2 | | AMENDMENT NO. ______. Amend House Bill 3882 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 1. Short title. This Act may be cited as the | 5 | | Illinois Certainty and Fairness in Local Tax Sourcing Act. | 6 | | Section 5. Sourcing local taxes. In allocating or sourcing | 7 | | any municipal, county, special district, or other local | 8 | | retailers' occupation tax or the local share of the State's | 9 | | retailers' occupation tax, for sales occurring in this State, | 10 | | the sales location for such allocation or sourcing purposes | 11 | | shall
be the office location where the order for the purchase | 12 | | of the tangible personal property is accepted by the retailer | 13 | | or its authorized representative, except as provided elsewhere | 14 | | in this Act. In determining the acceptance location for a sale, | 15 | | the office where the order is first received by the retailer or | 16 | | its authorized representative shall be presumptively deemed |
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| 1 | | the acceptance
location, unless the retailer or the Department | 2 | | of Revenue clearly proves that the final event or activity | 3 | | giving rise to the retailer's acceptance of the order, or the | 4 | | binding contract for such sale, occurred at a different office | 5 | | location. This final event or activity giving rise to the | 6 | | retailer's acceptance of the order, or the binding contract for | 7 | | the sale, refers to the single identifiable event or action by | 8 | | the retailer or its authorized representative that, when it | 9 | | occurs, it creates a binding sale without any further | 10 | | acceptance or approval action by the retailer or its authorized | 11 | | representative. | 12 | | Section 10. Electronic receipt. For purposes of this Act, | 13 | | if the order is received by electronic means, including, but | 14 | | not limited to, e-mail or facsimile transmission, and the first | 15 | | electronic receipt of the order is not addressed to or | 16 | | otherwise identified with a specific office location of the | 17 | | retailer or its authorized representative, then the order shall | 18 | | be deemed first received at the office location of the retailer | 19 | | or its authorized representative to whom the addressee of the | 20 | | electronic order is primarily assigned or stationed, but in the | 21 | | event such
addressee has no identifiable office location then | 22 | | the order shall be deemed first received at the office location | 23 | | that first records the receipt of such electronic order. | 24 | | Section 15. Definitions. For purposes of this Act: |
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| 1 | | "Office location" means a temporary or permanent | 2 | | structure, or part thereof, held out to the public as being an | 3 | | office of the retailer or its authorized representative, where | 4 | | at least one individual performs authorized services for the | 5 | | retailer or its authorized representative with respect to the | 6 | | purchase of tangible personal property from the retailer. | 7 | | "Order" means the request (in writing, orally, or | 8 | | electronically) by the purchaser to buy tangible personal | 9 | | property. | 10 | | Section 20. Multiple office locations. If a retailer has | 11 | | more than one office location in Illinois at which order | 12 | | receipt or acceptance services are performed for the retailer, | 13 | | then an office location is not a sales location unless the | 14 | | office location also has one or more individuals who are | 15 | | employees or authorized representatives of the retailer who, on | 16 | | a regular basis, perform authorized services at that location | 17 | | exclusively on behalf of the retailer or any of the retailer's | 18 | | affiliates that relate in some fashion, other than simply order | 19 | | receipt and acceptance, to order processing or the overall | 20 | | sales process for that sale, including, but not limited to, | 21 | | order input, order review, credit review, credit approval, | 22 | | price verification, shipment period verification, price | 23 | | approval, providing price quotes, customer interaction, | 24 | | billing, payment receipt, inventory verification, inventory | 25 | | procurement, accepting returns, or customer service. If an |
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| 1 | | office location does not meet these requirements, then the | 2 | | retailer's primary office location in this State shall be | 3 | | deemed to be the sales
location for the sale. The term "primary | 4 | | office location" means the office location of the retailer in | 5 | | this State where the majority of the retailer's employees, | 6 | | officers, and representatives in this State who are involved in | 7 | | the retailer's order processing or the sales approval process | 8 | | are located, and the term "affiliate" means an entity in which | 9 | | the retailer owns, either directly or indirectly, 50% or more | 10 | | of that entity's outstanding voting stock or equitable | 11 | | controlling
interest. | 12 | | Section 25. Physical delivery location. Except as | 13 | | otherwise provided in this Act, neither the delivery location | 14 | | nor the location of the acceptance of the tangible personal | 15 | | property by the purchaser (either before or after inspection or | 16 | | installation) shall determine the sales location for | 17 | | allocation
or sourcing purposes under this Act. | 18 | | Section 30. Special rule. Notwithstanding provision of law | 19 | | to the contrary, for purposes of this Act, the sales location | 20 | | for the allocation or sourcing of any municipal, county, | 21 | | special district, or other local retailers' occupation tax, or | 22 | | the local share of the State's retailers'
occupation tax, shall | 23 | | be as follows: | 24 | | (1) if the acceptance of the order by the retailer |
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| 1 | | occurs outside of the State (whether or not the receipt of | 2 | | the order occurs within the State), then the sales location | 3 | | shall be deemed outside of the State, and no local sourcing | 4 | | of retailers' occupation tax applies, except when the | 5 | | tangible personal property that is being sold has been | 6 | | specifically identified in the sales contract and is in the | 7 | | inventory of the retailer at a location within the State at | 8 | | the time of sale (or is subsequently produced by the | 9 | | retailer at a location in this State); in that event, the | 10 | | inventory location shall be deemed the sales location; | 11 | | (2) if the retailer sends to the purchaser a complete
| 12 | | and unconditional offer to sell, then the sales location | 13 | | shall be the office location where the retailer or its | 14 | | authorized representative first receives the purchaser's | 15 | | acceptance of that offer; | 16 | | (3) for keep full or similar requirements contracts | 17 | | where the retailer agrees to supply tangible personal | 18 | | property to a purchaser on a continuous basis until | 19 | | notified to stop by the purchaser, the sales location shall | 20 | | be the office location where the retailer or its authorized | 21 | | representative receives the initial order to start the | 22 | | deliveries under the contract, provided that, if the | 23 | | contract is a written contract not requiring a separate | 24 | | initial order to start the continuous supply process, then | 25 | | the sales location shall be the
office location where the | 26 | | retailer or its authorized representative signed the |
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| 1 | | contract; | 2 | | (4) for sales accepted in Illinois under a long-term | 3 | | blanket or master contract that (though definite as to | 4 | | price and quantity) must be implemented by the purchaser's | 5 | | placing of specific orders when
goods are wanted, the | 6 | | office location of the retailer or its authorized | 7 | | representative at which such subsequent specific orders | 8 | | are received (rather than the place where the seller signed | 9 | | the master contract) shall be the sales location; | 10 | | (5) if the order for the purchase of tangible personal | 11 | | property is received by the retailer or its authorized | 12 | | representative, and, prior to final acceptance of the order | 13 | | by the retailer or its authorized representative, the | 14 | | ordered tangible personal property is delivered or shipped | 15 | | from the inventory of the retailer at a location in this | 16 | | State, then the sales location shall be the retailer's or | 17 | | its authorized representative's office location in this | 18 | | State where the purchase order for such tangible personal | 19 | | property is first received or if such order is first | 20 | | received at an office location outside the State then the | 21 | | sales location shall be the inventory location from which | 22 | | the tangible personal property was shipped or delivered; | 23 | | and | 24 | | (6) in those situations where the order for the | 25 | | purchase of tangible personal property is placed in person | 26 | | by
the purchaser at a retailer's retail sales location and |
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| 1 | | the delivery or shipment of the property occurs from that | 2 | | location, then that retail sales location shall be deemed | 3 | | the sales location for that sale even if the acceptance of | 4 | | the order by the retailer occurs at a different office | 5 | | location. | 6 | | Section 35. Mobile or temporary sales locations. | 7 | | Notwithstanding any provision of law to the contrary, for | 8 | | purposes of this Act: | 9 | | (1) where the initial receipt of a purchase order from | 10 | | a purchaser is made by a retailer or its authorized | 11 | | representative during an in person meeting with the | 12 | | purchaser and (A) a vehicle, vessel, aircraft or other | 13 | | mobile form of transportation is used to facilitate that | 14 | | meeting, and delivery of the property is immediately made | 15 | | from uncommitted inventory located in or on that mobile | 16 | | form of transportation, then the sales location shall be | 17 | | deemed to be the location of the mobile transportation at | 18 | | the time of the sale, or (B) the meeting occurs at a | 19 | | temporary sales location, such
as a tent, outdoor fair, or | 20 | | other location that is not contained within a structure, | 21 | | and delivery of the property is made immediately from | 22 | | uncommitted inventory located at that sales
location, then | 23 | | the sales location shall be deemed to be the temporary sale | 24 | | location; and | 25 | | (2) where a purchase order is received from the |
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| 1 | | purchaser by a salesman or other authorized individual | 2 | | acting on behalf of a retailer, and that purchase order (A) | 3 | | is accepted by by those individuals on behalf of the | 4 | | retailer while traveling on business or for other reasons, | 5 | | (B) involves the future delivery of the property being | 6 | | sold, and (C) is not accepted at an office location or a | 7 | | temporary sales office of the retailer when the acceptance | 8 | | occurs, then the sales location shall be deemed to be the | 9 | | office location where the individual who receives the | 10 | | purchase order is primarily assigned or stationed, unless | 11 | | item (1) of Section 30 applies. | 12 | | Section 40. No office or mobile or temporary sales location | 13 | | in State. If the final event or activity giving rise to the | 14 | | retailer's acceptance of the order, or the binding contract for | 15 | | a sale, occurs in this State and a retailer does not have a | 16 | | office location or a mobile or temporary sales location in this | 17 | | State, then the sales location shall be deemed the location | 18 | | where such acceptance or binding contract occurs. | 19 | | Section 45. Minerals. Except as otherwise specifically | 20 | | provided by law, for the purpose of determining allocation of | 21 | | tax to a the local government unit, a retail sale by a producer | 22 | | of coal or other mineral mined in Illinois is a sale at retail | 23 | | at the place where the coal or other mineral mined in Illinois | 24 | | is extracted from the earth. With respect to minerals (i) the |
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| 1 | | term "extracted
from the earth" means the location at which the | 2 | | coal or other mineral is extracted from the mouth of the mine, | 3 | | and (ii) a "mineral" includes not only coal, but also oil, | 4 | | sand, stone taken from a quarry, gravel and any other thing | 5 | | commonly regarded as a mineral and extracted from the earth. | 6 | | This Section does not apply to coal or another mineral when it | 7 | | is delivered or shipped by the seller to the purchaser at a | 8 | | point outside Illinois so that the sale is exempt under the | 9 | | United States Constitution as a sale in interstate or foreign | 10 | | commerce. | 11 | | Section 50. Out-of-State delivery. When property is sold | 12 | | for delivery or shipment by the seller or its authorized | 13 | | representative to the purchaser at a point outside this state, | 14 | | which results in no retailer's occupation tax due on the sale, | 15 | | then no local sourcing or allocation of state or local | 16 | | retailers' occupation tax applies. | 17 | | Section 55. Applicability. This Act applies to sales made | 18 | | on or after its effective date and to sales made during past | 19 | | periods not yet closed by any applicable limitations period. | 20 | | The retailer may
apply the changes made by this Act in the | 21 | | allocation of its past sales only to the extent it
does not | 22 | | change the retailer's previous filing location for that sale.
| 23 | | Section 99. Effective date. This Act takes effect upon |
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| 1 | | becoming law.".
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