Full Text of SB0743 99th General Assembly
SB0743sam001 99TH GENERAL ASSEMBLY | Sen. Thomas Cullerton Filed: 3/12/2015
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| 1 | | AMENDMENT TO SENATE BILL 743
| 2 | | AMENDMENT NO. ______. Amend Senate Bill 743 by replacing | 3 | | everything after the enacting clause with the following:
| 4 | | "Section 5. The Use Tax Act is amended by changing Section | 5 | | 2 as follows:
| 6 | | (35 ILCS 105/2) (from Ch. 120, par. 439.2)
| 7 | | Sec. 2. Definitions. | 8 | | "Use" means the exercise by any person of any right or | 9 | | power over
tangible personal property incident to the ownership | 10 | | of that property,
except that it does not include the sale of | 11 | | such property in any form as
tangible personal property in the | 12 | | regular course of business to the extent
that such property is | 13 | | not first subjected to a use for which it was
purchased, and | 14 | | does not include the use of such property by its owner for
| 15 | | demonstration purposes: Provided that the property purchased | 16 | | is deemed to
be purchased for the purpose of resale, despite |
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| 1 | | first being used, to the
extent to which it is resold as an | 2 | | ingredient of an intentionally produced
product or by-product | 3 | | of manufacturing. "Use" does not mean the demonstration
use or | 4 | | interim use of tangible personal property by a retailer before | 5 | | he sells
that tangible personal property. For watercraft or | 6 | | aircraft, if the period of
demonstration use or interim use by | 7 | | the retailer exceeds 18 months,
the retailer
shall pay on the | 8 | | retailers' original cost price the tax imposed by this Act,
and | 9 | | no credit for that tax is permitted if the watercraft or | 10 | | aircraft is
subsequently sold by the retailer. "Use" does not | 11 | | mean the physical
incorporation of tangible personal property, | 12 | | to the extent not first subjected
to a use for which it was | 13 | | purchased, as an ingredient or constituent, into
other tangible | 14 | | personal property (a) which is sold in the regular course of
| 15 | | business or (b) which the person incorporating such ingredient | 16 | | or constituent
therein has undertaken at the time of such | 17 | | purchase to cause to be transported
in interstate commerce to | 18 | | destinations outside the State of Illinois: Provided
that the | 19 | | property purchased is deemed to be purchased for the purpose of
| 20 | | resale, despite first being used, to the extent to which it is | 21 | | resold as an
ingredient of an intentionally produced product or | 22 | | by-product of manufacturing.
| 23 | | "Watercraft" means a Class 2, Class 3, or Class 4 | 24 | | watercraft as defined in
Section 3-2 of the Boat Registration | 25 | | and Safety Act, a personal watercraft, or
any boat equipped | 26 | | with an inboard motor.
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| 1 | | "Purchase at retail" means the acquisition of the ownership | 2 | | of or title
to tangible personal property through a sale at | 3 | | retail.
| 4 | | "Purchaser" means anyone who, through a sale at retail, | 5 | | acquires the
ownership of tangible personal property for a | 6 | | valuable consideration.
| 7 | | "Sale at retail" means any transfer of the ownership of or | 8 | | title to
tangible personal property to a purchaser, for the | 9 | | purpose of use, and not
for the purpose of resale in any form | 10 | | as tangible personal property to the
extent not first subjected | 11 | | to a use for which it was purchased, for a
valuable | 12 | | consideration: Provided that the property purchased is deemed | 13 | | to
be purchased for the purpose of resale, despite first being | 14 | | used, to the
extent to which it is resold as an ingredient of | 15 | | an intentionally produced
product or by-product of | 16 | | manufacturing. For this purpose, slag produced as
an incident | 17 | | to manufacturing pig iron or steel and sold is considered to be
| 18 | | an intentionally produced by-product of manufacturing. "Sale | 19 | | at retail"
includes any such transfer made for resale unless | 20 | | made in compliance with
Section 2c of the Retailers' Occupation | 21 | | Tax Act, as incorporated by
reference into Section 12 of this | 22 | | Act. Transactions whereby the possession
of the property is | 23 | | transferred but the seller retains the title as security
for | 24 | | payment of the selling price are sales.
| 25 | | "Sale at retail" shall also be construed to include any | 26 | | Illinois
florist's sales transaction in which the purchase |
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| 1 | | order is received in
Illinois by a florist and the sale is for | 2 | | use or consumption, but the
Illinois florist has a florist in | 3 | | another state deliver the property to the
purchaser or the | 4 | | purchaser's donee in such other state.
| 5 | | Nonreusable tangible personal property that is used by | 6 | | persons engaged in
the business of operating a restaurant, | 7 | | cafeteria, or drive-in is a sale for
resale when it is | 8 | | transferred to customers in the ordinary course of business
as | 9 | | part of the sale of food or beverages and is used to deliver, | 10 | | package, or
consume food or beverages, regardless of where | 11 | | consumption of the food or
beverages occurs. Examples of those | 12 | | items include, but are not limited to
nonreusable, paper and | 13 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | 14 | | containers, utensils, straws, placemats, napkins, doggie bags, | 15 | | and
wrapping or packaging
materials that are transferred to | 16 | | customers as part of the sale of food or
beverages in the | 17 | | ordinary course of business.
| 18 | | The purchase, employment and transfer of such tangible | 19 | | personal property
as newsprint and ink for the primary purpose | 20 | | of conveying news (with or
without other information) is not a | 21 | | purchase, use or sale of tangible
personal property.
| 22 | | "Selling price" means the consideration for a sale valued | 23 | | in money
whether received in money or otherwise, including | 24 | | cash, credits, property
other than as hereinafter provided, and | 25 | | services, but not including the
value of or credit given for | 26 | | traded-in tangible personal property where the
item that is |
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| 1 | | traded-in is of like kind and character as that which is being
| 2 | | sold, and shall be determined without any deduction on account | 3 | | of the cost
of the property sold, the cost of materials used, | 4 | | labor or service cost or
any other expense whatsoever, but does | 5 | | not include interest or finance
charges which appear as | 6 | | separate items on the bill of sale or sales
contract nor | 7 | | charges that are added to prices by sellers on account of the
| 8 | | seller's tax liability under the "Retailers' Occupation Tax | 9 | | Act", or on
account of the seller's duty to collect, from the | 10 | | purchaser, the tax that
is imposed by this Act, or, except as | 11 | | otherwise provided with respect to any cigarette tax imposed by | 12 | | a home rule unit, on account of the seller's tax liability | 13 | | under any local occupation tax administered by the Department, | 14 | | or, except as otherwise provided with respect to any cigarette | 15 | | tax imposed by a home rule unit on account of the seller's duty | 16 | | to collect, from the purchasers, the tax that is imposed under | 17 | | any local use tax administered by the Department. Effective | 18 | | December 1, 1985, "selling price"
shall include charges that | 19 | | are added to prices by sellers on account of the
seller's tax | 20 | | liability under the Cigarette Tax Act, on account of the | 21 | | seller's
duty to collect, from the purchaser, the tax imposed | 22 | | under the Cigarette Use
Tax Act, and on account of the seller's | 23 | | duty to collect, from the purchaser,
any cigarette tax imposed | 24 | | by a home rule unit.
| 25 | | Notwithstanding any law to the contrary, for any motor | 26 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that |
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| 1 | | is sold on or after January 1, 2015 for the purpose of leasing | 2 | | the vehicle for a defined period that is longer than one year | 3 | | and (1) is a motor vehicle of the second division that: (A) is | 4 | | a self-contained motor vehicle designed or permanently | 5 | | converted to provide living quarters for recreational, | 6 | | camping, or travel use, with direct walk through access to the | 7 | | living quarters from the driver's seat; (B) is of the van | 8 | | configuration designed for the transportation of not less than | 9 | | 7 nor more than 16 passengers; or (C) has a gross vehicle | 10 | | weight rating of 8,000 pounds or less or (2) is a motor vehicle | 11 | | of the first division, "selling price" or "amount of sale" | 12 | | means the consideration received by the lessor pursuant to the | 13 | | lease contract, including amounts due at lease signing and all | 14 | | monthly or other regular payments charged over the term of the | 15 | | lease. Also included in the selling price is any amount | 16 | | received by the lessor from the lessee for the leased vehicle | 17 | | that is not calculated at the time the lease is executed, | 18 | | including, but not limited to, excess mileage charges and | 19 | | charges for excess wear and tear. For sales that occur in | 20 | | Illinois, with respect to any amount received by the lessor | 21 | | from the lessee for the leased vehicle that is not calculated | 22 | | at the time the lease is executed, the lessor who purchased the | 23 | | motor vehicle does not incur the tax imposed by the Use Tax Act | 24 | | on those amounts, and the retailer who makes the retail sale of | 25 | | the motor vehicle to the lessor is not required to collect the | 26 | | tax imposed by this Act or to pay the tax imposed by the |
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| 1 | | Retailers' Occupation Tax Act on those amounts. However, the | 2 | | lessor who purchased the motor vehicle assumes the liability | 3 | | for reporting and paying the tax on those amounts directly to | 4 | | the Department in the same form (Illinois Retailers' Occupation | 5 | | Tax, and local retailers' occupation taxes, if applicable) in | 6 | | which the retailer would have reported and paid such tax if the | 7 | | retailer had accounted for the tax to the Department. For | 8 | | amounts received by the lessor from the lessee that are not | 9 | | calculated at the time the lease is executed, the lessor must | 10 | | file the return and pay the tax to the Department by the due | 11 | | date otherwise required by this Act for returns other than | 12 | | transaction returns. If the retailer is entitled under this Act | 13 | | to a discount for collecting and remitting the tax imposed | 14 | | under this Act to the Department with respect to the sale of | 15 | | the motor vehicle to the lessor, then the right to the discount | 16 | | provided in this Act shall be transferred to the lessor with | 17 | | respect to the tax paid by the lessor for any amount received | 18 | | by the lessor from the lessee for the leased vehicle that is | 19 | | not calculated at the time the lease is executed; provided that | 20 | | the discount is only allowed if the return is timely filed and | 21 | | for amounts timely paid. | 22 | | The "selling price" of a motor vehicle that is sold on or | 23 | | after January 1, 2015 for the purpose of leasing for a defined | 24 | | period of longer than one year shall not be reduced by the | 25 | | value of or credit given for traded-in tangible personal | 26 | | property owned by the lessor, nor shall it be reduced by the |
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| 1 | | value of or credit given for traded-in tangible personal | 2 | | property owned by the lessee, regardless of whether the | 3 | | trade-in value thereof is assigned by the lessee to the lessor. | 4 | | In the case of a motor vehicle that is sold for the purpose of | 5 | | leasing for a defined period of longer than one year, the sale | 6 | | occurs at the time of the delivery of the vehicle, regardless | 7 | | of the due date of any lease payments. A lessor who incurs a | 8 | | Retailers' Occupation Tax liability on the sale of a motor | 9 | | vehicle coming off lease may not take a credit against that | 10 | | liability for the Use Tax the lessor paid upon the purchase of | 11 | | the motor vehicle (or for any tax the lessor paid with respect | 12 | | to any amount received by the lessor from the lessee for the | 13 | | leased vehicle that was not calculated at the time the lease | 14 | | was executed) if the selling price of the motor vehicle at the | 15 | | time of purchase was calculated using the definition of | 16 | | "selling price" as defined in this paragraph. Notwithstanding | 17 | | any other provision of this Act to the contrary, lessors shall | 18 | | file all returns and make all payments required under this | 19 | | paragraph to the Department by electronic means in the manner | 20 | | and form as required by the Department. This paragraph does not | 21 | | apply to leases of motor vehicles for which, at the time the | 22 | | lease is entered into, the term of the lease is not a defined | 23 | | period, including leases with a defined initial period with the | 24 | | option to continue the lease on a month-to-month or other basis | 25 | | beyond the initial defined period. | 26 | | Notwithstanding any other provision of law, for any |
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| 1 | | tangible personal property that is sold on or after July 1, | 2 | | 2015 to a merchant who will act as lessor of that tangible | 3 | | personal property under a rental-purchase agreement, as | 4 | | defined in Section 1 of the Rental-Purchase Agreement Act, | 5 | | "selling price" or "amount of sale" means consideration | 6 | | received by the merchant pursuant to the rental-purchase | 7 | | agreement, including amounts due at signing and all monthly or | 8 | | other regular payments charged over the term of the agreement. | 9 | | The retailer who makes the retail sale of that property to the | 10 | | merchant is not required to collect the tax imposed by this Act | 11 | | or to pay the tax imposed by the Retailers' Occupation Tax Act | 12 | | on those amounts. The merchant assumes the liability for | 13 | | reporting, collecting, and remitting tax on the selling price | 14 | | directly to the Department in the same form and manner in which | 15 | | the retailer would have reported and paid such tax if the | 16 | | retailer had been required to pay the tax to the Department. | 17 | | The merchant must file the return and pay the tax to the | 18 | | Department by the due date otherwise required by this Act for | 19 | | returns other than transaction returns. A merchant who incurs a | 20 | | retailers' occupation tax liability on the sale of the tangible | 21 | | personal property at the end of the rental-purchase agreement | 22 | | may not take a credit against that liability for the use tax | 23 | | the merchant paid upon the purchase of the tangible personal | 24 | | property (or for any tax the merchant paid with respect to any | 25 | | amount received by the merchant from the consumer for the | 26 | | leased property that was not calculated at the time the |
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| 1 | | rental-purchase agreement was executed) if the selling price of | 2 | | the property at the time of purchase was calculated using the | 3 | | definition of "selling price" as defined in this paragraph; | 4 | | however, the merchant may file for a one-time credit with the | 5 | | Department for the use tax paid on and after July 1, 2014 and | 6 | | prior to July 1, 2015. | 7 | | The phrase "like kind and character" shall be liberally | 8 | | construed
(including but not limited to any form of motor | 9 | | vehicle for any form of
motor vehicle, or any kind of farm or | 10 | | agricultural implement for any other
kind of farm or | 11 | | agricultural implement), while not including a kind of item
| 12 | | which, if sold at retail by that retailer, would be exempt from | 13 | | retailers'
occupation tax and use tax as an isolated or | 14 | | occasional sale.
| 15 | | "Department" means the Department of Revenue.
| 16 | | "Person" means any natural individual, firm, partnership, | 17 | | association,
joint stock company, joint adventure, public or | 18 | | private corporation, limited
liability company, or a
receiver, | 19 | | executor, trustee, guardian or other representative appointed
| 20 | | by order of any court.
| 21 | | "Retailer" means and includes every person engaged in the | 22 | | business of
making sales at retail as defined in this Section.
| 23 | | A person who holds himself or herself out as being engaged | 24 | | (or who habitually
engages) in selling tangible personal | 25 | | property at retail is a retailer
hereunder with respect to such | 26 | | sales (and not primarily in a service
occupation) |
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| 1 | | notwithstanding the fact that such person designs and produces
| 2 | | such tangible personal property on special order for the | 3 | | purchaser and in
such a way as to render the property of value | 4 | | only to such purchaser, if
such tangible personal property so | 5 | | produced on special order serves
substantially the same | 6 | | function as stock or standard items of tangible
personal | 7 | | property that are sold at retail.
| 8 | | A person whose activities are organized and conducted | 9 | | primarily as a
not-for-profit service enterprise, and who | 10 | | engages in selling tangible
personal property at retail | 11 | | (whether to the public or merely to members and
their guests) | 12 | | is a retailer with respect to such transactions, excepting
only | 13 | | a person organized and operated exclusively for charitable, | 14 | | religious
or educational purposes either (1), to the extent of | 15 | | sales by such person
to its members, students, patients or | 16 | | inmates of tangible personal property
to be used primarily for | 17 | | the purposes of such person, or (2), to the extent
of sales by | 18 | | such person of tangible personal property which is not sold or
| 19 | | offered for sale by persons organized for profit. The selling | 20 | | of school
books and school supplies by schools at retail to | 21 | | students is not
"primarily for the purposes of" the school | 22 | | which does such selling. This
paragraph does not apply to nor | 23 | | subject to taxation occasional dinners,
social or similar | 24 | | activities of a person organized and operated exclusively
for | 25 | | charitable, religious or educational purposes, whether or not | 26 | | such
activities are open to the public.
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| 1 | | A person who is the recipient of a grant or contract under | 2 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 3 | | serves meals to
participants in the federal Nutrition Program | 4 | | for the Elderly in return for
contributions established in | 5 | | amount by the individual participant pursuant
to a schedule of | 6 | | suggested fees as provided for in the federal Act is not a
| 7 | | retailer under this Act with respect to such transactions.
| 8 | | Persons who engage in the business of transferring tangible | 9 | | personal
property upon the redemption of trading stamps are | 10 | | retailers hereunder when
engaged in such business.
| 11 | | The isolated or occasional sale of tangible personal | 12 | | property at retail
by a person who does not hold himself out as | 13 | | being engaged (or who does not
habitually engage) in selling | 14 | | such tangible personal property at retail or
a sale through a | 15 | | bulk vending machine does not make such person a retailer
| 16 | | hereunder. However, any person who is engaged in a business | 17 | | which is not
subject to the tax imposed by the "Retailers' | 18 | | Occupation Tax Act" because
of involving the sale of or a | 19 | | contract to sell real estate or a
construction contract to | 20 | | improve real estate, but who, in the course of
conducting such | 21 | | business, transfers tangible personal property to users or
| 22 | | consumers in the finished form in which it was purchased, and | 23 | | which does
not become real estate, under any provision of a | 24 | | construction contract or
real estate sale or real estate sales | 25 | | agreement entered into with some
other person arising out of or | 26 | | because of such nontaxable business, is a
retailer to the |
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| 1 | | extent of the value of the tangible personal property so
| 2 | | transferred. If, in such transaction, a separate charge is made | 3 | | for the
tangible personal property so transferred, the value of | 4 | | such property, for
the purposes of this Act, is the amount so | 5 | | separately charged, but not less
than the cost of such property | 6 | | to the transferor; if no separate charge is
made, the value of | 7 | | such property, for the purposes of this Act, is the cost
to the | 8 | | transferor of such tangible personal property.
| 9 | | "Retailer maintaining a place of business in this State", | 10 | | or any like
term, means and includes any of the following | 11 | | retailers:
| 12 | | 1. A retailer having or maintaining within this State, | 13 | | directly or by
a subsidiary, an office, distribution house, | 14 | | sales house, warehouse or other
place of business, or any | 15 | | agent or other representative operating within this
State | 16 | | under the authority of the retailer or its subsidiary, | 17 | | irrespective of
whether such place of business or agent or | 18 | | other representative is located here
permanently or | 19 | | temporarily, or whether such retailer or subsidiary is | 20 | | licensed
to do business in this State. However, the | 21 | | ownership of property that is
located at the premises of a | 22 | | printer with which the retailer has contracted for
printing | 23 | | and that consists of the final printed product, property | 24 | | that becomes
a part of the final printed product, or copy | 25 | | from which the printed product is
produced shall not result | 26 | | in the retailer being deemed to have or maintain an
office, |
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| 1 | | distribution house, sales house, warehouse, or other place | 2 | | of business
within this State. | 3 | | 1.1. A retailer having a contract with a person located | 4 | | in this State under which the person, for a commission or | 5 | | other consideration based upon the sale of tangible | 6 | | personal property by the retailer, directly or indirectly | 7 | | refers potential customers to the retailer by providing to | 8 | | the potential customers a promotional code or other | 9 | | mechanism that allows the retailer to track purchases | 10 | | referred by such persons. Examples of mechanisms that allow | 11 | | the retailer to track purchases referred by such persons | 12 | | include but are not limited to the use of a link on the | 13 | | person's Internet website, promotional codes distributed | 14 | | through the person's hand-delivered or mailed material, | 15 | | and promotional codes distributed by the person through | 16 | | radio or other broadcast media. The provisions of this | 17 | | paragraph 1.1 shall apply only if the cumulative gross | 18 | | receipts from sales of tangible personal property by the | 19 | | retailer to customers who are referred to the retailer by | 20 | | all persons in this State under such contracts exceed | 21 | | $10,000 during the preceding 4 quarterly periods ending on | 22 | | the last day of March, June, September, and December. A | 23 | | retailer meeting the requirements of this paragraph 1.1 | 24 | | shall be presumed to be maintaining a place of business in | 25 | | this State but may rebut this presumption by submitting | 26 | | proof that the referrals or other activities pursued within |
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| 1 | | this State by such persons were not sufficient to meet the | 2 | | nexus standards of the United States Constitution during | 3 | | the preceding 4 quarterly periods. | 4 | | 1.2. Beginning July 1, 2011, a retailer having a | 5 | | contract with a person located in this State under which: | 6 | | A. the retailer sells the same or substantially | 7 | | similar line of products as the person located in this | 8 | | State and does so using an identical or substantially | 9 | | similar name, trade name, or trademark as the person | 10 | | located in this State; and | 11 | | B. the retailer provides a commission or other | 12 | | consideration to the person located in this State based | 13 | | upon the sale of tangible personal property by the | 14 | | retailer. | 15 | | The provisions of this paragraph 1.2 shall apply only if | 16 | | the cumulative gross receipts from sales of tangible | 17 | | personal property by the retailer to customers in this | 18 | | State under all such contracts exceed $10,000 during the | 19 | | preceding 4 quarterly periods ending on the last day of | 20 | | March, June, September, and December.
| 21 | | 2. A retailer soliciting orders for tangible personal | 22 | | property by
means of a telecommunication or television | 23 | | shopping system (which utilizes toll
free numbers) which is | 24 | | intended by the retailer to be broadcast by cable
| 25 | | television or other means of broadcasting, to consumers | 26 | | located in this State.
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| 1 | | 3. A retailer, pursuant to a contract with a | 2 | | broadcaster or publisher
located in this State, soliciting | 3 | | orders for tangible personal property by
means of | 4 | | advertising which is disseminated primarily to consumers | 5 | | located in
this State and only secondarily to bordering | 6 | | jurisdictions.
| 7 | | 4. A retailer soliciting orders for tangible personal | 8 | | property by mail
if the solicitations are substantial and | 9 | | recurring and if the retailer benefits
from any banking, | 10 | | financing, debt collection, telecommunication, or | 11 | | marketing
activities occurring in this State or benefits | 12 | | from the location in this State
of authorized installation, | 13 | | servicing, or repair facilities.
| 14 | | 5. A retailer that is owned or controlled by the same | 15 | | interests that own
or control any retailer engaging in | 16 | | business in the same or similar line of
business in this | 17 | | State.
| 18 | | 6. A retailer having a franchisee or licensee operating | 19 | | under its trade
name if the franchisee or licensee is | 20 | | required to collect the tax under this
Section.
| 21 | | 7. A retailer, pursuant to a contract with a cable | 22 | | television operator
located in this State, soliciting | 23 | | orders for tangible personal property by
means of | 24 | | advertising which is transmitted or distributed over a | 25 | | cable
television system in this State.
| 26 | | 8. A retailer engaging in activities in Illinois, which |
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| 1 | | activities in
the state in which the retail business | 2 | | engaging in such activities is located
would constitute | 3 | | maintaining a place of business in that state.
| 4 | | "Bulk vending machine" means a vending machine,
containing | 5 | | unsorted confections, nuts, toys, or other items designed
| 6 | | primarily to be used or played with by children
which, when a | 7 | | coin or coins of a denomination not larger than $0.50 are | 8 | | inserted, are dispensed in equal portions, at random and
| 9 | | without selection by the customer.
| 10 | | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14; | 11 | | 98-1089, eff. 1-1-15; revised 10-1-14.)
| 12 | | Section 10. The Retailers' Occupation Tax Act is amended by | 13 | | changing Section 1 as follows:
| 14 | | (35 ILCS 120/1) (from Ch. 120, par. 440)
| 15 | | Sec. 1. Definitions. "Sale at retail" means any transfer of | 16 | | the
ownership of or title to
tangible personal property to a | 17 | | purchaser, for the purpose of use or
consumption, and not for | 18 | | the purpose of resale in any form as tangible
personal property | 19 | | to the extent not first subjected to a use for which it
was | 20 | | purchased, for a valuable consideration: Provided that the | 21 | | property
purchased is deemed to be purchased for the purpose of | 22 | | resale, despite
first being used, to the extent to which it is | 23 | | resold as an ingredient of
an intentionally produced product or | 24 | | byproduct of manufacturing. For this
purpose, slag produced as |
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| 1 | | an incident to manufacturing pig iron or steel
and sold is | 2 | | considered to be an intentionally produced byproduct of
| 3 | | manufacturing. Transactions whereby the possession of the | 4 | | property is
transferred but the seller retains the title as | 5 | | security for payment of the
selling price shall be deemed to be | 6 | | sales.
| 7 | | "Sale at retail" shall be construed to include any transfer | 8 | | of the
ownership of or title to tangible personal property to a | 9 | | purchaser, for use
or consumption by any other person to whom | 10 | | such purchaser may transfer the
tangible personal property | 11 | | without a valuable consideration, and to include
any transfer, | 12 | | whether made for or without a valuable consideration, for
| 13 | | resale in any form as tangible personal property unless made in | 14 | | compliance
with Section 2c of this Act.
| 15 | | Sales of tangible personal property, which property, to the | 16 | | extent not
first subjected to a use for which it was purchased, | 17 | | as an ingredient or
constituent, goes into and forms a part of | 18 | | tangible personal property
subsequently the subject of a "Sale | 19 | | at retail", are not sales at retail as
defined in this Act: | 20 | | Provided that the property purchased is deemed to be
purchased | 21 | | for the purpose of resale, despite first being used, to the
| 22 | | extent to which it is resold as an ingredient of an | 23 | | intentionally produced
product or byproduct of manufacturing.
| 24 | | "Sale at retail" shall be construed to include any Illinois | 25 | | florist's
sales transaction in which the purchase order is | 26 | | received in Illinois by a
florist and the sale is for use or |
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| 1 | | consumption, but the Illinois florist
has a florist in another | 2 | | state deliver the property to the purchaser or the
purchaser's | 3 | | donee in such other state.
| 4 | | Nonreusable tangible personal property that is used by | 5 | | persons engaged in
the business of operating a restaurant, | 6 | | cafeteria, or drive-in is a sale for
resale when it is | 7 | | transferred to customers in the ordinary course of business
as | 8 | | part of the sale of food or beverages and is used to deliver, | 9 | | package, or
consume food or beverages, regardless of where | 10 | | consumption of the food or
beverages occurs. Examples of those | 11 | | items include, but are not limited to
nonreusable, paper and | 12 | | plastic cups, plates, baskets, boxes, sleeves, buckets
or other | 13 | | containers, utensils, straws, placemats, napkins, doggie bags, | 14 | | and
wrapping or packaging
materials that are transferred to | 15 | | customers as part of the sale of food or
beverages in the | 16 | | ordinary course of business.
| 17 | | The purchase, employment and transfer of such tangible | 18 | | personal property
as newsprint and ink for the primary purpose | 19 | | of conveying news (with or
without other information) is not a | 20 | | purchase, use or sale of tangible
personal property.
| 21 | | A person whose activities are organized and conducted | 22 | | primarily as a
not-for-profit service enterprise, and who | 23 | | engages in selling tangible
personal property at retail | 24 | | (whether to the public or merely to members and
their guests) | 25 | | is engaged in the business of selling tangible personal
| 26 | | property at retail with respect to such transactions, excepting |
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| 1 | | only a
person organized and operated exclusively for | 2 | | charitable, religious or
educational purposes either (1), to | 3 | | the extent of sales by such person to
its members, students, | 4 | | patients or inmates of tangible personal property to
be used | 5 | | primarily for the purposes of such person, or (2), to the | 6 | | extent of
sales by such person of tangible personal property | 7 | | which is not sold or
offered for sale by persons organized for | 8 | | profit. The selling of school
books and school supplies by | 9 | | schools at retail to students is not
"primarily for the | 10 | | purposes of" the school which does such selling. The
provisions | 11 | | of this paragraph shall not apply to nor subject to taxation
| 12 | | occasional dinners, socials or similar activities of a person | 13 | | organized and
operated exclusively for charitable, religious | 14 | | or educational purposes,
whether or not such activities are | 15 | | open to the public.
| 16 | | A person who is the recipient of a grant or contract under | 17 | | Title VII of
the Older Americans Act of 1965 (P.L. 92-258) and | 18 | | serves meals to
participants in the federal Nutrition Program | 19 | | for the Elderly in return for
contributions established in | 20 | | amount by the individual participant pursuant
to a schedule of | 21 | | suggested fees as provided for in the federal Act is not
| 22 | | engaged in the business of selling tangible personal property | 23 | | at retail
with respect to such transactions.
| 24 | | "Purchaser" means anyone who, through a sale at retail, | 25 | | acquires the
ownership of or title to tangible personal | 26 | | property for a valuable
consideration.
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| 1 | | "Reseller of motor fuel" means any person engaged in the | 2 | | business of selling
or delivering or transferring title of | 3 | | motor fuel to another person
other than for use or consumption.
| 4 | | No person shall act as a reseller of motor fuel within this | 5 | | State without
first being registered as a reseller pursuant to | 6 | | Section 2c or a retailer
pursuant to Section 2a.
| 7 | | "Selling price" or the "amount of sale" means the | 8 | | consideration for a
sale valued in money whether received in | 9 | | money or otherwise, including
cash, credits, property, other | 10 | | than as hereinafter provided, and services,
but not including | 11 | | the value of or credit given for traded-in tangible
personal | 12 | | property where the item that is traded-in is of like kind and
| 13 | | character as that which is being sold, and shall be determined | 14 | | without any
deduction on account of the cost of the property | 15 | | sold, the cost of
materials used, labor or service cost or any | 16 | | other expense whatsoever, but
does not include charges that are | 17 | | added to prices by sellers on account of
the seller's tax | 18 | | liability under this Act, or on account of the seller's
duty to | 19 | | collect, from the purchaser, the tax that is imposed by the Use | 20 | | Tax
Act, or, except as otherwise provided with respect to any | 21 | | cigarette tax imposed by a home rule unit, on account of the | 22 | | seller's tax liability under any local occupation tax | 23 | | administered by the Department, or, except as otherwise | 24 | | provided with respect to any cigarette tax imposed by a home | 25 | | rule unit on account of the seller's duty to collect, from the | 26 | | purchasers, the tax that is imposed under any local use tax |
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| 1 | | administered by the Department.
Effective December 1, 1985, | 2 | | "selling price" shall include charges that
are added to prices | 3 | | by sellers on account of the seller's
tax liability under the | 4 | | Cigarette Tax Act, on account of the sellers'
duty to collect, | 5 | | from the purchaser, the tax imposed under the Cigarette
Use Tax | 6 | | Act, and on account of the seller's duty to collect, from the
| 7 | | purchaser, any cigarette tax imposed by a home rule unit.
| 8 | | Notwithstanding any law to the contrary, for any motor | 9 | | vehicle, as defined in Section 1-146 of the Vehicle Code, that | 10 | | is sold on or after January 1, 2015 for the purpose of leasing | 11 | | the vehicle for a defined period that is longer than one year | 12 | | and (1) is a motor vehicle of the second division that: (A) is | 13 | | a self-contained motor vehicle designed or permanently | 14 | | converted to provide living quarters for recreational, | 15 | | camping, or travel use, with direct walk through access to the | 16 | | living quarters from the driver's seat; (B) is of the van | 17 | | configuration designed for the transportation of not less than | 18 | | 7 nor more than 16 passengers; or (C) has a gross vehicle | 19 | | weight rating of 8,000 pounds or less or (2) is a motor vehicle | 20 | | of the first division, "selling price" or "amount of sale" | 21 | | means the consideration received by the lessor pursuant to the | 22 | | lease contract, including amounts due at lease signing and all | 23 | | monthly or other regular payments charged over the term of the | 24 | | lease. Also included in the selling price is any amount | 25 | | received by the lessor from the lessee for the leased vehicle | 26 | | that is not calculated at the time the lease is executed, |
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| 1 | | including, but not limited to, excess mileage charges and | 2 | | charges for excess wear and tear. For sales that occur in | 3 | | Illinois, with respect to any amount received by the lessor | 4 | | from the lessee for the leased vehicle that is not calculated | 5 | | at the time the lease is executed, the lessor who purchased the | 6 | | motor vehicle does not incur the tax imposed by the Use Tax Act | 7 | | on those amounts, and the retailer who makes the retail sale of | 8 | | the motor vehicle to the lessor is not required to collect the | 9 | | tax imposed by the Use Tax Act or to pay the tax imposed by this | 10 | | Act on those amounts. However, the lessor who purchased the | 11 | | motor vehicle assumes the liability for reporting and paying | 12 | | the tax on those amounts directly to the Department in the same | 13 | | form (Illinois Retailers' Occupation Tax, and local retailers' | 14 | | occupation taxes, if applicable) in which the retailer would | 15 | | have reported and paid such tax if the retailer had accounted | 16 | | for the tax to the Department. For amounts received by the | 17 | | lessor from the lessee that are not calculated at the time the | 18 | | lease is executed, the lessor must file the return and pay the | 19 | | tax to the Department by the due date otherwise required by | 20 | | this Act for returns other than transaction returns. If the | 21 | | retailer is entitled under this Act to a discount for | 22 | | collecting and remitting the tax imposed under this Act to the | 23 | | Department with respect to the sale of the motor vehicle to the | 24 | | lessor, then the right to the discount provided in this Act | 25 | | shall be transferred to the lessor with respect to the tax paid | 26 | | by the lessor for any amount received by the lessor from the |
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| 1 | | lessee for the leased vehicle that is not calculated at the | 2 | | time the lease is executed; provided that the discount is only | 3 | | allowed if the return is timely filed and for amounts timely | 4 | | paid. | 5 | | The "selling price" of a motor vehicle that is sold on or | 6 | | after January 1, 2015 for the purpose of leasing for a defined | 7 | | period of longer than one year shall not be reduced by the | 8 | | value of or credit given for traded-in tangible personal | 9 | | property owned by the lessor, nor shall it be reduced by the | 10 | | value of or credit given for traded-in tangible personal | 11 | | property owned by the lessee, regardless of whether the | 12 | | trade-in value thereof is assigned by the lessee to the lessor. | 13 | | In the case of a motor vehicle that is sold for the purpose of | 14 | | leasing for a defined period of longer than one year, the sale | 15 | | occurs at the time of the delivery of the vehicle, regardless | 16 | | of the due date of any lease payments. A lessor who incurs a | 17 | | Retailers' Occupation Tax liability on the sale of a motor | 18 | | vehicle coming off lease may not take a credit against that | 19 | | liability for the Use Tax the lessor paid upon the purchase of | 20 | | the motor vehicle (or for any tax the lessor paid with respect | 21 | | to any amount received by the lessor from the lessee for the | 22 | | leased vehicle that was not calculated at the time the lease | 23 | | was executed) if the selling price of the motor vehicle at the | 24 | | time of purchase was calculated using the definition of | 25 | | "selling price" as defined in this paragraph.
Notwithstanding | 26 | | any other provision of this Act to the contrary, lessors shall |
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| 1 | | file all returns and make all payments required under this | 2 | | paragraph to the Department by electronic means in the manner | 3 | | and form as required by the Department. This paragraph does not | 4 | | apply to leases of motor vehicles for which, at the time the | 5 | | lease is entered into, the term of the lease is not a defined | 6 | | period, including leases with a defined initial period with the | 7 | | option to continue the lease on a month-to-month or other basis | 8 | | beyond the initial defined period. | 9 | | Notwithstanding any other provision of law, for any | 10 | | tangible personal property that is sold on or after July 1, | 11 | | 2015 to a merchant who will act as lessor of that tangible | 12 | | personal property under a rental-purchase agreement, as | 13 | | defined in Section 1 of the Rental-Purchase Agreement Act, | 14 | | "selling price" or "amount of sale" means consideration | 15 | | received by the merchant pursuant to the rental-purchase | 16 | | agreement, including amounts due at signing and all monthly or | 17 | | other regular payments charged over the term of the agreement. | 18 | | The retailer who makes the retail sale of that property to the | 19 | | merchant is not required to collect the tax imposed by the Use | 20 | | Tax Act or to pay the tax imposed by this Act on those amounts. | 21 | | The merchant assumes the liability for reporting, collecting, | 22 | | and remitting tax on the selling price directly to the | 23 | | Department in the same form and manner in which the retailer | 24 | | would have reported and paid such tax if the retailer had been | 25 | | required to pay the tax to the Department. The merchant must | 26 | | file the return and pay the tax to the Department by the due |
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| 1 | | date otherwise required by this Act for returns other than | 2 | | transaction returns. A merchant who incurs a retailers' | 3 | | occupation tax liability on the sale of the tangible personal | 4 | | property at the end of the rental-purchase agreement may not | 5 | | take a credit against that liability for the use tax the | 6 | | merchant paid upon the purchase of the tangible personal | 7 | | property (or for any tax the merchant paid with respect to any | 8 | | amount received by the merchant from the consumer for the | 9 | | leased property that was not calculated at the time the | 10 | | rental-purchase agreement was executed) if the selling price of | 11 | | the property at the time of purchase was calculated using the | 12 | | definition of "selling price" as defined in this paragraph; | 13 | | however, the merchant may file for a one-time credit with the | 14 | | Department for the use tax paid on and after July 1, 2014 and | 15 | | prior to July 1, 2015. | 16 | | The phrase "like kind and character" shall be liberally | 17 | | construed
(including but not limited to any form of motor | 18 | | vehicle for any form of
motor vehicle, or any kind of farm or | 19 | | agricultural implement for any other
kind of farm or | 20 | | agricultural implement), while not including a kind of item
| 21 | | which, if sold at retail by that retailer, would be exempt from | 22 | | retailers'
occupation tax and use tax as an isolated or | 23 | | occasional sale.
| 24 | | "Gross receipts" from the sales of tangible personal | 25 | | property at retail
means the total selling price or the amount | 26 | | of such sales, as hereinbefore
defined. In the case of charge |
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| 1 | | and time sales, the amount thereof shall be
included only as | 2 | | and when payments are received by the seller.
Receipts or other | 3 | | consideration derived by a seller from
the sale, transfer or | 4 | | assignment of accounts receivable to a wholly owned
subsidiary | 5 | | will not be deemed payments prior to the time the purchaser
| 6 | | makes payment on such accounts.
| 7 | | "Department" means the Department of Revenue.
| 8 | | "Person" means any natural individual, firm, partnership, | 9 | | association,
joint stock company, joint adventure, public or | 10 | | private corporation, limited
liability company, or a receiver, | 11 | | executor, trustee, guardian or other
representative appointed | 12 | | by order of any court.
| 13 | | The isolated or occasional sale of tangible personal | 14 | | property at retail
by a person who does not hold himself out as | 15 | | being engaged (or who does not
habitually engage) in selling | 16 | | such tangible personal property at retail, or
a sale through a | 17 | | bulk vending machine, does not constitute engaging in a
| 18 | | business of selling such tangible personal property at retail | 19 | | within the
meaning of this Act; provided that any person who is | 20 | | engaged in a business
which is not subject to the tax imposed | 21 | | by this Act because of involving
the sale of or a contract to | 22 | | sell real estate or a construction contract to
improve real | 23 | | estate or a construction contract to engineer, install, and
| 24 | | maintain an integrated system of products, but who, in the | 25 | | course of
conducting such business,
transfers tangible | 26 | | personal property to users or consumers in the finished
form in |
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| 1 | | which it was purchased, and which does not become real estate | 2 | | or was
not engineered and installed, under any provision of a | 3 | | construction contract or
real estate sale or real estate sales | 4 | | agreement entered into with some other
person arising out of or | 5 | | because of such nontaxable business, is engaged in the
business | 6 | | of selling tangible personal property at retail to the extent | 7 | | of the
value of the tangible personal property so transferred. | 8 | | If, in such a
transaction, a separate charge is made for the | 9 | | tangible personal property so
transferred, the value of such | 10 | | property, for the purpose of this Act, shall be
the amount so | 11 | | separately charged, but not less than the cost of such property
| 12 | | to the transferor; if no separate charge is made, the value of | 13 | | such property,
for the purposes of this Act, is the cost to the | 14 | | transferor of such tangible
personal property. Construction | 15 | | contracts for the improvement of real estate
consisting of | 16 | | engineering, installation, and maintenance of voice, data, | 17 | | video,
security, and all telecommunication systems do not | 18 | | constitute engaging in a
business of selling tangible personal | 19 | | property at retail within the meaning of
this Act if they are | 20 | | sold at one specified contract price.
| 21 | | A person who holds himself or herself out as being engaged | 22 | | (or who habitually
engages) in selling tangible personal | 23 | | property at retail is a person
engaged in the business of | 24 | | selling tangible personal property at retail
hereunder with | 25 | | respect to such sales (and not primarily in a service
| 26 | | occupation) notwithstanding the fact that such person designs |
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| 1 | | and produces
such tangible personal property on special order | 2 | | for the purchaser and in
such a way as to render the property | 3 | | of value only to such purchaser, if
such tangible personal | 4 | | property so produced on special order serves
substantially the | 5 | | same function as stock or standard items of tangible
personal | 6 | | property that are sold at retail.
| 7 | | Persons who engage in the business of transferring tangible | 8 | | personal
property upon the redemption of trading stamps are | 9 | | engaged in the business
of selling such property at retail and | 10 | | shall be liable for and shall pay
the tax imposed by this Act | 11 | | on the basis of the retail value of the
property transferred | 12 | | upon redemption of such stamps.
| 13 | | "Bulk vending machine" means a vending machine,
containing | 14 | | unsorted confections, nuts, toys, or other items designed
| 15 | | primarily to be used or played with by children
which, when a | 16 | | coin or coins of a denomination not larger than $0.50 are
| 17 | | inserted, are dispensed in equal portions, at random and
| 18 | | without selection by the customer.
| 19 | | (Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)".
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